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SOMBA K'E/YELLOWKNIFE
A citizens group of Northland Trailer Park residents says a recent pledge by Premier Bob McLeod to investigate the possibility of offering to guarantee a loan to pay for desperately needed water and sewer infrastructure doesn't go far enough.

Lorraine Hewlett, seen here in Northland Trailer Park Nov. 2, is a member of Citizens for Northlands. She says any talk of a loan guarantee, instead of an interest-free loan, for the trailer park should be squashed "immediately." - Kevin Allerston/NNSL photo

Lorraine Hewlett, speaking on behalf of Citizens for Northlands, said residents would much rather the government offer an interest-free loan as suggested by their MLA, Frame Lake's Wendy Bisaro.

"I think it was great of Wendy to bring up the issue of Northland immediately, as soon as she got back into the legislative assembly," she said. "(She) was very specific in asking the city about a no-interest loan."

Mayor Gord Van Tighem confirmed Wednesday the city was asking the GNWT for an interest-free loan.

An interest-free loan, Hewlett said, would be preferable to a loan guarantee because it means there would be money up front to help fund the estimated $18-million worth of infrastructure work the trailer park requires.

According to the Treasury Board of Canada's Website, a loan guarantee is a guarantee to a lender, such as a bank or other financial institution "providing credit or funding to another party, that the government will repay the amount guaranteed, subject to the terms and conditions of an agreement, if the borrower defaults."

"The pursuit of a loan guarantee really needs to be squashed, immediately," said Hewlett.

"That's not what the city needs. What Northland needs is funding."

Hewlett suggested an interest-free loan to be repaid over 25 years would be more reasonable.

She said she isn't optimistic right now, and won't be until there is a deal worked out for funding.

Last week during a question period, McLeod responded to Bisaro's questions in the legislative assembly about a loan guarantee versus an interest-free loan.

"Personally, I'm supportive of the government looking at providing a loan guarantee," said McLeod.

"The way I look at it is we'll have to confirm the numbers, finalize a proposal. Whether it be a loan guarantee or a no-interest loan proposal will have to be brought forward," adding any move to go with either an interest-free loan or loan guarantee would have to be discussed by cabinet.

Like the Northland citizens group, Van Tighem is adamant that the government offer an interest-free loan.

"They started talking about a loan guarantee, and that's not what we asked for," said Van Tighem. "Having an interest-free loan makes the cost lower for the residents."

The mayor said residents can't afford an interest loan to pay for the infrastructure, which the city estimates would require a $415 to $420 monthly payment over 25 years from each of the 258 residences in Northland.

Bisaro said she intends to make sure the cause won't sit on the backburner.

"Certainly in terms of going ahead, (the premier) didn't say there was no hope. He said he would bring it to cabinet," she said.

"I'm hopeful that cabinet will consider it in fairly short order and come back with a reply to the city soon."

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