Thank you, Mr. Speaker. I would like to say that I do respect the opinions of all colleagues across the hall because they are the ones who put me in this position to guide the significant changes over the last four years in reference to Housing.
I have tabled the document in the year 2000 called...(inaudible)...Profile. It also has a very large segment of the population in public housing. However, that did not stop me as a Member in this House to look at a number of educational approaches to help them make a transition away from public housing to private home ownership that would give them the freedom, the liberty to decide how they want to live. Harmonization has been a contentious issue. I am still of the belief that we have developed a fair process and, if I may, Mr. Speaker, speak as to some of the legal instruments we have developed here.
Certainly in the context of how we assess rents, how we have treated the clients and also how we have done rent calculations under the authority of the NWT Housing Act, we have been fair. We still need to look at how we have moved away from the social system. If I may speak to the economic instruments as well, I want to indicate to this House we have, on a pro forma basis, reduced the rent recoveries from $3.7 million to roughly $2.9 million. That indicates that we have made a concerted effort in that short time period to move people away, out of public housing into private home ownership. I believe our statistics indicate that strongly.
Mr. Speaker, in all fairness, we have given every community an allocation to deal with their housing situations. It's based on a needs analysis. We also have appropriated additional monies and developed an affordable housing strategy that addresses all housing issues, not just harmonization. Also, I have heard comments that concern me about the economics of each community and where we are going. Outside of Northern Stores, outside of co-ops, the NWT Housing Corporation through the local housing organizations, is a major employer in the small communities.
We have expended over $35 million on local housing organizations across the NWT. Yes, that shows that we have a social obligation. We have been meeting those social obligations. In reference to communication, Mr. Speaker, we have done our homework. I must say we have taken an educated approach, much like my colleagues across the floor. We have communicated wisely and extensively with the communities, the leadership and with the standing committees who endorsed our initiative in January 2001. We began in February 2002 and as recently as January we have also complied with the recommendations of the Financial Management Board that we complete the impact analysis and also a requirement of a transfer of funds.
So, Mr. Speaker, it's difficult as a Minister to continue to defend a process that my colleagues say is marred, and to hear innuendoes as well saying we haven't been doing our homework. Also, our social commitment has been wide. We understand there is a social housing agreement. That social housing agreement will have funding starting to decline in the year 2004 with a completion date of 2038. So we need to look at other options.
We have modified and adopted, reconciled other housing programs that would put people into home ownership. I need to make reference to the small non-taxed-based communities...adapted the mortgage assistance programs to those families who are in most need. Yes, every program we develop for this government is a subsidy program. Our intention is to help those clients who are severely impacted, which numbers only 110, move into alternative programs. I can assure the Members that harmonization is just one small piece of the equation. If we continue to support all the programs through subsidization, then it becomes certainly a very large concern, not only to ourselves as Ministers, but also it should be a concern to this Legislature and future ones.
Mr. Speaker, I certainly want to assure the Members that I, too, am sensitive to the needs of those who will be adversely impacted. I wanted to make a statement that we will work within the abilities of our programs to help those make that transition.
In closing, Mr. Speaker, I have heard Members talking about the impacts and that there is a lack of information out there, but we also want to assure the tenants that we are going to give them a three-month transition period effective April 1st. Thank you, Mr. Speaker.