Thank you, Mr. Steen. We are getting into project management. Project management, total operations and maintenance, $7.096 million. Mr. Steen.

Thank you. Mr. Minister.

Mr. Chairman, the BIP would have been discussed properly under contracts, but I will answer any questions the Member may have.

Thank you. We are discussing construction on this page. Mr. Steen.

Thank you. Mr. Minister.

Mr. Chairman, the BIP is one of the special approaches. The more specific ones are such things as negotiated contracts, the accommodation policies and there is a whole range of ways the government tries to increase benefits to business labour in communities.

Thank you. Mr. Steen.

Thank you. Mr. Minister.

Mr. Chairman, the direct cost of the business incentive policy that has been identified is one

per cent. The estimated other costs the government incurs in implementing BIP is somewhere around $30 million. That is an average of six per cent or over $400 million worth of business the government does.

Thank you. Mr. Steen.

Go ahead.

Thank you, Mr. Steen. We need a copy of the motion. We also need a translated version of the motion for the Members of the committee. The motion will be translated into Inuktitut, so we will take a 10-minute break. Thank you.

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Thank you. Before I rule on the motion, I would remind the Members -- in order to minimize the disruption of the proceedings of the committee -- who wish to leave the committee room to ensure that there is, in fact, a quorum here. Thank you.

The motion is translated and circulated to Members, therefore I rule the motion in order. I will read the motion, for the record, moved by Mr. Steen.

Mr. Chairman, I move that this committee recommends that the Government of the Northwest Territories suspend application of the business incentive policy until such time as the government of the Northwest Territories introduces a balanced budget.

You have a copy of the motion. To the motion. Mr. Steen, would you speak to the motion?

Thank you, Mr. Steen. To the principle of the motion. Mr. Erasmus.

Thank you, Mr. Chairman. At this time, I cannot support this motion. I believe that the local businesses do have higher costs of operation and they do need some type of assistance to enable them to compete with southern firms whose offices and operating costs are much lower, because their supplies and their offices are all directly from the South. Also, because many of those firms have the opportunity to buy their goods in much larger numbers, a greater number of whatever it is that they're using, so they can get better prices. In order for our businesses to compete, they do need some type of a levelling, something to level the playing field. At this time, we still have not reviewed the report that was commissioned or that is being done. I would be in support of reducing the BIP, perhaps in half, for a couple of years until we balance the budget; but I cannot totally support doing away with it, even for a short period of time unless we have something to replace it. So, as I said, I cannot support this motion. Thank you.

Thank you, Mr. Erasmus. Minister of Public Works and Services, Mr. Arlooktoo.

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.

Thank you. To the principle of the motion. Mrs. Groenewegen.