Thank you, Mr. Speaker. As an Assembly, we committed to supporting economic development in northern businesses. Many of my Kam Lake constituents report the challenges associated not only with starting a business, but also keeping it profitable. I believe that the GNWT can and must do more to support northern businesses.
According to 2019 NWT Statistics Bureau data, over 70 percent of the 3,600 NWT businesses employee four or fewer employees. Our economy and communities depend on these small northern businesses. Not only do they provide meaningful employment, they also support events, youth sport, and activities that enrich our communities.
Every dollar spent on NWT businesses generates a positive spinoff effect in our economy, and the loss of these businesses will hurt workers and their families, impoverishing our communities, and ultimately stand to reduce the territorial population, in turn reducing our federal transfer payments.
Mr. Speaker, Kam Lake business owners tell me that the cash flow is a challenge for their small businesses. Late payments cause a trickle-down effect of missed payments to other businesses and workers and an increase in interest costs that drive the cost of doing business. One way to grow our northern businesses, Mr. Speaker, and decrease the cost of living is by paying for services rendered on time.
Mr. Speaker, the GNWT Financial Administration Manual requires that BIP businesses get paid 20 days after receipt of a good or service. Government payments are often late. These concerns were documented by the Standing Committee on Economic Development and Environment in its GNWT Procurement Practices Report tabled in August. The committee recommended that the GNWT pay invoices below $10,000 within a week and that the GNWT pay a late payment penalty when it fails to make timely payments. To support northern businesses and reduce the cost of living, we must move forward with these recommendations.
Mr. Speaker, I am incredibly proud of northern entrepreneurs. I know firsthand the persistence and passion it takes to run a business. The GNWT needs to support economic growth and diversification by doing everything possible to promptly pay vendors. Thank you, Mr. Speaker.