Mr. Morin.

Thank you, Mr. Speaker. After the decision was made for the five percent preference to be lifted from the supply of furniture to the Legislative Assembly we wrote to some M.L.A.s of the Legislative Assembly. I would be happy to table that letter in this House. Thank

you.

Item 5, Oral Questions. Supplementary, Mr. Dent.

Mr. Morin.

Thank you, Mr. Speaker. On all northern tenders the Business Incentive Policy is applied equally. There is a 15 per cent preference for northern businesses over southern businesses to equalize the higher cost of doing business in the Northwest Territories. There is also a five per cent preference given to local businesses to equalize doing business in a small community compared to a bigger

community. The Business Incentive Policy is not geared to give anybody an advantage over any other bidder. It is geared to equalize the bidding process. That is the reason this is done. All conditions of the tender are published when the initial tender documents are given to the contractors. Addendums to those contracts are a normal way of doing business when there are other issues involved in the contract. An addendum to this contract was issued two days prior to closing. It was an administrative oversight not to note it until this time. It was noted and we felt at that time it would not affect any of the people capable of bidding on that contract. They were all informed to adjust their tenders in time for closing. It equalized the playing field for all northern businesses. Thank you.

Item 5, Oral Questions. Supplementary, Mr. Dent.

Mr. Morin.

Thank you, Mr. Speaker. Yes.

Item 5, Oral Questions. Supplementary, Mr. Dent.

Mr. Morin.

Thank you, Mr. Speaker. There was one bidder that responded to the tender documents and the specifications. That bidder was United Carpet/United Furniture from Hay River. It was the only bidder that met the specifications, so it was the only bid that was acceptable to us. Thank you.

Item 5, Oral Questions. Mr. Lewis.

Thank you, Mr. Speaker. My question is also for the Minister of Public Works. Like my colleague from Yellowknife Frame Lake, I am concerned about the procedures used by the department to award the contracts for the acquisition of furniture for the new Legislative Assembly building. I would like to focus on how the decision was made to waive the five per cent local content adjustment for this tender only. Can the Minister indicate whether this decision to waive the local preference provisions of the Business Incentive Policy was a Cabinet decision, or something made up within the Minister's department?

Mr. Morin.

Thank you, Mr. Speaker. The authority to waive the five per cent preference on these tenders is the Senior Management Preference Committee, established to oversee the implementation of this policy. The committee is chaired by the deputy minister of Government Services and Public Works and it has deputy minister level representation for the N.W.T. Housing Corporation, Finance, Transportation and Economic Development and Tourism. The reason for waiving the five per cent local preference was so all northern businesses that were qualified to bid could bid on this contract on equal footing. The five percent policy is not meant to give any company an advantage over another company. Thank you.

Item 5, Oral Questions. Supplementary, Mr. Lewis.

Thank you, Mr. Speaker. Since this is a departure from government policy -- the B.I.P. is laid out very clearly -- I would like to ask the Minister, in waiving this local preference provision, what consultation took place with his colleagues prior to announcing this decision?

Mr. Morin.

Thank you, Mr. Speaker. None.

Item 5, Oral Questions. Supplementary, Mr. Lewis.

It must have come as a big surprise to some of his colleagues then to go in the face of government policy. On

Monday, the Minister appeared before the Committee of the Whole to present the Legislative Assembly's capital budget. At that time it was indicated that in expectation of the Management and Services Board, the board would remain at arm's length, and I quote, "the tendering process followed would be the normal government tendering process". Recognizing that the Management and Services Board anticipated that the normal government tendering process was to be followed, is it the department's position that waiving the five per cent local preference provision is a part of this normal process?