Madam Speaker, can the Minister explain if there are any plans to change or delay the current minimum land lease rent costs for territorial land leaseholders? Thank you, Madam Speaker.
Thank you. Minister of Lands.
Thank you, Madam Speaker. Due to COVID-19, no lease fees are being charged for the 2020-2021 fiscal year. Public land in the NWT is one of our most valuable resources, an asset, and must be priced accordingly. I can confirm that any changes we've considered and analyzed as we undertake the necessary work in developing a new Public Land Act regulation. Thank you, Madam Speaker.
Can the Minister explain why his department decided to initiate the new minimum rent cost for land leaseholders all at once rather than a gradual approach as done with taxes?
In the 18th Assembly, departments were tasked to find revenue or cut costs. The department realized that lease fees had not been addressed over 20 years. They used a cost-of-living index calculation, as well. As well, they were trying to align both territorial and Commissioner's land. Fees for exclusive use of land were increased at the beginning, in April 2018, almost after 20 years for no increases. Lease rent minimums have been set at $840 for all types of leases. Lease rent changes are being implemented through a phased approach. Lease rents will increase at the current rate until a lease comes up for renewal, or a lease comes up for a five-year renewal, or upon issuance of a new lease. Lessees can arrange payment for the rent in installments by making appropriate arrangements with the Department of Finance.
The last time I asked the Minister about this topic, he mentioned the development of public land regulations on the way. Can the Minister explain how he intends for those regulations to ease the financial burden on people from the new rent minimum cost?
To ease the financial burden during COVID-19, a regulatory minute was put in place so that no lease fees are being charged for the 2020-2021 fiscal year. I've heard concerns for both increases, and I'm working with the department on a way forward. Reviewing the pricing for exclusive use of public land is a key piece of Public Land Act regulatory work. We will be engaging IGOs, municipalities, committee, and residents have that opportunity, as well.
Thank you, Minister. Final supplementary. Member for Thebacha.
Madam Speaker, will the Minister admit that this whole situation could have been handled better, and will he commit to improving the decision-making process for future decisions like this issue? Thank you, Madam Speaker.
I would like to thank the Member for that question. Simply put, yes. This was one of the reasons I asked for Department of Lands upon being elected as a Minister. I am happy to advise the House that we have identified a team who will focus on regulatory process. I have committed previously to this to engage Regular Members in the development of the public land regulations so that there will be opportunities for you to review and provide comments on any changes to public land pricing or administrative fees as part of the process. Again, I would like to thank the Member for her hard work in advocating for all residents of the Northwest Territories. Thank you, Madam Speaker.
Thank you, Minister. Oral questions. Member for Monfwi.
