Good morning.
I would like to thank the chair and committee members for the opportunity to speak on the subject of aboriginal housing.
Aboriginal people represent a very significant portion of the population. There are close to one million aboriginal Canadians including over 600,000 North American Indians, almost 300,000 Métis, and approximately 45,000 Inuit.
All Canadians need safe, decent, affordable housing, and it is well recognized that for aboriginal Canadians, this is all too often not the situation. The federal government's responsibility and involvement in aboriginal housing differs on and off reserve, and in territories.
On reserve, the Government of Canada makes significant contributions to support first nations to deliver housing. These expenditures total $261 million annually, including $138 million through Indian and Northern Affairs Canada and close to $123 million from Canada Mortgage and Housing Corporation.
Although the federal government supports housing on reserve, this funding is not intended to cover the whole cost. First nations share in the responsibility of providing housing in their communities and are required to identify and obtain the necessary additional funding from other sources.
Off-reserve and in the territories, the provincial and territorial governments have the responsibility for housing.
The brief prepared for the standing committee chronicles the serious housing problems faced by aboriginal people. However, for all the challenges, there have been some real successes, and I would like take the next few minutes to share some of these with you.
Starting in 1996, a new federal policy framework for on-reserve housing gave first nations the flexibility to determine how INAC housing funds should be used. It encouraged first nations control, capacity development, shared responsibility such as shelter charges and ownership options, and better access to private capital. Over 80% of first nations participate in this new policy.
First nations that have pursued these directions are seeing the benefits. They have demonstrated that sound management practices that foster a positive climate for investment enable development of a full range of options, from social and market rental housing to home ownership.
For example, the Mohawks of the Bay of Quinte have produced housing for their members that not only is affordable but has garnered awards from the Ontario Home Builders' Association for the high quality of housing construction and energy efficiency of the homes. Thanks to a strong vision that was implemented by chief and council, over 80% of the homes on this first nation are owned by the occupants, many of whom have obtained loans from the first nation government through a revolving loan fund.
The Lac La Ronge Indian Band, located in a northern, semi-remote area of Saskatchewan, is fostering the creation of a market housing system by selling band-owned housing to first nation families. The sale prices are set at levels that are affordable for employed households. Maintenance of the homes becomes the responsibility of the new owners, many of whom are investing their own funds in renovations and additions.
For those homebuyers requiring loans, the band has made an arrangement with a chartered bank to provide home ownership financing that respects the traditional values of the community concerning communal ownership of the land. Meanwhile, the band is putting the proceeds of the sales toward the creation of new housing for low-income households.
In both of these examples, first nations recognized that they would not be able to resolve their housing shortfall by relying solely on government funding. Instead, they tapped into the resources available among community members to pay rent as well as to buy and maintain their own homes. By pooling the resources from government, the private sector, and community members, these and a number of other first nations have turned housing on-reserve from a liability into a community asset.
Over the last two years, there has been more federal funding for aboriginal housing, which is helping to support these positive trends. Budget 2005 provided $295 million over five years for on-reserve housing. This has not only increased the number of new houses built each year but has provided downpayment assistance to 2,000 families wishing to realize their dream of owning a home.
The 2006 federal budget provided one-time funding of $300 million through housing trusts to the territories as a strategic investment in affordable housing. It also included a $300 million off-reserve housing trust for provinces to increase the supply of rental housing and enhance aboriginal home ownership.
Off-reserve, there are success stories as well. Provincial chapters of the Canadian Real Estate Association in Alberta and Manitoba have worked alongside aboriginal families to acquire inner-city houses in poor repair and refurbish them for home ownership. In cities across Canada there are highly successful aboriginal non-profit and cooperative housing corporations providing good-quality housing for their residents.
Several colleges and other training facilities offer programs for aboriginal people to develop construction skills and enter the trades. And a number of aboriginal construction firms have been successful in stimulating economic development both on- and off-reserve.
Public-private partnerships have also been effective in creating aboriginal housing. The Kamloops Indian Band has used a public-private partnership arrangement with a developer to create the market-based, award-winning Sun Rivers development. The house values are now appreciating at levels equal to or better than similar houses in Kamloops, British Columbia.
It is also recognized that adequate infrastructure--roads, water, schools, and other community facilities--is required to accommodate any increase in housing development on-reserve and in remote and northern communities. Budget 2005 paired funding for housing with the lot servicing funding on-reserve, so that infrastructure was in place to ensure timely housing development.
Another promising development is the emergence in the last decade of several professional aboriginal associations in the two areas of finance and of building inspection, lands management, and housing management on-reserve. These networks actively support their members and each other, providing professional standards of governance and management in their communities. INAC and CMHC have been pleased to assist in funding the activities of these associations.
The Assembly of First Nations is in the process of examining market-based housing approaches on reserve, including a housing fund that could lever private sector investment and a centre of excellence to build housing management capacity at the first nations level. The Department of Indian and Northern Affairs considers these directions to be promising and was pleased to help in sponsoring an AFN forum on February 6 to 8 of this year for first nations representatives to discuss and consider these proposals.
The thrust of these new proposals is to help first nations move toward a continuum of market-based housing including social housing, rental housing and ownership, placing more emphasis on individual responsibility. This is consistent with the department's approach to fostering a broader continuum of housing for first nations.
In conclusion, we have a vision that aboriginal Canadians will have the same housing opportunities and responsibilities as other Canadians. We realize there is much left to be done, and through this statement I have shared what I believe are some promising avenues such as home ownership, capacity development and support for private investment that can bring the vision closer to reality.
Thank you.