Debates of October 3, 2017 (day 84)

Date
October
3
2017
Session
18th Assembly, 2nd Session
Day
84
Members Present
Hon. Glen Abernethy, Mr. Beaulieu, Mr. Blake, Hon. Caroline Cochrane, Ms. Green, Hon. Jackson Lafferty, Hon. Robert McLeod, Mr. McNeely, Hon. Alfred Moses, Mr. Nadli, Mr. Nakimayak, Mr. O'Reilly, Hon. Wally Schumann, Hon. Louis Sebert, Mr. Simpson, Mr. Testart, Mr. Thompson, Mr. Vanthuyne
Topics
Statements

Question 921-18(2): Review of Government of the Northwest Territories Procurement Policies

Thank you, Mr. Speaker. Mr. Speaker, this government’s spending is approximately equivalent to 52 per cent of our GDP. That’s $3.854 billion. This compares to, let’s take a province in Canada: Ontario, our largest. Their government spending amounts to 20 per cent of GDP, so clearly our government has a huge role in this economy. A lot of that comes out of procurement of these contracts. I’d like to ask the Minister of Infrastructure if he will once again commit to a comprehensive review of our procurement policies on this very important economic driver. Thank you.

Speaker: MR. SPEAKER

Oral questions. Minister of Infrastructure.

Thank you, Mr. Speaker. I’ve been on record. I’ve told the Member a number of times in this House, no, I will not review the procurement nature of the department. We’re all working on the mandate of this Legislative Assembly. A number of initiatives fall under my departments, which are directly related to economic development in the Northwest Territories. We’re pushing on those mandate items and we will continue to do so. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Oral questions. Member for Kam Lake.

Thank you, Mr. Speaker. I thought ahead of the mid-term review, I might gain some more traction on this issue. It’s true, the Minister does have a number of mandate commitments, but procurement is an ongoing issue of every government and doesn’t need a specific mandate commitment especially when the concerns are out there.

Mr. Speaker, I’d like to ask the Minister about prompt payment. Prompt payment is a practice for businesses who are required to agree to fair and reasonable terms of their suppliers, ensures suppliers’ invoices are approved and paid within agreed terms, and to encourage the adoption of the same practices through their supply chain. Is the Minister aware of this concept and does the department practice it? Thank you.

Speaker: MR. SPEAKER

Oral questions. Minister of Infrastructure.

Thank you, Mr. Speaker. Yes, I’m well aware of the department’s mandate to do prompt payment. I believe most of the payments, not always because there are always circumstances around every challenging one that comes forward but we’re supposed to pay within 20 days of receipt of an invoice and that’s what we will continue to do as a department. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Oral questions. Member for Kam Lake.

Thank you, Mr. Speaker. Certainly, our government is on the ball on this. It’s more about the suppliers, people down on the supply chain. We enter into very large contracts, so prompt payment is an important issue as we move down the supply chain. Mr. Speaker, the Ontario government is now considering prompt payment legislation that will create a prompt payment regime and require a mandatory adjudication of certain disputes within construction. Is the Minister familiar with this legislation and is he reviewing our own legislation in light of that? Thank you.

Speaker: MR. SPEAKER

Oral questions. Minister of Infrastructure.

Thank you, Mr. Speaker. No, I am not aware of the legislation Ontario is proposing to move forward, but if the Member wants to share that with me, I’m glad to have a look at it. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Masi. Oral questions. Member for Kam Lake.

Thank you, Mr. Speaker. Thank you to the Minister. I’ll gladly share that. The Canadian Senate is also considering a bill, the Canada Prompt Payment Act that would apply to construction contracts and P3 projects in particular. These P3 contracts the federal government enters into, its institutions, agencies, and related subcontracts. We are now pursuing P3 projects from everything from the Stanton Hospital to the Tli Cho all-season road. P3s are becoming part of how we do business. Is the Minister aware of any prompt payment clauses in those P3 projects that ensure our northern businesses are given the payment they deserve through their work with these large contracts. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Oral questions. Minister of Infrastructure.

Thank you, Mr. Speaker. No, I’m not aware of the prompt payment program if we have one under P3. P3 falls under the Minister of Finance, but we’ll be glad to look at any ideas that Members want to share to help alleviate the situation for businesses that have done the work and completed on time and done a successful job. If there’s a hold-up on payment, we would certainly have a look at anything to help facilitate that. Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Oral questions. Member for Nahendeh.