Thank you, Madam Speaker. Later on today, the new social housing rent scale will be tabled. The new rent scale has been designed to help the people in communities who need social housing the most. Low income families will see their rents lowered or stay the same. A total of 30 per cent of tenants in social housing will see their rents increase. These 30 per cent are the higher income tenants who can afford to own their own home. We simply cannot afford to subsidize these high income tenants at the level we are now.
The existing rent scale charges are very low maximum rents in the so-called non-home ownership communities. This means that people with incomes high enough to afford home ownership have no incentive to move. This contributes to overcrowding and the housing shortage which is so severe in many communities.
That being said, Madam Speaker, a new rent scale is long overdue. Over the years, in many reports and consultation meetings, tenants, community leaders and MLAs have urged that the rent scale be changed. In the recent district consultation meetings held across the NWT, many suggestions were made for changing the rent scale and we have included those suggestions wherever possible. The Special Committee on Social Housing and all MLAs have voiced concerns and suggested changes. The rent scale tabled today addresses many of these concerns.
The new rent scale will be applied in the same way in every community, Madam Speaker, and will treat all tenants fairly and equally, regardless of where they live. All rents will remain affordable. All tenants will pay less than 30 per cent of their household income for rent. There will be no across-the-board increases in rent. In fact, most tenants will pay less rent. High income tenants will be encouraged to become home owners. This will free up much needed social housing for low income families who need to get a house. Education and employment will be encouraged.
Madam Speaker, the new rent scale recognizes the high cost of living in remote communities and there will also be deductions for units in poor condition. Implementation of the new rent scale will be gradual. Major rent increases will be phased in over the next four years. The first increases and all decreases will take effect April 1, 1995.
Madam Speaker, housing is in great demand in our communities. We must keep our social housing program for lower income families and ask our higher income families to move to home ownership. I believe the new rent scale is fair to all tenants. I appreciate the input of tenants, local housing organizations, the Advisory Committee on Social Housing, MLAs and the public in the development of the new rent scale. Mahsi cho, Madam Speaker.
---Applause