Thank you, Mr. Speaker. Early this fall, I spoke out about my surprise at the manner in which the Department of Personnel was trying to dictate to the moving industry a new set of rates, by which the department would pay for the movement of employees goods. I was told by the Minister when I raised this issue, that the institution of these rates would be delayed and that a process of negotiation with representatives would begin.
Mr. Speaker, according to industry sources there has been very little progress. The government has not changed its position on any significant point. It continues to state that the most it will pay northern moving companies is a rate which is approximately 40 per cent less than what they currently receive. Mr. Speaker, the moving companies are willing to compromise. They understand that times are tough but they are not willing to agree to rates which will force them out of business almost immediately.
Mr. Speaker, I do not understand what the government expects it can accomplish with this. I am all for efficiency and saving government money, but I will think it will cost the government much more if we lose these northern businesses.
Mr. Speaker, the rates the government is still insisting on for line haul are simply not viable. They are less than those paid by B.C., Saskatchewan and the Yukon. I am certain that this government would not try to say that the cost of a moving business in B.C., Saskatchewan or the Yukon is greater than in the territories. Even worse though is the department's approach to this issue. The department has not gone, as far as I am aware, to the airline companies and told them that it will no longer pay the regular air charges. Has it told suppliers of materials for house construction with the Housing Corporation that it will now pay 40 per cent less for construction materials? Has it told fuel distributors that it will no longer pay the same price per litre of gas or motels, and that it will now pay less per room rented to government employees?
Mr. Speaker, the government is proud of its Business Incentive Policy and has said that it is worth incurring greater cost to ensure our dollars stay in the north. It is time that the Department of Personnel put its money where its mouth is.
---Applause.