Thank you, Madam Chair. I just wanted to make a few comments to the motion after listening to some of the questions and some of the discussion on this issue. First of all I want to say that the message behind the motion is essentially that as a government we should not make loan guarantees if there is any risk at all involved, otherwise it may cost us some money at the end. If the government did not do that and the government chose not to give any guarantees at all, I could tell you right now there would not be a polishing industry in the Northwest Territories, it would not exist, because that is what made the industry viable and what
has built an industry here. So if you are voting that we don't do this, then I tell you, we have no industry.
I have a great concern with this as well that we are doing this at a time when we've got the pipeline project coming along. We are going to have other industries up and down the valley and throughout the Territories who are going to want to get into business. They may not be able to do it just by going to the bank, which would have to be the case if there was no risk to us at all. So we are basically saying no more loan guarantees from the government for anybody who wants to get into business if there is any risk. I will tell you that is going to send, I think, a terrible message to anyone who wants to get into business with some of the opportunities that are coming along.
So this sort of flies in the face of what we were trying to do as the 14th Legislative Assembly and what we are trying to do in the 15th. We have got to support our people to get into business. This is not about wanting to finance big multi-national corporations, it is about trying to finance our companies here in the North who are trying in some cases to do joint ventures, and to get into business, and that is what we did. In this particular case, I don't think we lost $120,000 because as long as we are in a surplus and we have been in a surplus, then there isn't any interest paid out by anyone. We are in the surplus position, the federal government would claw it back, or at least part of that $120,000, so there is no $120,000 of money that we are out here. The only time it becomes real money is when you vote to take it out of the budget.
On the one hand we can't sit here and say we need more money in legal aid, and then say at the same time that we want to cut money out of something. This $120,000 that we are going to have to find somewhere within the budget if you cut it out could mean the difference in legal aid or another program where we want to have better services and programs. So we can't have it both ways. As I say, we are in a surplus cash position. This has not cost us anything up until now. It really only becomes real money when you take it out of a budget.
I had heard some comments earlier, Madam Chair, as well that this was somehow setting a precedent, that's $120,000 here, you better send a message to the government not to do this anymore, they are setting a precedent. Well I will tell you, there aren't very many companies that I can think of who will purposely go bankrupt or out of business in order to take advantage of an interest-free loan. That is not setting a precedent anywhere at all.
So, Madam Chair, I just think that doing this is really sending a confusing message out to our businesses in the North, whether it is in diamonds or oil and gas, or wherever it may be. It is sending a message then that we are not going to take any risk on their behalf anymore, and I think that is really shirking a responsibility we have as a government. Then, second, I think it is confusing a lot of things by suggesting that this is some kind of dangerous precedent, that this has cost us $120,000, that it is going to cost us $800,000. Those are all numbers that are based on some estimates, but is it real money? No. It only becomes real money when either we are in a deficit position or we have to pay it out, and we are not paying it out yet. The only time we lose that money out of our budget is when you vote it out of here.
So, Madam Chair, I think there is a lot of misunderstanding about what this is doing. But I will tell you, the message is very clear in my mind, and I will repeat it again, that if we do this we are sending one powerful message to all of our northern companies who may want to get into business. Thank you, Madam Chair.