Thank you, Mr. Yakeleya. Mr. McLeod.

Mr. Speaker, the system in Tulita was designed and put in place at the time when this type of filtration system, this type of plant, was only available from the United States. We have been working with the community to look at what backups are required. The old plant is still there and we do also have a portable water pump in the event of both plants going down. We are discussing with the community on a plan to carry some backup material, filters and equipment, so that we can avoid the situation in the future. Thank you.

Thank you, Mr. McLeod. Final, short supplementary, Mr. Yakeleya.

Thank you, Mr. Speaker. That's good government, Mr. Speaker, I want to ask the Minister of Municipal Affairs, is the department willing to look at these filter systems? Is it the only one in the Northwest Territories or are there a number of filter systems like this in other communities to ensure that we have additional supplies of filters in our communities rather than rely on the old backup system. Sometimes that backup system needs major repair. Again, I want to ask the Minister in terms of an action plan that would be satisfactory to the people in Tulita. Thank you.

Thank you, Mr. Yakeleya. Mr. McLeod.

Thank you, Mr. Speaker. Mr. Speaker, yes, we will commit to doing that. We will have a discussion with Public Works and talk to the communities and see what some areas that may be requiring parts or filters that we should keep in the communities so we can avoid the situation. We will commit to doing that with all the communities in the Territories. Thank you.

Thank you, Mr. McLeod. Oral questions. The honourable Member for Nahendeh, Mr. Menicoche.

Thank you, Mr. Menicoche. The honourable Minister responsible for Aboriginal Affairs, Mr. Handley.

Thank you, Mr. Speaker. Yes, the Department of Aboriginal Affairs has had a look at the offer. We still have to do more analysis of it, but, at the first look at it, it appears to be an offer that is very similar in nature to the other settlements that have been achieved in the Northwest Territories.

Mr. Speaker, there will be a meeting with all of the parties on June 19th. At that time, they will jointly take a look at the offer. Thank you, Mr. Speaker.

Thank you, Mr. Handley. Supplementary, Mr. Menicoche.

Thank you, Mr. Speaker. I do realize that clearly the GNWT is outside the process, but on the June 19th meeting, will the GNWT be there? For my part there, Mr. Speaker, shared ownership and jurisdiction of the entire region is still something key to our people. Is that something that our government can support when we are at this table on June 19th? Thank you.

Thank you, Mr. Menicoche. There are two questions there. Mr. Handley, answer one or both.

Mr. Speaker, yes, the GNWT will be there on June 19th and on further negotiating sessions. With regard to our position on the various issues, Mr. Speaker, I would like to leave that to the negotiators. I don't have enough detail to be able to enter that debate in the House. Thank you, Mr. Speaker.

Thank you, Mr. Handley. Oral questions. The honourable Member for Range Lake, Ms. Lee.

Thank you, Mr. Speaker. Mr. Speaker, my questions today are for the Minister of the Housing Corporation in regards to the latest update on the ATCO Novel housing product. Mr. Speaker, we have just got the information that the size of this project has reduced quite a bit, from 1,400 housing units to about 830.

Mr. Speaker, let me just start by saying once again that I believe that ATCO Novel is a good product. It is a clever idea. It is a company that could stand on its own. The issue here is whether or not this government and this territory and people of the Territories are getting enough advantage in getting into a contract with this government with this company. So far we have not a good enough deal, as far as I can see. I would like to know, Mr. Speaker, as I stated in my Member's statement under Affordable Housing Strategy, the Minister plans to spend $100 million over the next three years to build 530 homes. Under the latest project on the ATCO Novel, the government is planning on spending over $200 million and yet we would only get 830. For $200 million, we should get at least 1,000. I would like to know where this great deal is that Novel is going to give us that warrants them as to be a lobbyist for them and have our own ADM when I don't see any deal. So what is the deal? What is the advantage we are getting? Where is the beast, Mr. Speaker?

---Laughter

Thank you, Ms. Lee. The honourable Minister of Housing, Mr. Krutko.

Thank you, Mr. Speaker. Mr. Speaker, we are talking about two different projects. The affordable housing initiative will put some 530 houses on the ground, but half of those houses that are going to be delivered are multi-configured construction. So they are going to take less land to put that many units on the ground. On the other areas that we are looking at is the Novel housing which are single dwelling units, which you are going to have to develop some 830 lots to put that many more houses on the ground. Also, with Novel, there is also going to be a project management cost associated with this major development for land and lot development which is not the case in the affordable housing project.

Again, Mr. Speaker, the price that we are looking at in which in Novel is, we are looking at putting out almost half of those units to be sold on the public market. We are hoping to recover some $40 million out of the $200 million

cost. Again, we are going to have dollars coming back to this project, which is estimated at about $160 million after we recruit those costs by selling off the units. Again, Mr. Speaker, we are talking about two different projects. We are talking about two different ways of constructing our units, multi for the affordable housing units, 530 houses. The 800 units for Novel are single dwelling units where we have to develop some 830 lots. That is where the major difference in this cost is. Thank you.

Thank you, Mr. Krutko. Supplementary, Ms. Lee.

Thank you, Mr. Speaker. Let me just get really simple on this. What I am hearing from the Minister is that instead of this government getting advantage and getting a better deal by buying these used workforce housing, we are actually paying more. The Minister is saying that we have to do what Novel wants, which is that they want individual lots instead of its restricting our options of going multi lots which could reduce costs. I would like to know why it is that we have to pay $28 million in premium for buying this Novel trailer and paying $71 million to convert, and yet we end up with less housing units for $200 million than what we would if we would have had our own plan under Affordable Housing Strategy and extend that by six years for $200 million instead of paying it to buy these used trailers and spending $200 million to convert them. Thank you, Mr. Speaker.

Thank you, Ms. Lee. Mr. Krutko.

Thank you, Mr. Speaker. Mr. Speaker, if someone can buy a home these days for $130,000, I think they got themselves a good deal. The majority of the costs associated with Novel, $77 million of that is land development costs which, again, is not associated with the affordable housing program. The biggest cost associated is land development. These lots and whatnot have to be developed in communities. We have to ensure that the infrastructure is there to handle it by way of power poles, roads and the other infrastructure it needs, but, more importantly, there is going to be a project management cost associated with this project which is not in the affordable housing program. Right now, it is administered through our office by way of tenders. There is also a $22 million financial arrangement where we have to finance at the front end to develop these lots so that when Novel does come on stream, we are ready for them. Again, there is a difference between these programs. We had a presentation to committee this morning. We have laid it out. We tried to explain it the best we can. Again, there are still some concerns out there. Again, this program is not completed. We are still in the process of evolving to a time and place where we will have to make a final decision on this and see exactly how the numbers come out and exactly what the difference is between the cost of the Affordable Housing Strategy and Novel. Right now, Novel is coming in at cheaper costs than the cost of stick-built today. Thank you.

Thank you, Mr. Krutko. I would like to remind Members on both sides of the House that the Speaker would like the...(inaudible)...Member the opportunity to ask questions today. So I will remind you to keep your supplementaries short and answers short, please. Ms. Lee.

---Applause

Once again, Mr. Speaker, I am really trying to shorten my question. I have not heard an advantage. I think my question is very clear, Mr. Speaker. Under Affordable Housing Strategy, we are spending $100 million and it will get us 530 units. Under the Novel housing strategy, we are going to spend $220 million plus to buy used units, clean up the yard for Imperial Oil, and we are going to end up with 830. Where is the math? Mr. Minister has not answered that question. It is pretty straightforward, especially when he has a whole person working in his office doing nothing but answering these questions.