Thank you, Mr. Speaker. In regard to my Member’s statement, I touched on the area of maximum unit rents that are charged across the Northwest Territories. It’s a similar issue we addressed in regard to our power rates in the Northwest Territories, in which our rates are different in every community and we have some 28 different power rates in the Northwest Territories and we’re now trying to remedy that situation and looking at three rate zones. I think that’s something that we should also consider when it comes to rental rates in our communities, especially if we could look at regional rates for the different regions from the Beaufort-Delta to the Sahtu to the North Slave, South Slave. I think we have to realize that there is definitely...(inaudible)...especially when individuals that we’re really talking about are the people paying the maximum rent, are the professions that usually come to our communities, need to be accommodated through social housing, and those are the people that definitely can see the difference.
I used the illustration of Fort McPherson and Tsiigehtchic, which is only half an hour apart, but in regard to the maximum rate in Tsiigehtchic, where basically they’re paying $3,700 and in Fort McPherson where it’s $2,500. So there’s a $1,200 difference in the maximum rate just between those two communities which are half an hour apart.
I’d like to ask the Minister is that something that his department can seriously consider in the line of the deferential differences when we talk about bringing down the cost of living in our communities, but more importantly, accommodating those people in our communities who are paying the highest rent and, more importantly, accommodating the region as a whole. Thank you.
Thank you, Mr. Krutko. The honourable Minister responsible for the Northwest Territories Housing Corporation, Mr. Robert McLeod.
Thank you, Mr. Speaker. With some of the rates that are charged in the communities, obviously, a community that has more units has more units to spread out the cost of operating in that community and the smaller communities with less units, they have less units to spread out the costs. That’s why a lot of the costs are higher in those communities. However, at the NWT Housing Corporation we are considering looking at the idea of regional rents to spread it out throughout the regions. It is something that we are looking at. Thank you.
Mr. Speaker, I’d like to thank the Minister for that, because I think that is how we’re going to have to approach it. We have to do it region by region and try to look at the number of units in the different regions and look at an overall recovery cost across the board.
Like I say, we have some 2,200 units throughout the Northwest Territories and if we can break that down by region and try to have a rate that’s accommodating, I think, at the end of the goal, I’d like to ask, working forward, that we do have a territorial rate at some point going forward. I’d like to ask the Minister if that’s something that we can look forward to. Start off with the regional rates and eventually the goal is to have a territorial rate. Thank you.
Mr. Speaker, obviously, we’d have to look at the regional rates first and see how they work out. There will be, in some areas, where the rents in some of the communities will be higher to balance off the rental rate. I would suggest we look at the regional model first and see how that works and if there’s an appetite further down the road to look at a territorial-wide model, then that may be something for Housing in the future to consider. Thank you.
Mr. Speaker, again, I think that we also have to look at how we distribute the overall O and M dollars that are distributed to the different local authorities, but more importantly, look at the revenues that we do receive by way of the federal CMHC funding. Again, that’s another area that we have to look at. If we’re going to do this, we also have to look at the allocation of funds to the different LHOs so they are able to operate, but more importantly, look at the overall maintenance costs, the savings that we could basically consolidate…
Do you have a question, Mr. Krutko?
Mr. Speaker, I’d like to ask the Minister, can he also look at the overall operational costs that are being provided to the different LHOs and, if possible, bring them in line so that we are able to get a better return on our investment by those dollars? Thank you.
Mr. Speaker, it is part of our plan to look at the overall delivery of housing across the Northwest Territories and see how we could improve our product, see how we can best support our LHOs with the declining funding. They are facing some challenges in their communities. Also with the rental arrears, that’s also another challenge that they are facing. It is something that looking at the overall picture and doing an overall review are issues that we have to look at. Thank you.
Thank you, Mr. McLeod. Final, short supplementary, Mr. Krutko.
Thank you, Mr. Speaker. Again, I believe we do have to look at this territorial issue. We do have the highest rate, which is Paulatuk, which is $4,600 for a five-bedroom unit, and the lowest rate is Fort Smith at $1,600 for a five-bedroom unit. I believe we do have to look at this as a territorial issue, similar to the approach we are taking with power rates. Thank you.
Thank you, Mr. Krutko. I don’t know if I heard a question there, but I will allow the Minister to respond. Mr. McLeod.
Thank you, Mr. Speaker. I did commit that we will, first of all, look at the overall regionalization of rent and further on down the road, if we feel the need arises, then we will look at a territorial-wide system. Thank you.
Thank you, Mr. McLeod. The honourable Member for Weledeh, Mr. Bromley.
