Yellowknife (Mar 10/03) - The GNWT has shelved plans to make controversial changes to the Business Incentive Policy.

Jim Antoine, minister for Resources, Wildlife and Economic Development said the government won't proceed "for the time being."

The minister made the announcement during question period in the legislature.

Jane Groenwegen, MLA for Hay River South, noted "uncertainty" in the business community and questioned the government's plans.

The MLA welcomed a review of the policy, describing it as successful in helping Northern firms but perhaps "less important and relevant" than in past years.

She said it would be premature to make substantial changes to the policy with critical information missing, however.

Groenwegen called for a "clearer accounting" of the policy's economic impact before proceeding.

The NWT legislative assembly's standing committee for accountability and oversight cited the same reason for refusing to approve the new policy last month.

Committee chair Charles Dent, MLA for Frame Lake, said then that members wanted more information than the government was willing to provide.

The BIP gives Northern contractors a 15 to 20 per cent bidding advantage on government contracts.

The most contentious of several proposed changes is a $1 million BIP cap on construction projects.

The NWT Construction Association has lobbied strongly against the change, arguing it would be detrimental to smaller firms.

Hardest hit would be sub-contractors in trades such as electrical, mechanical, structural steel, roofing and siding, painting, and drywalling.

The BIP was introduced 18 years ago and revised about 10 years ago.

The government began reconsidering the policy last year following $5 million in cost overruns during construction of the Slave Lake Correctional Centre.

Antoine told the legislature he wants to see the policy changed but conceded to opposition from MLAs.

"We could probably leave this for the time being and introduce a registry (for government contracts) to gauge what the costs are to have this policy in place.

"At this point in time, the decision is for us to not proceed."

Construction association president Bill Aho welcomed the move.

"We're happy the government is taking a little more time to look at potential changes."