Thank you, Mr. Speaker. My questions today are addressed to the Minister of Industry, Tourism and Investment as the Minister responsible for our BIP policy, Business Incentive Policy.
I have been advised by a constituent about a difficulty encountered with them and the BIP policy. It had to do with a request for proposal, an RFP, that was let by the government – Yellowknife Health and Social Services Authority actually – and it’s for an RFP which has previously often been handled by an NGO. But NGOs, according to the BIP policy, are not eligible to register as a business, so I’d like to ask the Minister why not. Thank you.
Thank you, Ms. Bisaro. The Minister of Industry, Tourism and Investment, Mr. Ramsay.
Thank you, Mr. Speaker. The Member brings up kind of a grey area here. An NGO could certainly apply for BIP status if it has a business arm. The reason an NGO itself cannot become BIP registered is… There are a number of reasons. First, they don’t pay taxes, or they don’t pay income tax. They usually receive significant government funding through other contribution programs. They often receive other government-based incentives ranging from free rent on a building or pay zero through tax assessments and often receive cash donations sometimes significant in nature. Also, they often receive non-cash-based donations. They have to be treated much differently than a business would be.
Thank you to the Minister for that very fulsome answer. I appreciate that NGOs are not like a business. However, NGOs provide a service which very often is an extension of our government health services or our social services. An NGO is providing a service for the government. It’s unlikely that most NGOs would have a business arm. I will just leave it at that.
I’d like to know from the Minister, in terms of an NGO providing a service versus a private business providing a service, does he consider that in comparing an NGO application for an RFP and the business application for an RFP that they are applying on a level basis? Is it a level playing field?
I wouldn’t want to hazard a guess, not knowing the particulars in the situation the Member talks about, but if the Member would like to divulge – she doesn’t have to do it here today – the situation, if it is an NGO bidding against a registered BIP business here in the Northwest Territories then the NGO not getting BIP status, there’s a reason, and I mentioned the reason why, the NGO wouldn’t receive BIP status to compete with a registered BIP business here in the Northwest Territories. I’d like to, maybe, get the Member to provide us some further details and we can look into this situation.
Thanks to the Minister. I’m happy to provide that information to the Minister so we can discuss this a little more fully. I totally agree with the Minister that it’s a grey area and I think it’s one that we need to look into.
I want to ask the Minister, my understanding of the rationale for BIP is that it is to encourage local businesses to keep business locally, I guess. For instance, an NGO that has responded to an RFP and is running a service is employing people within the community, they are keeping dollars within the community, their employees are spending dollars in the community. I see the BIP as employing local people, enhancing local employment and enhancing northern employment. Does the Minister agree with that?
As I mentioned earlier, NGOs could certainly have a commercial aspect, a commercial arm to their operation, and that is a component of their operation that could become BIP registered. Then those benefits the Member talks about are apparent.
I think, again, it is a grey area. It’s the first that I’ve heard of this situation coming up, and it’s certainly something I look forward to discussing with the Member and the Regular Members opposite, to try and find a way forward with it so that everybody knows what the rules of engagement are when it comes to tenders and NGOs and BIP registered businesses and how they would compete against one another.
Thank you, Mr. Ramsay. Final supplementary, Ms. Bisaro.
Thank you, Mr. Speaker. Thanks to the Minister. I will take him up on his commitment.
I would like to ask him at this point – there is at least one RFP out there that I’m aware of that an NGO is applying – if he would be able to, in looking into this situation which he said he will do, will he agree to hold off the awarding of any tenders for any RFPs that are out there where we have NGOs competing against a business until we clarify this area?
Once the Member brings forward the details of the situation, I would certainly be more than happy to talk to whichever department the award would be awarded through and have a discussion about next steps.
Thank you, Mr. Ramsay. The honourable Member for Yellowknife Centre, Mr. Hawkins.
