Thank you, Mr. Speaker. I have a return to an oral question asked by Mr. Lewis on December 2, 1992, regarding the reason for the B.I.P. adjustment.
The subject tender was issued on September 9, 1992. The revised Business Incentive Policy was approved for implementation in June of this year. It extended the application of local preference to tender the purchase of goods. Previously, the local preference was applied only to tenders for construction contract.
The policy, therefore, extended the preference to local firms that supply goods that are intended to be used in the same community in which the supplier is located. Further, the policy provides that two or more communities be considered local when located close to the work site. For example the highways camp is located outside municipal boundaries. Communities in the vicinity of the highways camp can be considered local for the materials destined for that camp.
Since the oil tankers are to be used in and around Hay River, Hay River is defined as the local for the purpose of applying the preference. Application of local preference is therefore consistent with the policy and the decision to waive local preference on a much larger tender to supply and install furniture in the Legislative Assembly building, was a separate and distinct matter, the reason for which I have already indicated to this House.
I must admit, however, that I am as concerned about this issue of local preference as the Member, for our preference policy should end. We should equalize opportunity for all northern business but this particular provision may, in fact, be doing the opposite in some cases.
I have instructed the Senior Management Preference Committee to review this matter and report back to me by the end of January. In the meantime it will be necessary to abide by the provisions of the policy as defined. Exceptions will only be approved by the Senior Management Committee. Thank you.