Mr. Speaker, I would like to make a short statement today to inform Members about the NWT Housing Corporation's new funding model for local housing organizations, LHOs. Over the past 22 years, the Housing Corporation funded the LHOs through a deficit funding arrangement where they paid for all overexpenditures and took back any savings generated at the community level. This mechanism has not rewarded or promoted good management in the communities.

In support of Cabinet's direction to live within our means, the Housing Corporation has developed and implemented a new funding model which achieves several objectives:

it promotes fiscal accountability and provides greater authority to our partners in the delivery of housing services to residents of the NWT. As well, the new funding formula provides a framework which equitably and fairly distributes our limited financial resources to the LHOs and provides incentives for LHOs to manage their resources as effectively and efficiently as possible. Under this new arrangement, the LHOs will be able to retain 50 per cent of any surpluses generated and these funds may be spent at the discretion of the LHOs for any community housing purposes. We expect that our residents will get more value for our housing dollars.

This new funding model is also designed to support the government's plan for community empowerment. Communities will be able to set their own housing priorities within minimum program standards. For those communities which are considering housing under the community empowerment initiative, the new funding model clearly identifies the resources available to each organization which administers public and staff housing at the community level.

Mr. Speaker, I believe the new funding model represents a major step forward ' in achieving the goals of this government. It gives LHOs more power to set priorities and will make them more accountable to their communities and residents. Thank you, Mr. Speaker.