Mr. Chairman, I will give you the breakout as it is proposed by the department. As I said earlier, I am open to consultation with the Members whose areas this is in. There is $2.5 million for public highway access roads. The proposal is that on the Kakisa access, $400,000 for grade improvements, drainage and chip sealing; Hay River access road, engineering assessment, drainage and grade improvements, $1,050,000; Detah access road, drainage, surface improvements and some chip sealing, $400,000; Fort Liard access road, drainage, surface improvements, chip sealing, $150,000; Jean Marie access road, drainage improvements, $250,000; Nahanni Butte access road, $250,000 for engineering surveys for an all-weather road and the continuation of improvement of that existing road right now. Thank you.

Thank you, Mr. Minister. Mr. McLeod, does that answer your question? Thank you. We will go back to capital, page 20, highways, total highways, $33,090,000.

Total department, $38,296,000.

Does the committee agree consideration of the main estimates for the Department of Transportation has been concluded?

Thank you, Mr. Minister. Thank you, witnesses. Mr. Dent.

Mr. Chairman, I would like to propose we commence consideration of the Northwest Territories Housing Corporation, at least the Minister's opening comments and the committee's response, and perhaps some general comments.

Does the committee agree?

Does the Minister for the Housing Corporation have any opening remarks?

Yes, Mr. Chairman. I am pleased to present the 2002-2003 budget for the Northwest Territories Housing Corporation. We have requested a total contribution of $48,981,000 from the Government of the Northwest Territories, including other revenue sources of $46,429,000. The corporation will spend over $95 million on housing in the Northwest Territories this year. This figure includes contributions from Canada Mortgage and Housing Corporation.

With the funding identified in this budget, the corporation will continue to deliver programs and projects to assist low and moderate income residents to obtain healthy and safe housing so they can fully participate in the opportunities offered in this Territory.

Mr. Chairman, this government's recent budget address clearly recognized the critical role housing plays as part of the Territory's social safety net. Mr. Chairman, the Housing Corporation's current analysis of critical issues and environmental trends clearly demonstrates that the Northwest Territories is going through a cycle of economic expansion. The Housing Corporation recognizes that increased employment in mining and oil and gas sectors, as well as the future potential for the construction of a gas pipeline, will have a substantial impact on the overall housing demand.

The need for an adequate supply of private rental market units has never been greater. In response, the Housing Corporation has developed specific goals and initiatives to assist with the supply of private rental housing units across the Northwest Territories. Mr. Chairman, under the recently announced affordable housing agreement signed with the federal government, approximately $7.5 million in funding has been allocated over the next four years to the Northwest Territories for the creation of new, affordable housing options. When added to the current budget allocation, this funding will have a significant impact on developing housing solutions.

Mr. Chairman, the government is working together with aboriginal governments, non-government organizations and other stakeholders to develop a social agenda for the Northwest Territories, creating solutions to the many housing issues that face our residents will no doubt help improve the quality of life for our citizens. Thank you, Mr. Chairman. This concludes my opening remarks.

Thank you, Mr. Minister. At this time, I would like to ask the committee responsible for reviewing the department under consideration to make comments with regard to the committee's review of the department's estimates. Mr. Braden.

Thank you, Mr. Chairman.

The Standing Committee on Social Programs met on January 17th, 2002, to consider the main estimates for the Northwest Territories Housing Corporation. Committee members noted a $1,250,000 increase in operations expense to offset forced growth to the local housing authorities for increases in the price of heating fuel over numbers presented in the business plan. Members also noted a $1,061,000 increase related to the Government of the Northwest Territories capital contribution to the Northwest Territories Housing Corporation.

Members of the Standing Committee on Social Programs are extremely disappointed that the priority on housing articulated at the Caucus retreat in Hay River in December of 2001 is not reflected in these main estimates.

When questioned by a member of the committee on why the Caucus priority was not reflected in the main estimates, the Minister stated the Housing Corporation was confident they were meeting all of the housing demands across the Territories, with the exception of Yellowknife.

The president of the NWT Housing Corporation stated the organization is working to capacity and that for any more housing construction or programs to be delivered, it would be necessary to hire more staff. He also pointed out that some housing construction would not be reflected in the corporation's infrastructure acquisition plan because the only role the Housing Corporation would have in the construction would be in either providing loan guarantees or in matching private developers with community or aboriginal development organizations.

In our subsequent discussions, the Member from the North Slave noted that one contributing factor to Yellowknife's housing crisis was that a number of his former constituents had moved to Yellowknife. These residents are gainfully employed, primarily in the diamond mines, and moved to Yellowknife because there were no housing options available in their home communities. The Member stated that the majority of these families would move back to their home communities, provided there was adequate, available housing.

The Standing Committee on Social Programs took their concerns with the lack of Caucus priorities being reflected in the main estimates of the NWT Housing Corporation to the Standing Committee on Accountability and Oversight.

A recommendation that Caucus priorities related to housing be reflected in the main estimates of the NWT Housing Corporation was forwarded to the Minister of Finance.

Members of the standing committee could find no evidence of cooperation on the development of lots between the Department of Municipal and Community Affairs and the NWTHC reflected in the Main Estimates.

The president of the NWTHC stated there have been two preliminary discussions with the Department of Municipal and Community Affairs on the lot development initiative for non-tax-based communities. Members of the committee are concerned that the level of cooperation is not at a point to be of benefit in the 2002-2003 building season.

There is no point in developing lots if the primary source of funding for construction has no available funding for construction or lending in that community.

The Standing Committee on Social Programs strongly encourages the NWT Housing Corporation to finalize plans with the Department of Municipal and Community Affairs to ensure that sufficient lots are available in the communities that the corporation will be active in, in the upcoming year.

During the discussions on the main estimates for the NWT Housing Corporation, reference was made to Canada Mortgage and Housing Corporation being reluctant to finance projects in the Northwest Territories because of its reliance on a resource-based economy.

The Minister and his staff did state there has been some policy shifts that have made it easier for developers to be financed or guaranteed through CMHC programs. The Standing Committee on Social Programs would encourage the NWTHC to work with private developers interested in investing in the North to access any and all relevant CMHC programs.

As stated by the Minister and in recent media reports, the biggest impediment to developers is the lack of affordable, serviced lots to build on. A developer, because they have to pay such a high price for a lot, may be unable to make a realistic profit when they sell their product to the eventual homeowner. This of course discourages the developers from even undertaking projects.

The committee was pleased to hear of ongoing discussions between the City of Yellowknife, the NWT Housing Corporation and private developers on ways to reduce the costs of lots in Yellowknife. It is hoped that some agreement could be reached between the parties that would result in the construction of needed private and rental accommodations.

The Standing Committee on Social Programs would appreciate being kept apprised of the status and success of ongoing negotiations between the developers, the NWTHC and the City of Yellowknife.

The Standing Committee on Social Programs is disappointed that the NWTHC has neglected the business development side of its mandate. The Minister stated in a response to a question from a member of the committee that there is so much demand domestically, we have not been able to go into Alaska this year to market our own products.

Members are aware of one NWT entrepreneur specializing in the manufacture of panelized building products who could have benefited immensely from the NWTHC aggressively marketing his products in Alaska. This is evident from a recent article in the Edmonton Journal expounding the success of an Edmonton manufacturer of panelized building products in selling to the Alaskan market. Those persons in Alaska who decide to build with the panelized products are even eligible for lower mortgage rates from the Alaska Housing Corporation because of the panelized products' superior insulation qualities and attendant savings.

Committee members could determine no reason why the NWT manufacturer could not be marketed by the NWTHC. Given the developing barge shipping system via the Mackenzie River and the north slope of Alaska, the NWT manufacturer may be competitive with the Edmonton supplier.

The Standing Committee on Social Programs recommends that if the Northwest Territories Housing Corporation is not going to comply with their mandate to market Northwest Territories products and services, that this responsibility be transferred to the Department of Resources, Wildlife and Economic Development.

Mr. Chairman, I am wondering if I could ask one of my colleagues from the committee, Mr. Bell, the Chair, to continue with the standing committee's report. Thank you.

Thank you, Mr. Braden. Mr. Bell.

Thank you, Mr. Chairman.