Mr. Speaker, Return to Written Question 19-12(7), asked by Mr. Patterson and replied to by the Minister of the Northwest Territories Housing Corporation concerning northern preference commitments with Nova Construction.

Mr. Patterson asked a written question that was separated into four parts, I would like today to answer all four parts in order:

1. Nova Construction was given northern preference for this contract in Clyde River, as they are a registered northern contractor under the business incentive policy.

2. In their bid, Nova Construction identified the use of $41,000 worth of local labour. Further, Nova committed to contribute $55,000 locally for room and board.

3. Nova Construction contributed $22,000 of the $41,000 committed for use of local labour and $50,3000 was spent on room and board.

4. No penalties or holdbacks have been taken against Nova Construction by the Housing Corporation, although a lower than projected amount was actually spent on local labour. Nova Construction reports that many of the local workers hired did not return after being paid and they had a difficult time replacing them. This has been confirmed in writing by a local contractor in the community. I have supplied a copy of this letter to Mr. Patterson directly. Therefore, the corporation believes that Nova Construction made a serious attempt to meet the local target.

Further, there were five other large projects being built in the community at the same time, making it more difficult to attain local labourers. The other projects that were being worked on were a two-bay maintenance garage, hamlet garage renovations, a tank farm addition, a school addition and a health centre, all costing around $6 million in total.