Thank you, Mr. Chairman. I am concerned and would like some clarification as to what is the perceived impact in terms of cost to the department once the staff housing strategy is implemented? There are several areas that have some potential to be impacted. One, for instance, and I need some clarification on this, is water and sewer subsidies to municipalities. I understand the department charges the municipality per unit or a certain amount of money, or gives them a subsidy. That is going to be changed because the ownership of the unit may go to an individual, and then the individual may pay $55. In many cases, there is a big difference. Has the department taken this into consideration?

Thank you, Mr. Chairman. In our view, it is not going to cost the government any more money. The community corporations will still receive the same amount. What is going to happen is that the community corporations will bill the tenants or the home owners the residential rate and the government will subsidize it to the same degree as we do now. The only thing which we see that will change is that DPW will pay for the bill and that money will be transferred over to

the department for the subsidies. As to the overall impact on the housing policy, I will leave that to the Minister of Finance because I do not know the full impact. In our department, as far as we understand it, there is not going to be a significant impact on how much the community corporations receive, as my department pays for subsidies. Thank you.

On the same subject, another area which would warrant some investigation is the home owners property tax rebate. Right now the policy or the contribution is $300 per dwelling. I note you have $1.042 million budgeted in 1993-94. One of the objectives of the new home owners' strategy is to develop a housing market. There is a potential impact. Did the department take into consideration the projected increase in home owners because of the new housing strategy? What is the projected cost to the department?

Thank you, Mr. Chairman. Yes, the department has taken this into account. When the home owner receives title to the land or gets the land in his name, part of the money which the government would normally pay gets transferred over to the property home ownership rebate program to make sure we have enough money to pay the rebates. The government is, in fact, probably going to end up saving some money overall.

Can you clarify this again. Where is the money being transferred from? From what account to what account?

Thank you, Mr. Chairman. At present, the government pays grants in lieu of taxes for all government owned assets, including housing. The money which we have to pay grants in lieu of taxes, when the private owner gets the house in his name, we will not have to pay grant in lieu any more. That will leave us with a surplus in this account and we will take it and transfer it over to the rebate program to make sure we have some money to pay the rebates. It is revenue neutral.

The statements you made before intrigues me. You said, "it would probably save the government some money." Do you know how much and will that be used to reduce the deficit?

To the first part of the question, we are not sure because it depends on how many people take advantage of the housing policy. Until we know that, we will not know what the savings will be. As far as where it goes, I will ask the Minister to answer that.

Thank you, Mr. Chairman. If there are any surpluses in any program it goes back into general revenue. Thank you.

I will save my other questions for when we get into details. I have many concerns and comments on the home owners property rebate.

Thank you, Mr. Chairman. I recognize the city of Yellowknife was given the opportunity for block funding to address their capital needs or infrastructure needs and for them to have the ability to priorize what they feel are requirements for the city. I am pleased to see the Minister's department has taken such an initiative. I would like to ask whether or not the same consideration has been given to other municipalities if they have requested to be considered for block funding as opposed to specific infrastructure planning projects? Thank you.

Thank you, Mr. Chairman. Yes, communities can approach us if they want to do the same as Yellowknife has done. So far we have been approached by Hay River and Norman Wells. We have not received a request from Fort Smith. The policy is in place for communities to have similar arrangements as Yellowknife. We will be talking to two communities, which have requested to talk to us. Thank you.