Mike W. Bryant
Northern News Services

Yellowknife (June 17/02) - Public Works Minister Vince Steen acknowledged Friday his department recommended cabinet suspend the Business Incentive Policy on Phase 2 construction of the new North Slave correctional facility.

Steen made the admission after being drilled by Frame Lake MLA Charles Dent in the legislative assembly over the government's controversial plan to waive the BIP.

"Public Works did review all options," Steen responded. "We met with the client department (Justice), the project manager, and we did not have any options left. Public works recommended to cabinet to suspend BIP for this project only."

Dent also asked Steen if a cost assessment of the policy has ever been conducted by the territorial government, and if so, how much did it cost to administer across the NWT.

"I've been told it's in the nature of 33 million bucks a year," Steen replied.

The territorial government is considering reversing the suspension after meeting with construction contractors last Thursday.

The NWT Construction Association recommended cabinet cancel the present tender and management contract to PCL Constructors, and put out one all-encompassing tender.

Finance Minister Joe Handley even suggested the same day that a decision might be made Friday following a cabinet meeting, but as question period progressed, it appeared such a decision would have to wait until this week.

"At this point, we haven't decided anything different," Steen said on Friday. "We're planning to hold another meeting (in cabinet) this week."

Still, Handley said Thursday a decision must be made soon because a tender has already been made, and it expires at the end of the month.

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

Cabinet had earlier waived the BIP on Phase 2 construction of the adult correctional facility after the budget estimates for it started going through the roof.

The original estimates for both Phase 1 and 2 started at $35 million, but have since ballooned to more than $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.

The government could face a legal challenge from them if they were to change the tender now, and restore the BIP.

One MLA, Tu Nedhe's Steven Nitah, wondered aloud during a statement in the legislative assembly Thursday whether it was time to do 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."