Debates of May 31, 2004 (day 16)

Thank you, Mr. Speaker. I am going to remain consistent with my Member’s statement. I am going to ask the Minister responsible for the NWT Housing Corporation if the NWT Housing Corporation is still actively involved in the development of a mortgage investment corporation as part of Cabinet’s overall strategy for the 15th Assembly? Thank you, Mr. Speaker.

Minister responsible for the Housing Corporation, Mr. McLeod.

Return To Question 179-15(3): Mortgage Investment Corporation

Thank you, Mr. Speaker. Mr. Speaker, our current programs are already providing the mortgage and lending requirements for the people of the North, and we are quite satisfied our programs are working. We are not looking at setting up an arm's length organization at this time. Thank you.

Supplementary, Mr. Allen.

Supplementary To Question 179-15(3): Mortgage Investment Corporation

Thank you, Mr. Speaker. Then would the Minister kindly advise this House if $18.3 million in new program monies will be made available to the developers and other people in pursuit of housing? Thank you.

Minister responsible for the Housing Corporation, Mr. McLeod.

Further Return To Question 179-15(3): Mortgage Investment Corporation

Thank you, Mr. Speaker. Mr. Speaker, the Housing Corporation currently provides lending and corporate assistance through an allowance under the NWT Housing Corporation Act. We provide personal loan guarantees, corporate loan guarantees, and in some cases construction of bridge financing. Our lending ceiling on that pot is at $30 million. Thank you, Mr. Speaker.

Supplementary, Mr. Allen.

Supplementary To Question 179-15(3): Mortgage Investment Corporation

Thank you, Mr. Speaker. Recognizing then if there is that level of expenditure by this government on new housing developments, can I ask the Minister why is it that affordable rental housing program monies was reprofiled to the independent housing program? Thank you.

Minister responsible for the Housing Corporation, Mr. McLeod.

Further Return To Question 179-15(3): Mortgage Investment Corporation

Thank you, Mr. Speaker. Mr. Speaker, our affordable housing program receives $7.5 million, 1.1 percent of the government’s budget of $320 million, which was announced some time ago. This program was started in 2002-2003, and our investment under this program is geared towards the independent housing program, or the IHP, and also our public housing units. Thank you, Mr. Speaker.

Final supplementary, Mr. Allen.

Supplementary To Question 179-15(3): Mortgage Investment Corporation

Thank you, Mr. Speaker. There are certain legal instruments that are required under the covenants of any agreement. I won’t go into any detail, but I just want to ask the Minister if he feels that a MIC is more applicable to the economic reforms than a social policy reform? So if he can make comment to that. Thank you, Mr. Speaker.

Minister responsible for the Housing Corporation, Mr. McLeod.

Further Return To Question 179-15(3): Mortgage Investment Corporation

Thank you, Mr. Speaker. I have not had the opportunity to do an evaluation on a MIC or the housing programs and compare which is more applicable. Right now we have programs that are geared towards social housing, we have programs that are geared towards home ownership, we have programs that are geared towards lending and providing mortgages. All these programs are very important. We are not putting any priority on any one given area. So I believe we will continue to provide those programs, and then make them available to all the residents in the NWT. Thank you.