In the Legislative Assembly on May 7th, 1996. See this topic in context.

Minister's Statement 38-13(3): GNWT Obligations Related To Article 24
Item 2: Ministers' Statements

May 6th, 1996

Page 231

Goo Arlooktoo Baffin South

Thank you, Mr. Speaker. I rise today to announce the position Cabinet will take regarding administration of article 24 of the Nunavut final agreement. As Members know, there have been differences of opinion on what article 24 of the NFA requires. This has resulted in ongoing discussions with Nunavut Tunngavik Incorporated over the past few months on the government's policies and procedures on article 24.

Based upon a careful review of our obligations as set out in the NFA, a review of the positions of the parties at the time of the negotiation of the NFA, and as a result of what I believe were productive discussions with NTI over the course of the past few months, we will be making some amendments to contracting procedures for 1996-97 and beyond.

I felt it was important to provide Members of the Legislative Assembly with a short report on the key elements of the approach we will take, not only to fulfil our obligations under article 24 but, more importantly, to ensure that we proceed with economic activity in the Nunavut region in a manner which maximizes access to opportunity for Inuit who are beneficiaries under the Nunavut final agreement. Moving to make sure that Inuit are involved to the maximum degree possible in building infrastructure for Nunavut and in other government-initiated economic activity is, for me, the cornerstone for building a solid foundation for the future of the government and the people of what will become Nunavut in April 1999.

I had hoped to have ready for tabling today a detailed document that would set out precisely how we intend to proceed in future on the article 24 issue. Unfortunately, the document is not yet in final form and it will be another week before I am able to formally table it. I felt it was important, however, to tell Members now and, more importantly, the people of the Nunavut region, about the core elements of how we intend to proceed.

(Translation) Mr. Speaker, for me, at the heart of everything we must do in building for Nunavut is the need to aggressively advance access to opportunity for Inuit throughout the region. (Translation ends)

Developing bid adjustments for Inuit firms is not, in my view, the best way, or even a good way, to achieve that objective. What we need to do is move to make certain that, to the maximum degree possible, Inuit firms will get the work available where they have the qualifications to get the job done. Furthermore, we need to vigorously implement training opportunities and economic development seminars that will help Inuit firms to take maximum advantage of the opportunities which should be available to them. We will do that, Mr. Speaker.

Creating opportunities for Inuit firms is important. Even more essential is the need to get Inuit involved as much as possible at every level of economic activity. For me, that is the central and most important aspect of article 24. We need to get people working on building for the future. It is this principle that I have emphasized in instructing my officials to redesign the GNWT approach to article 24.

What this means in real terms is that government, through our revised policy on article 24, is making a clear commitment to enhance existing arrangements by establishing and vigorously enforcing minimum Inuit employment content for contracts with employment components. These minimum employment content levels will very depending on the nature of the contract and the location of the work, but will be published in the tender documents. The guiding principle, as I mentioned earlier, will be to maximize access to opportunity for Inuit. Our goal is to ensure that beneficiaries of the Nunavut claim benefit directly from government expenditures in their communities. The jobs created through this change will go a long way towards providing Nunavut residents with the skills they will need as well as genuine access to opportunity.

On construction contracts and complex goods and service contracts, the government will set a minimum percentage of the service that must be provided by Inuit firms. In the case of an award for professional services, for example, the government will establish evaluation criteria to take into account the need for as much Inuit content as is reasonably possible in proposals. This, in my view, is what matters to people the most.

The government's business incentive policy will continue to be applied in Nunavut, but this will be done in a manner which seeks to level the playing field for new Inuit businesses. Here also, the emphasis will be on skill development and access to opportunity.

Officials are now at work in the development of seminars on bidding and contract procedures to assist Inuit business people to improve their skills in accessing government contracts. The government will make these seminars available to all communities and businesses as they are needed. Contract guidelines will be translated into Inuktitut and tendering procedures will be changed in order to increase the participation of Inuit firms in government contract awards. These procedures will apply to all government contracting authorities.

The government will advertise its intention to negotiate any contract 21 days prior to the award. During this period, if one or more qualified Inuit firms express an interest in the contract, the government will then proceed by way of competitive process. Mr. Speaker, the first such contract will be advertised in northern newspapers within the next week to provide notice of the intent to enter into a negotiated contract with the Igloolik Construction Group to build the fire hall in that community.

Furthermore, I am pleased to advise Members that, together with the Minister of Economic Development and Tourism, we will, along with aboriginal groups and small business, be developing yet further options to enhance aboriginal and local access to economic opportunity, not only in the Nunavut region but through the Northwest Territories.

I make no apology for taking the position that through the NWT we should be aggressively moving ahead on increasing aboriginal employment. It should have been done a long time ago, Mr. Speaker. With the support of my colleagues, and particularly Mr. Kakfwi, I intend to exercise the leadership necessary to get the job done.

My Cabinet colleagues and I are satisfied that the changes we are making will address the spirit and intent of article 24 of the NFA. We are confident that the changes will provide an acceptable level of support to beneficiaries. It has taken us longer than it should have to make these important changes, but I am satisfied that taking the time necessary has yielded the best possible result: one which rejects enriching the few in favour of maximizing opportunity for the many in the most equitable way possible. Thank you, Mr. Speaker.

--- Applause

Minister's Statement 38-13(3): GNWT Obligations Related To Article 24
Item 2: Ministers' Statements

Page 232

The Speaker Samuel Gargan

Thank you, Mr. Arlooktoo. Item 2, Ministers' statements. Mr. Premier.