This is page numbers 3347 – 3406 of the Hansard for the 18th Assembly, 3rd Session. The original version can be accessed on the Legislative Assembly's website or by contacting the Legislative Assembly Library. The word of the day was going.

Consideration in Committee of the Whole of Bills and Other Matters (Reversion)
Consideration in Committee of the Whole of Bills and Other Matters (Reversion)

Shane Thompson

Shane Thompson Nahendeh

Thank you to Mr. Hagen there. I appreciate the answer, and thank you, Mr. Chair. I could spend probably about another hour on equity leases, but I don't have an hour, so I am actually going to go on to my next concern: the lease payments. Right now, it is 10 per cent by the government, as Mr. Beaulieu talked about. He has one constituent who pays $4,000. I have residents who are paying large amounts of money based on this 10 per cent and after 10 years they have paid for this land, not only once, but usually, if you are looking at making a home in a community, after 10 years you would hope that you don't have to pay it over again. A lot of people spend 20 or 30 years there, so paying three times as much. In my reply to the budget, I asked the department to look at reducing it to 3 per cent. Three per cent seems to be realistic and fair to the residents. Can the Minister confirm that they are going to look at this amount of 10 per cent and what amount are they looking at if they were going to reduce that amount? Thank you, Mr. Chair.

Consideration in Committee of the Whole of Bills and Other Matters (Reversion)
Consideration in Committee of the Whole of Bills and Other Matters (Reversion)

The Chair

The Chair Frederick Blake Jr.

Thank you, Mr. Thompson. Minister Sebert.

Consideration in Committee of the Whole of Bills and Other Matters (Reversion)
Consideration in Committee of the Whole of Bills and Other Matters (Reversion)

Louis Sebert

Louis Sebert Thebacha

Thank you, Mr. Chair. Certainly, both inside this House and outside this House, I did hear loud and clear that people felt that the 10 per cent was too much. I agree with that. Therefore, the amount that we are looking at is half of that, which is 5 per cent of the assessed value. That is the value of the land. If there are improvements on it, that won't affect the lease for the land. Thank you.

Consideration in Committee of the Whole of Bills and Other Matters (Reversion)
Consideration in Committee of the Whole of Bills and Other Matters (Reversion)

February 22nd, 2018

The Chair

The Chair Frederick Blake Jr.

Thank you, Minister Sebert. Mr. Thompson.

Consideration in Committee of the Whole of Bills and Other Matters (Reversion)
Consideration in Committee of the Whole of Bills and Other Matters (Reversion)

Shane Thompson

Shane Thompson Nahendeh

Thank you, Mr. Chair. I thank the Minister for that answer. That is a positive step. Five per cent is a really good step. Has the department looked at the 3 per cent number and is the department willing to share that number with us? Thank you, Mr. Chair.

Consideration in Committee of the Whole of Bills and Other Matters (Reversion)
Consideration in Committee of the Whole of Bills and Other Matters (Reversion)

The Chair

The Chair Frederick Blake Jr.

Thank you, Mr. Thompson. Minister Sebert.

Consideration in Committee of the Whole of Bills and Other Matters (Reversion)
Consideration in Committee of the Whole of Bills and Other Matters (Reversion)

Louis Sebert

Louis Sebert Thebacha

I did think about other amounts myself and thought that clearly a reduction from the 10 per cent was warranted and felt that 5 per cent was reasonable. Thank you.

Consideration in Committee of the Whole of Bills and Other Matters (Reversion)
Consideration in Committee of the Whole of Bills and Other Matters (Reversion)

The Chair

The Chair Frederick Blake Jr.

Thank you, Minister Sebert. Mr. Thompson.

Consideration in Committee of the Whole of Bills and Other Matters (Reversion)
Consideration in Committee of the Whole of Bills and Other Matters (Reversion)

Shane Thompson

Shane Thompson Nahendeh

Thank you, Mr. Chair. He didn't answer my question. I understand what he thinks is reasonable. I am asking: did the department look at 3 per cent when they were coming up with the numbers? I heard 5, and I understand that is the number that the department looked at, but did the department look at 3 per cent, and if they did, do they have those numbers that they can share with us? Thank you, Mr. Chair.

Consideration in Committee of the Whole of Bills and Other Matters (Reversion)
Consideration in Committee of the Whole of Bills and Other Matters (Reversion)

The Chair

The Chair Frederick Blake Jr.

Thank you, Mr. Thompson. Minister Sebert.

Consideration in Committee of the Whole of Bills and Other Matters (Reversion)
Consideration in Committee of the Whole of Bills and Other Matters (Reversion)

Louis Sebert

Louis Sebert Thebacha

I felt, Mr. Chair, that cutting it in half was very reasonable. I don't know whether Mr. Hagen wants to add anything to that. I think it is important to remember that, overall, the department is not turning a profit on leases. We are administering an area double the size of most European countries. It is an expensive, complicated process. This isn't making money for us, as I understand it. I will let Mr. Hagen add to that if he wishes.

Consideration in Committee of the Whole of Bills and Other Matters (Reversion)
Consideration in Committee of the Whole of Bills and Other Matters (Reversion)

The Chair

The Chair Frederick Blake Jr.

Thank you, Minister Sebert. Mr. Hagen.

Consideration in Committee of the Whole of Bills and Other Matters (Reversion)
Consideration in Committee of the Whole of Bills and Other Matters (Reversion)

Hagen

Thank you, Mr. Chair. To answer your question, Mr. Thompson, on the instruction from the Minister we looked at 5 and we looked at 3. Five was the number that was given to us to reduce it, which is half. I had to agree with it. I am a big believer that after devolution we had 1.3 million kilometres of land transferred to us. It has a value. There are 40,000 plus people who see that as a lot of value. I think they expect us to be able to get some revenue from that asset. We believe that the value of the land shouldn't be lowered. Thank you, Mr. Chair.

Consideration in Committee of the Whole of Bills and Other Matters (Reversion)
Consideration in Committee of the Whole of Bills and Other Matters (Reversion)

The Chair

The Chair Frederick Blake Jr.

Thank you, Mr. Hagen. Next on the list we have Mr. Beaulieu.

Consideration in Committee of the Whole of Bills and Other Matters (Reversion)
Consideration in Committee of the Whole of Bills and Other Matters (Reversion)

Tom Beaulieu

Tom Beaulieu Tu Nedhe-Wiilideh

Thank you, Mr. Chairman. Mr. Chairman, along the same line, I would like to have seen 3 per cent as well, but I am satisfied with 5 per cent. My question is, although I don't want to go too far into the weeds, it is a question of what the possibility is for individuals who have incomes that are pension income, I forget what you call that type of income, but people who don't have a regular income where they are working and potential for them to have greater possibility of increasing their income. Fixed income. People with fixed incomes like pensioners and so on. Is it a possibility that they could pay for their leases on a monthly basis? Thank you.

Consideration in Committee of the Whole of Bills and Other Matters (Reversion)
Consideration in Committee of the Whole of Bills and Other Matters (Reversion)

The Chair

The Chair Frederick Blake Jr.

Thank you, Mr. Beaulieu. Minister Sebert.

Consideration in Committee of the Whole of Bills and Other Matters (Reversion)
Consideration in Committee of the Whole of Bills and Other Matters (Reversion)

Louis Sebert

Louis Sebert Thebacha

Thank you, Mr. Chair. Yes, of course, people could pay on a monthly basis. I see there is a note here that informs me that, under section 3 of the Income Assistance Policy Manual, applicants who reside on Commissioner's lands, the Department of Lands, or the NWTHC may qualify for monthly allowance to assist in the cost of the land lease. I wasn't aware of that. It appears there are avenues to assist people who find themselves in the position that you have mentioned. Thank you, Mr. Chair.

Consideration in Committee of the Whole of Bills and Other Matters (Reversion)
Consideration in Committee of the Whole of Bills and Other Matters (Reversion)

The Chair

The Chair Frederick Blake Jr.

Thank you, Minister Sebert. Mr. Beaulieu.

Consideration in Committee of the Whole of Bills and Other Matters (Reversion)
Consideration in Committee of the Whole of Bills and Other Matters (Reversion)

Tom Beaulieu

Tom Beaulieu Tu Nedhe-Wiilideh

Thank you, Mr. Chairman. Mr. Chairman, my second question is on the status of the particular lots. Previously, there were areas that were maybe earmarked for commercial development and the commercial development areas don't pan out, so they end up essentially being strictly residential lots. I would like to know if the department has a process in which individuals who find themselves on commercial lots, which appear to have a higher value. I am only saying appear because I am seeing one side of the road that is commercial with a residential property and one side that is a residential lot with a residential property, of course, being quite different in costs. I would like to ask the department if it is possible to switch land status, essentially, from one type to another type. Thank you, Mr. Chair.

Consideration in Committee of the Whole of Bills and Other Matters (Reversion)
Consideration in Committee of the Whole of Bills and Other Matters (Reversion)

The Chair

The Chair Frederick Blake Jr.

Thank you, Mr. Beaulieu. Minister Sebert.

Consideration in Committee of the Whole of Bills and Other Matters (Reversion)
Consideration in Committee of the Whole of Bills and Other Matters (Reversion)

Louis Sebert

Louis Sebert Thebacha

Yes, that certainly is a problem in some communities. We do recognize that. It seems to me that what is needed perhaps is a zoning change, so that could be dealt with through MACA, but I will let Mr. Hagen add to that if he wishes to assist.

Consideration in Committee of the Whole of Bills and Other Matters (Reversion)
Consideration in Committee of the Whole of Bills and Other Matters (Reversion)

The Chair

The Chair Frederick Blake Jr.

Thank you, Minister Sebert. Mr. Hagen.

Consideration in Committee of the Whole of Bills and Other Matters (Reversion)
Consideration in Committee of the Whole of Bills and Other Matters (Reversion)

Hagen

Thank you, Minister, and thank you, Mr. Chair. You are quite correct, Mr. Beaulieu. There are some lots in communities that we have discussed where it was a commercial property, and it didn't pan out, and they kept it just as residential. The lot is sometimes twice the size of a normal residential lot, so they are paying, a lot of times, twice the amount of lease payments. Any community has a bylaw to change it back to residential. It could be surveyed, going through MACA and ourselves, surveyed, and the lot could be split in half into residential lots dropping their payments probably by at least 50 per cent. The taxes would also go down dramatically. Thank you, Mr. Chair.

Consideration in Committee of the Whole of Bills and Other Matters (Reversion)
Consideration in Committee of the Whole of Bills and Other Matters (Reversion)

The Chair

The Chair Frederick Blake Jr.

Thank you, Mr. Hagen. Minister Sebert.

Consideration in Committee of the Whole of Bills and Other Matters (Reversion)
Consideration in Committee of the Whole of Bills and Other Matters (Reversion)

Louis Sebert

Louis Sebert Thebacha

I would just like to add that sometimes getting zoning changes, that type of request, it could be a little bit difficult, and I can't speak for MACA, but generally they don't like to do spot zoning. Maybe if there is a whole section of land involving several properties, that might be easier to have rezoned than a single property, which would then have a different zoning designation than the properties around it. That could be problematic.