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...