Mr. Speaker, this government has had a Business Incentive Policy in place since 1984. Common Ground recommended that the Business Incentive Policy should be completely revised. We agree. The dynamics of our economy have changed and will continue to change for the foreseeable future. Government purchasing will play a smaller role in supporting local business as other opportunities arise in both our renewable and non-renewable resource sectors. We want to encourage the growth of northern businesses, but northern businesses must strive to compete for other opportunities. Furthermore, we want to encourage "real" northern businesses.

In January, we released a discussion paper outlining options for changing the policy. The paper outlines options for a business incentive policy based on employment incentives and tax reductions. One option would see the elimination of corporate income tax for small private corporations. We are asking northern business, industry and aboriginal governments to provide their recommendations on a new northern business incentive policy. Public consultation will be completed by mid-March and we will be coming forward with recommended changes by May of this year.