Doug Ashbury
Northern News Services

NNSL (Jun 14/99) - Nunavut's new business incentive policy could spark Eastern manufacturing and other industry, according to cabinet member Manitok Thompson.

Under the new policy, which applies only to the new territory, Nunavut-based businesses bidding on Nunavut government contracts will have their bids adjusted to compete with bids from outside Nunavut.

"I believe this will help create new possibilities within the Nunavut area which may not have been considered viable previously," Public Works, Telecommunications and Technical Services Minister Thompson said.

"Under the original business incentive policy there were instances where Nunavut businesses were unable to compete directly with the well-established businesses in both Yellowknife and the western part of the territories," she said.

"There will be opportunities for Nunavut businesses to fill the gaps which were once filled by businesses from the rest of the NWT where operating costs were, in some cases, much lower.

"This is a very important factor in ensuring that doing business within Nunavut benefits the people of Nunavut," she said.

Thompson, MLA for Rankin Inlet South-Whale Cove, made the comments in a members statement last Tuesday.

By adopting the new policy, government is attempting to assist Nunavut businesses to develop and grow, she added.

There are 383 approved firms listed in the Nunavut business registry. A list is included at the www.kirk.nt.ca/nubip Web site. Of the 383, some 201 are in the Baffin region with 132 and 50 in the Keewatin and Kitikmeot respectively.

The East's policy is effective to March 31, 2000.

To tailor the policy to Article 24 of the Nunavut land claim, the policy will be reviewed prior to March 31.

The review will include Nunavut Tunngavik Inc., responsible for implementing the Nunavut Land Claims Agreement, and other stakeholders.

The NWT business incentive policy which, prior to division, applied to the West and Nunavut, remains in place.

GNWT Resources, Wildlife and Economic Development Department administered the program which adjusts NWT company bids by 20 per cent for NWT companies bidding on GNWT contracts.

Contracts worth over $5,000 have a two-level bid adjustment. NWT companies are given a 15 per cent adjustment. If the company is an approved local business, it gets an additional five per cent adjustment.

For example, if an approved NWT company bids $37,500, its bid will be adjusted by 15 per cent to $31,875. A $35,000 bid by a non-approved company will not be adjusted.

If an NWT-based company which resides in the community where the goods are destined bids $37,500, the bid will be adjusted by 20 per cent to $30,000.

The contract would likely be awarded to the latter company but the price of the contract remains the amount prior to the adjustments -- $37,500.