Debates of March 10, 2009 (day 26)

Thank you, Mr. Speaker. The BIP policy, as many of us well know, was established to help grow, foster, develop northern business and development. I think, in many cases, it has worked quite successfully to demonstrate that there is a real genuine interest in developing the northern economy and establishing southern businesses here in the North. Mr. Speaker, sometimes, though, when a company is listed under the BIP policy, they get sold and basically all that is left is the storefront and the actual business that does the work vacates the Northwest Territories but they keep their storefront name just for the context of staying involved under the BIP policy. Mr. Speaker, I see that as wrong. It was brought forward by a constituent of mine that believes it is wrong. My question to the Minister who would be in charge of this would be our Honourable Bob McLeod for ITI. What type of demonstrated measures does his department do and investigate to make sure that when a company qualifies for BIP, they actually are a northern business doing northern business? Thank you, Mr. Speaker.

Thank you, Mr. Hawkins. The honourable Minister of Industry, Tourism and Investment, Mr. Bob McLeod.

Thank you, Mr. Speaker. We actually have people right on the ground that can go and investigate the business to make sure that there are products that are being sold, that they are sold here from an establishment in the Northwest Territories. As well, we do a check on the individual’s involvement in the business. Thank you, Mr. Speaker.

Mr. Speaker, to avoid naming the specific company, the Minister knows the one I am referring to, because I actually brought it to his attention a couple of months ago. The fact is that the storefront exists but it was in the context of a manufacturing business that could be described as...Once the business was sold, the business moved all of its manufacturing to Edmonton to the company that does it. So they just filtered through the Yellowknife office. Mr. Speaker, by the definition of this Minister for ITI, in his view, would this still qualify as a northern business although it is sold to a southern company and the only thing they really keep is just the storefront and the phone number in the phone book? Does that still qualify under this Minister’s definition? Thank you.

I would like to point out to the Member, as he knows, that we are undertaking a review of the Business Incentive Policy and certainly that is a perfect opportunity to address these kinds of concerns. We also have a Senior Management Preference Policy that is set up specifically to look at these kinds of issues. The whole premise behind the Business Incentive Policy is to benefit northern businesses. If there are no benefits to the North, then it would be of concern. I don’t have all of the specifics of the business that the Member is referring to. I think it is a rule of thumb that there would have to be benefits to the North and it would have to be based here in the Northwest Territories. Thank you, Mr. Speaker.

Mr. Speaker, I think the answer there is the willingness to look at this issue. I want to get assurance from this Minister, because my constituent has brought this issue forward to me and wants to continue to make investment in the North. You don’t have to go too far to see their investment; it’s quite significant. The investment by this company that I’m referring to, I’d be more than pleased to refresh the name to the Minister after this question period. The fact is, they don’t represent northern business anymore; their name, maybe. Would the Minister be willing to reinvestigate this business I’m referring to, to make sure they stand up to the standards of the BIP policy, that they are providing benefits to the North, and be prepared to perhaps disqualify them for using their BIP name when they’re not really a northern company doing northern business? Thank you, Mr. Speaker.

Thank you, Mr. Speaker. When we investigate these types of complaints or businesses, we use spirit and intent. The whole spirit and intent of the Business Incentive Policy is to provide for northern preference. Certainly we would investigate and our normal practice is if they don’t meet the criteria, then they wouldn’t be eligible. Thank you, Mr. Speaker.

Thank you, Mr. McLeod. Final supplementary, Mr. Hawkins.

Is the Minister willing to, if I was to refresh the Minister with that name here later today…refresh his memory, that is; I said refresh the Minister...

---Laughter

…I’ll leave that up to his own discretion. Mr. Speaker, if I remind the Minister later of this name, would he be willing to send someone down tomorrow morning to make sure that this business that I would describe as a mock northern business, to make sure that they, sort of, get the treatment that they deserve when we have true northern businesses wanting to make further investment but they don’t believe that there’s a true level playing field provided here and they just want to make sure ITI is providing that true, fair playing field? Would the Minister be willing to do that? Thank you, Mr. Speaker.

Thank you, Mr. Speaker. I would be pleased to investigate it. The BIP policy does provide for non-resident-owned businesses that qualify for the Business Incentive Policy. If the Member would refresh my memory, I would check it out. However, the last business that we checked out indicated that that business was BIP-able. Thank you.

Thank you, Mr. McLeod. The honourable Member for Mackenzie Delta, Mr. Krutko.