Thank you, Mr. Chair. As I’ve stated in the last two days, I believe that this project will have an impact with regard to the Inuvik market. I stated that there has been private sector interest in providing this service in the Inuvik region. We have other regions throughout the Northwest Territories — Fort Simpson, Norman Wells and other places — where the private sector has taken the risk and provided office space to government.

It has been done here in the capital for a number of years, going back to when the decision was made to relocate the capital city to Yellowknife from Fort Smith. You have companies in the Northwest

Territories who have made major capital investments in the retail market by way of buying up assets, developing their portfolios; through blanket developments, northern properties, aboriginal business development corporations.

This sends a bad message to those individuals who have taken the risk and the time to make these capital investments, who wonder why they even invest in the Northwest Territories. If the Government of the Northwest Territories is going to come in at the eleventh hour and compete against them, knowing that our risk isn’t anything close to them having to go to the bank…. We can go to the Legislative Assembly and get $20 million to build a building. These individuals have to go to the bank and borrow millions of dollars at the going rate; without people in their offices, they will not be able to pay down that asset.

I think the implication of this sends the wrong message to the retail market in the Northwest Territories and, more importantly, the market in Inuvik. I stated earlier, just from the information I received this morning, that they have some 7,000 square feet of office space that is vacant in Inuvik, not calculating the amount of space that’s in the Perry Building.

I think it is also important to realize that there is a downturn in the market. You have to realize that the banks aren’t lending anymore as they used to. There is an effect in regard to people’s investments in the Northwest Territories. If this is the case, maybe aboriginal corporations should quit investing in the Northwest Territories and take their investments and go elsewhere. This is exactly the message this government is sending to development corporations who have taken a risk — and taken it some four or five years ago — and now realize only five years into it, “Sorry, you have competition, and oh, by the way, it’s the Government of the Northwest Territories.” I believe that sends a bad message in regard to the so called 47,000 square feet of space that is now going to pop up on the books in Inuvik.

I think it’s important to realize that this government got out of properties by selling off the Lahm Ridge Tower and to also look at government assets in the past. They were leaving that up to the private sector. Look at it in regard to the Yellowknife market. A courthouse. You have companies that have made a major capital investment in retail in the Northwest Territories. It’s important to realize that in this decision, which was clearly stated by the Minister of Finance, no assessment has been done to see if there would be a market disruption or not. I believe we have to do due diligence. If we have policies in place that fine the private sector, that say you can’t set up an extra office building or you can’t set up a tourism business or a hotel business unless you do a market disruption plan…. We

require that from the private sector, but we’re not even practising what we preach with market disruption.

I ask that we allow for this government to take the time to do the assessments and ensure that we do due diligence by doing a market disruption analysis to see exactly what this $20 million project is going to mean in long term effects on the retail market in Inuvik. I think it is imperative that we, this Legislature and Members of this House, ensure that before we make any capital investment.…

By the way, it’s $20 million dollars, and by the way, pink slips are going to be handed out in the next six months, and by the way, you’re going to explain to your constituency that they’re getting laid off because the government has got a so called deficit. But we can spend $20 million on a piece of infrastructure that has not met the tests as to what the urgency or emergency is, as to why that has more of a priority over schools, people’s layoff pink slips, and exactly where this government is going.

I ask for Members’ support in realizing that by making this decision.… It’s a $20 million investment that right now I think could be invested in better ways, also realizing that this government is going in the wrong direction when it comes to supporting our private sector. So with that, Mr. Chair, thank you.