The procurement policy issue continues to bedevil the business community.

Terry Sherman, who was the president of the Yukon Contractors Association (YCA), resigned his position over the procurement policy controversy earlier this week.

“It was a hard decision to walk a way from YCA,” he told the Star.

“There is a certain number of members that do not want nor like the FNPP (First Nations Procurement Policy) and would rather be the problem than the solution.

“The Yukon government has tried to work with YCA to build the technical requirements along with First Nation governments to make sure this FNPP will work for all Yukon citizens and achieving the goals set out in the policy,” Sherman said.

“But you have to be at the table for collaboration with meaningful outcomes. So I have decided to keep working on solutions and will not be part of the problem.”

In January, the Star obtained a letter the YCA’s Sherman sent to the government over the policy.

The letter outlined a series of questions from the YCA and criticisms it has of the process leading up to the announcement of the policy.

The letter sought an immediate meeting with cabinet ministers Richard Mostyn, Ranj Pillai and John 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 letter read.

“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, signed by 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.

“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 letter adds.

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

Chad Harwood, the YCA’s vice-president, has replaced Sherman on an interim basis.

“The former president resigned, I am the VP so I have to step in,” Harwood told the Star.

“Why the president resigned has not been disclosed to me; however, we were working on the First Nations procurement policy at the time.”