Yellowknife (Apr 07/03) - The awarding of a $1-million GNWT computer contract to a Southern firm had MLAs fuming last month.

The elected officials blasted the Department of Public Works and Services during the recent session of the legislative assembly.

Not only was the awarding of the contract unfair to Northerners, members said, it shows nothing less than a breakdown in the way the GNWT has promised to do business.

"There are a lot of businesses who have made significant investments in the North, based their business model on the policies of this government," said Yellowknife South MLA Brendan Bell, "and feel that the due process was short-circuited here."

The deputy minister of Municipal Affairs and Community Development, Bruce Rattray, defended the government's decision to deal directly with Hewlett-Packard.

"The companies that are established in the North will probably never be in a position to provide that same type of equipment," he said. "It requires a level of expertise that Hewlett-Packard is able to afford to maintain, but typically small businesses would not be able to."

The computer equipment was ordered for many GNWT departments.

Range Lake MLA Sandy Lee accused the Public Works department of "explicitly" ignoring its own Business Incentive Policy (BIP).

While the department claims the contract did not fall under BIP guidelines because the Southern firm was the only one which could provide the computers, Lee said "That just doesn't wash."

The government further claimed that by going South, it saved $100,000.

"To say we saved $100,000 is very short-sighted," Lee said. "Government is not just a purchaser. The government money we spend on hiring people and buying things has a major impact."