Debates of February 24, 2005 (day 43)

Thank you, Mr. Speaker. Seeing as I gave away my last question by not asking a question, I want to re-ask the Minister of RWED about the implementation and application of the BIP. I would like to know if he can answer how he can justify saying that there is no value added in services that local businesses do provide. They bring in mobile homes, they set up land spaces and they do all sorts of work that puts down mobile homes in the North. How could he say that there is no value-added work in that? Thank you.

Thank you, Ms. Lee. The honourable Minister of Resources, Wildlife and Economic Development, Mr. Bell.

Return To Question 480-15(3): Business Incentive Policy Application

Thank you, Mr. Speaker. For local businesses that would be installing mobile homes in communities, there is value added. There is employment created and that money will stay in communities and that is why we insisted that the BIP had to apply for the installation of these mobile homes. Those contracts were awarded, I believe, largely to northern companies, doing work in northern communities.

In terms of the actual phone call to purchase a trailer from a company in Sherwood Park, we know these can’t be currently constructed in the Northwest Territories -- I hope someday they will be -- but we didn’t see a lot of value added in that phone call and the potential that that would result in a 15 percent price increase.

Install in communities and the work that that would generate is very important, very important for our local economies. That is why the BIP applied to that portion of the contract. Thank you, Mr. Speaker.

Thank you, Mr. Bell. Supplementary, Ms. Lee.

Supplementary To Question 480-15(3): Business Incentive Policy Application

Thank you, Mr. Speaker. Mr. Speaker, on what basis does he suggest that there are no businesses in the Territories who could provide homes? There is no manufacturing mobile home factory, but there are lots of businesses in the North that could provide housing to the North. Is it not his responsibility to look for business opportunities and promote growth and promote opportunities? On what basis does he conclude that?

Thank you, Ms. Lee. Mr. Bell.

Further Return To Question 480-15(3): Business Incentive Policy Application

Thank you, Mr. Speaker. The Member makes a very good point. There are companies that can build stick-built homes in the Northwest Territories and we could have chosen that approach, but it would have been very difficult. You wouldn’t get stick-built homes for $130,000 in communities. So if it cost $300,000 to put a stick-built home in a community and you need to, on a cost-recovery basis, get the money back for these 22 homes, you would have been charging a rent…We already know $1,300 is difficult. I can’t imagine the teachers and nurses and professionals in the communities coming up with $2,000 plus for rent and that’s what would have happened, I believe, with stick-built homes. Can mobile homes be manufactured in the North in the future? I believe they can. I am hoping our government will work with anybody who is interested in looking at this business.

We do have to make sure that it’s a viable one, but we are certainly willing to consider business plans and work with anybody who has this in mind. I certainly think that would be a positive step going forward. Thank you, Mr. Speaker.

Thank you, Mr. Bell. Supplementary, Ms. Lee.

Supplementary To Question 480-15(3): Business Incentive Policy Application

Thank you, Mr. Speaker. I must say I am very impressed with how the words roll out so well from the Minister, Mr. Speaker. I wonder if all his intentions are dreamed up and practiced in his sleep.

---Laughter

Mr. Speaker, as long as this government brings up this urgent policy at the last second and says unless we order these homes, we aren’t going to have housing for the seniors and we have to go as cheap as possible. How is that going to create an industry? Why is it okay for the Minister to provide all sorts of subsidies for all sorts of industries in the North because we want to create jobs and why would he not look at home manufacturing businesses in the North that creates jobs in the North? Has he looked at that in the last two months? Thank you.

Thank you, Ms. Lee. Mr. Bell.

Further Return To Question 480-15(3): Business Incentive Policy Application

Mr. Speaker, I am not quite clear. I did say we would look at proposals to construct mobile homes in the North. The debate over stick-built over mobile homes was one that was taken. The Housing Corporation looked on a cost-recovery basis of what they could do in communities. They determined that stick-built constructed homes would be in the neighbourhood of $200,000, mobile homes at $133,000. It was quite clear that if they wanted a program based on cost recovery, this was what they had determined was the best way to go. So if somebody approaches us and wants to look at construction of mobile homes and a factory due to that in one of the communities, we will certainly take a look at that. We may get back to stick built. This is a balance between creating employment and putting the most economic type of housing on the ground. That’s a policy decision to be taken, and those decisions, at this point, lie with the Housing Corporation. Thank you, Mr. Speaker.