Agreed.

---Agreed

Thank you. Clause 17.

Agreed.

---Agreed

Thank you. Clause 18.

Agreed.

---Agreed

Thank you. Clause 19.

Agreed.

---Agreed

Thank you. Clause 20.

Agreed.

---Agreed

Thank you. Bill as a whole.

Agreed.

---Agreed

Thank you. Does the committee agree that Bill 9 is ready for a third reading?

Agreed.

---Agreed

Thank you.

---Applause

Committee Report 4-12(3) and Committee Report 1-12(3). Is the committee agreed?

Agreed.

---Agreed

Thank you. We will be dealing with the matter of the Housing Corporation. Any general comments? Mr. Minister?

N.W.T. Housing Corporation, Introductory Remarks

Mr. Chairman, I am pleased to present the 1993-94 budget for the N.W.T. Housing Corporation for the committee's review. The corporation's 1993-94 capital program responds to the challenging environment in which we are now operating. There are many challenges that face us as we develop plans to meet the housing needs of the people of the Northwest Territories. These challenges include:

- a growing housing shortage;

- reduced federal funding; and

- a need to maximize local and regional economic benefits from capital projects.

Mr. Chairman, the 1992 Needs Survey indicated that there is a growing housing shortage. Over 3,500 households across the N.W.T. are living in housing which is not adequate, suitable or affordable. The number of households in need has increased by 14 per cent over the last two years, even though the corporation has delivered over 800 social housing units. The N.W.T. has the highest birth rate in the country and over 40 per cent of our population is under the age of 19. This means that as these young people grow up and start having families of their own, there will be a continuing and increased demand for new housing.

In many of our communities it is already very difficult for these young families to find housing of their own. We are facing this growing housing shortage with less help from the federal government than we ever had before. The impact of the federal funding cut back shows up clearly in the corporation's 1993-94 capital budget, Mr. Chairman.

Up until this year C.M.H.C.'s contribution has always matched or been greater than the G.N.W.T. allocation. However, in 1993-94, the Government of the Northwest Territories will spend $30.95 million of its capital budget on housing. The C.M.H.C. capital contribution will amount to just over $13 million. We are still working hard to convince the federal government to share more equally with us the cost of meeting the housing needs of the northerners.

New access to home ownership programs will be offered by the N.W.T. Housing Corporation in 1993-94. The new home ownership programs are timely, not only because they respond to a wide 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 federal funding reductions.

It is very important that the housing programs are delivered in a way that generates maximum economic business and training opportunities for the communities. To meet this objective, the corporation is participating in the development of a government-wide strategy to promote training opportunities in the construction trades. This is a joint effort with the Department of Government Services and Public Works, the Department of Education, Culture and Employment Programs and the N.W.T. Housing Corporation.

Changes to the programs have also been made in order to maximize the number of home ownership and public housing units that can be delivered in 1993-94. For example, we have improved our building design, and simpler lay-outs and mechanical systems will make construction and maintenance easier. These design changes will apply to the public housing program and the home ownership program. We are also maximizing benefits to northern manufacturers, suppliers and businesses in the delivery of the housing program by specifying construction materials that can be manufactured in the north. This includes lumber, windows, water and sewer tanks, screw jack foundations and pads. Building material supplier tenders will also be broken down to cater to smaller northern manufacturers and suppliers. The Business Incentive Policy now applies to all N.W.T. Housing Corporation projects, including those cost shared with C.M.H.C. Most extensive use of the Rent Supplement Program will be made to encourage developers to provide built to lease public housing. This will combine with the G.N.W.T.'s staff housing requirements to further encourage and develop the private housing market in more communities. Funding requirements for the Rent Supplement Program will appear in the corporation's 1993-94 O & M budget as there is no direct capital investment by the corporation on these projects.

An important aspect of the housing delivery is encouraging the development of northern construction companies. This is addressed through the training initiative I mentioned earlier, and through various approaches to program delivery including:

- labour only contracts;

- project management contracts;

- supply, shipping and erecting contracts; and

- design/build contracts.

The corporation is also organizing workshops with northern builders to get their input on the new designs and program changes. We are committed to working cooperatively with northern construction companies to continually improve our housing designs and construction methods to maximize cost-effectiveness and efficiency.

The new home ownership programs, combined with the program changes and new initiatives I have just described, have been designed to enable the Housing Corporation to do better with less. All of these efforts are needed if social housing delivery is to be maintained at effective levels, so that we can address the needs of people in the communities. Thank you, Mr. Chairman.

Thank you, Mr. Minister. Mr. Todd.

Mr. Antoine will be making a few general committee comments and then we will go on to four resolutions.

Thank you. Mr. Antoine.

Standing Committee On Finance Comments

Thank you, Mr. Chairman. There are some committee comments. The first one is on the federal responsibility for aboriginal housing. This government has been mandated by the Legislative Assembly to research the federal government's constitutional and moral obligation to provide adequate housing for aboriginal people. The committee feels that research into the federal government's obligation is even more urgent given the recent cuts in funding for social housing programs. This is happening at a time when the federal government is attempting to renew its commitment to aboriginal people. This research should be completed as soon as possible, and if warranted, the government should take an aggressive position with the Department of Indian and Northern Affairs under legal obligations.

For the last two years, the Standing Committee on Finance has been urging the government to put a plan into action to eliminate the public housing deficit within ten years. The Minister indicated that to deal with the current housing shortfall of 3,584 units, plus the increased housing need over the next ten years would require 925 units per year, 687 per year if we had the luxury of 30 years to do it.

The fact is we do not have 30 years to house people in need. If the corporation can only build 427 units in 1993-94, things look bleak for the hope of ever reducing the housing shortage we currently face.

The Standing Committee on Finance has not yet been shown a long-term solution to the public housing crisis by this government. We have not been told what the "big picture" is. For example, what effect will new housing needs, economic development, and other developments such as staff housing issues and encouraging home ownership have on core need during the next ten years?

In any event, despite the significant improvements proposed by the corporation in these Capital Estimates, for which they should be congratulated, even more innovative approaches are needed.

As we recommended during the 1992-93 review, the committee believes that the Cabinet must re-examine government capital priorities in light of fundamental housing needs and develop a ten year plan to eliminate the public housing shortage.

The committee feels the Housing Corporation could further strengthen the information provided to the Standing Committee on Finance during the budget review by providing the details of future years' capital expenditures, such as a five year capital plan in the 1994-95 Capital Estimates and Standing Committee on Finance books. In addition, capital should be broken down by community in the S.C.O.F. book.

The corporation is delivering 119 units in 1993-94, through the Rent Supplement Program. This committee recommended the use of Rent Supplement Programs to achieve public housing goals at a time when they were used only in level I communities. We are generally pleased that the corporation has proceeded in this direction. However, the corporation did not disclose to the committee the cost of the Rent Supplement Program or the financial implications of this program for the G.N.W.T. and C.M.H.C. This committee's concern is affordability.

In future, the corporation should disclose the complete financial implication of this capital program including the Rent Supplement Program.

The committee understands that some communities have been successful in tracking C.M.H.C. funding directly for housing co-op programs. The committee believes that the corporation should facilitate more initiatives such as this. Mahsi, Mr. Chairman.

Mr. Todd.

Thank you, Mr. Chairman. The committee has four recommendations and motions it would like to put forward.

During the review of the 1993-94 Capital Estimates, the committee was told by the Minister of Housing that the Canada Mortgage and Housing Corporation has cut its contributions for new housing in the N.W.T. by 63 per cent or $22.399 million.

This will obviously have a devastating effect in a territory where a high proportion of families are in core housing need, the cost of shelter is prohibitive, temperatures are frigid and many health, education and social problems are related to poor housing.

The federal government has acknowledged a significant responsibility for housing in the north over the years. To cut the funding lifeline now is unconscionable.

It is the opinion of the committee that the government should take an aggressive public position on the federal funding cuts to housing programs. The focus of this strategy should be to increase political support at the national level for the reinstatement of C.M.H.C. funding levels.

This position should emphasize the extent of households in core housing need, the cost of shelter and more importantly the living conditions in northern communities.