Thank you, Mr. Speaker. Mr. Speaker, in our last sitting, the Minister of Housing said that there was a 30-per-cent cost savings from modular versus stick-built. Mr. Speaker, can the Minister please provide the House of a breakdown of how this calculation was derived? Thank you.
Minister of NWT Housing Corporation.
Thank you, Mr. Speaker. The average percentage was based on the stick-built price the Housing Corporation received as part of the public tender process, compared against the design build process, received for module homes that were awarded. The NWT Housing Corporation is not permitted, under the tendering and contracting rules to provide specific detailed information on each proposal, but we can say, that on average, the prices received for stick-built, was more than 30 per cent higher than the module prices. In some case, the per cent was actually much higher. Thank you, Mr. Speaker.
I thank the Minister for her answer. Mr. Speaker, has the Minister worked with the Minister of Education, Culture and Employment to see if this decision has an impact on income security in the communities where modular units are being built or being brought in, instead of the stick-built process.
I can’t specifically talk about programs that are offered by the Minister of Education, Culture and Employment, but I can say as participants in the capital planning process with other government departments, the government considers distribution of projects so that we don’t overtax individual communities with excess projects in one year. The NWT Housing Corporation relies on the BIP, Business Incentive Policy, when contracting projects and this process includes adjustments for local involvement. The Business Incentive Policy evaluation process was designed to support local contractors in bidding on projects. As well, all of the social envelope deputy ministers are working together to breakdown program and policy barriers that may impact our residents of the NWT. Another partnership I’d like to mention is the apprenticeship program that the Housing Corporation is involved with. It’s one example where we’re trying to train our local residents so that they can succeed in the trades and we can get more proponents within the communities. Currently, we have up to 15 apprentices annually.
I thank the Minister for her answer. It seems like there’s some work there. I would hope that the two departments, Education, Culture and Employment and Housing would start working together to see what the impact of modular homes are versus stick-built because of the income support issues. Mr. Speaker, in the last sitting, the Minister answered a question from Mr. Blake, the quote from the Minister of Housing Corp, “though in all honesty are still using our community members to do the repairs, so you’re not forgetting about them.” Mr. Speaker, can the Minister please clarify what she meant? Does she mean the repairs on these modular homes or the stick-built homes?
Repairs, renovations and minor capital projects need to be completed annually on both public housing and home ownership programs. The NWT Housing Corporation has a significant capital plan for 2016-17, $47 million, which includes repair and renovation budget of $18 million. $10.5 million is for repairs and renovations for NWT Housing Corp assets $6.5 million is for home ownership repairs and renovations. $1.1 million is for minor capital repairs. Renovation and repair work for the Housing Corporation assets and home ownership units has been consistent and predictable and represents a huge opportunity for local contractors. It provides economic opportunity for contractors that they can sustain their operations and employees year after year. In some communities, it’s been a challenge for our Housing Corporation to find contractors to do the repair work that we offer every year. Sometimes we put tenders out up to three times and not receive responses. New construction is really irregular and difficult for businesses and contractors to organize their businesses around. The repair and renovation is always there and is sustainable. Like I say, we’re really putting a focus into apprenticeships to build up the capacity in each community. Thank you, Mr. Speaker.
Masi. Oral questions. Member for Nahendeh.
Thank you, Mr. Speaker. Again, I thank the Minister for the well thought out and answered question. Mr. Speaker, can the Minister please advise this House if the department is looking at moving away from modular homes to a more community-based solution? Thank you, Mr. Speaker.
The NWT Housing Corporation is always open to cost-effective solutions to provide needed housing within our communities. Should opportunities within the communities arise, then we’re certainly open to exploring them. The community involvement is really important to the Housing Corporation and all contractors hired by the Housing Corporation are actually expected to maximize our northern and our local content whenever possible. The Housing Corporation also monitors the contractors to ensure that they meet all the agreed terms and conditions in the contract including their local and their northern context.
Masi. Oral questions. Member for Sahtu.
