Step aside for the set-aside

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Native business will get a shot in the arm from the federal government with its new "set-aside" policy. This could mean that Native companies can expect $300 million worth of government contracts to be sent their way each year.

The set-aside policy, approved by cabinet at the end of last year, would see three per cent of the federal government's annual $9 billion in contracts funneled into the Native business community.

The main objective of the policy is to create jobs in, and give support to, Aboriginal-owned businesses.

The policy goes into effect April 1, but bureaucrats are still busy trying to define what constitutes an Aboriginal business. It is feared that mainstream business people will set up paper businesses with the look of an Aboriginal business in order to pick-up the set-aside business.