Debates of June 6, 2006 (day 6)

Thank you, Mr. Speaker. Mr. Speaker, my questions today are for the Minister of Housing Corporation. It’s in regards to the number of questions that I have been raising about Novel housing. Mr. Speaker, I know that the questions and the statements I’m making on this issue are working to improve this project if anything, and anything I can do to improve this project, if this is going to happen, I’d be prepared to take full credit when this is done. So I’m going to continue to ask these questions also, because I’m motivated by lots of calls and e-mails I’m receiving from communities who are concerned about this project as well.

Mr. Speaker, the last time we spoke on last Friday, when the Minister was answering questions on this, he suggested that this project will give him and the government a 40 percent advantage. But the problem with this math is, Mr. Speaker, that the Minister refuses to compare this Novel housing project in a equal footing. He has to start comparing apples to apples, not apples with oranges. So the only reasonable comparison to make is a comparison between new mobile homes with Novel housing, which is used, converted and almost new product. So where is the advantage? How could he come up with 40 percent, because that’s a comparison with the new stick-built housing? So where do you start making comparison in a fair way? Thank you, Mr. Speaker.

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

Return To Question 68-15(5): Comparative Analysis Of The Novel Housing Project

Thank you, Mr. Speaker. Mr. Speaker, if we are able to put someone into a homeownership package for $130,000 and someone is buying a home here in Yellowknife for $330,000, I think that alone should tell the people then what they’re paying here in Yellowknife. Thank you.

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

Supplementary To Question 68-15(5): Comparative Analysis Of The Novel Housing Project

Thank you, Mr. Speaker. Mr. Speaker, I would certainly expect that when he has created an ADM position -- and I know he’s got people working a lot on this project -- then I would expect better comparison and better analysis and better numbers than going by anecdotal evidence. Mr. Speaker, what evidence, what has he done to compare the advantage and I want to be shown the advantage? I’m prepared to support this as long as there’s an advantage that he says there is. So I would like to know is he prepared. When would he do a comparison between this Novel housing with what’s in the market in a comparable way with another manufacturing home setting? Thank you.

Thank you, Ms. Lee. Mr. Krutko.

Further Return To Question 68-15(5): Comparative Analysis Of The Novel Housing Project

Mr. Speaker, I’ve gone to committee time and time again, which the Member is a chair of, which basically made presentations which show them the difference between what it costed for stick built, which is roughly about $195 a square foot compared to about $100 a square foot for Novel, which is 1,400 square foot home in regards to what it’s costing with stick built. We’ve given that presentation to committee and basically have updated committee every time there’s been a change, basically new information being provided. Mr. Speaker, at the end of the day this is a project that’s moving forward with the endorsement of CMHC, which is a federal agency for housing in Canada, and also FMBS is basically the responsibility for financial accounting of this government who, again, are proceeding on the basis that the information that we provide to committee is as up to date and as current as possible. So if the Member is missing something, I think that at the end of the day, this project, we will continue on on the basis of negotiating the best deal that we can and also knowing at the end of the day there is a project for this to happen. Without a pipeline, without federal dollars and also with our assurance that this is not economically viable, it will not proceed. Thank you.

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

Supplementary To Question 68-15(5): Comparative Analysis Of The Novel Housing Project

Thank you, Mr. Speaker. I’d like to thank the Minister for that non-answer and if he wishes, I’d be happy to make all the information that we’re getting, we have been getting in the committee for public consumption, because, as far as I’m concerned, there’s nothing in there that is anything other than a big song and dance on behalf of the project. The Housing Corporation is so enamoured with this project they are failing to do the due diligence on a project as big as $200 million.

Hear! Hear!

It’s scandalous for any government to go with a project that big and not do any analysis. So I ask the Minister again, why would he not do an independent analysis, hire somebody and do a real comparison? Because if he wants help, I can tell you, Mr. Speaker, that the best number he has shown us in committee is that Novel housing will cost about $117 per square foot and I think he owes it to the people of the Territories and the potential owners of these homes that he asked industry what could they come up with, something close to that number with mobile homes. I’m not talking stick built, we’re not talking stick built anymore and I accept that, but for new and things that don’t need to be converted and transported and all that, why would he not ask industry how better they can do?

Thank you, Ms. Lee. Mr. Krutko.

Further Return To Question 68-15(5): Comparative Analysis Of The Novel Housing Project

Thank you, Mr. Speaker. Mr. Speaker, the thing I am afraid of is unless we find a new mechanism to deliver housing in the Northwest Territories over the next 10 years, we will always have a housing crisis that basically people in our communities will be crying for more housing. I think it’s responsible for ourselves as government to ensure that we are finding new ways and new arrangements of putting houses on the ground in the future and this is one of them. I think that CMHC and ourselves as a Government of the Northwest Territories are looking at alternatives. This is not unique only to the Northwest Territories. There’s groups in northern Quebec, Manitoba, aboriginal communities are looking at this initiative to improve housing in aboriginal communities. So, Mr. Speaker, if that’s not good enough for the Member, I don’t know what will be good enough for that Member.

Thank you, Mr. Krutko. Your final supplementary, Ms. Lee.

Supplementary To Question 68-15(5): Comparative Analysis Of The Novel Housing Project

Thank you, Mr. Speaker. The things that I’m afraid of is that we’re the guinea pig in the front line of this massive project that would only, as far as I could see it, benefit the company. They’re doing a fine job, but the Minister has other obligations and that I don’t want to see $200 million desperately needed housing money going down the drain because this Minister and this government refuses to do the necessary due diligence. So I’d like to ask the Minister, Mr. Speaker, and I’d like to know if he’s so confident about this project and if he’s so committed to the needs of people who need social housing, why would he not get somebody to look at this project and see how they compare to other comparable products?

Thank you for your question, Ms. Lee. Mr. Krutko.

Further Return To Question 68-15(5): Comparative Analysis Of The Novel Housing Project

Thank you, Mr. Speaker. Mr. Speaker, we are basically working to ensure that we are putting housing on the ground with the dollars we can afford. I think the Member is basically not really revealing the facts. We are not paying any company $200 million. The $200 million investment that the federal government and ourselves is going to make is get these units after the pipeline is concluded, move them into the communities where there’s a cost associated with that, have the individual communities do the conversion and the dollars will remain in the Northwest Territories for those communities and our northern economy; $150 million will be there. We’re not buying these off of any company. We’re basically negotiating with the pipeline company to ensure us that we have access to these units once the pipeline is concluded at no cost. Thank you.