Thank you, Mr. Speaker. Over the last few months since we were elected to this Assembly, the subject of the business incentive policy has been discussed. Many questions have been raised and many opinions expressed. The policy was designed to give northern businesses a fair chance to receive government contracts by recognizing the higher cost of doing business in the North. In many ways, the policy has done just that, to the point now where a large percentage of government contracts for the purchase of goods and services go to northern firms.

The business sector in the North has developed to the point where it is indicated that, from a random sample of 87 purchases made between April 1993 and February 1994 almost half of all purchases were less expensive in the Northwest Territories than they would have been in the South. On the average, a premium of 5.67 per cent was paid on northern purchases.

Northern businesses work on very tight margins, even with the policy's preference figures. The 15 or 20 per cent is a cushion or insurance to ensure that northern businesses with a higher cost of operating and overhead are at least on a level playing field with southern competitors. I believe that the present preference percentages of 15 to 20 per cent, which translates into a 5.67 per cent premium, is an acceptable cost of keeping our government dollars and the benefits of those dollars in the North.

It is the feeling of my constituents that the current policy should be retained and the money currently being spent on supposedly new-and-improved BIP should be channelled to address the issue of storefront operators. I will be tabling a petition on the subject later today in the House. Thank you.

--- Applause