The Standing Committee on Social Programs met on January 16, 2003 to consider the main estimates for the Northwest Territories Housing Corporation.
Since reviewing the corporation's 2003-2004 proposed budget during the review of the 2003-2006 business plans in September of 2002, the standing committee noted a $747,000 increase in the amortization estimate, as well as a $1.72 million increase relating to the community development action plan which will help address serious housing issues in Lutselk'e, Hay River Reserve, Fort Providence, Fort Liard, Wha Ti and Fort Good Hope.
Accountability And Universal Partnership Agreements
Members of the Standing Committee on Social Programs have many concerns with how the NWT Housing Corporation, NWTHC, will monitor programs and services delivered by local housing authorities, LHAs, under universal partnership agreements, UPA.
While supportive of the concept of empowerment and allowing LHAs to make their own choices in how to deliver housing programs in their communities, there needs to be systems in place to ensure public money is being spent effectively.
Past experiences suggest there needs to be an emphasis placed on the inspection of new construction and renovations. Members are aware of serious deficiencies in the construction and maintenance of social housing units. In some cases the same LHA or development corporation that constructed or renovated the social housing unit was also responsible for signing off on the unit as complete. This is unacceptable to committee members.
The NWTHC spends a significant amount of money per social housing unit because of the high cost of construction and materials in the North. To ensure value for money, it is essential an efficient inspection program be in place.
In discussion with the Minister and his officials, committee members were informed that part of the annual audited financial statements included the auditor verifying work was accomplished by taking a representative sample.
For example, members note an auditor would be qualified to ask a social housing client whether the LHA added a porch to their unit. The auditor would not be qualified to determine whether the porch was properly tied to the rest of the structure, whether sufficient insulation was placed in the floors and walls and whether the porch was adequately blocked or pinned to bedrock.
In response to a question asked during the business plan review, the NWTHC stated that the corporation usually conducts interim and final inspections on construction projects. Committee members were concerned with the use of the word "usually". It seems to imply there is an ad hoc approach to ensuring the terms of construction contracts are fulfilled and that the NWTHC is receiving value for money.
During the business plan review, the Standing Committee on Social Programs questioned the need for the Housing Corporation. If the corporation's focus is on developing community capacity through the development of such mechanisms as universal partnership agreements, it stands to reason there should be an oversight function as part of the process.
Members believe the Housing Corporation is evolving into a funding mechanism for local housing authorities to ensure the orderly flow of funding from Canada Mortgage and Housing and the territorial government to the communities. The committee questioned whether this function could be accomplished through the use of a shell corporation administered through a government department and has asked that the future of the Housing Corporation be examined as part of the transition planning to the 15th Assembly of the Legislative Assembly.
Prior to the adoption of the Access to Information and Protection of Privacy Act, Members of the Legislative Assembly were kept well informed of the activities of the NWT Housing Corporation within their constituencies.
The members of the committee understand the need to protect the privacy of persons accessing social housing, but would point out that the total lack of information now available to members hampers their ability to monitor the activities of the Housing Corporation and represent the interests of their constituents.
There is an unnecessary amount of time being spent on verifying information provided to members by their constituents with officials of the Housing Corporation. Members of the committee also believe the NWTHC is wasting valuable resources on determining the amount or type of information they can release to Members involved in constituency work.
The committee appreciated the commitment of the Minister and his officials to work on a protocol that will allow for the release of information to the Members of the Assembly in a timely manner that respects the privacy of the client and addresses the needs of the Members.
Harmonization Strategy
The Standing Committee on Social Programs notes harmonization of the way income is calculated by the Department of Education, Culture and Employment's income support division and the Northwest Territories Housing Corporation will become effective on April 1, 2003.
Members are pleased this oft-delayed initiative is being implemented and believe the new system provides for the equitable treatment of all residents of social housing. The Department of Education, Culture and Employment and the NWT Housing Corporation are to be commended for their efforts in ensuring the development of an equitable program.
There will be glitches as this program is implemented. The Housing Corporation is encouraged to work with clients to mitigate the effects on their households.
Regional Reorganization And The Housing Corporation
Members note the NWT Housing Corporation reorganized their regional structures from three regions to five districts aligned with land claims two years ago.
The standing committee is not opposed to regional reorganization but are concerned with the apparently ad hoc approach and the lack of coordination, planning and direction provided by Cabinet to the departments.
It is obvious that regional reorganization, whether official or ad hoc, has cost implications to this government. If the purpose is to align the administrative structures of the departments with land claim agreements, the associated costs must be part of self-government negotiations with the federal government and should not be absorbed by the GNWT.
This concern was passed on to the Standing Committee on Accountability and Oversight and was subsequently relayed to the Minister of Finance for a response.
The Minister's response indicates the government would be analyzing incremental costs and entering into negotiations with the federal government for funding to address these costs.
The committee hopes the government's optimism is justified. Mr. Chairman, at this point, I would like to turn over to my colleague, the Member for Hay River South.