Members Present
Hon. Titus Allooloo, Mr. Antoine, Mr. Arngna'naaq, Hon. Michael Ballantyne, Mr. Bernhardt, Hon. Nellie Cournoyea, Mr. Dent, Mr. Gargan, Hon. Stephen Kakfwi, Mr. Koe, Mr. Lewis, Mrs. Marie-Jewell, Ms. Mike, Hon. Don Morin, Mr. Nerysoo, Mr. Ningark, Mr. Dennis Patterson, Hon. John Pollard, Mr. Pudlat, Mr. Pudluk, Mr. Todd, Hon. Tony Whitford, Mr. Zoe
---Prayer
Item 1: Prayer
Item 1: Prayer
Page 251
The Speaker Michael Ballantyne
Good afternoon. I would like to recognize in the gallery a northern studies class from Sir John Franklin High School, and their instructor George Diveky.
---Applause
Item 2, Ministers' Statements. Mr. Morin.
Minister's Statement 18-12(3): New Home Ownership Programs
Item 2: Ministers' Statements
Page 251
Don Morin Tu Nedhe
Thank you, Mr. Speaker. I am pleased to announce today to the Legislative Assembly and to the people of the N.W.T., that the new home ownership programs will be offered by the N.W.T. Housing Corporation in 1993-94.
These new home ownership programs have been developed in response to public concerns about the Home ownership Assistance Program, or H.A.P. Although over 1,500 families have become home owners through H.A.P. since it was first introduced in the early 1980s, H.A.P. catered to a specific segment of the population. During the last few years qualified applicants became harder to find, as most people who were interested in the program and could qualify for it had already been served.
In addition, concerns were expressed about the eligibility criteria for H.A.P. which required clients to contribute sweat equity. Many people interested in home ownership are unable to help build their own homes due to a lack of skills. Others are employed full-time and cannot take time off to build their house. Still others, at both ends of the income scale for H.A.P., did not qualify because they earned too little or too much.
These concerns are long-standing. In its 1985 report to this House, the Legislative Assembly's Special Committee on Housing made several recommendations on the corporation's home ownership programs. I am pleased to inform the Members that these recommendations are now being addressed in the new programs I am announcing today.
The Special Committee on Housing was concerned that people in the communities were not aware of all the options available to them under the corporation's home ownership programs. The application process was complicated and clients sometimes did not understand the full implications of what they were getting into. The new home ownership programs are based on an expanded and improved information and counselling service which will be available to any community resident interested in finding out whether home ownership might be the right choice for his or her family. This one stop shopping approach will assess each potential client's needs and current situation. Full information on all options within the client's income are then reviewed. A wide range of information will be provided, including financial planning, mortgages, acquiring land, planning for construction and maintaining and operating a home.
I want to emphasize the personal nature of this approach, because it symbolizes what we are trying to accomplish through the new programs. The way in which these programs are delivered to the people is very important. People who have never owned their own home will be given the opportunity to get counselling on what is involved in assuming the responsibilities and independence of home ownership. There should be no surprises for the client once he or she enters a specific program. Clients need to succeed at home ownership, and that means spending more time up front with some clients than we have spent in the past.
The information and counselling service is also important because the new home ownership programs will require clients to pay back some of the assistance they receive, in accordance with their income, over a fifteen year period.
The new programs all come under the umbrella of access to home ownership, a name that emphasizes the wider range of programs that will be available to the public.
Minister's Statement 18-12(3): New Home Ownership Programs
Item 2: Ministers' Statements
Page 251
The Speaker Michael Ballantyne
Excuse me, Mr. Morin, would you slow down a little bit for the benefit of the interpreters. Continue please, Mr. Morin.
Minister's Statement 18-12(3): New Home Ownership Programs
Item 2: Ministers' Statements
Page 251
Don Morin Tu Nedhe
Thank you, Mr. Speaker. The new programs have expanded eligibility criteria so that people at both ends of the income scale can now get into a program. However, the new programs will require repayment from all clients. The amount of repayment is based on the client's income. If income is low, repayment is low. If the client can afford to pay more, his repayment is higher.
I want to emphasize one very important point: even with repayment, all clients will still be eligible for some level of subsidization.
The amount of the subsidy will vary with the client's ability to repay, but there will still be a subsidy for every client. It is only fair to expect people to pay back part of the cost of the house they are going to own, especially since the repayment is
geared to income.
Another very important argument for the introduction of repayment is the fact that C.M.H.C. has served notice that it is not prepared to continue cost sharing home ownership programs with us, unless we gear the program to those most in need, and collect repayment in accordance with clients' ability to pay. Loss of C.M.H.C. funding would reduce the number of units we could deliver. Maintaining the status quo is not an option.
Another benefit of home ownership is the positive impact it has on local economies. In many communities the introduction of home ownership units is creating a private housing market for the first time. The new home ownership programs actively promote and encourage private sector development, by providing more ways for people to become home owners. This is good for communities because private home ownership creates a demand for local services such as plumbing and mechanical services and other trades, and for the materials that are needed to operate and maintain a home. Over time, with the efforts the corporation is making to foster private sector development through its rental programs, I am confident that we will see the growth of small businesses in communities to meet the needs of private home owners and the corporation alike.
The access portfolio will offer a number of home ownership programs, including:
The owner build program is designed for clients who want to help build their units. By contributing sweat equity, clients can reduce their repayment obligation.
The lease to purchase program is designed for clients who are unable to help build their units. The unit is leased for a minimum of two years to give the client the opportunity to experience home ownership on a trial basis. Over the two year period the client assumes the costs and maintenance responsibilities of home ownership. After the two year period the client may purchase the unit. Repayment will depend on the client's income.
The maintenance program and subsidy are available to both owner build and lease to purchase clients. Annual checks of the units will be completed by the N.W.T. Housing Corporation, with the client. The client will be counselled on essential maintenance tasks and how to get them done. Low income clients will be eligible to apply for a maintenance subsidy which will take the form of a rebate for actual approved maintenance costs incurred.
The option of the sale of housing packages is designed to make the complete housing packages available to residents of all highway communities. Clients will be able to buy a proven, completed Arctic housing package from the N.W.T. Housing Corporation. Eligible clients may apply for the corporation's interim financing program to help pay for that package.
With regard to mortgage lending programs, in the past, people living in smaller communities have had difficulty getting conventional mortgage financing from chartered banks. We are working with the banks to have the corporation act as a go between for the clients and the banks to expand access to bank financing in smaller communities. The government may have to provide mortgage guarantees to the banks to make this work. If we are unable to conclude the negotiation with the banks successfully, the corporation will establish a revolving fund to provide mortgage loans as a lender of last resort. To be eligible the clients must have enough income to qualify for a mortgage loan but be unable to obtain one from a bank or from C.M.H.C.
Alternative housing programs provide basic houses for households that are not eligible or do not have access to public housing in their community. It is for low income seniors who prefer a more traditional lifestyle.
In addition to the new home ownership program, the N.W.T. Housing Corporation will continue to offer its Interim Financing Program, Emergency Repair Program, Senior Citizens' Home Repair Program and Home Improvement Program. Other housing program options are also being investigated.
I strongly encourage all people interested in finding out more about home ownership to attend the information sessions on the new programs that will be held in all N.W.T. communities over the next two months.
We expect to cost share the new home ownership programs with the Canada Mortgage and Housing Corporation to the greatest extent possible under our reduced funds and levels. Members will recall my earlier announcement about the severe federal funding cuts. We will reduce C.M.H.C.'s contribution to new social housing construction in the N.W.T. by 59 per cent over the next two years.
Our efforts to have this funding restored are ongoing. I travelled to Ottawa last week to meet with the Honourable Elmer MacKay, the Minister responsible for the Canada Mortgage and Housing Corporation. I briefed Mr. MacKay on the changes our government plans to make in our housing programs in the 1993-94 delivery year, including the new home ownership programs announced earlier today. I told the Minister that this government has done everything we agreed to do to clean up its programs, and that we expect C.M.H.C. to maintain its commitment to address the housing needs in the N.W.T. in partnership with us.
Mr. MacKay remains sympathetic to our situation in the N.W.T. and understands the severity of our housing problems. He has not closed the door on the funding reinstatement issue. In addition, negotiations with C.M.H.C. are continued on cost sharing for the new home ownership programs. I will continue to keep this House and the public informed of developments of these negotiations as they occur.
While we are on the federal funding issue, I would like to acknowledge, with appreciation, the assistance given to us in our lobbying efforts by the Chairman of the Ordinary Members' Committee. I would also like to thank our federal Members of Parliament, Ethel Blondin-Andrew and Jack Anawak, as well as the leaders of the N.W.T. aboriginal organizations who have also written letters to the federal Minister and the Prime Minister on our behalf.
The new home ownership programs are timely, not only because they respond to a wider range of housing needs but because they are a more cost effective way of meeting those needs. The new programs are an essential part of the corporation's strategy to cope with the federal funding reductions.
Other changes to the program have also been made in order to maximize the number of households and public housing units that can be delivered in 1993-94. For example, we have improved our building design. Simpler layouts and mechanical systems will make construction and maintenance easier and less costly. These design changes will apply to the public housing program and home ownership programs.
The new home ownership programs, combined with the changes I have just described, have been designed to enable the Housing Corporation to do better with less.
It is no longer possible to deliver the program the way we did in the past for the simple reason we cannot afford it. It is also important to understand that if we do not make these changes, the number of houses we are able to deliver will be substantially reduced and fewer families will be helped. The results of the 1992 housing needs survey indicated 3,584 households in need across the N.W.T., an increase of 14 per cent over the past two years. We must do everything possible to deliver as many houses as we can with our limited resources.
The next year will be a challenging one, but I am confident that with the new programs announced today and with the program changes we have made, we will be able to continue to deliver new houses to those who need them the most. I ask for the continued support of all communities and all the Members of this House as we work together to do our best to meet the housing needs of the people of the Northwest Territories. Thank you, Mr. Speaker.
Minister's Statement 18-12(3): New Home Ownership Programs
Item 2: Ministers' Statements
Page 253
The Speaker Michael Ballantyne
Thank you, Mr. Morin. I would like to take this opportunity to recognize in the visitors' gallery: Mr. Jack Anawak, the Member of Parliament for the Nunatsiaq riding; and Mr. Gary Bohnet, President of the Metis Nation. Item 2, Ministers' Statements. Mr. Kakfwi.
Minister's Statement 19-12(3): Long Term Staff Housing Strategy
Item 2: Ministers' Statements
Page 253
Stephen Kakfwi Sahtu
Mr. Speaker, when the government moved to the Northwest Territories in 1967, it introduced a program to provide subsidized accommodation and utilities to its employees.
The thinking at that time was that public servants moving to the north should not have to pay more rent for housing than they paid in the south.
Over the years this program became quite generous. There were notable differences between the size and type of furnished housing provided to staff hired from the south compared to what was available for local long-term residents.
In recent years the government and Legislative Assembly have taken some steps to ensure a more fair and equitable staff housing program, a program that would get the government out of its landlord relationship with its employees and encourage rather than discourage home ownership while stimulating the growth of a private sector housing market.
Some progress has been made in larger centres where many government homes have been sold, rental rates have moved to market value and employees pay the full cost of utilities.
The staff housing program, however, remains a problem area, particularly in off highway communities where there has been little if any private sector market and encouragement for employees to seek home ownership.
In most northern communities there is a shortage of accommodation. There are few incentives in place to encourage private housing development or home ownership. In addition, the government spends large amounts of money maintaining staff housing inventories in larger communities where employees could satisfy their needs for affordable housing on the private market.
There are also inconsistencies within our staff housing program. Employees within individual communities, sometimes even neighbours, are paying radically different rents for similar units. Rental and utility subsidies for staff housing place public servants in a better economic position than their private sector counterparts.
This discourages employees from getting into home ownership and provides absolutely no personal incentive to use water, power and heating oil resources wisely.
As a result, I am announcing a staff housing strategy today that will: improve efficiency and coordination in the delivery of all housing programs by making them the responsibility of the Northwest Territories Housing Corporation; eliminate, over time, the government's role as landlord; encourage private housing development and home ownership throughout the Northwest Territories; and ensure rental rates and utility costs reflect market values.
Mr. Speaker, the phased transfer of all staff housing program responsibilities from Public Works and Government Services and the Department of Personnel to the Housing Corporation will be completed by April 1, 1994.
Where there is limited housing the corporation will make sure there is suitable accommodation available for staff to lease. By making the corporation responsible for staff housing needs, it will be in a much better position to offer larger, more economically viable projects for northern developers.
There would be significant spin off benefits to this approach. For instance, northern developers would be able to provide units for social housing clients, the public, and government staff all within the same complex.
Within 18 months, the government will be out of the staff housing business in Yellowknife, Fort Smith, Hay River and Inuvik. As well, the government will not be renewing leasing arrangements in these centres.
Employees in these communities will be given the first opportunity to purchase the homes they occupy. If the units are not purchased they will be offered for sale on the private market.
The houses will be sold in a manner that minimizes disruption and allows for the participation of private real estate agents. The schedule calls for all sales to be finalized by April 1, 1994. Unsold stock, if any, will be turned over to the Housing Corporation for use in its other programs.
Mr. Speaker, we know that many people throughout the Northwest Territories would prefer to own their own shelter if the opportunity was available. As a result, the government is prepared to sell its houses to employees in all other communities in the Northwest Territories. Depending on the needs of each community, a certain number of surplus homes will be selected for sale. They will be appraised and sold at full market value.
Throughout the territories, the rent paid by staff will increase to the equivalent of Yellowknife market rates.
The increase will be phased in over a two year period for employees whose monthly rental increase would be more than 25 per cent of what...
Minister's Statement 19-12(3): Long Term Staff Housing Strategy
Item 2: Ministers' Statements
Page 254
The Speaker Michael Ballantyne
Mr. Kakfwi, time allotted for Ministers' Statements has lapsed.
Minister's Statement 19-12(3): Long Term Staff Housing Strategy
Item 2: Ministers' Statements
Page 254
Stephen Kakfwi Sahtu
Mr. Speaker, I seek unanimous consent to complete my Minister's Statements. Thank you.
Minister's Statement 19-12(3): Long Term Staff Housing Strategy
Item 2: Ministers' Statements
Page 254
The Speaker Michael Ballantyne
The honourable Member is seeking unanimous consent. Are there any nays? There are no nays. Please proceed, Mr. Kakfwi.
Minister's Statement 19-12(3): Long Term Staff Housing Strategy
Item 2: Ministers' Statements
Page 254
Stephen Kakfwi Sahtu
Thank you. Throughout the territories, the rent paid by staff will increase to the equivalent of Yellowknife market rates.
The increases will be phased in over a two year period for employees whose monthly rental increase would be more than 25 per cent of what they are already paying. The first adjustment is scheduled to take place April 1, 1993. Affected employees will be eligible for the full standard accommodation allowance when their rents reach market level.
Some employees with low incomes will find the transition to market rental rates difficult. Because of this, a hardship allowance will be available for situations in which the shelter costs exceed 30 per cent of the gross household income. This is consistent with the subsidies available to tenants in public housing in the Northwest Territories and all other jurisdictions in Canada.
Mr. Speaker, the use of energy resources is another important feature of the new staff housing strategy.
To promote energy conservation, a user pay program for utilities will be implemented over a period of two years. Employees will be provided with copies of utility billings for the January 1, 1993, billing period to make them aware of the actual costs of operating their units.
User pay electricity will begin on April 1, 1993, followed by user pay water and sewer by September 1, 1993. The final phase of this program will take effect on April 1, 1994, with the user pay heating fuel program.
Employees will be eligible, along with all other residents of the Northwest Territories, to take advantage of the subsidies available through the territorial power support program and the Water/Sewer Subsidy Program.
With the availability of these subsidies for electricity, water and sewer, there will no longer be a need for household allowances being paid to employees who own their housing in locations where utility costs are significantly higher than in Yellowknife. These allowances will be discontinued on April 1, 1993.
In conclusion, Mr. Speaker, the housing strategy has been needed for many years.
The government believes that the changes are positive, that they promote equity amongst all territorial residents and eliminate the conflicting policies currently in place in the public and staff housing programs.
We are also confident that these changes will generate more housing starts by developers and improve the overall housing inventory in the territories. Combined with the home ownership incentives announced by the Housing Corporation, the new approach to staff housing should bring affordable shelter within reach of all residents.
Finally, these changes have been structured in a manner that will make housing programs much easier for communities to consider should they wish to assume responsibility for them as quickly as possible under our Community Transfer Initiative.
Mr. Speaker, the Members should know that many communities have already identified housing as one of the programs they wish to assume in the near future and I am committed to making this transfer a priority. I will be tabling the long-term staff housing strategy at the appropriate time later today. Thank you.
---Applause
Minister's Statement 19-12(3): Long Term Staff Housing Strategy
Item 2: Ministers' Statements
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The Speaker Michael Ballantyne
Mr. Kakfwi asked for and received unanimous consent to conclude his Ministers' Statements. Mr. Kakfwi has another Minister's Statement, please proceed.
Minister's Statement 20-12(3): Launch Of Literacy Council Book
Item 2: Ministers' Statements
Page 254
Stephen Kakfwi Sahtu
Thank you. Mr. Speaker, I would like to invite the Members of this Assembly to join me in the lobby during today's coffee break for the official launch of a new book.
The book, which is called "I Remember", was published by the N.W.T. Literacy Council. It contains 22 stories by northerners about personal events that have made reading important to them. My colleague, Mr. Koe, has contributed to the book; so has Ethel Blondin-Andrew, M.P. for the western Arctic. There are also stories by students and by well known media personalities.
The contributions are in all official languages of the Northwest Territories.
The Literacy Council has printed 8,000 copies. They will be distributed free of charge to literacy and upgrading classes across the Northwest Territories to promote reading and to provide interesting reading material for learners.
The Department of Education, Culture and Employment Programs provided a grant of $3,000 towards this publication. The National Literacy Secretariat of Multiculturalism and Citizenship Canada also supported the project through its funding for the Literacy Council. Special mention should go to Rob Butler and the staff at Inkit who provided illustrations and designed the book at no charge.
Each Member of the Legislature will receive a copy today from the Literacy Council.
At the coffee break, some of the contributors will read their stories and you may have your book autographed by these "Authors for Literacy". Thank you.
Minister's Statement 20-12(3): Launch Of Literacy Council Book
Item 2: Ministers' Statements
Page 255
The Speaker Michael Ballantyne
Members' Statements. Mr. Patterson.
The Burning Of Nanook School In Apex
Item 3: Members' Statements
Page 255
Dennis Patterson Iqaluit
Thank you, Mr. Speaker. Mr. Speaker, at 4:15 a.m. a fire in the Nanook School in Apex was reported to the Iqaluit Fire Department. The fire department arrived promptly but had problems with an inadequate supply of water. The school is a smoking ruin this morning. Built in the early 1950s, this school was the oldest school building still in use in the Northwest Territories. In recent years, this old building has been plagued with freeze-ups and other serious maintenance problems, but the old worn-out building did not prevent a very successful program from being run in Apex.
Mr. Speaker, Nanook School is a real community school. People in Apex are shattered today. At an emergency meeting early this morning, grown men and women were crying over the loss of their school. The more than 50 students in the school are sad. The children's Christmas presents for their party had just been put in the school yesterday and those presents burned up. In spite of their shock I am proud to report that the people of Apex and Iqaluit have pulled together and provided enormous support under the leadership of the principal, Hillary Da Silva and the Niaqunguut Education Council Chair, Saali Peter and his council. Classes resumed at 9:00 a.m. in the old I.O.D.E. hall in Apex.
The Niaqunguut Education Council will be meeting again tonight. Most of the people in Apex have a very strong desire to preserve the school program in Apex. I expect the council will be preoccupied with the short-term problems of keeping classes going in Apex without a school. However, it is not too early to begin thinking about a long-term plan to replace this loss. I have already spoken in this House about the exciting plans of the Apex Historical Society to renovate and preserve historical buildings in Apex, including the former resource centre next to the school, a building which is still sound.
I expect that people in Apex will have some sensible and practical ideas about renovating and utilizing these buildings in planning new school facilities. The Niaqunguut Education Council has felt that its views on the new school facility in Apex have not always been considered or respected by this government in the past. This government moved rapidly to replace burned schools in Rankin Inlet and Pine Point.
The Burning Of Nanook School In Apex
Item 3: Members' Statements
Page 255
The Speaker Michael Ballantyne
Mr. Patterson, your allotted time has lapsed.
The Burning Of Nanook School In Apex
Item 3: Members' Statements
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Dennis Patterson Iqaluit
Mr. Speaker, I would like to seek unanimous consent to conclude. Thank you.
The Burning Of Nanook School In Apex
Item 3: Members' Statements
Page 255
The Speaker Michael Ballantyne
The honourable Member is seeking unanimous consent. Are there any nays? There are no nays. Please proceed, Mr. Patterson.
The Burning Of Nanook School In Apex
Item 3: Members' Statements
Page 255
Dennis Patterson Iqaluit
Thank you, Mr. Speaker. Mr. Speaker, this government moved rapidly to replace burned schools in Rankin Inlet and Pine Point. I will be pursuing the urgent need for new school facilities in Apex with great vigour in the coming months. Qujannamiik, Mr. Speaker.
The Burning Of Nanook School In Apex
Item 3: Members' Statements
Page 255
The Speaker Michael Ballantyne
Members' Statements. Mr. Zoe.
Dogrib Nation Comprehensive Land Claim
Item 3: Members' Statements
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Henry Zoe North Slave
Thank you, Mr. Speaker. Mr. Speaker, I rise today to announce that the Grand Chief, Eddie Erasmus, of the Dogrib Nation received a letter yesterday from the federal Minister of Indian and Northern Development, the Honourable Tom Siddon, informing him that the Government of Canada has agreed to enter into formal negotiations with the Dogrib Treaty 11 Council toward a comprehensive land claims settlement.
---Applause
Mr. Speaker, as you will recall, this process began during the first assembly of the Dogrib Treaty 11 Council held this past August in Rae. The council represents the communities of Rae Edzo, Rae Lakes, Snare Lakes and Lac La Martre. It was there that a resolution was passed unanimously which mandated the council to initiate and to assume full control and responsibility of negotiations for a Dogrib Nation regional comprehensive claim.
Mr. Speaker, as I have said in this House before, our aspiration of political autonomy in the North Slave must be coupled with economic strength. Self-government in the North Slave is meaningless without a solid economic base. Without a solid economic base, Mr. Speaker, self-government is akin to a tree that can bear no fruit. That is our principle reason for settling a comprehensive claim with the federal government. Mr.
Speaker, I anticipate that early in the new year we will have assembled a negotiating team, have our federal funding support and be in position to commence claims negotiations with the federal government. Mahsi Cho.
Dogrib Nation Comprehensive Land Claim
Item 3: Members' Statements
Page 256
The Speaker Michael Ballantyne
Members' Statements. Mr. Bernhardt.
Development Of Mineral Production
Item 3: Members' Statements
Page 256
Ernie Bernhardt Kitikmeot
Thank you, Mr. Speaker. I would like to make a few comments about the need which exists to fast track development in the mining sector, in order to ensure an equitable economic base across the Northwest Territories. The honourable Members are already aware that mineral production currently accounts for 75 per cent of the value of goods produced in the Northwest Territories and over 25 per cent of the gross domestic product. There are vast opportunities which have yet to be realized.
A 1988 study carried out by Dr. Brian MacKenzie of the Centre for Resource Studies at Queen's University, concluded that the economic potential of base metal mining in the Yukon and the Northwest Territories is significantly greater than in southern Canada. Now is the time when this government should be putting its emphasis on the development of our promising mining potential. Now is the time when we should be moving forward to collect necessary scientific information, work towards the transfer and development of northern technology and to do our best to attract investors.
Focusing on mineral development is especially important to my constituency, the Kitikmeot, and to my honourable colleague from North Slave. In the Government Leader's June 16 announcement on the new directions decentralization initiative, she said it contained something for everyone, except the North Slave and the Kitikmeot. The Government Leader commented that she would be trying to maximize the benefits associated with mineral development. She stated, and I quote, "If transportation and energy infrastructure can be developed, the Northwest Territories can be the most exciting mining region in the world and the employment and economic development opportunities will be enormous."
I will be asking the appropriate Minister today what progress has been made in building this infrastructure. Mr. Speaker, I would like to seek unanimous consent to continue my statement.
Development Of Mineral Production
Item 3: Members' Statements
Page 256
The Speaker Michael Ballantyne
The honourable Member is seeking unanimous consent to conclude his statement. Are there any nays? There are no nays? Please proceed, Mr. Bernhardt.
Please only include contact information if you would like to hear back.
