Thank you, Mr. Chairman. I too am very concerned about this. I attended a meeting in both of my communities with the government employees who are very concerned with regard to this strategy. I think if the department had taken the necessary steps to consult employees in a timely manner, then this so-called strategy could have been implemented without a hitch. I believe that because I know the employees agree the government should get out of housing. With the recession, all sectors of our society are suffering and this government is no exception. Employees know the difficulty the government is having at the present time, which is why they had agreed to a zero per cent increase for this year. They also agreed to a 1.8 per cent increase in wages for next year. Even though the cost of living is still rising, this is what they had agreed to. I think the gall of this government to introduce a strategy such as this is appalling. The employees I have spoken to know and understand the strategy, and believe the government should get out of housing. However, the way in which the strategy is presently laid out, this is no time for the housing market, of which there is none to speak of in the east, to make any kind of adjustments.
The process of implementing the strategy has to be changed to make it more equitable and more timely. In the meetings I held with my constituents and those who are government employees living in government units, some of the comments I heard are very similar to the comments made by other Members from the east. A large portion of available housing does not meet minimum standards for rentals. It was noted also that a housing unit at Yellowknife prices is not at the same standard for a unit at the same price in Baker Lake. Units have not been maintained so, in the majority of cases, current residents would not consider purchasing their unit. As well, due to the cost of living, residents could not afford mortgage payments for units based on Yellowknife markets.
In apartment blocks or row houses where they are paying rent, water and sewage would be shared. There is no way those who are single occupants are energy conscious or who must frequently travel should be expected to pay the same amount for heat, water and sewage as those who occupy space continuously, or those who have more than one person living in a space. In a recessionary year, when the collective agreement allows no increase in salary, how can the government think of raising rent by as much as 25 per cent, when there is no increase in salary to absorb any part of the increase?
In Baker Lake, the average cost of living food basket is currently $378.39. In no way can current GNWT salaries absorb a 25 per cent increase, as well as the cost of utilities. In Baker Lake, there are eight months of winter and 4.5 hours of daylight which necessitates a high volume of fuel oil and electricity. In Baker Lake, and other Keewatin communities, there are no options in the type of heat they produce. They are dependent on the transportation costs, which are high and dependent on the sea lifted fuel. Yellowknife, at this point, has a choice including fossil fuel, wood, fuel oil and electricity. Because of the small number of available units, many employees are over-accommodated and were forced by lack of availability when hired to accept inappropriate accommodation. We have a number of employees who are over-accommodated, therefore, will be paying for that and it is not by choice.
The entry level and relatively low level employees, although well-skilled, have indicated that as single income families with children, they will not be able to feed their families. The alternative, if they consider the north their home, is to resign from the GNWT and apply for UI benefits, or if ineligible, request social assistance. All are aware of the new UI guidelines and will make their decision regarding continued employment so as to maximize benefits.
I have also noticed in the last few days of this session, the Minister has tabled a number of letters which are in support of this strategy. I also know he has received letters which are very strongly opposed to the strategy and the way it is being implemented. I have a copy of a letter which was sent to the department. I have not tabled it to this point. This is from a gentleman in Baker Lake who is resigning from his position and he had just been hired. His letter was in reference to a letter of January 8, 1993, and with the information he received, he stated, "Presently, my net pay is around $600 every two weeks or $1,200 a month. My rent is going up to a total of about $310, plus my power is about $300 per month averaged out. I will then be left with only about $600 per month. My son is in day care at a cost of $400 per month. This leaves me with $100 per pay period for food, clothes, phone and all the amenities you may have in today's society. As you can see, this is even less than people would receive on welfare. Therefore, I cannot afford to work for the Government of the Northwest Territories. When I was hired, there was no mention of rental increases or of paying power bills totally, therefore I feel that the Government of the NWT has not acted in good faith to me or others, but rather acted in an underhanded action." This is the kind of letter which is being received by the department, which to me at this point, are being avoided, or seem to be. In conclusion, Mr. Chairman, I would like to say that if there is any way we could slow this process down and reduce the impact on our employees, the people who are employed by this government, the better this strategy will work. I do not think this is going to work unless we change the way this is being presented at this point. Thank you, Mr. Chairman.