Thank you, Mr. Chair. Mr. Chair, as the Minister noted, BDIC has a number of economic development programs from providing businesses support services to running its own subsidiaries. One of the most popular programs is the credit facilities program, which disbursed $6.2 million in 2016-2017, part of a growing portfolio of $47.3 million. The program provides for key credit facilities; loan facilities, standby letters of credit, guarantees, credit risk management, and interest rebates. These initiatives help NWT business start-ups as well as establish businesses to grow. This program also generates interest for the BDIC.
There is no doubt that BDIC is a critical organization that nurtures entrepreneurship in the NWT. To continue to diversify our economy, we need to support organizations that help budding entrepreneurs get their businesses off the ground and expand them across our communities.
BDIC is largely funded by the Department of Industry, Tourism and Investment. However, since 2015-2016, following government-wide fiscal restraint policies, ITI has been reducing its contributions. Funding flowing to BDIC has been reduced by half in four years from $3.8 million in 2014-2015 to $1.9 million in the current fiscal year. At the same time, BDIC has accumulated a significant amount of money in interest earned over its lifetime, but the current Northwest Territories Business Development and Investment Corporation Act forbids BDIC from using its loans and investment funds to fund its own operations.
During the most recent ITI business plan review, EDE expressed concerns over the reduction in funding to BDIC and potential impacts on program delivery. Pursuant to Clause 41 of the NWTBDIC Act, a five-year program review is required and this is currently under way. While ITI expected amendments to the act following program review, EDE recommended that amendments to the act be brought forward sooner to allow for BDIC to use some of its interest revenue to fund its operations now and, therefore, maintain the sustainability of its programs.
Mr. Chair, Bill 21 is a targeted bill that proposes to amend the NWTBDIC Act to allow for BDIC to use its interest revenues to fund operations. Bill 21 further adds ministerial approval requirements when an operating budget proposes to use part of the interest revenue and adds reporting requirements to account for these changes. Once the current five-year review is completed, EDE will assess the outcomes and make additional recommendations as needed. These may result in further amendments to the act.
Mr. Chair, Bill 21, An Act to Amend the Northwest Territories Business Development and Investment Corporation Act, proposes small amendments to address immediate needs that I think are critical for the full and uninterrupted delivery of BDIC's programs. I also want to thank the department for their expedience on this bill. Members are welcome to ask questions of the Minister as they see fit.
Those are my comments. Thank you, Mr. Chair.