Mr. Speaker, one only has to turn on any news channel these days and much of the coverage is devoted to the fallout from the current global recession. While the statistics and employment figures and job losses speak for themselves, we also hear of what other jurisdictions, national and international, are doing to address this recession.
The numbers in terms of financial assistance and stimulus that countries and jurisdictions are committing to is a sign of the magnitude of this problem. Here in the North we will not be insulated from the repercussions of this recession and the effects are already beginning to be felt. I am concerned about what our government is doing in response. We constantly hear that small business is the backbone of the Canadian and our northern economy. Many of these businesses may find
themselves resorting to laying off staff, cancelling plans of expansion and experiencing credit challenges as mortgage payments come due and loans come up for renewals.
Although interest rates have fallen, the reluctance of the usual sources of loans and credit have, at the same time, tightened their lending criteria and policies. I realize that many jurisdictions are looking to capital infrastructure as a means of stimulating the economy during these difficult times. The good thing about this is that we have something tangible to show for the dollars invested, and in the process create jobs and economy.
I am aware of the various sources of infrastructure dollars to our government through federal programs, both for municipalities, housing and transportation infrastructure. This is welcome news and we look forward to the rollout of these projects and initiatives. But is there more that we can do with our own resources, programs and policies?
I want to ask the Minister for Industry, Tourism and Investment later today what our government is doing to be proactive, to collect feedback from businesses about their needs and challenges at this time. We have a government lending policy through the Business Development Investment Corporation; business support through the SEED program; Community Futures lending program; but the GNWT has the latitude, the same as other jurisdictions, to consider things like interest only or interest deferred loans. If we lack the capital to create a larger pool of funds for lending, as I’ve already suggested, can the government borrow from the Opportunities Fund to distribute loans to a broad number of small businesses?
It’s time to think outside of the box on our business support policies, but first of all we need a forum to collect feedback from our businesses that may be struggling at this time, and I would suggest our regional ITI offices are that point of contact. Thank you, Mr. Speaker.