Thank you, Mr. Chairman. I think I can acknowledge, like others have, that at one time the BIP was a very essential program for northern manufacturers, northern construction people, and other industries, but I have to look at the original intent of the BIP and that was to allow northern companies to get the contracts and to make them competitive. I do not think it was intended that these companies should be subsidized by any means. My feeling is that, in many ways, the BIP has become very successful and it has achieved its intent. I say achieved. The question that really needs to be asked is, is it needed everywhere now? Is it needed by all those companies still? How badly?
We have to remember that this is a costly process and I would like to address the question of cost at some point. That cost is being taken away from other badly needed programs, social issues, we do not have a job creation program in the territories. We are spending millions of dollars in this area, but does it necessarily create more jobs if these companies still get the contracts without the BIP? The question that has to be asked is, can you ensure that northern companies will continue to get the contracts? Because that was the original intent of it. I think it is correct. We need to address this, we need to take some action. The BIP policy is complex, it is not as simple as perhaps initial appearances. A lot of people think that we need to do away with it, other people think we should keep it.
Now, looking at the recommendations of the committee, the northern manufacturing directive, yes, again, we are getting into a program, though, where we are saying supply funding for northern manufacturing companies. Is there a way to address that other than through a 25 percent increase in cost? These companies, presumably, are manufacturing now so can they not continue to manufacture and supply their goods, if they are guaranteed that they get so many contracts?
Bed and breakfasts. The recommendations by the committee make sense to me. On the grandfather clause, the multi-nationals, I agree, if you are talking about banks and so forth, but there are a lot of companies listed there that are northern companies. Just because they are large does not mean that they should not be competitive. If the BIP was kept does not mean that they should not be considered the same as others. They employ a lot of people.
The BIP is applied, like Mr. Steen said, it is applied everywhere in the government. It has tentacles all over the government with small, little purchasing items to huge, huge contracts. It boils down, to me, to the main question of, what is this costing and can it be downsized? Can we save money by changing the system? I would like to address that question later on. Thank you.