Thank you, Mr. Speaker. Today my questions will be for the Minister of Infrastructure. When we are looking at the Manufactured Products Policy, and I was looking at it, and it said at least 25 percent has NWT value, the price is no more than 20 percent greater than similar products, FOB the site of a manufacturer, or 25 percent greater than a similar product, FOB the destination for final delivery. Can the Minister, please advise us what that policy entails, and what is the amount of percentage that manufacturers get in the North? Thank you, Mr. Speaker.
Masi. Minister of Infrastructure.
Thank you, Mr. Speaker. You see, this is what happens when someone gives a heads-up and you give a full-hearted answer. There is no cap or ceiling identified in the Northwest Territories Manufactured Products Policy. The Northwest Territories manufactured products, however, is pursuant to or enabled by the Business Incentive Policy, and that means, technically, the ceiling of $500,000 would also apply to manufacturing.
That said, our manufacturing policy only pertains to goods for the maximum bid adjustment of $500,000 to apply. We would need to be in the position of buying $16 million worth of a single product. I think we can agree to deal with that when one gets there.
The Minister actually answered my next question, so I will go back to the first question. The question I asked is: what is the percentage? Is it 20, 25 percent for a northern manufacturing company? Is that what they are allowed, additional cost to it?
The Northwest Territories Manufactured Products Policy and the Business Incentive Policy follow the same principles of northern preference. However, our Manufactured Products Policy is an independent process and works slightly different. In order to be able to be purchased by the Government of the Northwest Territories under the manufactured policy, at least 25 percent of the product's value has to be created in the Northwest Territories by an eligible company registered under the Business Incentive Policy. Provided this requirement is met, the product can be priced up to 20 percent higher on a southern product, including freight on site at the manufacturing facility. The product can be priced up to 25 percent higher on a similar product including freight if it is priced at delivery as required location.
I thank the Minister. He kind of answered my third question, so I am just going to go to my last question here. When you look at the procurement policy, at (b), it says, where two or more manufactured supply, approved NWT manufactured products, only those manufacturers will be invited to bid on a contract. Can the Minister advise this House how that part of the policy works when we're talking about the free trade? Because the Minister has advised us in this House that BIP, with some challenges he has faced, and he was able to get it grandfathered, but can he explain how this policy actually is grandfathered in?
As I said in the House the other day, the most important element for Members to understand is the context of what the Canada Free Trade Agreement is. As the Minister of internal trade and external trade, these things have to be negotiated with other governments when we are signing this agreement, and that is the only reason that this government can negotiate an exemption. That is where we have to deal with the other provinces and countries when we are doing these agreements, and that one exemption that we fight for all the time is the Business Incentive Policy.
Masi. Oral questions. Member for Nunakput.
