Thank you, Mr. Chairman. Committee supports the plan to sell off 450 public housing units over the next eight years and replace them with 250 new multi-family units. The corporation will be replacing older inefficient units with newer cost-efficient units and thus will reduce operating costs in its public housing portfolio.

Committee was particularly concerned with the negative press generated by the media who appeared unaware of the intent behind the sale of public housing units. Members informed the Minister that a communications strategy should be implemented to alleviate any community or client concerns.

The Standing Committee on Social Programs' support for the sale of public housing stock is conditional on the continued adherence to the replacement plan and revenues generated from the sale of public housing units not being used to support administration costs.

Committee recognizes that housing needs change from time to time, and from community to community. In this context, we support the strategy of selling older, high-cost units or those units surplus to a community's foreseeable social housing needs.

The committee will be monitoring this issue and following up at the next available opportunity with the Minister responsible for the Northwest Territories Housing Corporation.

Maintenance Management Operating System (MMOS)

The Standing Committee on Social Programs has previously recommended the Northwest Territories Housing Corporation respect its mandate and turn over the marketing and support function for the MMOS program to the private sector or to a more appropriate government department or agency.

The corporation has been charged with redefining its mandate to better meet the housing needs of northerners. It appears from the tone of their December 20th response, that the MMOS system may very well be a part of any new mandate. In addition, the information systems/information technology plan, presented as part of the business plan, clearly states that information services will be working with business development personnel within the corporation to develop a corporation marketing plan.

During the main estimates review, the Standing Committee on Social Programs was reassured the NWTHC is not presently marketing this software. It will strictly be used as an in-house tool to manage their assets.

Committee is still concerned that in their new mandate the MMOS software application program may appear as a new marketing initiative to generate revenues.

Local Housing Authority Versus Headquarters Funding

In a time when housing needs are growing in virtually every community, and when the government overall is looking to reduce internal expenses, it would be anticipated that spending on housing programs would be increasing while costs for overhead and administration would be going down. Sadly, the NWT Housing Corporation has demonstrated its ability to defeat logic.

The district offices and the local housing authorities will see budget cuts of some $1.1 million this year, while the four headquarters functions will see increases of $1.17 million.