Thank you, Mr. Speaker. Mr. Speaker, on May 25, during our oral questions, I asked the Minster of Lands about lease increases and consultation with the communities, and he said: "I think the proper consultation was done, and the changes that we have made are reasonable." I find this very interesting, to say the least. After devolution, Lands actually increased rates from $100 to $150, which was a 50 per cent increase, but now the Minister and the department has raised leases up by 336 per cent to 560 per cent. So, Mr. Speaker, can the Minister explain how he feels this is reasonable, to see lease payments go up this high? Thank you, Mr. Speaker.
Masi. Minister of Lands.
Thank you, Mr. Speaker. As I had mentioned previously, these rates have not been changed for many years, and we wanted to have consistency with our leasing rates, so therefore these changes which the Member opposite is alluding to were felt to be reasonable. Costs have increased considerably over the last 15 or 20 years, and we thought that these increases, which are significant, are reasonable. Thank you.
I thank the Minister for that answer. I guess his definition of "reasonable" is not what my definition of "reasonable" is, so maybe we will have to get his dictionary and I will compare it with my dictionary. Can the Minister please explain how this huge increase is helping residents in my riding deal with the high cost of living when some find it very difficult to pay the lease payments as they are presently?
As mentioned previously, there had not been an increase in a considerable amount of time. Listening carefully to the concerns that had been raised in this House, we did implement a reduction of residential lease fees to 5 per cent of assessed value, down from 10 per cent, so we felt that that was assisting those residents, most of whom would be living in their own houses on those properties, so that was an actual reduction in fees.
I will probably have to follow up on what he was saying in his answer there. So, Mr. Speaker, when I compare both Commissioner's and NWT leases and the department trying to bring these two leases together, will the department be looking at a 50 per cent reduction for seniors and elders in regard to NWT land, similar to what they do with Commissioner's lands?
There is, of course, no seniors' discount currently on territorial lands, but the department is looking at implementing similar provisions for residential leases on territorial lands as is currently available on Commissioner's lands. So it's a question of, really, bringing together the two types of leases, and they should be similar, at least, so we certainly are looking at the change which the Member opposite has proposed. Certainly, there have been increases, but, as I mentioned, there was a reduction in residential lease fees on Commissioner's land from 10 per cent to 5 per cent of assessed value.
Masi. Oral questions. Member for Nahendeh.
Thank you, Mr. Speaker, and I thank the Minister for his answer. I understand we reduced Commissioner's land from 10 per cent to 5 per cent. Great, but the seniors still get a 50 per cent reduction in that, so I am hoping the department will actually look at that and start implementing it, as they are doing it right now for Commissioner's lands, for NWT lands. My next question, though, is in regard to the engagement. How did the department engage these people, the 170 lessees in the Nahendeh riding? How were they consulted about this change of fees?
As I mentioned previously, there had been, in questions asked by the Member opposite last week, considerable discussion about this issue and including, I believe, a story in the press. Each leaseholder was advised in writing by the department of the changes to lease fees, so they were advised on an individual basis. Now, the fees will be determined by the nature of your lease, so, if there is a lease for a period ending, let's say, in the year 2020 at the current rate before April 1st, that will still be in effect until the year 2020, so the increase in rates will not occur until that time.
Now, last week, in dealing with this question and dealing with questions from the Member opposite, I referred to a pre-gazetting period that had taken place and a period of consultation. I may have misunderstood the note I received from Lands on that. It appears that the pre-gazetting period and the items filed in the pre-gazette or noted in the gazette in the pre-gazette period did not refer to the increase in lease fees, but rather other fees. I am looking into this further and certainly will deal directly with the Member opposite if he has any questions concerning that. So, again, there has been considerable discussion in the House. There have been discussions in the press. Again, individual leaseholders were advised in writing by the department of the changes to lease fees. Thank you.
Masi. Oral questions. Member for Kam Lake.
