Procurement plan consultation called inadequate

The Yukon government’s new First Nations procurement policy is still enmeshed with controversy.

Sources have provided the Star with a copy of a letter the Yukon Contractors Association (YCA) has sent to Richard Mostyn, the minister of Highways and Public Works.

The letter outlines a series of questions from the YCA and criticisms it has of the process leading up to the announcement of the policy. It doesn’t paint a flattering picture of the way the government has handled the issue with private business.

When contacted Tuesday, the YCA didn’t want to offer a direct comment as yet, saying it’s still in discussions with the government.

Its letter says:

“Dear Minister, Mostyn: First, we would like to congratulate the Yukon Government on your work to develop a Yukon First Nations Procurement
Policy. The sector supports the objectives outlined in the policy, the shift to value driven procurement, and enhancing Yukon First Nations involvement,” the letter states.

“On behalf of the Yukon Contractors Association (YCA), I am writing to request an immediate meeting with you, ministers Pillai and Streicker, and YCA member representatives.

“We wish to discuss the concerns our members have brought forward, and we request that the government delay implementation of the new policy until 2022.

“The YCA received member inquiries, requests for information, and concerns after the policy was announced.

“On Jan. 7, we hosted in-person and online forums to hear from our members on the details that have been provided to date. Combined attendance for both meetings was 72 company members, representing over 80 per cent of our membership. The majority of those members concurred with the enumerated issues shared below.”

The letter, which is signed by YCA president Terry Sherman, goes on to read: “While our members firmly support the objectives outlined in the policy, there was a consensus that the policy, as written, is divisive and pits Yukon businesses against each other.”

It lists a lack of consultation by the government as a prime criticism.

“We would like to note that no YCA member felt that they were consulted on the First Nations Procurement Policy. The Procurement Business Committee was presented highlights of the policy but was never provided substantive detail.

“Nor was the panel provided any opportunity to provide commentary or feedback on any policy or detail. This process should not be considered a consultation.”

Sherman states in the letter that YCA members feel “the Yukon government’s intent with the policy is unclear.

“The on-the-ground application of the policy is not likely to achieve the objectives as outlined, when put into practice.”

The YCA members also object to the government’s notion of using percentage of ownership to determine whether a business is owned by a First Nation.

“This definition of a Yukon First Nations business makes it most effective to establish shell companies which would neither develop nor enhance relationships and they fail to provide any development of relevant sector skills or experience.

“More concerning to YCA members, they provide a very lucrative and easy opportunity for Outside companies to establish in the Yukon while circumventing Yukon business requirements.

“The YCA objects as well to the ambitious timelines established in the policy.

“The proposed policy has massive changes to the procurement process and the timelines are far too soon for implementation.

“Private sector businesses will ultimately find ways to operate. However, Yukon Government’s quick implementation is directly selecting ‘winners and losers’ this year.

“Government is providing a competitive advantage to those Yukon businesses better positioned to operate under the policy, and the YCA feels that all our members should have equal opportunity to compete.

“This requires enough time to prepare. Failing to provide sufficient time to the private sector will create resentment and may cause the policy to fail, a result that no one wants.”

Mostyn has responded to the letter from the YCA with one of his own.

“The policy was drafted to meet the spirit and intent of Chapter 22 of the Yukon First Nations Final Agreements, to increase the participation of Yukon First Nations People in Yukon’s economy and to take a step towards reconciliation,” he wrote.

“I am glad to hear the Yukon Contractors Association supports the overarching goals and objectives of this policy. 

“This policy was developed through a collaborative government-to-government process between Yukon Government officials and Yukon First Nations government officials.

“It is important to note that government-to-government discussions are confidential and that trust must be upheld, which is why we were not in a position to share a draft policy with all interested stakeholders earlier than we did.

“It is important you understand the policy establishes goals and parameters and the work on developing the operational requirements has just begun,” the minister added.

“This is where I see your membership playing an active role in making sure this policy is a success for all Yukoners. In the past few weeks, we have engaged many local businesses to explain where we are with the development and implementation of these requirements.

“In fact, this month a new YG/ Industry Working group was specifically formed to provide input and advice on the details included in these operational requirements.”

Mostyn wrote he has asked “officials to meet with your association, ensure clarity on what the policy does, including highlighting the areas where operational requirements may be appropriate.

“It is my hope that the Yukon Contractors Association will continue to work collaboratively with Yukon government officials in finding solutions to ensure a smooth implementation of the YFNPP.”