Thank you, Mr. Speaker. I am pleased to announce that the review of the government's business incentive policy, BIP, is now complete. The BIP is one of numerous business incentive initiatives and is intended to ensure the provision of goods and services to the government, the private sector and the general public at a reasonable price, while compensating northern business for the higher cost of operating a business in the North, and to provide financial support to the northern economy through the reinvestment of corporate earnings.

Key points of the revision to the policy are: Previously the BIP excluded various types of contracts such as legal and engineering consulting contracts. The policy will now apply on all GNWT purchasing and contracts, including consulting contracts. 2) The revised policy will apply to all contracting authorities whenever 51 per cent or more of the funding is received from the territorial government. This includes boards, agencies and municipal authorities in addition to all GNWT departments. 3) Companies will be considered northern-based

on their compliance with the spirit and intent of the business incentive policy. This will be administered by a senior committee of deputy ministers and should result in a reduction of storefront businesses. 4) On projects that are competitively tendered, the following tender adjustments will be made at the time of tender evaluation: preference increased from 10 to 15 per cent for northern businesses; an additional five per cent preference will be given to local businesses.

I am also pleased to announce today, Mr. Speaker, that the Canada Mortgage and Housing Corporation has recently agreed to allow the application of the business incentive policy on all future projects cost-shared between CMHC and the NWT Housing Corporation.