Thank you, Mr. Chairman. While a plan to eliminate the board of directors will certainly represent some savings to the housing corporation, it is inaccurate to assume that it will automatically freeze $600,000 to be applied directly towards building houses. Indeed, the standing committee was interested to note that the elimination of the board of directors will mean that the number of staff PYs within the housing corporation is only reduced by one.
While it is a factor to be considered, the Standing Committee on Agencies, Boards and Commissions was of the opinion that arguments about cost savings would be insufficient on their own to justify the elimination of a well working board that is accomplishing its statutory mandate and providing appropriate public input into agency decisions.
This should be considered not only with respect to the current initiative, but as a general principle that should guide Cabinet decisions about restructuring boards and agencies in the future. The standing committee will not wish to support planned elimination of downsizing of effective, representative boards only on the basis that "they cost too much." The standing committee is aware that, within the budgets of most public agencies, the cost of board activities usually represents only a very small percentage.
Undoubtedly, cost considerations are important, but they should, in all cases, be assessed as only part of any rationale for board restructuring. In general terms, if a board is providing full "value for money" in carrying out its assigned duties and responsibilities, then it is an asset well worth the cost to government.
On the other hand, where the management of a government agency is being hindered by the board or corporate structure, prompt action should be taken to change it. This means that board effectiveness and efficiency should form the key elements of any decision to eliminate or restructure government created boards and agencies in the Northwest Territories.
During its review, the Standing Committee on Agencies, Boards and Commissions, was provided with evidence that the current board structure of the Northwest Territories Housing Corporation is conducive to neither effective nor efficient management.
Although the act states that the affairs of the Housing Corporation are to be conducted by the board of directors, its role in recent years has shifted to one which involves the cursory review and "rubber-stamping" of complex policies, plans and agreements developed by the salaried management of the corporation. Indeed, because the board meets only four times per year, important priorities have often been delayed.
Neither the quality nor the amount of community input into these corporation initiatives and policies seem to have been enhanced by the current model for a board of directors. Indeed, direct consultation with community leaders and local industry may, in some cases, have been impeded by uncertainty over whether this function is most properly performed by corporation officials, the Minister or the appointed members of the board.
Presently, there are 47 active housing associations and authorities across the Northwest Territories. The corporation is in the process of developing new strategies for strengthening partnerships with these bodies. Already, the housing associations have strong, consultative links with the corporation on issues surrounding the housing needs survey, new housing designs and the delivery of new units. They are also represented on the community H.A.P. allocation committee. New communication channels have been recently developed to facilitate corporation consultation with community governments, band councils and Metis associations with respect to land acquisition, block funding arrangements and other operational issues.
In many ways, direct and effective community contact has been established between corporation management and local authorities quite independent of any board involvement. Elimination of the board of directors would remove confusion about the public input process and reinforce community use of these new and more efficient consultation channels. This will be a key component in future plans to transfer increased responsibilities and accountability to local authorities and community governments. Mr. Chairman, Mr. Nerysoo will continue from here.