We will go to capital acquisitions, page 11, Justice, community justice and corrections, total community justice and corrections, $3,285,000. Mr. Roland.

Thank you, Mr. Chairman. Just for the record, earlier in the question, Mr. Sutton responded that the Inuvik young offenders' facility would be operational during the 2001-2002 fiscal year. Can we get some information as to what time we will see that construction completed?

Thank you, Mr. Roland. Mr. Minister.

We are on page 11, Justice, community justice and corrections, total community justice and corrections, $20,020,000.

Justice, page 12, total department, $20,205,000.

We will go back to page 11, Justice, total community justice and corrections, total public legal services, $85,000.

Justice, registries and court services, total department, $20,205,000. Page 12, Justice, total registries and court services, $100,000.

Total department, $20,205,000.

That concludes the Department of Justice. Thank you to the Minister and your witnesses. We will go to the Housing Corporation. Does the Minister have any opening remarks? Mr. Allen.

Yes I do, Mr. Chairman. I am pleased to present this Legislature with the 2001-2002 budget for the Northwest Territories Housing Corporation.

Mr. Chairman, I am confident the budget we are presenting today will assist in achieving the objectives of the Northwest Territories Housing Corporation in support of the goals outlined in Towards a Better Tomorrow.

We have requested a total contribution of approximately $45.5 million. This represents an increase of 5 percent from the previous year. The corporation will spend over $90 million on housing in the Northwest Territories this year when we include Canada Mortgage and Housing Corporation and other contributions.

With the funding included in this budget, projects will continue under our present initiatives. In its contracting procedures, the Northwest Territories Housing Corporation works to ensure that Northern labour, goods, services and contractors are used in order to create jobs and economic activity in our communities.

Mr. Chairman, the 2000 Housing Needs Survey results show there is still a dire need for adequate, suitable and affordable housing in the Northwest Territories. The majority of those in need are aboriginal families. The total withdrawal of federal funding for new social housing has put a severe strain on the corporation's ability to meet the housing needs of our residents.

One of the most important challenges for the Northwest Territories, as well as for all provinces and territories, will be to ensure that the current level of federal funding to operate and maintain public housing units stays in the housing system. The long-term sustainability of our social housing stock depends on it. I intend to discuss this important issue with the federal Minister at our next meeting in August, 2001.

Mr. Chairman, the corporation is currently working cooperatively with the Department of Education, Culture and Employment on integrating the social housing and income support programs. Key features of this initiative include harmonizing the income exemption policies of both the Northwest Territories Housing Corporation and Department of Education, Culture and Employment, and implementing measures to simplify and combine the delivery of our programs in communities.

Housing Corporation officials have just completed meetings with representatives from the community of Fort Resolution. We anticipate Fort Resolution will be the first community to pilot this joint Department of Education, Culture and Employment and Northwest Territories Housing Corporation initiative.

Senior Housing Corporation staff have just returned from meetings with their territorial and provincial counterparts from across the country. We are anticipating that the federal housing Minister, the Honourable Alfonso Gagliano, will be presenting the Remote Housing Initiative to the federal Cabinet in mid March and publicly announcing it by the end of March. Key aspects of this new initiative, such as cost-sharing and the amount of client assistance, remain uncertain at this time. I will continue to lobby my federal counterpart to ensure that this initiative meets northern needs and requirements.

Mr. Chairman, I have asked senior officials to continue their research into all historical housing agreements between the Government of the Northwest Territories and the federal government regarding the funding associated with delivering programs on reserves, now that a second reserve is expected to be established in the Northwest Territories. Once this research is completed I will share it with Members of this Legislative Assembly. Thank you, Mr. Chairman.

Thank you. Does the standing committee responsible for the Housing Corporation have any comments? Mr. Bell.

Thank you. The Standing Committee on Social Programs met on January 23, 2001 to consider the 2001-2002 Main Estimates for the Northwest Territories Housing Corporation.

The estimates saw an increase of $446,000 from the amount presented in the business plans. This difference was to address the changes to the collective agreement with the Union of Northern Workers.

Federal Government Issues

Two issues dealing with the federal government's limited support for northern housing issues were of concern to committee members. The first was the federal On-Reserve Housing Program. Members of the standing committee are disappointed that the Department of Indian and Northern Affairs and the Canada Mortgage and Housing Corporation are not prepared to live up to their fiduciary responsibility for on-reserve housing in the Northwest Territories.

The Members are disappointed in the apparent lack of effort by the Housing Corporation to lobby federal counterparts to ensure that the Northwest Territories receives a fair share of housing funding that targets aboriginal people, such as the On-Reserve Housing Program.

The standing committee, in last year's main estimate report, recommended that the corporation continue lobbying the federal government to access the On-Reserve Housing Program. It is apparent that the Minister ignored this recommendation.

In addition, committee Members are aware that the Minister made a commitment to the leadership of the Hay River Reserve to lobby on their behalf to access the On-Reserve Housing Program. Members are not pleased that the Minister also ignored this commitment.

It is clear from the actions of the federal government that there is understanding of how different the Northwest Territories is from the rest of Canada where many aboriginal people live on reserves. Although northern aboriginal people do not, for the most part, live on reserves, they should have the same right to the funding and programs that other people living on southern reserves do.

The second issue of concern to the Members of the standing committee was the possibility of increased funding for the building of social housing. It was disappointing to hear that our initial optimism about a federal proposal was misplaced. While there was a proposal made at the federal/provincial/territorial housing meeting, we understand that the CMHC application process and conditions are so onerous that acceptance of the federal funding was not an option for the provincial and territorial governments.

The committee would like to see the Minister lobby the federal government on the On-Reserve Housing Program and on the need for a realistic funding program to build social housing. We look forward to receiving copies of the Minister's correspondence in pursuing these matters.

Business Development Activities

In recent years, the NWT Housing Corporation has been successful in marketing NWT goods and services and its expertise in the design, construction and operation of northern homes. There was a proposal to shift responsibility for this marketing to the NWT Development Corporation, but the transfer appears to be on hold. The standing committee is in favour of approaching any such transfer with care and caution.

The Housing Corporation has done an excellent job in developing new markets for its goods and services. This has included creating positive business relationships and a level of trust between the Housing Corporation as a supplier/contractor with its business clients. The Housing Corporation also has access to in-house expertise, history and knowledge that an outside marketing agency could not readily duplicate.

Members applaud the success of the Housing Corporation in this area and would like an opportunity to comment in advance on any proposed changes to the current marketing approach.

Harmonization of Income Support and Public Housing Programs

Members appreciated the briefing on the harmonization of the Income Support and Social Housing Programs. If the harmonization can be implemented with appropriate review and analysis in advance to iron out potential problems, the inequities between the two programs should disappear. While the change is not supposed to impact those on income support, it should remove the disincentive for people to work. Persons employed in low-paying or part-time jobs will now not face a penalty for trying to earn income.

The change, as proposed, will result in rent increases for a number of people, including seniors, who are occupying social housing and have significant sources of income. Any changes must be carefully communicated, as affected people will need time to make the necessary adjustments to their personal financial arrangements.

Members noted in their last briefing that the Department of Education, Culture and Employment and the Northwest Territories Housing Corporation had not developed a communication strategy for the harmonization strategy. The standing committee expects to be provided with the details of a communication strategy at the next briefing on the harmonization strategy.

Thank you, Mr. Bell. Mr. Minister, would you like to bring in any witnesses? Mr. Allen.

Mr. Chairman, I have prepared to bring witnesses with me.

Is the committee agreed?

Thank you. Sergeant-at-Arms, can you please escort the witnesses in? Mr. Minister, for the record, could you introduce your witnesses, please?

Thank you, Mr. Chairman. On my left is Mr. Tom Beaulieu, president of the Northwest Territories Housing Corporation. On my right is Mr. Jeff Anderson, the chief financial officer for the Housing Corporation. Thank you.