Debates of March 6, 2014 (day 24)

Date
March
6
2014
Session
17th Assembly, 5th Session
Day
24
Speaker
Members Present
Hon. Glen Abernethy, Hon. Tom Beaulieu, Ms. Bisaro, Mr. Blake, Mr. Bouchard, Mr. Bromley, Mr. Dolynny, Mrs. Groenewegen, Mr. Hawkins, Hon. Jackie Jacobson, Hon. Jackson Lafferty, Hon. Bob McLeod, Hon. Robert McLeod, Mr. Menicoche, Hon. Michael Miltenberger, Mr. Moses, Mr. Nadli, Hon. David Ramsay, Mr. Yakeleya
Topics
Statements

QUESTION 232-17(5): SOLE-SOURCED AND NEGOTIATED CONTRACTS

Thank you, Mr. Speaker. I, like many residents, am concerned with this government’s antiquated negotiated and sole-source contracting policy and how the taxpayers are forced to be holding the bag of its mismanagement. The recently tabled response to my question on GNWT contracts over $5,000 does raise awareness of this concern. My questions today are for the Minister of Finance.

Can the Minister comment why taxpayers were forced to pick up the tab of $34 million in the GNWT contract change orders in 2012-2013? Thank you.

Speaker: MR. SPEAKER

Thank you, Mr. Dolynny. Honourable Minister of Finance, Mr. Miltenberger.

Thank you, Mr. Speaker. Change orders often result from when you’re doing major renovations and things are uncovered during the course of a project that were not anticipated or seen by anybody, including engineers or the architects or the people doing the project management. It’s all tied into required work to complete the project according to the schedule and according to the agreed to project plan. All the capital plan is funded with taxpayers’ dollars, as are our O and M budgets for the most part. Thank you.

Mr. Speaker, the negotiated and sole-source contract policies were designed years ago when there were all but a handful of Aboriginal companies and they wanted to build capacity in the Northwest Territories. Today we have well over 500 with the same mandate.

Can the Minister indicate to the House why the government has not tried to modernize this policy? Thank you.

In fact, there were changes in the last government, I believe. Thank you.

Mr. Speaker, this is news to me. I have not uncovered those changes.

The issue of companies dealing with market saturation or market economy is all too real in many jurisdictions of our territory, yet the negotiated and sole-source contract policy makes no mention of such.

Can the Minister of Finance indicate by what policy this government judges when a market is oversaturated with competing Aboriginal and non-Aboriginal businesses and still grants a negotiated or sole-source contract? Thank you.

In the last government there were changes made to BIP and to the Negotiated Contracts Policy which we follow. We also have criteria that we use that are part of that policy. As well, in the North we have had agreements in the past in terms of agreements with the Aboriginal governments when it comes to contract use and allotment in their areas. So the issue of market disruption and the issue that the Member referred to as saturation, I’m not quite sure what the Member considers market saturation with Aboriginal businesses, but we try to consider all the variables. Thank you.

Speaker: MR. SPEAKER

Thank you, Mr. Miltenberger. Final, short supplementary, Mr. Dolynny.

Thank you, Mr. Speaker. I have no problem explaining my term of saturation with the Minister in his office, but my fourth question is: Will this Minister commit to the House that the negotiated and sole-source contract policy will undergo a robust review by Cabinet, by committee and the public during the life of the 17th Assembly? Mr. Speaker, a simple yes or no will suffice. Thank you.

It’s difficult to just say yes or no to an extensive array of questions the Member just presented. What I will say is this with regard to his last question, if there is an interest from committee, we’re going to be starting the business planning cycle for the next budget year, ’15-16, and if it is the wish of committee, we would be willing to fully discuss and review whatever policies any committee wants to during that process. Thank you.

Speaker: MR. SPEAKER

Thank you, Mr. Miltenberger. The honourable Member for Inuvik Boot Lake, Mr. Moses.