Debates of March 17, 2004 (day 2)

Thank you, Mr. Speaker. Mr. Speaker, I have a question on the budget statement, and I must preface it by saying that I do understand that the Minister of Finance has worked diligently and very hard and it was not an easy thing. I think it is a modest, conservative budget that would hopefully get us on a good financial footing in the future. I realize we're going to have lots of questions in the debates, but there's something that I want to ask a question about. It's on page 14, and this happened to me twice already, Mr. Speaker. As all other Members, when the Minister of Finance is reading the budget, we pay attention to every word and you hear words that you really like. I will read it here. It says: “Mr. Speaker, there is a shortage of affordable housing for both government and industry workers in our communities. Opening up new subdivisions and providing services to new properties is very costly. To ensure enough lots are ready for developers…”

It's like music to your ears. It's like somebody is recognizing the high cost of developing lots. Knowing what's happening in Yellowknife and many other places, wow, the government is going to do something. Then you get totally crushed because the amount is only $300,000 and when you keep waiting and read on, you realize everything is for non-tax-based communities. So I would like to know from the Minister if he has given any thought to any possibility of any assistance going to some of those heated markets where the costs of developing lots are skyrocketing. Thank you.

---Applause

Minister of Finance, Mr. Roland.

Return To Question 14-15(3): Lot Development Assistance

Thank you, Mr. Speaker. Mr. Speaker, in the area that the Member has highlighted, this, of course, is an initiative that we're trying to address in non-market communities where it's very difficult right now and a lot of businesses and bankers are not keen to go in because of the high cost and the shortage of dollars and things from communities because of the way they're funded. So this program, through MACA, is doing that one little bit to try to help them in those communities. Members will have an opportunity to address the concerns through this budget process with Municipal and Community Affairs, but we feel that the market communities, tax-based communities, have the ability to develop and sell lots and recoup their costs right now. That avenue isn't available in smaller communities, although we are changing how communities can finance to go forward. So this is one of the initiatives we feel could be taken to try to help them along the process. Thank you.

Supplementary, Ms. Lee.

Supplementary To Question 14-15(3): Lot Development Assistance

Thank you, Mr. Speaker. I should add that a program similar to this, in probably the exact same kind of positive wording, was introduced in last year's budget, except that it was for about $1 million. In the discussions of that item, we found out there were a lot more details that had to be worked out so that money ended up not being spent, now it has been reduced to $300,000.

Anyway, Mr. Speaker, I think the people in industry will tell you that if the government is really strapped for cash, if you create more housing for cities like Yellowknife where there is a huge shortage, you'll have more people coming to the Territories and it will give you more money. Whereas right now we have people leaving. We have even our local, aboriginal people leaving the Territories because some houses are up to $500,000. So why wouldn’t the Cabinet follow the path that was followed by the last Assembly, and that addressed the high cost of lot development in tax-based communities?

Minister of Finance.

Further Return To Question 14-15(3): Lot Development Assistance

Thank you, Mr. Speaker. Mr. Speaker, there have been past initiatives that were tried by previous governments to enhance building in market communities that were being impacted by increased resource development. We find after a while, though, that those initiatives get adjusted to by the market and get incorporated. I speak specifically of past governments who instituted a program of giving $10,000 additional to potential purchasers so that they could afford their new homes. We found that any subsidy that we have like that soon gets swallowed up by the system and just drives up the prices in that area.

We feel that with the land development in non-tax-based communities, one of the things that is happening is because the smaller communities are on the outskirts of development, larger centres are being able to take advantage of that development where small communities aren't. It's still very expensive to develop any kind of a lot program. At one time in previous governments, there used to be programs for municipal governments to develop land areas in their communities. That was removed and tried to be incorporated into the system. It hasn't worked successfully. This is an avenue to try to bring some development into the smaller communities. Thank you.

Supplementary, Ms. Lee.

Supplementary To Question 14-15(3): Lot Development Assistance

Thank you, Mr. Speaker. Mr. Speaker, I think in reading this item it’s apparent that this is a very modest initiative. It is something that would be funding developers to do very technical things -- geotechnical investigations, legal and engineering surveys -- which I would argue is something that the government should be doing anyway. Why are we continuing to be discriminatory and treating non-tax-based communities and tax-based communities unfairly? I think this is the kind of thing the government should do anyway. It would reduce the cost for municipal governments who have to provide these lots. Would the Minister reconsider that? Thank you.

Minister of Finance.

Further Return To Question 14-15(3): Lot Development Assistance

Thank you, Mr. Speaker. As I stated earlier, in market communities where there’s competition for developers and construction trades, there is room for that competitive spirit. Developing of lots is up to the municipalities to see what they can make available. It is expensive for them, but they do have the tools and avenues that they are able to do that. Non-tax-based or the general taxation area -- it should be correctly terminated as general taxation areas -- there is not the flexibility and the revenue for them to look at the high cost of just developing for small housing projects, whether it’s two or three or four lots. This initiative, we feel, is moving in that area which will allow those communities to better house people who would come and work in their community or even long-time residents in their communities. Thank you.