Thank you, Mr. Speaker. I would like to speak to revising the Business Incentive Policy.

The GNWT spends over $260 million annually on products and services. The GNWT alone can be a primary driver of economic recovery in the NWT through purchasing power. The purpose of the Business Incentive Policy is to give preference to businesses that are owned and operated within the NWT. It is designed to promote economic growth and capacity within NWT businesses and the economy. Yet Members hear from constituents territory-wide of the challenges accessing government procurement opportunities.

Members have heard of the success stories in other circumpolar regions that level the playing field for small businesses competing for government contracts. Small business agencies provide financial and contractual assistance, as well as business development advice.

Committee is urging the GNWT to implement more forward-thinking policies and services that more effectively support and develop capacity among NWT businesses to compete for government contracts. Specifically, increasing client services and support to compete for GNWT contracting opportunities beyond the anticipated workshops and online one-stop-shop would be valuable.

50.7 percent of the total population is Indigenous, and yet there is no specific policy in the NWT that supports the development of Indigenous businesses. At the national level, and across the country, governments have established Indigenous business policies and strategies, with incentives such as advance communication, set-asides, and sole-source contracts to build capacity and competitive edge within the Indigenous private sector.

Revising the GNWT Business Incentive Policy to strengthen Indigenous participation in the NWT supports the economic measures laid out under the Tlicho Agreement, the Sahtu Dene Metis Comprehensive Land Claims, the Gwich'in Comprehensive Land Claim Agreement, the Inuvialuit Final Agreement, and the NWT Metis Nation Land and Resources Agreement-in-Principle.

Specifically, the committee is recommending the GNWT:

• review and revise criteria for eligibility under Schedule 3: Majority Non-Resident Owned Businesses (grandfathered businesses);
• revise eligibility requirements to include NWT labour force requirements;
• revise the 'lowest bidder' evaluation process to provide weight to other aspects of the bid, such as NWT and Indigenous labour development;
• review bid adjustment percentages for contracts over $1,000,000; and
• expand provisions for monitoring and compliance of BIP companies.

In addition to the revisions of policy, the GNWT needs to improve interdepartmental awareness, training, and procedures that enable large contracts to be broken down to sizes where NWT businesses can successfully compete. GNWT staff must understand NWT business capabilities better. Processes need to be established to ensure staff persons are seeking out, engaging, and working collaboratively with NWT businesses, especially Indigenous businesses, in all competitive processes.

The committee further recommends that the GNWT increase awareness of tools that can be used in procurement to encourage northern manufacturing. Committee notes the proactive actions from government to communicate with, support, and promote manufacturers of COVID-19 related supplies and would like to see this continue and be expanded upon.

Committee recognizes the commitment under the mandate to strengthen procurement policies and practices and improving participation in the Business Incentive Policy by NWT companies. Committee is recommending tangible action on this in a shorter term. Committee stresses the urgency to have an amended Business Incentive Policy integrated into government services as soon as possible.

A key pillar of the NWT economy is the private sector. The business decisions of the GNWT will directly impact the ability of businesses to grow, expand, diversify, and innovate. Building capacity and encouraging innovation within the private sector needs to be top priority for all contracts and business opportunities by all GNWT departments. The effective participation of the private sector is not only integral to community resilience but has been demonstrated to greatly assist in the recovery phases of a crisis.

Recommendation 2

SCEDE recommends the GNWT review and revise the Business Incentive Policy in collaboration with the business community as well as Members of the Legislative Assembly. SCEDE recommends this work commence immediately, and notwithstanding Recommendation 5, report to committee on the status of work by September 1, 2020, including a comprehensive work plan and a projected implementation date for the updated Business Incentive Policy.

Mr. Speaker, I would ask the MLA for Thebacha to read the report next. Thank you, Mr. Speaker.