Mr. Speaker, when the Government of the Northwest Territories decided to use its federal government tariff rates, we contacted all the northern moving contractors, and their national affiliates, to do business with us at these rates, and let them know that we intended to use these new rates at the first day of August. There was some reaction in that only two northern contractors, both of whom are agents of the same national van lines, indicated that they would do business with us and accept the rates. However, we were concerned about awarding our business to only one van line, as it would create a monopoly, and it may lead to a major disruption to the moving industry in the north, and affect the level of service that is present to the public at this time. There was a strong political lobby by the other movers protesting this. Many of the northern contractors said that the rates were too low, and many of them did not respond formally at all. They gave two reasons for objecting or declining to do business with us at these rates, but they continue to do business with the federal government at these rates, and there are a couple of reasons for it. One is that many of the national movers do business with what they consider a rather unprofitable northern market, because of the high volume of southern business that they do, and this compensates for what they see as a less profitable northern business. So, the other is just a logistical advantage in that most southern moves go east/west, and they fill on both ends, both runs. With northern moves, many times I think there is a problem with a leg running empty. Those were the reasons they gave for having problems with this newly introduced proposed tariff. We are going to distribute the revised tariff, and the offer of business to contractors. I believe this was done the week of August 24. We proposed to implement the revised tariff October 1 of this year. Thank you.
Stephen Kakfwi on Question O750-12(2): Responses Of Moving Companies To Proposed Tariff
In the Legislative Assembly on September 11th, 1992. See this statement in context.
Further Return To Question O750-12(2): Responses Of Moving Companies
Question O750-12(2): Responses Of Moving Companies To Proposed Tariff
Item 5: Oral Questions
September 10th, 1992
Page 884
See context to find out what was said next.