Mr. Chairman, thank you. I would just like to make a few comments on the motion, which comes as a surprise to me. The business incentive policy, as another Member stated, is there to level the playing field to allow our northern companies that have higher overhead costs, higher costs in transportation, salaries, et cetera, to be able to compete with southern companies.
Twenty or 30 years ago, there were hardly any northern companies. Most of the contracts done in the North were done by companies in the South. Today, through contracting procurement policies like the business incentive policy, over 91 per cent and as high as 97 per cent, in some cases, of contracting that is done in the North is done by northerners. That is because of these special approaches like the business incentive policy.
Another point that I want to bring up is that, in the Nunavut final agreement, which is a constitutionally-protected document, the GNWT is required to have procurement policies such as the business incentive policy. Even if Members decided to do away with the business incentive policy and be able to do it only outside of the Nunavut land claim area, some of the benefits that I ran quickly talk about include the fact that although we have not completed the cost-benefit analysis of the BIP, it is very clear right now that the cost is exceeded by the benefits. The benefits exceed costs.
Increased employment and training for northerners is one of the benefits which has a direct relationship with increased business and personal income and increased tax revenues for the government, et cetera. It wouldn't take long to figure out that the more employment you have, the less social assistance and welfare you pay. So I agree that we do need to identify exactly and pinpoint what the benefits are, and we are doing that. It's going to take a little bit of time, but we are doing that.
In the last little while, in fact, since last year, the business incentive policy has been reviewed. There has been a working group that has been visiting the communities and they have travelled all over the North, in Nunavut and in the West, and there has been no outcry to get rid of the business incentive policy. Northerners are in support of the business incentive policy. They do agree there are areas where we could improve and change it; and that is in process, that's what we're going to do,
I would strongly encourage Members to vote against this motion that goes directly against northern companies and northern workers. Thank you, Mr. Chairman.