Minister's statement, Mr. Morin.

Mr. Speaker, I wish to advise Members that the Honourable Jim Antoine will be absent from the House for the remainder of the week to attend the meeting of the Council of the Ministers' Responsible for Transportation and Highway Safety in Charlottetown. Thank you, Mr. Speaker.

Thank you, Mr. Premier. Ministers' statement, Mr. Todd.

Thank you, Mr. Speaker. Mr. Speaker, previous governments made the decision, and this one concurred, to remove itself from the position of landlord to it's employees. It started with the selling of staff houses in Yellowknife and gradually expanded to Hay River, and Fort Smith. Where no private market existed, one now exists. Next came Inuvik. Then the Government started to sell surplus houses in all communities across the Territories. Most recently, current tenants have been asked to make a reasonable offer on their unit without any predetermined restrictions. In fact, the Government has made it clear that it will sell all it's owned housing to either existing tenants or on the open market.

In concert with the sale of owned staff housing, the Government has also been reducing its inventory of leased staff housing, where this can be done without undue financial hardship to northern landlords. In many cases landlords have had the benefit of twenty years or more of guaranteed government leases and have achieved a degree of financial security where they should be able to rent to tenants at affordable rents. The time has come to cut the flow of government support and require these landlords to deal fairly and directly with the tenants.

Mr. Speaker, like any major change, the government's efforts to remove itself as landlord to employees has not been without challenges and, yes, opposition. The objections we are hearing today, are the same objections we heard many years ago in Yellowknife, and some of the issues and concerns are legitimate now, as they were then. Change brings issues that we must address.

Today's largest issues surround the sale of staff housing in small communities and the potential rental rate impact on employee/tenants of the government not renewing staff housing leases. Both issues are legitimate and need to be solved.

Since 1992-93 the government has sold over 400 houses to staff. Many staff have welcomed the opportunity to buy a house at a good price. There are some staff, however, that oppose the sale of staff housing, particularly in our smaller communities. To address this issue we must determine why staff are reluctant to purchase the house they are living in. The appraised value of these units is very conservative and staff can make a reasonable offer based on their own view of the value of the unit. Mortgage financing is available. Staff can actually reduce their monthly outlay for shelter by buying their staff housing unit, and the government will buy back the unit when the employee leaves at a price based on the appraised value if they cannot sell it in the open market.

Mr. Speaker, given these facts I can only conclude that staff are resisting the sales program because it has not been adequately explained to them. I know that the notices we sent out through the N.W.T. Housing Corporation were sent late and in many cases did not go out consistently. Staff also experienced difficulty in getting answers to questions once they did receive their notices, and the long and the short of it, Mr. Speaker, is we did not communicate well. To compensate for these problems I am taking two steps:

First, I am extending the deadline for the current tenants to submit an offer to purchase on a single detached unit to October 31, 1996, the date when we must receive an expression of interest on multi-plex units is also extended to October 31, 1996 and on multi-plex offers to purchase until December 31, 1996.

Second, it is my intention to retain private real estate agents across the Territories to assist the government and tenants in this sales process. The government is not an expert in selling houses and has not done a good job in trying. Professional real estate agents will assist staff to understand the purchase offer and the economics and elements of buying a home.

Mr. Speaker, the second issue that must be addressed has to do with rent increases. Staff are worried, what they will face when the government does not renew existing staff housing leases. This is a much more complex problem than the issues surrounding the sales of government owned units.

As I stated earlier, some landlords have benefited from the security of government leases for many years. Their buildings have been paid for by now and they should be in a position to offer rental rates directly to tenants that reflect the financial security these landlords enjoy.

Other landlords, mostly northern landlords, have only recently entered the field and have not had the opportunity to build equity and must pay high financing costs. These northern landlords may not be able to bring rental rates down to the levels of more mature markets such as Yellowknife. In the case of the financially secure landlord, the government will not renew leases. For newer northern landlords, the government will consider lease renewals.

The dropping of some leases does mean that there will be a direct relationship between the tenant and the landlord. The landlord will set the rent, not the government. I firmly believe that where leases are dropped, the landlord should have the ability to offer a rent level in line with mature markets. As a result, tenants should not be subjected to rents significantly higher than those in Yellowknife. Some difference from Yellowknife rates is to be expected, but employee tenants should be able to accommodate these differences as a result of the cost of living adjustments provided in the northern allowance.

However, Mr. Speaker, we do not live in a theoretical world, we live in a real one. Landlords accustomed to higher revenues from their properties may need time to adjust to the new economic realities. They may not be willing to reduce rents to affordable levels immediately. Eventually they must bring rents in line with what the market can afford or they will face very high vacancy rates, but the government cannot dictate what rents these landlords should charge, so time may be needed for market forces to begin to work.

During this market transition period, employees/tenants cannot be left without some protection from significant rental increases. These tenants will also need time to make choices and pursue alternative housing if necessary.

Mr. Speaker, to bridge this market transition period, the government will provide up to twenty four months of rent support to tenants. Where the government drops a staff house lease and the landlord establishes a rent that is more than 10% higher than the rent the tenant was previously paying the government, the government will pay the difference to the landlord up to 10 percent less than the previous lease rate the government paid for that unit. Simply stated, the government will, as a minimum, expect the tenant to be able to pay 10 percent more and the landlord to receive at least 10 percent less. During the twenty four month period in which this transition assistance is provided, the government will provide additional assistance to employees/tenants to relocate to alternative accommodation if landlords do not bring rents down to reasonable level. If the landlords do not act quickly to make these rent adjustments, they face the prospect of steadily increasing vacancy rates as tenants choose other accommodation options.

Mr. Speaker, these measures are fair. They recognize and deal with real issues that staff and landlords have. But make no mistake, the government is committed to removing itself from the role of landlord to it's employees and creating as much of a private housing market as possible. Scarce government funds must be used to provide support to those that need it the most.

Thank you.

Thank you, Mr. Todd. Ministers' statement, Mr. Ng.

Thank you, Mr. Speaker.

Mr. Speaker, the Department has entered into a dialogue with its partners and the public about what Health and Social Services should look like in the future.

We face many choices as we look to a reformed system -- the need to focus on prevention in a time of fiscal retreat may force us to take money from some areas so we can increase spending in others.

As we move into developing a strategic plan, we will continue that collaboration with more extensive consultation with partners and the public.

As a starting point, the department sent a flyer to every household in the Northwest Territories. We have already received input from the public by e-mail, fax and on the 1-800 line. Preliminary feedback focuses on the need for more education and prevention, equitable benefits and a long range strategy, Mr. Speaker, as the department moves into high gear in it's strategic planning process, we must listen carefully to what people tell us that they think is important.

We must also look at what the communities are doing, right now, to shape their own futures. For example, recent tragic events in Kugluktuk have underlined the need for that community to come to terms with it's problems. I am happy to report that the residents of Kugluktuk have stepped up the challenges they face, with a plan to integrate services in the community. This is being done so people can get the help they need, regardless of where they entered the system.

By working together towards more responsive services, perhaps this community will be able to work through these tragedies to a healthier, more positive future. Another example of a community taking control of it's services is Hay River. I recently attended signing ceremonies which included a contract of the town to run H.H. Williams Memorial Hospital and Woodland Manor. We expect more communities will come forward in the next few months to take an increasing role in their Health and Social Services delivery. Mr. Speaker, it is also important for regional boards to have autonomy in meeting health and social needs in their regions. The department is moving out of program delivery.

This shift will have a positive effect on the way boards deliver services. It will give them more autonomy, accountability, and control as well as flexibility to tailor programs to meet regional needs, and surplus and deficit retention. It is important for all of us to support this move toward autonomy by giving them control of the issues that affect them. The Department's ministry functions will include planning, policy and legislation, setting and enforcing standards, funding, monitoring, auditing, and evaluation.

Mr. Speaker, Health and Social Services reform is taking place throughout the country as a result of decreasing budgets and escalating social program costs. The NWT is in a very similar situation except for the fact that we have the highest birth rate and some of the poorest health status indicators in the country. We must begin to curtail our escalating costs by shifting some of our resources and programs from treatment to prevention.

Mr. Speaker, by focusing on longer term cost-saving initiatives, such as preventive programs, I am confident Health and Social Services reform will ensure a more effective, efficient system, which is sustainable in the long term. Mr. Speaker, I look forward to informing my colleagues about specific initiatives and directions in health and social services reform as we move through this session. Thank you Mr. Speaker.

Thank you, Mr. Ng. Minister's statement, Mr. Todd.

Thank you, Mr. Speaker. Later today, I will be tabling the government's 1995 interim financial statements. These statements show our financial results from the past fiscal years. In summary, the government ends up with a $15.6 million annual deficit, and total revenues of $1 billion and $255.7 million. This is a slight improvement from the $30.8 million annual deficit estimated in the May 1996 budget and resulted in a closing deficit of $27.2 million.

As I stated in the May 1996 budget, federal reductions to our form of finance and revenue began in the current fiscal year. The two year fiscal recovery plan developed by this Legislative Assembly allows us to recover from these reductions and once again start living within our financial means.

In May, I estimated that the deficit for the current fiscal year would be approximately 43 million dollars. To ensure that we meet this target, the Legislative Assembly passed amendments to the Deficit Elimination Act, also, the Financial Management Board instituted an expenditure management system to monitor on a monthly basis, the progress we are making toward meeting our deficit target and to ensure corrective action is taken, if necessary.

With these two accountability measures in place and the budget reforms we have implemented, I believe we will stay within our target of a 43 million dollar annual deficit for 96-97. Mr. Speaker, our plan is to return to a balanced annual budget in 97-98. We are on course to achieve this goal, if we remain committed to the reforms instituted by this House.

But make no mistake, Mr. Speaker, the reforms require that more difficult decisions lie ahead of us. Our priority must remain balancing the budget and moving ahead with the critical social reforms and economic initiatives upon which our future depends.

Thank you, Mr. Speaker.

Thank you Mr. Todd. The Chair would like to recognize, in the

Speaker's gallery, Mr. Jean-Pierre Kingsley, Chief Electoral Officer of Canada and of the Northwest Territories.

Welcome to the Legislative Assembly Mr. Kingsley.

Ministers' statements. Members' statements. Mr. Erasmus.

Thank you Mr. Speaker. I appreciate the opportunity to make my statement first, as I will be leaving for a period of time to go to a funeral.

My statement today is in regards to fetal alcohol syndrome and fetal alcohol effects.

The Member from Yellowknife South, Mr. Henry, and myself have made several statements on this subject and just to refresh our memories individuals with FAS/FAE can be compared in social behaviours and cognitive impairments to persons with a closed head injury. Their handicaps are hidden.

Mr. Speaker, children with FAE typically have normal appearance but have predictable problems in school, community and home.

FAS/FAE are the most common cause of mental retardation in the United States and is a condition that cannot be outgrown. The brain damage lasts a lifetime but the manifestations and type of problems change with each age.

Mr. Speaker it is absolutely important to indicate that FAS and FAE are 100 percent preventable.

Under questioning in this House the Minister of Health and Social Services had indicated that he is willing to work with other groups to get a strategy in place for this government to be able to tackle this preventable problem.

In the spring, after that statement was made I met with the FAS Community Team in Yellowknife. And we agreed it would be good for them to develop a strategy that they could present to the Minister and to this House.

The Member for Yellowknife South, Mr. Henry, and myself met with this team the other day and they actually presented their strategy to us. They had to work hard over the summer and they are very proud of their achievement and I am also proud to say I played a small part in this.

Mr. Speaker, I would seek unanimous consent to conclude my statement.

Thank you Mr. Erasmus. The Honourable Member is seeking unanimous consent to conclude his statement. Are there any nays?

Mr. Erasmus please conclude your statement.

Thank you Mr. Speaker. I will just read a little bit of their covering letter that they included with their strategy.

"Since it first began meeting two and a half years ago, the FAS Community Team has enjoyed a number of successes in raising public awareness about FAS and supporting families and children affected. Some of our successes include two television ads that have been broadcast in the NWT with prevention of FAS/FAE messages."

They have also developed two FAS/FAE prevention posters and a plain langauge information pamphlet. One of these poster, Mr. Speaker, is right here, there is also a pamphlet here and these two will be tabled later today along with the strategy.

There are several other successes, Mr. Speaker, which people can read once this document is tabled. I wanted to indicate further in this letter the strategy document was developed by the FAS Community Team which came together to advise the Living and Learning with FAS Project, which is funded by Health Canada.

The document is the result of many people who have experience in the community, coming to consensus about the most appropriate way to approach the complicated issues surrounding FAS/FAE. Members of the FAS Community Team include representatives from the following groups:

- The Department of Health and Social Services

- Parents

- Public Health

- Status of Women Council of the N.W.T.

- The Tree of Peace

- The Yellowknife Women's Centre

- Yellowknife Dene Community Wellness Program

- The Stanton Regional Hospital Paediatric Rehab Team

- The Yellowknife Education Region No. 2

- Mackenzie Regional Health

- The N.W.T. Council for Disabled Persons

As you can see, Mr. Speaker, this team had very comprehensive input from very many different types of organizations and areas of work in this field. The FAS Community Team has identified two objectives in this strategy as priorities:

Number one, to pilot a comprehensive treatment program for pregnant women with substance dependency issues.

Secondly, to develop and deliver a standardized modular training program, on FAS/FAE, with materials in plain language.

--- Applause

Thank you, Mr. Erasmus. Members' statements, Mr. Steen.

Thank you, Mr. Steen. Members' statement, Mr. Evaloarjuk.

(Translation) Thank you, Mr. Speaker. The Baffin Regional Hospital was built in 1962 and since then no major renovations have ever been done. Even though the population in Baffin region has doubled, the hospital is 34 years old and needs to be replaced. It serves 13 communities and approximately 13,000 people. It is the only hospital serving the Baffin region.

It is not acceptable to have this project delayed or cancelled in the agreement signed March 31, 1988, the Territorial Government took over the responsibility of health services for the Northwest Territories. Also, in which, the federal government promised to provide its share of $25,000,000 for a new hospital to be located in Iqaluit.

Last year at the Baffin Leaders' Summit, in Iqaluit, last January, it passed two different motions to have this construction proceed, and the motions were unanimously passed.

Mr. Speaker, on behalf of my people in Amittuq, and other parts of the Baffin region I will keep this issue alive until we see some results in this greatly needed service for the Inuit in Nunavut.

Thank you, Mr. Speaker.

--- Applause

Thank you, Mr. Evaloarjuk. Members' statements, Member for Mackenzie Delta, Mr. Krutko.

Thank you Mr. Krutko. Members' statements. We have the Member for High Arctic, Mr. Barnabas.

Thank you, Mr. Speaker. Swift action immediately after election to avoid an unaccountable budget deficit. We all participate in the process of developing this year's budget, and considering the various initiatives brought forward by the Government. This kind of inclusive decision making demonstrates consensus government at it's best. While the process was not perfect, I believe we have come to a point where we can make decisions on the 1997-98 business plans and budget knowing that we have an excellent foundation to build on.

Now, after a number of consolidations and amalgamations of departments, there is a proposal for yet another amalgamation. This time the plan is to combine the NWT Housing Corporation with the Department of Transportation and Public Works and Services. These are the three most important arms on the Government in terms of building infrastructure in the Northwest Territories. While there are undoubtedly some sound reasons for amalgamating them, we still can not take such an important step without the full participation of this Assembly. That is why I was disturbed to hear the Honourable Premier say that this amalgamation may proceed without a full debate.

Mr. Speaker, if such a thing is allowed to happen, when the government's fine words from earlier this year was about a common agenda and working together, how meaningless. The restructuring of the government is too important to pass off as casually as a minor policy change. This proposed amalgamation is worth it to fill an open debate in this House, and I expect the Honourable Premier and his cabinet colleagues to live up to a promise of a common agenda and provide opportunity for such a debate. Thank you, Mr. Speaker.

--- Applause

Thank you, Mr. Barnabas. Member for Thebacha, Mr. Miltenberger, Members' statement.

Thank you, kindly, Mr. Miltenberger. Members' statements, Member for Inuvik, Mr. Roland.