Mr. Speaker, the isolated posts and government housing directive, IPGHD, is a National Joint Council, NJC, directive that forms part of collective agreements. The revised shelter cost differential, SCD, methodology has been co-developed with bargaining agents. Implementation of the revised methodology will be applied for the annual update of the SCD, which takes place on August 1, 2023.
The purpose of the SCD is to provide an allowance to employees who are at an isolated post where the cost of renting private accommodation or government housing is higher than the national average threshold. This is to help offset the higher shelter costs. The revised methodology, which came into effect on August 1, 2023, replaces a methodology that had not been reviewed since 2012 and had not looked at the cost of shelter in all isolated posts. There are now 20 locations that qualify instead of only five. The same methodology applies for all locations, using census data, to establish which locations qualify and the rate. Once a location qualifies, the rate will be adjusted annually by the provincial or territorial consumer price index, CPI, as applicable, until the next census results are available. Transitional provisions have been agreed to with bargaining agents.
With regard to part (a), the shelter cost differential is provided to employees residing in private accommodation and government housing, housing that is leased or owned by the Government of Canada and rented out to employees. Prior to the August 1, 2023, implementation of the revised shelter cost differential, five locations qualified for private accommodation and three locations qualified for government housing. Furthermore, different rates were provided for each. The revised methodology provides the same rate for both types of accommodation: private and government.
With regard to private accommodation, the SCD was limited to employees residing in private accommodation in five locations. Employees in Inuvik, Yellowknife and Iqaluit residing in government housing received the SCD as well.
With regard to the Northwest Territories, in Inuvik, which has approximately 79 employees, the SCD applied to employees in private accommodation and government housing. In Norman Wells, which has approximately three employees, the SCD only applied to employees in private accommodation. In Yellowknife, which has approximately 830 employees, the SCD applied to employees in private accommodation and government housing. With regard to Nunavut, in Iqaluit, which has approximately 543 employees, the SCD applied to employees in both private accommodation and government housing.
With regard to Yukon, in Whitehorse, which has approximately 687 employees, the SCD applied only to employees in private accommodation.
Due to the transitional measures in place, to date, no employees have experienced a decrease in the SCD. However, as of December 1, 2023, SCD rates for some locations will begin a gradual decrease, which will be completed in September 2024.
With regard to part (b), data on the number of homeowners in isolated posts is not available.
With regard to part (c), any difference in cost to the government has not yet been established.