Mike W. Bryant
Northern News Services

Yellowknife (June 14/02) - The territorial government is seriously considering reversing its Business Incentive Policy suspension after meeting with construction contractors yesterday. A decision could be made as early as today.

Deputy Premier Jim Antoine rises in the legislative assembly Wednesday to answer questions from MLAs on the government's Business Incentive Policy. He said it is currently up for review. - Robert Dall/NNSL photo

Cabinet had earlier killed the BIP on Phase II construction of the adult correctional facility after the budget estimates for it started going through the roof.

The original estimates for both Phase I and II started at $35 million, but have since ballooned to over $40 million.

A reversal would put the BIP back in place for the correctional facility's second phase, but open up the GNWT to possible lawsuits from Southern contractors.

After meeting with the NWT Construction Association yesterday morning, however, both parties appear confident the BIP can be restored, providing cabinet ministers agree.

"The main recommendation they had to us was to cancel the present process, cancel the management contract that's been placed with PCL (Constructors), then finish the drawings completely, and put it out to one general tender," said Transportation Minister Joe Handley.

Timing is crucial, said Handley, if the cabinet is to reverse their decision.

Only four cabinet ministers were at the meeting including Handley, Public Works Minister Vince Steen, Justice Minister Roger Allen and Deputy Premier Jim Antoine.

"We would have to do it fairly quickly," said Handley. "Every day that goes by means people are doing more work on the tender that we have out there.

"If we're going to cancel it, I'm not saying we would because it does have implications, then the sooner the better. We got to take that back to cabinet in the morning."

The government could face a legal challenge from southern contractors if they were to change the tender now, and re-include the BIP.

"There are some hurdles that we would have to overcome," said Handley. "We already have a tender out right now that doesn't have the BIP in it. We would have to cancel that and that could subject us to some legal challenges."

The association's BIP committee chair, Keith Houghton, said contractors were breathing a little more easier after the meeting.

"I guess the Construction Association is not quite as nervous after that meeting," said Houghton. "They (cabinet) came out with some assurance that the GNWT is not looking at abandoning the BIP forever or totally."

One MLA, however, Tu Nedhe's Steven Nitah, wondered aloud during his members' statements in the legislative assembly yesterday whether it was time the GNWT did away with the BIP all together.

"If it's going to put an additional 20 per cent on the cost of housing, where an individual has to pay an extra 10 years of mortgage on a house from 20 years to 30 years, if we could reduce it to 20 years I think that is a good thing," said Nitah.

"I think industry has grown up enough and can compete on all levels."

The BIP issue dogged cabinet all week in the legislative assembly, primarily over cost overruns and the government's arbitrary decision to cancel the BIP for the correctional facility.

Antoine told the House that MLAs can expect a cabinet report on the BIP, and any proposed changes to it, by mid-July.

"Definitely, we have to make changes to the BIP," said Antoine. "There's different opinions out there. We have to weigh the pros and cons."