Thank you, Mr. Speaker. In 2016, Northern Transportation Company Limited filed for bankruptcy. Subsequently, this government purchased the assets of NTCL for $7.5 million. The justification for the purchase was the need for reliable and dependable barging services for our remote NWT communities and to address the high cost of living, which we know is a significant problem for residents of small communities.
Mr. Speaker, at the time, the GNWT stated it would be reaching out to private sector partners to come up with a made-in-the-North marine transportation service solution for our residents. To this end, the government retained the services of Offshore Recruiting Services, also referred to as ORSI, a recruiting firm from the east coast of Canada. Their company website states that it specializes in the provision of skilled and certified marine, drill, subsea construction, and catering personnel. My understanding is that MTS, subsequent to NTCL's bankruptcy, identified and recruited former NTCL managers to oversee its operations. In addition to these managers, the GNWT has provided various supports to the Department of Infrastructure.
Mr. Speaker, ORSI is currently supplying MTS with not only marine personnel, but also terminal crews that include management, supervisors, general labour, lead hands, mechanics, welders, machinists, electricians, office administration staff, maintenance, and others. My concern is whether or not the current structure is working in the best interest of this government. Some of the management is directly employed by ORSI, and it is this management that dictates hours of work, purchase of services, and purchases of material. ORSI, I am assuming, is compensated based on a cost-plus basis, which raises red flags.
I am looking to the Department of Infrastructure to ensure that the cost of work being undertaken by MTS is monitored for fiscal responsibility and fairness; that costing of MTS work versus work for third parties is being allocated appropriately; that we are doing everything we can to employ and train Northerners; and that we are treating our Northern contractors and businesses fairly.
Mr. Speaker, for what was to be a made-in-the-North solution, we appear to have failed once again. I'm not sure why we enjoy sending our limited financial resources to southern companies, but we do, and I'm looking to this government to put a stop to it. Thank you, Mr. Speaker.