Debates of May 27, 2009 (day 29)

Date
May
27
2009
Session
16th Assembly, 3rd Session
Day
29
Speaker
Members Present
Mr. Abernethy, Mr. Beaulieu, Ms. Bisaro, Mr. Bromley, Hon. Paul Delorey, Mrs. Groenewegen, Mr. Hawkins, Mr. Jacobson, Mr. Krutko, Hon. Jackson Lafferty, Hon. Sandy Lee, Hon. Bob McLeod, Hon. Michael McLeod, Hon. Robert McLeod, Mr. Menicoche, Hon. Michael Miltenberger, Mr. Ramsay, Hon. Floyd Roland, Mr. Yakeleya
Topics
Statements

QUESTION 344-16(3): SOUTHERN BIDS AND NORTHERN CONSTRUCTION PROJECTS

Thank you very much, Mr. Speaker. I wanted to raise the issue with the Minister responsible for Industry, Tourism and Investment, there’s a disturbing trend that’s happening in the Northwest Territories with regard to contracting and I believe that the time to raise the issue is now. What’s happening there, Mr. Speaker, is that we’re getting a lot of southern bidders, they’re coming in with low bids. Mr. Premier mentioned in his sessional statement that it’s an opportunity for government to save money but at the same time the missed opportunity for our local businesses and local employment. I would like to ask what specific programs and/or protection do we offer our communities and businesses, Mr. Speaker? Thank you.

Speaker: MR. SPEAKER

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

Thank you, Mr. Speaker. The Government of the Northwest Territories still has the Business Incentive Policy in place and operational. It provides a 15 percent preference for BIP approved companies; as well, a further 5 percent local preference for businesses from the local community. If a company comes in from the south and puts in a bid, the local companies have a 20 percent northern preference. Thank you, Mr. Speaker.

Thank you, Mr. Speaker. I am well aware of the BIP program, but I think the concern is that should our northern companies and local companies lose those bids, they are at risk of laying off local people and at risk of having a negative effect on our community. What I am asking, Mr. Speaker, is how can we protect our local workforce? If a southern bidder gets it, and opportunity to save money for government is fine, but can we ensure that our local businesses and people get employment and opportunities? Thank you.

Thank you, Mr. Speaker. We have a number of tools at our disposal. Primarily we have a Negotiated Contracts Policy whereby we can negotiate or limit tenders to northern businesses that we have MOUs, and contracting with a number of aboriginal governments, and also we use the standing offer agreements with local businesses. As well, we can buy locally up to $5,000. Thank you, Mr. Speaker.

Thank you, Mr. Speaker. I guess what I’m after again is the worst-case scenario. A community loses an opportunity for a bid and it appears that the southern contractor will come in with their own sources and their own resources and not leave any benefits behind. That is what I would like our government to look at and see if anything can be done with that regard. Thank you.

Thank you, Mr. Speaker. Certainly we want to maintain and maximize benefits to our northern workforce and northern businesses, so we take whatever steps and tools that are available to us to ensure that we maximize those benefits. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

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

Thank you, Mr. Speaker. Is it possible to write those in the…I think that we do bid offers or request for proposal. Is it possible to advertise it in those requests for proposals and/or bids to let it be known to all the bidders out there that proximity communities and their businesses and their workers should be a priority? Thank you.

Thank you, Mr. Speaker. We operate in an environment where we have a number of internal trade agreements and we follow those conventions although we do have, through the Agreement on Internal Trade, the Northern Preference Policy is grandfathered. But certainly our existing programs already recognize what the Member is suggesting. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Thank you, Mr. McLeod. The honourable Member for Tu Nedhe, Mr. Beaulieu.