Thank you, Mr. Chairman. The Minister stated that dealing with the consequences of the federal withdrawal of funding for new social housing construction is the government's number one priority. Committee Members appreciate the Minister's efforts in meeting with the new federal government to encourage the reinstatement of funding support. The committee also recognizes efforts aimed at finding new alternatives. This includes the Minister's participation on the new ministerial sub-committee which, committee Members understand, was established to consider the unique housing problems of northerners. However, we recognize that it will be difficult to persuade the federal government to restore or replace the funding that was recently cut. The committee sincerely hopes that the Minister can find other ways of funding the serious social housing needs of the north.
The committee would like to emphasize that the efforts of the Government of the Northwest Territories to restore funding for social housing must not, in any way, interfere with or attempt to supersede the fiduciary responsibility of the Government of Canada to provide housing to its aboriginal people. Canada's aboriginal people were encouraged to come off the land with the promise that housing would be provided for them. They cam in off the land and now funding for housing has been cut by the federal government. The irony of these funding cuts for northern residents, is that funding is still available to aboriginal people who live on reserves. The relative absence of reserves in the north means that equivalent funding support is not available to provide housing to northern aboriginal people. The committee encourages the Minister to negotiate a solution to our unique housing problem, so that northern aboriginal people are not penalized merely because they do not live on reserves.
The committee applauds the department's recent trend of devolving more responsibility to local housing authorities. As the Minister pointed out, "the more that can be done at the community level, the more efficient it usually becomes, and the more responsible people become."
Corporation Or Department?
The committee agrees with the Minister that the corporation's budget and activities should be streamlined and made as efficient as possible. If changing the corporation into a government department will provide cost-savings, such as the possibility of not having to pay GST, that can be turned into additional housing, then so much the better. We would like to see the review of the corporation's operations focus on cost- savings and efficiency and not merely reorganization for the sake of reorganization. As well, the corporation should facilitate innovative approaches to lever private capital. The committee looks forward to hearing from the Minister following the results of the review.
The committee is concerned that since the dissolution of the corporation's board of directors, financial accountability has been diminished. Members suggest that, until such time as the status of the corporation is resolved, the Housing Corporation be accountable to the Standing Committee on Finance for a full review of its capital and main estimates.
Rent Review
The Minister explained to the committee that rent revenue is one of the factors taken into account when negotiating with the federal government on the formula funding agreement. Further, he said that the GNWT will be penalized in these negotiations with the federal government if rent scales for NWTHC tenants are not revised.
The committee recognizes that a change in the rent scale for NWTHC tenants is also needed to adequately cover the corporation's costs. We also know that the present rental system is unfair and that increases are required to ensure fairness and equity, not only among communities across the NWT, but also with the private housing market.
Nevertheless, the committee is very concerned that the corporation keep its tenants informed about anything affecting their tenancy. It is incumbent on the corporation to take the initiative to make sure its tenants are as well informed as early as possible. Committee Members appreciate the corporation's efforts, so far, to consult the communities and people affected but advise that these efforts must be stepped up and continued. Mahsi, Mr. Chairman.