Thank you, Mr. Speaker. We do use the business incentive policy. That is one of the ways we encourage to generate the work in our communities and our regions. That they do use local businesses. I think the Member is getting at monitoring and tracking of how much they actually use. I am not aware of any system right now that we do use, Mr. Speaker, but that's something I can get more information on for the Member. Thank you.

Thank you, Mr. Menicoche. Supplementary, Mr. Yakeleya.

Thank you, Mr. Speaker. I would ask the Minister if he would seriously consider looking through his department to show that the contractor comes out from outside a region and works in our region, such as the bridgework that Mr. Menicoche mentioned in the Sahtu region? This contractor, whoever it is, will state that this is the amount of work he's given the local people in our region. I don't know if it's through other departments, but they can show they are bringing benefits to our region and show that to myself. Thank you, Mr. Speaker.

Thank you, Mr. Yakeleya. Mr. Menicoche.

Mr. Speaker, the Member is referring more to the MOU that we have and it's more appropriate to the Minister of ITI. Thank you.

The honourable Minister of Industry, Tourism and Investment, Mr. Bell.

Thank you, Mr. Speaker. As the Member is well aware, because the Member has been lobbying very hard to see a Sahtu MOU that speaks to an agreement between the Sahtu governments and our government and talks about procurement, my department, Mr. Speaker, as Members will know, has the lead with the Gwich'in MOU, but largely the responsibility to deliver on the commitments falls to the largest procurement departments. Public Works and Transportation are amongst those. We are looking forward to being able to sign an MOU very shortly. I want to thank the Member for his work in this respect as well as the Sahtu leadership. I think we are very close and we will have some good news soon. Thank you.

---Applause

Thank you, Mr. Bell. Before we go on to the orders of the day, Members, I would just point out that we had 10 questions today before the time expired. I know the Chair respects the fact that we have some very important issues in front of the House, but we have had some extremely long preambles and some extremely long answers on the Minister's side today. I would request that you maybe shorten up your answers and preambles in the future, or I will have to take more forceful action.

I would also like to remind Members that if the Chair intercedes when you are speaking, that the Chair would expect you to respect the authority of the Chair and cease speaking and take your chair until you hear the ruling of the Speaker. Thank you, Members.

---Applause

Written questions. The honourable Member for Great Slave, Mr. Braden.

Thank you, Mr. Speaker. My question is for the Minister of Environment and Natural Resources, Mr. Caribou.

---Laughter

Provide details on the actions taken to date as a result of the caribou workshop December 4th to 6th, 2006, and Caribou Summit, January 23rd to 25th, 2007.

Thank you, Mr. Braden. Written questions. Returns to written questions. Replies to opening address. Replies to budget address. Petitions. Reports of standing and special committees. Reports of committees on the review of bills. Tabling of documents. The honourable Minister responsible for the Public Utilities Board.

Thank you, Mr. Menicoche. Tabling of documents. Notices of motion. Notices of motion for first reading of bills. Motions. First reading of bills. Second reading of bills. Consideration in Committee of the Whole of bills and other matters: Bill 18, Bill 19, Bill 21, Committee Report 7-15(5), Committee Report 8-15(5) and Committee Report 9-15(5), with Mrs. Groenewegen in the chair.

I will call Committee of the Whole to order. What is the wish of the committee? Mr. Lafferty.

Mahsi, Madam Chair. The committee wishes to consider the NWT Housing Corporation at this time. Mahsi.

Thank you, Mr. Lafferty. Does committee agree? Thank you. We will do that after a short break.

---SHORT RECESS

I would like to call Committee of the Whole back to order. The department we are going to be considering today is the NWT Housing Corporation. At this time, I would like to ask Minister Handley, Premier Handley, if he would like to provide his opening comments. Mr. Handley.

Thank you, Madam Chair. I am pleased to present the Northwest Territories Housing Corporation's main estimates for the fiscal year 2007-08 for a total GNWT contribution of $51.210 million.

This is an increase of 39 percent over the 2006-2007 Main Estimates. This increase is due to the $16.250 million federal northern housing trust funding received for the affordable housing initiative. This increase is offset by an equal reduction in other source revenue. In addition to the GNWT contribution, the corporation will receive an additional $68.060 million in other source revenues. This funding includes contributions from the Canada Mortgage and Housing Corporation of $17.220 million and public housing rental subsidies of $32.454 million received from the Department of Education, Culture and Employment through its responsibility for subsidized housing. Public housing rental clients will contribute an additional $4.441 million towards their shelter costs. The remainder is made up of lease revenues, mortgage and investment interest and projected sales proceeds from the disposal of housing assets.

During 2007-2008, the NWT Housing Corporation will spend over $119 million on housing in the Northwest Territories. A total of $32 million will be spent to construct 168 dwellings in communities across the NWT. Included in this allocation are 71 public housing replacement units and 97 homeownership units to assist families to become successful homeowners. The new public housing units will allow us to improve housing conditions and replace older, single detached units with modern, multi-configured energy-efficient housing. Our new homeownership programs will allow prospective homeownership clients, who have previously been unable to secure mortgage financing, to realize the benefits of homeownership.

Implementation of the affordable housing initiative is also assisted through partnerships, both with the Department of Municipal and Communities Affairs on land requirements and with communities themselves to ensure that their housing and land development needs are met.

The Housing Corporation plans to invest $6.822 million in modernizing and upgrading our rental stock through our local housing organizations. We have also set aside $4.226 million to fund homeownership assistance and residential enhancements to address deficiencies in the homeownership stock throughout the Northwest Territories. The new renovation program has broadened access and expanded eligibility criteria that will allow us to increase the number of residents we can support.

In addition, we have also developed a client counselling curriculum consisting of courses designed to prepare participants for the requirements of homeownership through education and counselling.

The corporation will also contribute $61.584 million to our community partners in support of our 3,100 unit rental housing portfolio including subsidized and market housing operations. The remaining $14.479 million supports our corporate operations which represents 12.1 percent of the NWT Housing Corporation's total budget.

The Housing Corporation's mandate has been redefined in the past year to better reflect the needs and expectations of our residents. The views expressed by stakeholders during the consultation have shaped not only our mandate, but the strategic initiatives and program implementation being undertaken by the Housing Corporation.

The Housing Corporation remains committed to reducing core need throughout the Northwest Territories. The

investments to be made during 2007-08 will contribute greatly to reducing core need in communities through a combination of public housing replacement, new homeownership and modernization and improvement projects.

As we begin to see the impact of declining federal O and M funding for public housing, it is critical that we continue to make improvements to our stock if it is to serve us in the future, as well as to take steps to secure revenue from our existing portfolio.

Madam Chair, that concludes my opening comments. At this time, I would be pleased to answer any questions the committee may have. Thank you.

Thank you, Premier Handley. At this time, I will ask chair of the Standing Committee on Social Programs if she would like to provide the committee's response to the budget of the NWT Housing Corporation. Ms. Lee.

NWT Housing Corporation

Introduction

Thank you, Madam Chair. Members of the Standing Committee on Social Programs, as members of the Accountability and Oversight Committee, were involved in the new pre-budget consultation process with the people of the Northwest Territories in late August of 2006. Hearings were held north and south of the lake, and gave ordinary northerners and non-governmental organizations the opportunity to provide input to MLAs on the priorities that the budget should focus on.

The committee met with the Minister and his officials on Wednesday, September 25, 2006, to review the draft business plan of the Northwest Territories Housing Corporation.

Members considered the draft main estimates, including the changes to the budget of the NWT Housing Corporation since the committee reviewed the business plan in September, on January 16, 2007.

The committee noted the total operating budget for the Northwest Territories Housing Corporation for 2007-2008 is planned at $119.270 million. Of this total amount, the corporation proposes $68.060 million in revenues or non-cash items, and a GNWT contribution of $51.210 million.

The following outlines committee members' issues from their review of the 2007-2008 budget-planning cycle.

Pre-Budget Consultations

Housing and lack of available land in the communities were once again major issues brought forward by residents during the pre-budget consultation process.

Members of the Accountability and Oversight committee heard that the lack of available and affordable rental units in communities like Fort Liard are impacting on the ability of the Dehcho Education Authority to hire and retain qualified teachers.

The committee heard many complaints about the way in which the NWT Housing Corporation delivers housing programs in the communities and how contractors are not always living up to their obligations. Members were told of examples where contractors had moved on to the next Housing Corporation contract without doing the final finishing work on the previous contract. Homeowners are finding it next to impossible to get some contractors to finish the work on their houses.

The Social Programs committee has discussed the issue of contractors not fulfilling the terms of contracts with the Minister and has received assurances that with the hiring of new technical officers in the regions and an improved inspection process, the issue of contractors not finishing should be resolved. However, contractors that abuse the process should note that if they continue to not fulfill the terms of contracts with the NWT Housing Corporation, they run the risk of being not allowed to bid on subsequent contracts.

Seniors also raised many issues during the pre-budget consultation process. The biggest concern is the gaps in services between seniors who choose to stay in their own homes and those seniors who are in Housing Corporation units.

Seniors living in Housing Corporation units do not pay any rent or major utility costs, and have all maintenance issues handled by their local housing authorities, whereas those seniors living in their own homes are responsible for the cost of utilities and paying for the upkeep of their homes.

Leaving aside the heating and power subsidies and homecare, there is a shortage of government programs that encourage seniors to stay in their own homes.

On a positive note, the Housing Corporation, as part of its program consolidation, has changed the eligibility requirements and income thresholds to access their repair programs. For example, there were many seniors that were not eligible for the previous Repair Program because they had already accessed funding through the Housing Corporation. Under the new Repair Program, the fact that you have accessed funding in the past is no longer a factor, and eligibility is determined by income and the nature of the problem.

This should make it easier for lower-income seniors living in their own homes to access funding for repairs, especially those residents who were among the first homeownership clients of the Housing Corporation and are now seniors.

Members also heard from seniors living in public housing who are more than willing to pay rent based on their income. There are cases of northerners retiring and liquidating significant assets, like their homes and businesses, so that they can move into public housing. This does not meet the intent of public housing, which is to help those who cannot meet the obligations financially or physically of running their own homes. It is anticipated that this will be dealt with through the Income Security Program review currently under way under the leadership of the Department of Education, Culture and Employment.

The committee plans to continue monitoring the issues that were raised during the pre-budget consultations and will be incorporating them into a transition report for the Members of the next Assembly, to make them aware of the situation and the steps taken by the Housing Corporation and the Department of Education, Culture and Employment to alleviate the problems. Madam Chair,

at this time I would like the Member for Great Slave to continue with the report.

Thank you, Ms. Lee. Mr. Braden.

New Mandate And Structure For The Delivery Of Housing In The NWT

Thank you, Madam Chair. Much of the discussion at the committee level over the budget planning cycle has focused on the new mandate and structure for the NWT Housing Corporation.

Madam Chair, there was a breakdown in the committee consultation process that has been addressed and remedied. Members of the committee were provided the opportunity to comment on the program redesign and were pleased that a number of their suggestions were incorporated into the final product that was announced at the start of this session.

Federal Funding For Social Housing And Non-Market Communities

The issue of declining funding from the Canada Mortgage and Housing Corporation, the CMHC, to maintain existing public housing stocks remains a concern of the committee. In 2006-2007, the first year that there was a significant drop in CMHC funding, we lost $328,000. The decreases will vary from year to year, but the end result is the total lapse of CMHC funding by the year 2037-2038. Again, the Minister is encouraged to work with his provincial and territorial counterparts to lobby the federal government to reinstate funding for the building and delivery of social housing.

The effect of the declining CMHC funding is exacerbated by the reluctance of the current federal government to live up to the terms of the Kelowna Accord, which would have provided significant funding to meet the housing needs of aboriginals.

Again, the Minister, as the Minister responsible for the Housing Corporation and as the Premier, is encouraged to work with his provincial and territorial counterparts and aboriginal governments to see this agreement fulfilled. Madam Chair, to continue the report, I will turn it over to my colleague, the Member for Inuvik Twin Lakes.

Thank you, Mr. Braden. Mr. McLeod.

Land Issues

Thank you, Madam Chair. It is noted that since the review of the last main estimates, the Housing Corporation has been resourced to increase the number of employees involved in the development and acquisition of land to build housing units at both the headquarters and regional level.

It is hoped that these new positions and the importance that the Housing Corporation is placing on acquiring the necessary lands to deliver their programming will result in more building lots in the communities.

However, it must be made clear to aboriginal and local governments that they have a role to play and must cooperate in the development of lots in their communities. The committee understands that under the northern housing strategy, if lots cannot be developed in a community for whatever reason, the corporation will have no choice but to move new housing to communities that do have available lots.

This issue will be mentioned in the transition report to the next Assembly so that progress can be measured.

Mortgage Arrears

Since 1995, the figures on mortgages in arrears have gone from 40 clients owing $106,164 to 463 clients owing $6,853,539. This is a disturbing trend that shows no sign of abating. If we do not take immediate action, it will become unmanageable in a few short years.

The committee has been briefed on the steps that the corporation is planning to take in dealing with clients that are in mortgage arrears and has given its support. The focus of the plan is to work with each client to develop a repayment plan. In those cases where a person is unable to work out a repayment plan, they will be asked to sign the asset over to the Housing Corporation and begin paying rent. As long as a person is willing to follow one of the defined processes, and meet the criteria to live in public housing, no one will be put out in the cold. It should be made clear, however, that just as a person can be evicted from social housing for not meeting the terms of their rental agreement, so can a person be forced out of their home if they are not meeting the terms of their mortgage agreement.

One of the goals of the 15th Assembly is the development of self-reliant people. Homeownership is an important part of self-reliance. By not taking remedial action with those who are behind in their mortgages, we are encouraging dependence and, worse, we are putting these people further and further into debt. The lack of action is also unfair to NWT residents who either have a mortgage in good standing with the Housing Corporation or who paid the taxes that allowed the corporation to lend money for mortgages in the first place.

This issue will also be outlined in the transition report to the next Assembly. The committee will be strongly recommending that the 16th Assembly support the NWT Housing Corporation's plan to address mortgage arrears. At this time, Madam Chair, I am going to turn it over to my colleague for Sahtu, Mr. Norman Yakeleya.

Thank you, Mr. McLeod. With that entrance, Mr. Yakeleya.

Program Redesign