We're on section 7-36, detail of work performed on behalf of third parties. Do we have the concurrence of the committee to go back for the Minister, $11,714 million?
Debates of May 15th, 1996
Topics
Committee Motion 15-13(3): To Suspend Application Of The Business Incentive Policy
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 397
The Chair John Ningark
Committee Motion 15-13(3): To Suspend Application Of The Business Incentive Policy
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 397
Some Hon. Members
Agreed.
--- Agreed
Committee Motion 15-13(3): To Suspend Application Of The Business Incentive Policy
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 397
The Chair John Ningark
Thank you. Program summary, page 7-37, Public Works and Services, operations and maintenance, total operations and maintenance, $92.753. Agreed?
Committee Motion 15-13(3): To Suspend Application Of The Business Incentive Policy
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 397
Some Hon. Members
Agreed.
--- Agreed
Committee Motion 15-13(3): To Suspend Application Of The Business Incentive Policy
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 397
The Chair John Ningark
Capital, total capital, $5.89 million.
Committee Motion 15-13(3): To Suspend Application Of The Business Incentive Policy
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 397
Some Hon. Members
Agreed.
--- Agreed
Committee Motion 15-13(3): To Suspend Application Of The Business Incentive Policy
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 397
The Chair John Ningark
Thank you. Total expenditures, $5.89 million ... Where am I? Capital, total capital is $5.89 million. Agreed?
Committee Motion 15-13(3): To Suspend Application Of The Business Incentive Policy
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 397
Some Hon. Members
Agreed.
--- Agreed
Committee Motion 15-13(3): To Suspend Application Of The Business Incentive Policy
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 397
The Chair John Ningark
Total expenditures is $98.643 million. Agreed?
Committee Motion 15-13(3): To Suspend Application Of The Business Incentive Policy
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 397
Some Hon. Members
Agreed.
--- Agreed
Committee Motion 15-13(3): To Suspend Application Of The Business Incentive Policy
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 397
The Chair John Ningark
Does the committee agree we have concluded this department?
Committee Motion 15-13(3): To Suspend Application Of The Business Incentive Policy
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
May 15th, 1996
Page 397
Some Hon. Members
Agreed.
--- Agreed
Committee Motion 15-13(3): To Suspend Application Of The Business Incentive Policy
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 397
The Chair John Ningark
I would like to thank the honourable Minister and his witnesses for appearing before the committee. Thank you. Mr. Steen.
Committee Motion 15-13(3): To Suspend Application Of The Business Incentive Policy
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 398
Vince Steen Nunakput
Mr. Chairman, seeing as we finished that department, I would like to move we report progress.
Committee Motion 15-13(3): To Suspend Application Of The Business Incentive Policy
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 398
The Chair John Ningark
Thank you. There is a motion to report progress and the motion is not debatable. All those in favour of reporting progress, please raise your hand. All those against the motion? The motion is defeated. What is the wish of the committee? Mr. Miltenberger.
Committee Motion 15-13(3): To Suspend Application Of The Business Incentive Policy
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 398
Michael Miltenberger Thebacha
Thank you, Mr. Chairman. I would like to suggest we move on to Housing.
Committee Motion 15-13(3): To Suspend Application Of The Business Incentive Policy
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 398
The Chair John Ningark
Thank you. Do we have the concurrence of the committee that we review the NWT Housing Corporation? Do we agree?
Committee Motion 15-13(3): To Suspend Application Of The Business Incentive Policy
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 398
Some Hon. Members
Agreed.
--- Agreed
NWT Housing Corporation
Committee Motion 15-13(3): To Suspend Application Of The Business Incentive Policy
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 398
The Chair John Ningark
Thank you. Does the Minister of Housing, Mr. Arlooktoo, have any opening remarks?
Minister's Introductory Remarks
Committee Motion 15-13(3): To Suspend Application Of The Business Incentive Policy
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 398
Goo Arlooktoo Baffin South
Thank you, Mr. Chairman. I am pleased to present the 1996-97 main estimates for the NWT Housing Corporation.
For 1996-97, we are asking the Legislative Assembly to approve a total capital contribution of $46.87 million. In addition, we are requesting approval for a total O and M contribution of $58.374. This totals $105.244 million of GNWT funding. This contribution level is $6.721 million less than that provided in 1995-96, a reduction of six per cent.
One of the corporation's major goals is to maximize the number of homes provided each year with the level of capital contributions provided. I am pleased to report that, despite a reduction in our capital contribution of $2.13 million and a reduction of over $4.5 million to our O and M contribution, we will actually help more families this year. The new downpayment assistance program was well received by NWT residents and the interest in this program will allow us to deliver over 300 new units this year.
The review of the main estimates by the Standing Committee on Social Programs resulted in several recommendations for action. I would like to briefly address those recommendations.
The funding reduction targets suggested by the committee have been met. Care has been taken to meet these targets in areas that will not see a corresponding cut in federal costshared dollars and will have the least impact on community level resources and services.
The first phase of restructuring the corporation is complete. Further restructuring and downsizing options will be prepared by June. The administrative and organizational reductions recommended by the standing committee, although difficult, will be acted upon.
The standing committee recommends that more could be done to reduce the high cost of utility expenditures in public housing. The Housing Corporation agrees and is committed to working with local housing organizations, tenants and government departments to bring these costs down.
The standing committee was supportive of the corporate goal to complete a new housing needs study in the fall. The corporation has not completed a housing needs study since 1992 and this information is now dated. Careful planning will go into the design of the needs study questionnaire so that it can serve a number of purposes. Information collected will help in the planning of home ownership programs, as well as assessing the viability of the Mortgage Investment Corporation. Given our new fiscal reality, questions will focus less on people's wants and more on their housing needs.
Once this issue is resolved, negotiating the transfer of social housing to the GNWT can proceed. One benefit of negotiating a transfer agreement will be greater flexibility to address the NWT's unique housing needs. This flexibility can be passed on to communities that will be taking greater control over housing.
Before I close, I would like to tell Members of one area where we have made significant progress in empowering communities. Starting this fiscal year, local housing organizations are being block funded. A change from deficit funding means that LHOs will have greater flexibility to spend their budgets on local priorities. It also means LHOs will have an increased level of accountability to the community and to public housing tenants. This change can only improve how housing is delivered in NWT communities. That concludes my remarks, Mr. Chairman. I welcome the opportunity to discuss these plans with Members. Thank you.
Committee Motion 15-13(3): To Suspend Application Of The Business Incentive Policy
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 398
The Chair John Ningark
Thank you. Keeping with the tradition of this committee, I will now recognize the Member for the Social Programs committee, Mr. Miltenberger, to make remarks on behalf of the Social Programs committee that has reviewed this Housing Corporation. Mr. Miltenberger.
Standing Committee On Social Programs Comments
Committee Motion 15-13(3): To Suspend Application Of The Business Incentive Policy
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 398
Michael Miltenberger Thebacha
Thank you, Mr. Chairman. I am pleased to present the report of the Standing Committee on Social Programs on our review of the Northwest Territories Housing Corporation.
During the review of the main estimates, the Minister alerted the standing committee to a potential reduction in federal government funding for housing. The standing committee encourages the Minister to continue his efforts to work with the federal Minister of Housing to minimize the reductions necessary. As well, Members will be looking for ongoing briefings from the Minister on this situation and on possible options if some or all of the reductions cannot be averted.
When the NWT Housing Corporation first appeared before the standing committee in January, Members felt there were additional areas which could be considered for reductions or as new ways of doing business in the Housing Corporation. Suggestions were made in the first review of the business plan. These recommendations were all accepted by the corporation. The standing committee appreciates the corporation's work to address our suggestions.
After reviewing the NWT Housing Corporation's mandate and organization, the standing committee believes the corporation may need to be restructured. Members are pleased to see that the Minister will report to the standing committee on this area by June.
In the standing committee's January report on the business plans, there was an error. The standing committee had only intended to request that the corporation provide options for restructuring and/or dismantling the corporation by June 1, 1996. The standing committee is pleased to see that this is the kind of plan the corporation will bring forward.
The standing committee expressed concern over the reductions in areas where cost-shared federal dollars would be lost. The corporation has been asked to identify other options to reducing cost-shared funds.
One of the Housing Corporation's major costs is paying utilities. The corporation indicated that this was not an area where there had been much success in reducing client use. The standing committee believes more can and should be done to reduce this controllable expense. In response, the corporation has agreed to work with local housing authorities and the Department of Education, Culture and Employment to try to address utilities expenditures.
The corporation has indicated it can deliver the same number of housing units as in previous years for a lower cost. The standing committee supports the capital amount the corporation requested and encourages the corporation to continue to find ways to deliver more units for the same cost through new programs.
The upcoming housing needs study was discussed by the standing committee. Members feel the survey should capture housing needs as opposed to people's wants. As well, the needs survey should capture income information which would be useful in planning for home ownership potential, as well as in assessing the viability of the proposed Mortgage Investment Corporation.
The standing committee was concerned with the level of detail provided by the corporation. In the future, the standing committee would like to receive the corporation plan in advance if this is to replace the business plan. As well, the standing committee would like to have budget information to the division/department levels as well as position breakdowns by region.
Mr. Chairman, this concludes the report of the Standing Committee on Social Programs for the corporation. Thank you.
Committee Motion 15-13(3): To Suspend Application Of The Business Incentive Policy
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 399
The Chair John Ningark
Thank you, Mr. Miltenberger. Before we move to general comments, I would like to ask the honourable Minister if he wishes to bring in the witnesses.
Committee Motion 15-13(3): To Suspend Application Of The Business Incentive Policy
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 399
Goo Arlooktoo Baffin South
Yes, I do.
Committee Motion 15-13(3): To Suspend Application Of The Business Incentive Policy
Item 18: Consideration In Committee Of The Whole Of Bills And Other Matters
Page 399
The Chair John Ningark
Thank you. Do we have agreement of the committee that the honourable Minister will bring in the witnesses?