Thank you, Mr. Chairman. I am pleased to present the 1994-95 O and M budget for the Northwest Territories Housing Corporation.
The budget before you is based on GNWT funding of $56.641 million. In addition, CMHC will contribute $45.810 million.
As Members are well aware, the federal government has completely withdrawn funding for new social housing construction. However, we still receive Canada Mortgage and Housing Corporation funding for the operations and maintenance of 5,227 cost-shared units.
The federal funding cuts have meant a challenge to do more with less. This challenge is being addressed at all levels of the Housing Corporation. Over the next year, all aspects of corporation operations, and the corporate structure itself, will be reviewed. We will make the changes necessary to create efficient, effective operations in communities and across the organization.
I am pleased to report that in December, we successfully negotiated a refinancing agreement with CMHC to reduce the interest we have to pay back on our outstanding loans. The refinancing agreement will save the government over $2 million, annually.
been very beneficial and I appreciate the opportunity to work with Members in such a constructive forum.
The corporation is undertaking several initiatives aimed at partially addressing the significant federal funding reductions, as well as providing a more effective use of the corporation's limited resources. These include pursuing other federal government funding, such as funding for employment, training and development. We are also investigating the possibility of private sector financing.
As Members know, we are currently undertaking a review of the corporation's rent scale. Members have received a full briefing on the problems with the current rent scale. I will also report back to Members by the end of this session on the results of the rent scale review. Detailed briefings and consultations will take place with community groups and tenants through March and into the middle of April, as part of the corporation's community consultation framework. I want to assure Members of this House that any changes to the rent scale will ensure that rents remain affordable for all tenants and that all tenants are treated fairly and equally.
We have some difficult issues to deal with in the months and years ahead. We will have to make tough decisions and changes, and we will need the support of all of our constituents in order to do so. We are addressing many of these issues through the community consultation meetings that are being held in every community. To date, over 50 meetings have been held across the NWT, and the rest will be completed by March 31.
At the community meetings, our district staff share information about federal funding cuts, program and policy changes, and ask for feedback on housing programs and delivery. Recommendations from the community consultation meetings will be forwarded to district meetings. The district meetings will be attended by community housing representatives.
Recommendations from the district meetings will be forwarded to the Advisory Committee on Social Housing for their review. Once this review has taken place, Members of the advisory committee will make recommendations to myself and Cabinet so that we can meet the housing needs of our communities in the best way possible. District meetings will be scheduled following winter session, so MLAs can attend.
In 1994-95, the corporation plans to deliver 100 per cent of its new rental housing units in 1994-95 through the rent supplement program. The 1994-95 budget includes operating funding for the 112 rent supp units built in 1993-94. Delivering all rental units through the rent supplement program gives local and northern developers and landlords incentives to provide private sector rental housing in communities.
We recognize the need to provide better training and support to local housing organizations so they can run their organizations more efficiently and economically. We need to provide local boards, housing managers and staff with the training and tools to provide good housing services to people in the communities.
Mr. Chairman, that concludes my opening remarks. Thank you.