Thank you, Mr. Speaker. I have a return to a question asked by Mr. Allooloo on November 23, 1993, percentage allotted to northern firms under the business incentive policy.
While I was in Ottawa meeting with the federal Minister of Housing, Mr. Allooloo asked a question regarding the application of the business incentive policy on a Housing Corporation contract in Pond Inlet.
For clarification, under the business incentive policy, a 15 per cent adjustment to the bid is given to the specified northern content of the bid and 20 per cent adjustment to the bid is given to the specified local content of the bid. No bid adjustment is given to any southern content.
With reference to the specific situation mentioned by Mr. Allooloo in Pond Inlet regarding the electrical contract:
-the contract was to provide labour to complete electrical wiring for three houses;
-the local company proposed to employ an individual from Montreal. Also, the required information on the local or northern content was not provided in the bid. Therefore, no adjustment was made to the bid;
-the company from outside the community is a business incentive policy-registered northern firm operating out of Resolute Bay. The northern company's bid proposed to employ two northerners, a northern electrician and a northern apprentice. Based on the stated northern content, the Resolute Bay company was given a 15 per cent adjustment on the bid and became the low bidder on the contract.
-Subsequent to the contract award, the Resolute Bay company informed the Housing Corporation that the original northern electrician was unable to undertake the work and that a replacement northern electrician would take his place. The corporation agreed to this.
-During the week of November 15, 1993, the Housing Corporation received information that the Resolute Bay company hired an electrician from Newfoundland to do the work.
The investigation which followed confirmed these allegations. Apparently, the northern electrician who was to replace the original northern electrician was also unable to work on the project due to other commitments. The owner of the Resolute Bay company admitted that he has seriously erred in replacing the northern electrician with a southern import without first informing the Housing Corporation.
The Housing Corporation is currently considering the actions it can take against the Resolute Bay company. Thank you, Mr. Speaker.