Thank you, Mr. Chairman. The NWT Housing Corporation works with the local housing authorities and other concerned citizens and non-governmental organizations to achieve acceptable results in the provision of housing in the Northwest Territories. The Housing Corporation aims to ensure there is adequate social housing available for those who need it and that there are affordable housing options available for those who can look after their own needs. The Housing Corporation also works to develop a NWT-based construction and manufacturing base with high aboriginal participation.
The Standing Committee on Social Programs met on November 20, 1998, to review the draft business plans of the Northwest Territories Housing Corporation and again on March 19, 1999, to review the NWT Housing Corporation's draft 1999-2000 Main Estimates. Committee Members were generally satisfied with the business plan of the NWT Housing Corporation. Committee Members realize that the corporation is doing what it can with the reduced federal social housing funding that it receives. Recent initiatives such as the Extended Down Payment Assistance Program are proving valuable in making northerners responsible for their own housing choices. The committee notes a $283,000 reduction in operations and maintenance funding and $125,000 reduction in capital funding in the 1999-2000 draft Main Estimates over the number contained in the 1999-2000 business plans. Under the P3 initiative, the Housing Corporation plans to replace energy inefficient appliances in public housing stock and test other energy- saving systems.
While the committee does look forward to being informed on the result of cost-saving exercises as the grey water recycling system presently being tested in N'dilo, there is some trepidation, on the part of Members, on the introduction of energy-saving appliances and systems at the community level. There is no doubt that the replacement of old energy inefficient appliances would result in savings for the public housing programs administered by the Housing Corporation. However, particularly in the small communities, this could result in the Northwest Territories Power Corporation having to increase the power rates to all residents of the community to meet their necessary revenue requirements. On a positive note, the replacement of older appliances could benefit communities whose power supply infrastructure is operating at near capacity by lowering the demand on the system. This would save the cost of the Power Corporation having to add excess power generating capacity which would be, in any event, passed on to the consumer.
Mr. Chairman, the committee recommends that the Northwest Territories Housing Corporation work in conjunction with the Northwest Territories Power Corporation to ensure that any energy-saving programs under the P3 initiative not have an adverse effect on the power rates for any community. Committee Members are optimistic about the opportunities the Housing Corporation is developing for northern businesses in Alaska. There is a great economic potential for northern businesses and for the generation of more power funding realized through profit. Members were encouraged to hear, during the review of the Main Estimates, that there is a potential for a supply of more housing units than originally envisaged. While committee Members encourage the corporation in developing this curiously untapped Alaskan market, they also urge a degree of scepticism in dealing with any of the former Russian republics to provide housing units due to the possible logistical and financial difficulties.
The committee made note of the ongoing negotiations on the transfer of some housing units to community governments. This is an initiative that may have a positive effect on the ability of smaller communities without a viable rental market to attract and retain health care and educational professionals. The committee encourages the Housing Corporation in further dialogue on this issue. The committee understands and supports the devolving of the tendering process to the local level. However, if the corporation is to achieve its end goal of promoting the development of a viable manufacturing sector, it will be necessary to adopt a proactive approach to ensure that all qualified northern companies are able to bid on projects. Presently the only resource the Housing Corporation has to deal with failure of local organizations responsible for tendering neglecting to ensure northern content is to withhold the funding relating to the portion of the tender under dispute.
The committee recommends that the local contracting authorities performing the tendering function on behalf of the Northwest Territories Housing Corporation be required to file with the corporation a copy of all tendering documents as they are let. The Housing Corporation should then file the tender documents with the NWT Construction Association or other appropriate agencies so that any qualified northern contractor or manufacturer can bid on the tender.
Mr. Chairman, during the present business plan review, the committee noted that the social housing program run by the Northwest Territories Housing Corporation is closely intertwined with the Income Support Program run by the Department of Education, Culture and Employment. Both programs contain provisions that discourage people from working. There is no point for a person on income support and living in social housing paying $32 per month to take a job paying $10 per hour when he or she is no better off because of higher rent and loss of income support. The departments must work together to develop common policies that are not at cross purposes with each other. These policies must also be re-examined in light of division, the realities of life in the future Northwest Territories, the implementation of a new western revised rent scale and the interrelationships between government departments and policies, particularly within the social envelope.
During the business plan review, committee Members were disappointed in the apparent lack of cooperation between the departments; however, during the Main Estimates Review, the committee noted a solid beginning in increased cooperation among the departments involved in delivering programs in the social envelope. It was particularly encouraging to committee Members to hear that an interdepartmental paper, on a combined social housing and income support system had been forwarded to Cabinet for their consideration. The committee looks forward to being kept apprised on the progress made on this important decisive issue in our communities. Committee Members are interested in seeing the final recommendations on the implementation of the rent scale as it applies to the new Northwest Territories and look forward to providing their input.
Committee Members were also concerned that the providing of so-called free social housing to seniors is not in the best interest of the corporation. Committee Members have heard of cases where seniors have sold their own home or given them to children and moved into social housing. Many seniors do have a sufficient income to pay for at least part of costs associated with their social housing units. The money could be used to subsidize seniors who do not have the wherewithal to pay for housing and still allow them to maintain their independence. It may be necessary to attach a means test to the provision of social housing to seniors.
Mr. Chairman, the committee recommends that the Housing Corporation develop a revised rent scale that takes into account western realities and implement it as soon as possible. The committee recommends that the deputy ministers responsible for the departments in the social envelope work together in greater cooperation in developing programming and policies that meet the needs of northerners and accomplish the government's stated goals.
Program Survey of Local Housing Authorities. The committee wishes to encourage the Northwest Territories Housing Corporation in its desire to increase the level of cooperation between the headquarters function and the local housing authorities. The program survey of the local housing authorities to gauge corporation effectiveness is a positive step in developing programming and services at the headquarters level that respond to the needs of these local housing authorities.
Reduced Canada Mortgage and Housing Corporation Funding. Committee Members are well aware that the current level of CMHC funding will be sunset on a reduced sliding scale over the next 29 years. Members of the committee share the Minister's concern that this will have an extremely detrimental effect on the ability of the corporation to deliver new public housing and to maintain the existing housing stocks. Therefore, Mr. Chairman, the committee strongly recommends the Minister's continued cooperation with the other Canadian jurisdictions that were also adversely affected by the federal government's withdrawal from the provision of funding for public housing.
Committee Members also share the Minister's concern that because the Government of the Northwest Territories assumed the responsibility for aboriginal housing in the Northwest Territories, the NWT is not eligible for any federal housing funding that targets treaty aboriginal people. Therefore, Mr. Chairman, the committee recommends that the Minister continue to lobby his federal counterparts to ensure that the Northwest Territories receives a fair share of housing funding that targets aboriginal housing.
Informatics and Human Resource Plans. Committee Members were disappointed in the lack of detail in the Housing Corporation Informatics and Human Resource Plans as contained in the business plan. However, Members could appreciate the difficulties the corporation was having in attracting a computer systems manager given the demand for qualified computer professionals. The committee compliments the Northwest Territories Housing Corporation in its apparent detailed response to these concerns. The committee looks forward to discussing these issues further once Members have had a chance to analyze the information provided by the corporation.
Pilings in Inuvik. During its review of the business plan, committee Members expressed their concerns with the steps that the Housing Corporation was taking in dealing with the rotting piling issue in Inuvik. The committee was pleased to see that by the time of the review of the Main Estimates, the Housing Corporation was awaiting test results on its units' pilings. Members were also pleased to note in the corporation's response to the committee's concerns that extra money was identified for the Inuvik Housing Authority to deal with the rotting piling issue and that the corporation is committed to working with all adversely affected homeowners. The committee looks forward to the results of the tests and to the formulation of the long-term strategy to deal with the rotting piling issue.
Rent Supplement Program. During its review of the business plan, committee Members expressed concerns about how this program operated. Since the money used to support this program is hidden in the operations and maintenance costs it is impossible for the committee to know what the actual cost to the corporation is for the Rent Supplement Program. Prior to the review of the Main Estimates, the Housing Corporation did provide the committee with details on the Rent Supplement Program and which communities had units under the program. Mr. Chairman, that concludes the committee's report on the NWT Housing Corporation. There are some motions that, with your indulgence, I would like to deal with.