The committee requested clarification as to how the Business Incentive Policy applied to the privatization of POL in communities. Departmental staff assured the committee that the Business Incentive Policy applied.
The Minister reassured the members that part of the criteria of Cabinet, when it comes to privatization of POL, is political support. Despite these assurances, there still is concern that there may be circumstances where POL contracts are slipping through the cracks and are being acquired by non-northern businesses.
The committee noted that bulk fuel distribution is exempted from the Business Incentive Policy; a Cabinet exemption that dates back to 1985. The committee would like clarification for the situation where a contractor may submit proposals for fuel supply in more than one community using their own bulk fuel resupply and whether these contractors, who may not be headquartered inside the Northwest Territories, be exempted from the Business Incentive Policy when POL contracts are awarded in individual communities.
Service Delivery
As was done in the review of the 2000-2001 Main Estimates, the committee encourages the government to proceed with care when it comes to privatization of services, such as the delivery of electrical power and petroleum products to northern communities.
The committee supports industry but believes there must be a means of preventing companies from picking only profitable ventures and leaving high cost areas behind, resulting in a higher cost to government.
Thank you, Mr. Chairman. That concludes the committee's report on the Department of Public Works and Services.