(Translation) Good morning, Mr. Speaker. Mr. Speaker, I rise today to speak to Members about a serious concern for many individuals, families and communities in the north, the need for adequate and affordable housing. Accessible, affordable and quality housing is an ongoing and indeed a growing problem for the north where, because of our climate and our geography, the cost of building or purchasing a home is out of reach for many families based on their household income.
As a result, a high percentage of our population relies on the assistance of the government through income support programs and through the NWT Housing Corporation to ensure they have a roof over their heads, or somewhere else to call home. Compounding the day-to-day reality of housing costs, as Members are aware, the federal government has stopped funding the construction of new social housing units. In the Northwest Territories, this translates to an annual loss of about $50 million, which in turn means that several hundred housing units cannot be built each year.
Mr. Speaker, the combination of increasing demand and the decreasing resources has had a devastating effect on the Northwest Territories. (Translation ends) Lower income families who need a place to live are unable to access rental properties, and middle income families who would like to purchase their own home are unable to do so because it is beyond their financial reach.
The NWT Housing Corporation has tried, with some success, to deal with the growing demand for social housing through programs such as the purchase or owner-build programs and the Downpayment Assistance Program. In the process, it has been able to meet some of the need for housing in many communities throughout the north. It has also provided jobs for northerners through housing maintenance and construction and business opportunities for local and northern contractors, suppliers and manufacturers. But, despite these good efforts, the demand for housing continues to increase, and every day the waiting list for access to housing grows longer.
Mr. Speaker, I believe, looking at these circumstances, we can all agree the housing situation in the NWT is at a crisis point. And at a point where we must now take drastic measures in order to prevent the situation from getting worse.
Mr. Speaker, I am pleased to announce today that this government believes it has found a way to help address this current housing crisis. Our initiative, which we call Plan 2000, will provide more opportunities than ever before in the history of the NWT for families to become home owners, or to have their homes repaired or expanded. It will also address some of the territories' long-standing housing problems, such as the hundreds of rental and privately-owned property units that do not have proper water and sewage systems.
Mr. Speaker, it is my intention to make detailed presentations to the appropriate standing committees of this House. In the meantime, however, I would like to highlight a few of the things this plan will do to address the housing crisis.
First, the intent of Plan 2000 is to enable the NWT Housing Corporation to provide a more focused use of its funds to ensure it reaches as many people as possible. Mr. Speaker, with Plan 2000, the NWT Housing Corporation is getting out of the mortgage business and into the business of helping families find and access suitable, healthy and affordable housing, no matter what their income level.
Under this plan, we will assist people in shifting their mortgages to lending organizations at a rate and level they can afford. This will be done through the expansion of the DAP program and by marketing the Corporation's current mortgage and loans portfolio to lending institutions. With Plan 2000, we will be proposing an amendment to the NWT Housing Corporation Act to allow for the Corporation to provide banks with mortgage underwriting or guarantees to assist clients wishing to build homes or access bank financing.
Mr. Speaker, we believe this initiative will not only open new opportunities for home ownership, but it will also have a positive effect on the northern economy as well. As designed, Plan 2000 will provide a boost to the northern and local construction industries by creating up to 1,000 additional, seasonal construction, supply and manufacturing jobs a year.
Mr. Speaker, Plan 2000 is an innovative solution to a large problem. We believe this new approach to housing is one of the most positive and effective things this government can do to affect the very heart of our communities and our society. However, as with many other initiatives facing this government today, we must continue to look to the future. We view Plan 2000 as a short-term measure that will help us improve the quality of life for people prior to division, and address the immediate housing needs.
We cannot ignore the fact that the Territories has the highest population growth rates and unemployment rates in the country. Plan 2000 cannot replace the need for the federal government and the two future territorial governments, after division, to address the long-term needs for low cost housing. For today, however, this government believes that Plan 2000 is the best alternative to address the housing crisis. It gives us the opportunity today to make a direct and vital difference in the lives of individuals, families and communities throughout the entire Northwest Territories. And that to me, Mr. Speaker, is good government. Thank you.
---Applause