Thank you, Mr. Kakfwi. We will move on. I will tell you who I have on the list. I have Mr. Henry, Mr. Steen, Mr. Picco, and Mr. O'Brien. Mr. Henry.
Debates of Feb. 11th, 1997
Topics
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Seamus Henry Yellowknife South
Thank you, Madam Chair. When we initiated this procurement policy, followed by a BIP, it was set up to protect northern businesses and northern workers from southern workers, and I think the intent of that was very good. I think what has happened now, we are protecting northerners from northerners.
I think it may have some merit if we keep a policy but we have some form or some sense of competition. We are not that big in the Northwest Territories that we need protection from each other. If, by this policy, we are setting up companies in smaller communities, construction companies, and we have cut our construction budget in half, what happens to these companies for the other 10 months of the year? That goes for hotels and all the rest. If we are cutting our budget and there is no exterior construction other than government construction, what are these companies going to be doing that have had the protection of BIP previously? If we accept that there is very little construction in communities, other than government sponsored, what are these companies going to do? Thank you.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Stephen Kakfwi Sahtu
Thank you, Madam Chair. I do not really want to get into a debate about the policy at this time. We have dragged it around the public on two great processes, we have consulted with Members in the committee. As I said, what are we going to do? That is the question. I cannot really give you the specifics, so it is no use to debate that either. I think we should just move along and let myself and Mr. Arlooktoo do our work so that we can make a decision and then share that with the Members here, so that we can then have a substantive debate about something that is real. Right now we are still on the edge of never-never land. I want to get off that edge and do some service to the work and the concerns that Members have here. Thank you.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Seamus Henry Yellowknife South
That Minister has told me that he does not have a clue what they are going to do with things that are being set up. The Minister has also told us that he does not know how much this policy costs the government annually. He has told us that it far exceeds the costs. If it far exceeds the costs, what is the cost? How much did it cost us? Thank you.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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The Chair Jane Groenewegen
Thank you, Mr. Henry. Before Mr. Kakfwi responds, may I please caution the Members about being argumentative or casting any dispersions on what the Minister is saying, please, and show some respect. Thank you. Mr. Kakfwi.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 550
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 550
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Seamus Henry Yellowknife South
Madam Chair, Mr. Kakfwi told us that the benefits of the business incentive policy far exceed the costs. So what are the costs? You must have something to be able to equate it to.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Stephen Kakfwi Sahtu
Thank you, Madam Chair. The policy has been in place for a number of years. It has been applauded by many Members of our community. Recently, it has become the object of some criticism from certain sectors. We buy it but while we cannot measure and give detailed cost breakdown as to the benefits it has provided, we can point to some very visible changes, positive changes that this policy has brought. On the contrary, the critics have yet to bring any substantive numbers to the argument either that says here are some very clear, substantive, decisive reasons why it is to the detriment of the north and the people in the communities that this policy is still in place and should be scrapped.
So I stand on the side of small "c" conservatism on this policy, that if it has done well and is still doing some good, then there is reason to keep it in place. It is also the only shield we have in the global environment, at this time, the free-trade environment to protect our northern businesses. That is a very substantive reason to not mess with the universe the way it is unfolding.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Seamus Henry Yellowknife South
Thank you, Madam Chair. Mr. Kakfwi, in his remarks, talked about the BIP and negotiations with BHP. I am sorry, he talked about the BIP. I am getting my BHPs and BIPs mixed up here. Mr. Kakfwi talked about BHP and on the government delivering a strong stand. How many northern businesses are able to now supply services to BHP? I would like to remind the Minister that companies such as Ryfan Electric, Robinson's Trucking, Clark Builders, Braden Burry, JSL, Hay River companies like Kingland, A & R, MSS and WesClean were all providing services without a business incentive policy, prior to this agreement being negotiated with BHP. I bring this up to make the point that northern businesses can compete. There was no reason for BHP to hire local contractors or northern contractors. I think this demonstrates that these companies on projects, large projects, northern businesses are able to compete and compete successfully. So that is what I am trying to get across. These companies can compete. I think it is insulting to northern businesses to say that you still need protection and we need to spend more money than we have to. I believe they can very successfully compete among themselves.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Seamus Henry Yellowknife South
Well, I would not mind if the Minister commented on that. If it is designed to, Madam Chair, if it is designed to protect northern businesses, if they are able to compete on this global market that we are competing with in the Northwest Territories, if they are able to compete, why do we need the policy? There was no business incentive policy applied to these. These are local, northern companies who get off their rear end, they go out and they create business. If they have demonstrated that without a business incentive policy we were still able to compete with companies from the south. Why do we need the policy now? Thank you.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Stephen Kakfwi Sahtu
Madam Chair. There was no question so I gather the Member's comments as to provoke me into responding and I shall be provoked. It is true, that in this case, there has been no premium. It has been no cost to this government and I applaud all those competitive northern businesses that have built themselves up without any government costs over the years doing business with BHP and other places where their services are required. I have no difficulty with that. My comments that the Member is referring to earlier, just mentioned that, as I recall, in the heat of the discussions with BHP in the summer and fall, there was some members of the public and perhaps this Legislature as I recall, that were ready to drop all conditions and say just let BHP get going with its work because if we continue insisting that our conditions be met, we will lose it all. We have the diamond evaluation facility that this government is insisting and working on right now to try to get the federal government to agree in writing that it will be located in the Northwest Territories. There are initiatives that we are doing to ensure that where possible, northern people will be hired and local labour will be used. Local and northern businesses will be utilized to the greatest extent possible. This policy gives us that assurance. As long as it does that, I would say there is a very strong public interest in keeping it in place. Those companies that do not wish to enjoy the benefits of that, they can voluntarily ask themselves to be struck off the list. We would consider that as well. If Mr. Henry wants to give me a list of those companies that he thinks, based in his constituency in Yellowknife who do not want to enjoy the benefits of BIP, perhaps there is some merit in advancing that list. We could look at it.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Seamus Henry Yellowknife South
Thank you, Madam Chair. I am not sure where Mr. Kakfwi is coming from but I will try to follow it up with him later about being struck off the policy. What I am talking about, Madam Chair, is we both agree that the BIP costs money. Mr. Kakfwi has said that he believes there is value for it. So there is a cost involved. So whether somebody gets stuck off a list, I am not sure what that would achieve. What I am interested in doing is getting a better bang for the buck. Getting more money, getting better value, getting more facilities, stretching the dollar that we have. That is what we need to do here. So that is what I am talking about. Getting better value for the dollar, not whether somebody wants to get struck off a list or not. Thank you, Madam Chair.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 551
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Stephen Kakfwi Sahtu
Thank you, Madam Chair. The Member said that BIP costs money and I am sure that it does and we are very happy to see them spending their money, hiring northern people, local people, contracting northern and local businesses. I am very happy to see that. Better value for our dollar is reflected in that. BHP could have been a fly-in/fly-out operation, but they knew, well in advance, because of their public relations people, that they were going to have to demonstrate they were going to be good corporate citizens. That they were going to spend their money up here. So they took the initiative and we all the happier for it. "Bang for your buck", I must remind the Member, is not an acceptable phase, and he should, without great prompting retract that. It is not an acceptable phrase and I thought we agreed last year to refrain from using that in this Legislature. Thank you.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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The Chair Jane Groenewegen
Okay, thank you, Mr. Kakfwi. Would the Member like to retract that particular phrase that he used in his comments? I kind of wondered about it myself when you said it. As the Chairperson, I understand, in some people's minds, that particular saying has quite a negative connotation.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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Seamus Henry Yellowknife South
Madam Chair, thank you. If Mr. Kakfwi is talking about the phrase "bang for the buck", I think that has over the last number of years, been used numerous times in the media, on the street. It just talks about the value for a dollar. It was coined most of the time around the computer industry. I think that was where I first heard it. I am not sure what the problem is. If Mr. Kakfwi is insulted by that, then I would certainly not want to insult him, so I would retract that, but I am not sure what the concern about that particular phrase is? Thank you.
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
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The Chair Jane Groenewegen
Thank you, Mr. Henry. Yes, the committee itself dictates what is acceptable and what is unacceptable in the committee and I would have to concur with Mr. Kakfwi that I would take that particular phrase "bang for your buck" to be unacceptable. Mr Picco. Did you have something you wanted to say about this particular thing or are you just waiting for your turn?