Thank you, Mr. Speaker. I rise today to address the detailed reports in the tabled report on the GNWT contracts over $5,000 in the 2012-2013 budget year and the response to my written questions received on February 25, 2014, by the Minister of Finance.
I have said on more than one occasion that we are dealing with an antiquated, outdated and ultimately unconstitutional negotiating and sole-source contracting policy with this government. It’s abundantly clear that the taxpayers are holding the bag in its shortfalls.
I have always said the devil is in the details. With that in mind, let’s examine the results of my inquiry that pay credence to my statement of fact.
Fact: of the approximately $300 million in GNWT contracts, negotiated and sole source contracts represent 29.7 percent or approximately one in three contract dollars to the tune of almost $100 million.
Fact: we spend $36.9 million in sole-source contracts, almost half of this number is change orders.
Fact: alarming still is the total dollar amount in change orders of over $34 million, which accounts for 11.4 percent of all contract dollars.
Fact: of over the $34 million in change orders, about 59 percent of this overage is attributable to negotiated and sole-sourced contracts.
So, what is to be made of all these facts? Clearly, something has to give in how we approach our contracting environment in the Northwest Territories. Legally, expecting the taxpayer to pick up the tab of $34 million in change orders when companies fail to live up to their contractual and binding obligations should be something of a good debate in this House. However, in reality, this government is facing a debt wall and wall of worry, especially with the recent admittance of over $38 million in miscalculation of our personal and corporate tax revenues.
If the Minister of Finance wants to find ways to mitigate this department’s taxation revenue faux pas, the answer is right under his nose, which is modernize this government’s negotiated and sole-source contract policy and do away with taxpayers picking up the tab in overall GNWT contract change orders.
In other words, make companies accountable. Yes, Mr. Speaker, it is that simple. Thank you.
Thank you, Mr. Dolynny. The honourable Member for Deh Cho, Mr. Nadli.
