Thank you, Mr. Speaker. Members may recall that many times in this House, I have said that we must increase the number of community workers involved in construction jobs funded by the government, by implementing training programs and by negotiating contracts with local corporations.
Members are aware that this government has supported this direction. As a result, the Cabinet has agreed to many of the Members' requests for negotiated contracts. To date this fiscal year, six capital projects managed by Public Works & Services, that are worth $5 million and five lease contracts with the department, that are worth $1.3 million each year, have been approved by Cabinet.
For the NWT Housing Corporation, to date this fiscal year, eight capital projects worth $3.5 million, and two 20 year lease contracts worth $257,000 per year, have been approved by Cabinet for negotiated contracts. Cabinet has also approved the negotiation of a lease contract in Fort McPherson. The terms and conditions of these lease contracts are still being negotiated. So far this fiscal year, 11 contracts have been negotiated and that represents 2.8 per cent of the total capital and lease contracts awarded by the NWT Housing Corporation.
Many of our smaller communities and aboriginal organizations have established development corporations which need the support of negotiated contracts to get their businesses started. With these contracts they can develop their business skills and increase local control over the implementation of government contracts. This, in turn, increases the community's commitment to construction projects.
I am aware that there has been some concern about this initiative. It should be understood that these contracts are normally negotiated with community and aboriginal development corporations, which are not always contractors themselves. Many of the actual material and trade contracts still go to the established northern suppliers and contractors. It is a Cabinet condition of every negotiated contract that only northern resources be used.
It is also worth noting that these negotiated contracts represent only a very small percentage of the total dollar value of contracts awarded. There are still many contracts being publicly tendered.
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