Thank you, Mr. Speaker. I would like to talk today about P3 contracts. Public-private partnerships have been used to achieve some of our large infrastructure projects here in the North, like the new Stanton Territorial Hospital, and will be the method used for the Whati road.
The benefit of P3s is that projects that would otherwise not have funding can be completed using long-term payments that don't require an increase in taxes. That way, government funds can be used elsewhere for other priorities, but, Mr. Speaker, our government has policies to support northern businesses. To be consistent, I think that we need better rules for P3s.
We need to ensure that, in each case, there is a strong benefit component to Northerners. For example, we have a detailed Business Incentive Policy. It ensures that the northern businesses bidding on government contracts have an advantage when BIP is applied. As the government conducts operations, northern businesses can successfully be awarded government work.
Similarly, our Negotiated Contracts Policy is described to provide benefits to northern businesses and communities. Negotiated contracts are intended to create growth in non-market communities or regions, providing jobs for Northerners, support for new and developing businesses, and opportunities for on-the-job training and apprenticeships. A good example is the recent Norman Wells health centre. There, the negotiated contract provided not only substantial work for northern businesses, but also trades training and life skills development in all Sahtu communities.
When it comes to P3s, BIP doesn't apply, and northern benefits aren't always negotiated. An example is the company managing the new Stanton Hospital. When the hospital opened, the contract for coffee throughout the hospital went to a southern company. Needless to say, Yellowknife coffee suppliers were not happy. The complaint was resolved, and we now have a northern coffee supplier at the new hospital.
The lesson is clear: BIP and our Negotiated Contracts Policy make sure that northern businesses, communities, and individuals gain the most benefits from the government conducting business. In that same way, if we keep using P3s, Northerners need to reap the benefits of substantial public spending. We have policies that already work for Northerners, injecting them into the P3 contracting process is the way that we must go in the future. Thank you, Mr. Speaker.