Debates of March 4, 2011 (day 51)

Topics
Statements

QUESTION 578-16(5): BUSINESS INCENTIVE POLICY

Mahsi cho, Mr. Speaker. In my Member’s statement I talked about the Business Incentive Policy as it’s applied in the local preference adjustment. Mr. Speaker, I’d like to ask the Minister of ITI questions on this.

Will the Minister go back to the department to see if the current BIP is working in the small communities in the sense that the small communities are getting the majority of the contracts within the small communities? Thank you.

Speaker: MR. SPEAKER

Thank you. The Minister responsible for ITI, Minister McLeod.

Thank you, Mr. Speaker. We see a priority for this government to try to get as much of our expenditures into the smaller communities. We have a number of tools that we use to try to do that. Obviously, we use the Business Incentive Policy. Of course, we have a Negotiated Contract Policy to allow us to do that, but I would be very pleased to go back to the department and find out whether contracts are making it to local businesses in the communities. Thank you, Mr. Speaker.

Mr. Speaker, will the Minister look at the total impacts of changing the Business Incentive Policy from what it is currently to my recommendation? Just a paper exercise. I am looking for my recommendations of applying a flat 15 percent across the board for local adjustments only. Thank you.

Mr. Speaker, we are quite prepared to do that analysis. I should mention that the Business Incentive Policy was set up to provide a level playing field for northern businesses that invest in the North and have their offices and their workforce and buildings in the North, to give them a level playing field with southern contractors. That is the primary purpose of the Business Incentive Policy. With regards to providing incentives to small communities versus other northern communities, that is not the primary purpose, but we are prepared to do the analysis and provide the Member with our preliminary findings. Thank you, Mr. Speaker.

Mr. Speaker, I thought the main objective or primary purpose would be to keep the GNWT dollars in the NWT. I thought the level playing field was a result of trying to do that. Will the Minister go back to the small communities, maybe not every small community, not a full consultation process, but to some of the small communities to hear first hand from the small community contractors what the issues are with the BIP? Thank you.

Mr. Speaker, if there is an indication from the Members here that it’s something that we should do, we would be prepared to do that. Right now we haven’t had any indication that this is something that the majority of Members want us to do. I would be prepared to put that forward as part of the transitional arrangements with the next Assembly. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Final supplementary, Mr. Beaulieu.

Mr. Speaker, I would like to ask the Minister if he could do more analysis on BIP. I would like to ask the Minister if they can do adjustments to contracts that were already let in the small communities, a new set of adjustments based on 15 percent local preference only and maybe discuss the results with me so that I am able to also determine what the issues are when I am talking to local contractors in Fort Res and Lutselk’e. Thank you.

Mr. Speaker, we would be prepared to provide the Member with some information as to what the issues would be with proceeding with what the Member is proposing. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Mr. McLeod. Next I have Mr. Yakeleya.