Thank you, Mr. Speaker. Earlier, I spoke about the importance of supporting our entrepreneurs, and one of the best ways we do that presently is through our SEED program through ITI. My question for the Minister of ITI is: can we top up the SEED program funding this year to make sure that no applications are denied? This could be central to our economic recovery. Thank you, Mr. Speaker.
Thank you, Member for Yellowknife North. Minister of Industry, Tourism and Investment.
Thank you, Mr. Speaker. I just want to note that the staff who will be administering the SEED program are both orderly and smart in the way that they will be administering that program, and we appreciate the work they do every day. Right now, the budget for SEED is $3.8 million, and it has been that way for a great many years. Fortunately, as part of the COVID response, we were able to increase this budget up to $4 million through internal reallocations, and as of right now, we are actually projecting that that will hit $4.3 million in terms of the total applications being sought. Every effort is going to be made, indeed, to achieve funding all of those applications. Thank you, Mr. Speaker.
I am glad that the Minister is working to find that top-up internally. We are hearing this year that there is $4.3 million of demand for SEED applications. I can only imagine that this demand will continue next year. Really making sure that our entrepreneurs can find that capital in these tough times, I think, is central to our recovery. Is the Minister willing to increase the SEED funding in next year's operations budget?
Increasing the funding on a permanent basis is something that has to go through a business-planning process and an analysis to determine if, in fact, that is the best way to spend public dollars. Certainly, there is a suite of programs right now that support entrepreneurs in small and medium-sized businesses, including not only the SEED program but programs spread across ITI, as well as BIP. I will say that part of what I want to ensure we do is make sure that we are adequately funding those programs in a way that they become complementary and that they fill gaps one from the next, but that takes something more than just looking at the one program alone. However, I do say that we are doing that work, and indeed, there is a review happening this fall of the SEED program itself, to help ensure that there are no gaps along the way, and to ensure, as I say, that we are funding our small and medium-sized businesses.
During our pandemic response, a number of SEED COVID-19 guidelines were released, and I want to thank the department for that work. They said, "We are going to be flexible; we are going to be quick and adaptive." I think they were great guidelines. However, underlying this was still the SEED application policy, which has a market disruption clause saying, essentially, "We will not fund businesses if they will disrupt the market." In my experience, there has been no consistency in application of this, and I do not really think it's the goal. By not disrupting the market, we are not increasing competition, and we are encouraging monopoly. Is the Minister willing to get rid of the market disruption clause from SEED applications?
The market disruption clause certainly has been the subject of some discussion. What I will certainly commit to is saying that, in the course of the review that we are doing internally of the SEED program, a careful examination of the market disruption clause needs to happen. Certainly, what I have heard from some of the larger centres is that there is a greater desire to get rid of it. Yet, from the smaller centres, there is some desire to hang onto it. It may be that we need to find a "not one size fits all" solution to that clause.
Thank you, Minister. Member for Yellowknife North.
Thank you, Mr. Speaker. I am glad to hear the Minister commit to reviewing this. In my experience, I am confused what this clause does because we fund plenty of tourism businesses through SEED, and to me, every time we fund one, they are disrupting the market in comparison to their competitors. I helped one of my constituent fishermen get SEED funding. Then another complained that they did not get a government subsidy, so I had to go help them. It seems that, every time we give government grants, we are disrupting the market. To me, that is the goal. Is the Minister willing to just accept that during COVID-19, when we are being more flexible and we are trying to get SEED dollars out the door, market disruption does not apply? Thank you, Mr. Speaker.
I did want to acknowledge that the Member had expressed the fact and outlined the fact that the program has been adapted to COVID-19 and that that adaptation happened quickly on the part of ITI. I would note that, for the purposes of COVID-19 right now, the SEED program has shifted rather substantially and that, for this year, they have waived the market disruption clause and indeed re-shifted the focus of a lot of the SEED funding so that small and medium-sized businesses can apply under a fairly different set of policies, given the fact that the markets themselves are quite disrupted. Thank you, Mr. Speaker.
Thank you, Minister. Oral questions. Member for Monfwi.
