Mahsi, Mr. Speaker. [English translation not provided.]
Mr. Speaker, today I would like to talk about the public housing rent scale. Mr. Speaker, the current rent scale used by the NWT Housing Corporation in the administration of public housing does not work for the tenants in smaller communities. Mr. Speaker, as I’ve said many times in the past, communities in Tu Nedhe have employment rates well below 40 percent and nothing should serve as a deterrent to work. As it stands now, the rent scale is a major deterrent for people who wish to work.
Mr. Speaker, if a person in public housing gets a job, up to 30 percent of their gross income can be charged as rent. Therefore, a working person sees very little benefit from the work. Income tax takes 25 percent and in some cases child care expenses could be as much as $50 a day, but even at $30 a day it would cost the working person $300 biweekly. Mr. Speaker, depending on the nature of the job, there could be employment related costs such as specialized clothing.
Mr. Speaker, the NWT Housing Corporation must establish a maximum rent in small, non-market communities that have employment rates with percentages in the thirties and forties. Mr. Speaker, the NWT Housing Corporation can establish maximum rents in Lutselk'e and Fort Resolution of around $600 or $700 and this will ensure that people remain at work. Mr. Speaker, if the rent maxes out at $600 or $700 instead of $1,800, more people will remain at work and pay $600 or $700; versus being charged $1,800, they quit their jobs and go back to paying $32 a month and drawing income support.
Mr. Speaker, if this works for 10 percent of the public housing tenants, it will bring about $1.5 million into the administration of the public housing and it will save around $2.5 million in income support payments. Mr. Speaker, if the Housing Corporation puts this policy in place, it will improve the government’s overall fiscal position by about $4 million per year.
Mr. Speaker, this type of policy change is needed to accommodate any sort of policy designed to increase employment in smaller communities.
Mr. Speaker, I seek unanimous consent to conclude my statement.
---Unanimous consent granted
Without this policy, people in public housing cannot afford to work. Mr. Speaker, I will have questions for the Minister of Housing today. Thank you.
Thank you, Mr. Beaulieu. The honourable Member for Mackenzie Delta, Mr. Krutko.
