The rent controls introduced by the Yukon government last spring continue to be controversial.

The measures were part of the Confidence and Supply Agreement (CASA) signed between the Liberals and the NDP in April 2021 to allow the Liberal government to remain in power.

The subject came up again after Yukon Party MLA Patti McLeod posed a question in the legislature Tuesday.

“Following the Liberal-NDP coalition agreement, the government brought in a poorly-thought-out rent control policy,” she said.

“To quote directly from the CASA: ‘Residential rent increases will be capped at the rate of inflation…’ According to the Bureau of Statistics and the government’s own website on key economic indicators, inflation from January 2021 to January 2022 was 3.7 per cent.

“Now the Liberals and the NDP have decided to cap rent increases at 3.3 per cent this year, below the inflation rate presented on the government’s own website,” McLeod said.

“Given that the Liberal-NDP coalition agreement clearly states that rent increases will be capped at inflation, can the minister of Community Services confirm why they have capped them lower than inflation?”

Community Services Minister Richard Mostyn tackled the question.

“We heard from Yukoners about the need to work together, and we continue to respect the agreements made under the Confidence and Supply Agreement. This includes having met our commitment to index rents to inflation as of May 15, 2021.”

The rental index aims to offer stability in rent for Yukoners, Mostyn said.

“Given the rate of inflation, we know that landlords may choose to increase rents as of May 15, 2022 by up to 3.3 per cent, which is the rate of inflationary change measured by the Consumer Price Index. This means an additional $33 per month where rent is currently $1,000.

“Stable, affordable housing is fundamental to the health and well-being of all Yukoners,” Mostyn added.

“We are trying to make Yukon affordable for Yukoners.”

McLeod retorted that thanks to the rent caps, “landlords have exited and rental units have been removed from the market. In fact, it has become clear that, since this minister brought this policy in, the housing crisis has gotten even worse.

“Can the minister point to a single example of how this policy has done anything but make the housing crisis worse?”

Mostyn’s response was harsh on the criticism by the Yukon Party.

“I will note that the CASA has been endorsed by all three parties, including the rent index,” he said.

“We heard it loud and clear from the leader of the opposition last fall that he was actually in support of CASA, and actually stood up and said that he was more than willing to endorse it, including the rent index. This is actually something that all three parties have endorsed in this House.

“We appreciate the NDP’s willingness to work together to address housing pressures in the territory,” the minister added.

Mostyn was referring to an offer extended by the Yukon Party to the NDP in late 2021 where it offered to abide by the CASA if the NDP joined it in toppling the Liberals from power in a non-confidence motion.

The NDP refused that offer emphatically.

“The Yukon Party’s only solution, in addition to endorsing the CASA’s rent index, was to develop land, which we are already doing and at a faster clip than the Yukon Party had ever done when they were in government. We have shared our concerns about this policy with the NDP,” Mostyn said.

But McLeod said that, “by setting the cap at 3.3 per cent, the Liberal government is inconsistent with the CASA.

“Finally, as we’ve seen, this policy has done nothing but negatively impact the rental housing market and further contribute to the housing crisis,” she said.

“Will the minister admit that this policy is a failure and commit to fixing it by repealing his misguided rent control policy?”

Mostyn said the government will continue to uphold the CASA until it expires in January 2023.