Inuvik (Mar 14/03) - Increased communication between government and Gwich'in businesses over government contracts will provide Gwich'in businesses a leg up in securing more government contracts -- at least that's what both parties hope.

Officials from Resources, Wildlife and Economic Development (RWED) made a presentation to town council Monday night, explaining the details of a memorandum of understanding (MOU) between the GNWT and the Gwich'in Tribal Council (GTC) that will increase communications between government and Gwich'in on contract information.

Assistant Deputy Minister Doug Doan said that about 18 months ago, the GTC approached the GNWT voicing its frustration at its inability to secure government contracts.

The government responded with this MOU, which was passed by cabinet in December.

"It creates an open dialogue and a process with the Gwich'in Tribal Council to talk about projects in their settlement area," Doan said.

The MOU does not offer any financial advantage to bid contracts, but gives the GTC an increased awareness of what contracts will be offered in the settlement area over the year.

The GNWT will meet with the GTC twice a year; the first visit will provide a list of projects to be bid on over the year and the second visit will review the results of the business year to measure performance of the plan.

The Gwich'in will not be privy to any information that is not available to other contractors and regular contract rules will apply.

They have identified a target objective to increase Gwich'in contracts in Fort McPherson and Tsiigehtchic to 50 per cent.

"In Aklavik and Inuvik we are going to try to develop some other criteria to increase business as well," Doan said.

The document suggests an "added reliance on negotiated contracts" that may cost the taxpayers more money and de-stabilize the contracting market. Council's youth representative Amanda Johns questioned the government's influence over private enterprise.

"You say you don't want to distort the market, but you are doing just that," Johns said. "What's going to happen to the contractors who are now doing 35 per cent of the work in these places?"

Doan responded that there are many Yukon and "outside" companies doing business in Fort McPherson and Tsiigehtchic and the MOU will allow more work to be done by local people.

Paul Watters, president of the Inuvik Chamber of Commerce, had no qualms about the document.

"I don't see any issues at all with it," Watters said. "All my concerns with it were answered."

Deputy Mayor Clarence Wood questioned the validity of the MOU and the money spent on the plan.

"It all boils down to the government saying, 'We will communicate better with businesses in the Gwich'in Settlement Area,'" Wood said. "I don't think we need an MOU to say the government should communicate better."

"I just think it's a waste of money, because there are no guarantees."