The minister responsible for housing visited Labrador West and encountered people affected by skyrocketing prices.
Tom Hedderson, minister responsible for the Newfoundland and Labrador Housing Corporation, was greeted by protesters at the airport. He spoke personally to individuals suffering from high rental prices, had a round tale discussion with community stakeholders, and conferred with Labrador and Wabush town councils during a two-day visit July 6-7.
Hedderson explained that his portfolio deals with social housing for income earners below $32,500 and that they’re in the process of making six units available to people, four of which have been selected and two which are in the process of being selected.
“It appears there is a crunch here for people beyond $32,500,” he said. “The prices of buying a house or renting a house has skyrocketed. Even those individuals who are making significant dollars are finding it extremely hard. Many are probably spending more than half of their earnings on housing.”
He explained that this might be happening because the community is undergoing a growth spurt, which is a positive thing because companies, like IOC, have indicated that they’re here for the long term.
“You have a new hospital going up, you have a new college going up, we’re getting significant progress on our Trans-Labrador Highway, so there’s a lot of very positive things happening,” he said. “But, like with any growth spurt, it has to be managed, and that’s the difficulty right now.”
It’s a volatile market right now, he said, and it is hard to make suggestions as to how to fix a very complex issue involving seniors, working people with half-decent wages and contractors.
He said challenges need to be identified, as well as the demand for short-term and long-term housing.
“You have a new hospital going up, you have a new college going up, we’re getting significant progress on our Trans-Labrador Highway, so there’s a lot of very positive things happening,” he said. “But, like with any growth spurt, it has to be managed, and that’s the difficulty right now.” - Tom Hedderson
He added that Kevin O’Brien, minister of Government Services and chair of the housing committee with the provincial government, recognized the housing problem and will weigh alternatives such as rental caps.
“There was a general consensus that we had to work together to try to come up with some ways in which we can alleviate this housing crunch that’s now upon Lab. City,” noted Hedderson.
He said he was touched by human stories he heard of people affected by the housing crunch, and added the he would certainly bring back to the government the issues presented to see if they can be of any assistance.
“We have to come to grips with the situation — government, municipal authorities and companies — and plot out a course of action that can get us beyond this particular time.”
In addition to the housing issue, Hedderson also discussed transportation and said that the Trans-Labrador Highway is a priority.
According to Labrador City Mayor Janice Barnes, Hedderson also promised to send officials to assess the condition of the road between Labrador City and Fermont, which she pointed out is deteriorating rapidly.
She also said the minister indicated that a project management firm has been assigned to ensure work gets done on the new hospital and college this summer.
Barnes said she found the minister earnest and responsive on the housing issue.
“We have some residents sleeping on couches and we have vacant units, so that needs to be addressed immediately.”
Karen Oldfor, Labrador City deputy mayor who’s also in charge of housing issues, said some of the options that were looked at included working with private developers to encourage new housing developments and rent subsidies.
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