Return to Written Question 11-12(7), asked by Mrs. Marie-Jewell and replied to by the Premier concerning the participation of Dene-Metis Holdings in the request for proposal of airtanker services.

The Minister replied to the Dene-Metis request by his letter dated October 26, 1994. The decision to terminate the negotiations with Dene-Metis Holdings Ltd. on the contract for the provision of airtanker services was not made unilaterally by the Minister of Public Works and Services but was made by Cabinet on December 7, 1994.

In its decision of December 7, 1994, Cabinet directed that proposals would be accepted only from northern air operators, defined in the decision as a company approved under the business incentive policy as a northern business, and has operated fixed-wing aircraft in the NWT for more than one year. In the case of a joint venture, both partners must meet this requirement, as will subcontractors.

As the Dene-Metis Holdings Ltd. did not meet this criteria, it was excluded from submitting a proposal. They could however, participate through a northern air operator, for example, by investing in a qualified company.