Marci cho, Mr. Speaker. Mr. Speaker, today I made a Member's statement on the cost of land leases, rental. I would like to ask the Minister of Lands questions. Can the Minister explain why the lease costs or lease rates are so high? Thank you.
Masi. Minister of Lands.
Thank you, Mr. Speaker. The lease rates are determined by our land pricing policy, which is based on 10 per cent of the assessed value of the land. I understand this is consistent throughout the NWT and, in fact, is the practice across Canada. Thank you.
Can the Minister explain what's involved in determining that rate?
Yes. The rate is determined on the assessed value which is established by the Department of MACA.
Earlier I spoke of this being akin to a 10 per cent mill rate. So can the department look at ways to make the lease rates more in line with what are in other parts of the territory? By that, I mean, Mr. Speaker, we don't pay 10 per cent of the value of the property that we live on here in Yellowknife or in some of the larger centres, so I'm not understanding what the Minister means by applications similar across the territory. Can the Minister tell me how that could be brought more in line with other parts of the territory?
I think we're talking about two things here: taxes and lease rates. The lease rates, as I say, are based on 10 per cent of the assessed value of the land, and that is consistent throughout the Northwest Territories. They are different things, obviously, taxes and leases, as anybody who owns property knows, and 10 per cent of the assessed value of the land, I suggest, would be a reasonable rental or lease rate.
Masi. Oral questions. Member for Tu NedheWiilideh.
Mahsi, Mr. Speaker. Mr. Speaker, is Lands working with Aboriginal governments involved with the issue around the land titles moving forward with settlement of land rights and all of the other things that are involved in the negotiation? Currently, it appears as though, if you do not have a negotiation position, then it is just 10 per cent.
I guess I am kind of wondering if it is different for the areas where the land rights are settled. Can the Minister tell me how his department can work with the Aboriginal governments to look at this policy? Because it is a very unfair policy to have 10 per cent of the value of the land as an annual cost to either rent or lease the land. Thank you.
Mr. Speaker, it is conceded that tax and lease rates are controversial in that they can be different in different areas in the sense that, certainly with respect to taxation of properties outside settled boundaries of communities, that is often the subject or sometimes the subject of a treaty or settled land claim. As to progress with respect to those unsettled claims, perhaps that question could be best addressed to the Minister for DAAIR.
Masi. Oral questions. Member for Nahendeh.
