This is page numbers 1501 - 1541 of the Hansard for the 14th Assembly, 3rd Session. The original version can be accessed on the Legislative Assembly's website or by contacting the Legislative Assembly Library. The word of the day was chairman.

Topics

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Floyd Roland

Floyd Roland Inuvik Boot Lake

Thank you, Mr. Chairman. Some general comments before we get into detail. I share some of the concerns already spoken about by a couple of my colleagues and it goes around seniors and the harmonization and the rent they would end up paying.

I am aware from previous discussions in the 13th Assembly when this harmonization package was being talked about, there was some consultation done with the Seniors' Society of the Northwest Territories. The Seniors' Society of the Northwest Territories agreed that most seniors agreed that some form of rent was acceptable to them. The figure that was being talked about was in the area of $100. I hope that is remaining as it is and we are not going to go to our seniors and tell them they are going to have to pay the same price as everybody else.

As we heard already a number of times, it is already extremely difficult for seniors to make ends meet. More times than not in the smaller communities, even in communities like Inuvik, the seniors take the role of helping out families when it comes to their grandchildren and even their children in some cases. That is the way it has been for a long time.

Changing the policy and direction will not change people's attitudes in the way they have lived and treated their families. So hopefully that area is not changing. If it is, I think we are going to run into some concerns from a lot of Members, especially those coming from smaller communities.

The other area I see here, looking at the capital plan and hearing from the Social Programs committee in the past as well as this year, is that a number of seniors units are going up. I am aware that in the past there used to be seniors units built between Health and Social Services and the Housing Corporation that totalled eight units per year. I see that we are going 12 units per facility now.

There is one area of concern when it comes up and I will use a specific instance. Contractors that I have been hearing from in Inuvik referenced the seniors facility in Tuktoyaktuk that is supposed to be built in this fiscal year. I heard that a number of weeks ago and thought it was just rumors and did a quick contact with the Minister's office. At that time, I was told there was no decision. I was hoping to be kept informed.

Again, I received more calls from contractors stating that the information they were receiving was this project has been sole-sourced now. I would like to hear if that is the possibility. It is one thing to hear some rumours, but when the suppliers in the community are pricing out the cost of the facility already for one other contractor that supposedly has been sole-sourced, it is getting serious. At that point, it seems we are beyond rumours.

I guess in the area of contracting, I would like to know if the Housing Corporation has changed its stance when it comes to public tender or sole-sourced negotiated contracts. Those are the areas I have an interest in right now. Thank you, Mr. Chairman.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Paul Delorey

Thank you, Mr. Roland. Mr. Minister.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Roger Allen

Roger Allen Inuvik Twin Lakes

Thank you, Mr. Chairman. Yes, we could certainly assure the Member that there is no sole-sourced contract out there. Again, if we have done that, it is in contravention of the government policy. We are aware that there is no sole-sourced contract nor negotiated contract that can go out without Cabinet approval. We are very well aware of that. There have been a lot of rumours. I have heard the same ones as well. We confirmed with our officials that there is none. Our senior officials here will acknowledge that. From my discussions with them in the last several days and as far back as a week ago, there has been no contract let out to any particular group or business.

The question on seniors is going to be a very delicate one. I myself have said a year and a half ago when I ran for public office that I was here to protect the seniors. If there are some rental scales or increase in rents for senior, we have other options which we are looking at, Mr. Chairman.

One of them is to put them back to seniors' homeownership and there is a number of ways to do that. We are just trying to work out the mechanics at the moment and see what is the best way to fit them into a separate program. That is what we are working on at the moment. It is an ongoing issue and it will be. Again, if we are talking about consultation, we are at least working within that process at the moment. Thank you, Mr. Chairman.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Paul Delorey

Thank you, Mr. Minister. Mr. Braden.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Bill Braden

Bill Braden Great Slave

Thank you, Mr. Chairman. One area that I would like to ask for a bit of comment on -- and I am sorry, I do not have all of my information at hand -- concerns the ability or the mandate of the Housing Corporation to assist with commercial developments.

The area I have heard from potential developers is when they go to banks to secure mortgage funds for commercial projects such as apartment buildings or that kind of thing, the amount of equity the commercial lenders want far exceeds their ability to get a decent return.

Where there may be a bit of a gap here is where the Housing Corporation -- or in days past, the Canadian Mortgage and Housing Corporation -- used to provide guarantees, mortgage lending at more attractive rates and at lower equity levels. This would in turn help make it more attractive for commercial builders to go into more remote communities such as the North and make investments, which would in turn increase the housing stock, increase the capacity in communities to be able to house people.

In the North right now, Inuvik and Yellowknife are hard-pressed for housing stock and employers are having a hard time finding places to put people. So in the area of commercial lending and helping to make a more attractive environment for commercial investment, what can the Northwest Territories Housing Corporation do? Thank you, Mr. Chairman.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Paul Delorey

Thank you, Mr. Braden. Mr. Allen.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Roger Allen

Roger Allen Inuvik Twin Lakes

Thank you, Mr. Chairman. I will get the president of the Housing Corporation to explain the particular details of this question. Thank you.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Paul Delorey

Thank you, Mr. Minister. Mr. Beaulieu.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Beaulieu

Thank you, Mr. Chairman. The Housing Corporation has been given a loan guarantee capped by this Assembly. In the past, we have entered into a loan guarantee arrangement for interim financing to commercial ventures in order for them to construct residences in the community. At this time, we offer the loan guarantee based on a pre-approved mortgage and on an interim basis until the construction phase is done at a reasonable rate.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1539

The Chair

The Chair Paul Delorey

Thank you, Mr. Beaulieu. Mr. Braden.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Bill Braden

Bill Braden Great Slave

Commercial enterprises can access this funding, I take it?

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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The Chair

The Chair Paul Delorey

Thank you, Mr. Braden. Mr. Beaulieu.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Beaulieu

Yes. It is not income-tested or designed for under the social housing or people who are in need. It is for commercial ventures in order to create private market inventory or inventory for sale.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1539

The Chair

The Chair Paul Delorey

Thank you, Mr. Beaulieu. Mr. Braden.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Bill Braden

Bill Braden Great Slave

Are these terms attractive enough to invite commercial lenders? Have we got a lot of traffic in that area? Thank you.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1539

The Chair

The Chair Paul Delorey

Thank you, Mr. Braden. Mr. Beaulieu.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Beaulieu

At this time, we have one loan guarantee out for a commercial builder in the city of Yellowknife. There is an awareness that this loan guarantee and interim financing is available. We have another commercial builder that is also interested in obtaining a loan guarantee from the Housing Corporation at this time.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1539

The Chair

The Chair Paul Delorey

Thank you, Mr. Beaulieu. Mr. Braden.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Bill Braden

Bill Braden Great Slave

Thank you, Mr. Chairman. Finally, on this issue, is my understanding of this area generally correct? Do we have an unattractive lending or assistance environment to commercial builders? Are our terms just not attractive enough to get them going in this market? Thank you.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1539

The Chair

The Chair Paul Delorey

Thank you, Mr. Braden. Mr. Beaulieu.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Beaulieu

I am not sure if the terms and conditions from commercial lenders are unattractive, but I think it is the issue of equity as you have indicated earlier. What often happens is that maybe there is a requirement for a great amount of equity when getting involved in a commercial venture, especially for the private rental market. I think that is more the major drawback for people to go directly to commercial lenders to obtain interim financing.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1539

The Chair

The Chair Paul Delorey

Thank you, Mr. Beaulieu. Mr. Braden.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Bill Braden

Bill Braden Great Slave

Thank you, Mr. Chairman. Is the Housing Corporation considering re-evaluating those equity requirements in order to make it more attractive for commercial lenders to come into the Northwest Territories? Thank you.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

Page 1539

The Chair

The Chair Paul Delorey

Thank you, Mr. Braden. Mr. Beaulieu.

Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters
Item 19: Consideration In Committee Of The Whole Of Bills And Other Matters

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Beaulieu

It is not our conditions I was referring to. I was actually referring to the conditions placed on by the commercial lenders to private contractors that need to borrow the money in order to construct privately. What we are doing with the loan guarantee is facilitating the loan, so it is making it easier for the private builder to obtain the funding from the commercial agency, since we are providing a guarantee and not a loan.