Debates of June 2, 2006 (day 4)

Thank you, Mr. Speaker. My questions this morning are for Mr. Krutko as the Minister responsible for the Housing Corporation and the arrangements of the negotiations for the Novel project.

Mr. Speaker, I share the optimism of this Assembly that this very innovative program can play a major part in helping us solve our very, very chronic housing situation. But like some of my colleagues, I have some considerable concerns about the business deal and the degree of risk and exposure that the GNWT is undertaking in this.

Mr. Speaker, it is quite apparent that the negotiation is very fluid and we still don’t know exactly what is on the table for us to decide on or make a commitment to. My question, Mr. Speaker, relates to exactly that, the confidence that we should have in the calibre and the quality of this deal. So I would like to know from the Minister, is he prepared to allow the proposal, once it's finalized, to undergo a vigorous independent review for all relevant aspects that can be released to the Members of this Assembly and to the public, Mr. Speaker.

Thank you, Mr. Braden. The honourable Minister responsible for the Housing Corporation, Mr. Krutko.

Return To Question 40-15(5): Value Of Convertible Workforce Housing Project

Thank you, Mr. Speaker. Mr. Speaker, it is an ongoing negotiating process and I think people are missing the boat here. The negotiations that are going on are between the Mackenzie Pipeline Group and the people who are going to provide the product for workforce housing. It will go through a tendering process. What we are suggesting is that they consider the ability to convert these workforce camps into housing at the end of the day. Right now, the only company in Canada that has a patent on that idea is ATCO. So we are asking the pipeline company or the Mackenzie Pipeline Group to consider this as an option when they put out a bid for this product. Right now, we don’t know who is going to win that bid. It hasn’t gone out yet. When we know exactly where the federal commitment will come in, by way of their $75 million, without that, we will not succeed.

We are in a negotiation process. There are ongoing discussions between the component, which is Imperial Oil, the Mackenzie Pipeline Group and ATCO Structures to look at possibly providing this product for the construction of a pipeline. Again, Mr. Speaker, it is an ongoing process. We have been keeping Members informed through the presentation we gave yesterday to the Social Programs committee and we will continue to do that. As things change, we will keep Members informed. Thank you.

Thank you, Mr. Krutko. Supplementary, Mr. Braden.

Supplementary To Question 40-15(5): Value Of Convertible Workforce Housing Project

Okay. Thank you. The Minister did a great job of confirming everything that I said in my introduction here, but the question was once we get to the point, as the GNWT…The Minister is going to be bringing a request for an allocation to us for a commitment for tens, and potentially for the long run, hundreds of millions of dollars. I am going to want to know that that is a solid deal and I am going to want independent analysis. Will the Minister enable that to happen before he comes to this Assembly to seek authorization for those commitments; an independent analysis, Mr. Speaker?

Thank you, Mr. Braden. Mr. Krutko.

Further Return To Question 40-15(5): Value Of Convertible Workforce Housing Project

Thank you, Mr. Speaker. Mr. Speaker, right now, with regard to the process, we do have FMBS, which is responsible for the financial…(inaudible)...from this government ensuring that any expenditures made by this government are aboveboard and within cost. CMHC, which is a federal agency, is also involved in this and they also want to ensure that accountability is there and that it is within the investment that they make and the cost they provide. So we are already doing that through the reviews and also the committees that have been established to oversee the project, which includes CMHC, ourselves and FMBS on our team. It provides us that ability as we go forward. We are not going into this blindfolded. Every step of the way, we want to ensure at the end of the day if we make any investment, that that investment that we make is exactly the cost we can afford. The other thing is we want a product that will meet the needs of the people of the Northwest Territories. Thank you.

Thank you, Mr. Krutko. Supplementary, Mr. Braden.

Supplementary To Question 40-15(5): Value Of Convertible Workforce Housing Project

Thank you, Mr. Speaker. Mr. Speaker, another aspect that I will continue to seek satisfaction on before this project gets my approval is that through it we really take on some leadership and some vision in our housing agenda, Mr. Speaker, and use this to create a sustained housing industry for the Northwest Territories. Between this project and the Affordable Housing Strategy, we are talking $300 million, something in the neighbourhood of over 1,200 housing units created here. How is it that we have not yet seen how we can use this as a springboard for the creation of a true housing industry in the Northwest Territories, Mr. Speaker?

Thank you, Mr. Braden. Mr. Krutko.

Further Return To Question 40-15(5): Value Of Convertible Workforce Housing Project

Thank you, Mr. Speaker. Mr. Speaker, that is exactly what this is going to do by the way of Novel conversions in the Northwest Territories. We are going to invest $150 million of this $200 million investment in the Northwest Territories; $150 million. It’s going to generate 660 person hours of work in the Northwest Territories. We are going to have people trained and employed to do the work in those communities. We are looking at building capacity in communities by allowing those communities to have more infrastructure in their communities and, at the end of the day, promote healthy living and accommodate the housing shortages we have in the Northwest Territories. Again, over two-thirds of this investment is going to be expended in the Northwest Territories. I think that’s the part that is key to this proposal. Thank you, Mr. Speaker.

Thank you, Mr. Krutko. Final, short supplementary, Mr. Braden.

Supplementary To Question 40-15(5): Value Of Convertible Workforce Housing Project

Right. Thank you, Mr. Speaker. No, the Minister doesn’t see this from my perspective. We may end up with a lot of people trained in conversions and some aspects of how to look after and fix or convert a house. I am talking about something on the ground here, so that we are not exporting our manufacturing jobs to Calgary, that we are keeping them here in the Northwest Territories. That’s what I mean by an industry, Mr. Speaker. That’s what I am looking for. Will we use this as a springboard to create our own industry?

Thank you, Mr. Braden. Mr. Krutko.

Further Return To Question 40-15(5): Value Of Convertible Workforce Housing Project

Mr. Speaker, if anything, this is going to add to the existing investment that we are making for the 500 houses over the next three years going forward. It’s a perfect opportunity for the industries in the Northwest Territories, the manufacturing industry, the contracting business and also for the residents of the Northwest Territories to realize there are real job opportunities going forward with the investment and the efforts we are putting into housing in the Northwest Territories over the next 10 years. With regard to all these efforts we are putting forward, if anything, it’s going to better the lives of the people of the Northwest Territories and in our small communities. That is the group we are directing this to. So, Mr. Speaker, this is a perfect opportunity for those industries to form partnerships with communities with the different industries out there to make sure we take advantage of this $150 million investment.