The Yukon’s premier is defending the decision to bring in a controversial subsidy for landlords last year.

All the same, the program probably won’t continue into a second round payments to Yukon property owners.

Ranj Pillai says the fact that at least one civil servant argued against the idea is no big deal as well.

The subsidy, which came in the form of a $1-million fund, is intended to incentivize landlords to keep renting out their properties instead of selling.

Pillai was responding to a CBC Yukon story broadcast earlier this month.

He spoke to the Star last Thursday morning about the situation, saying he remains confident his government had done the right thing.

“Every time that we bring forward a submission to cabinet to be reviewed by our team, there’s always a set of recommendations and analysis,” he pointed out.

“I would say that every time we bring something forward, there’s going to be pros and cons identified in those submissions.

“This time was no different. There was some concern as to how effective the program would be,” the premier said.

“The program is the first of its kind, so it was hard to be able to measure that against anything else that had happened previously. To be fair, there was one or two analysts who had concern.”

Pillai reiterated that happens “almost every single time we bring forward a decision.

“The structure is built that way. It’s their job to look into every proposal, but as an elected official, you’re going to have to make a decision, and you’re going to have to contemplate some negative interests. There will always be some level of critical critique.”

Pillai said the analysts stressed the point there was no evidence the program would have any benefits, but he disagrees with that in retrospect.

“I was up in Kluane country (two weeks ago), and I can tell you that the landlords in rural Yukon were pretty happy and wanted to make applications. The dollars would be very helpful to them.

Pillai had some numbers pertaining to the program.

“There’s 292 applications that have been received,” he said. “That’s as of Jan. 9.”

That represents upwards of 2,000 units, Pillai said.

The government is assessing applications of more than $600,000. Most are from Whitehorse.

The government has paid out more than $328,000 in approved applications so far.

Most applications have been for one to 10 units, pertaining to small-scale rentals.

Pillai said he believes the program has been a success so far.

“I do. I think it’s provided some funding to landlords that was appropriate.

“On one side, you have the Yukon Party saying, ‘don’t put a rent cap in,’ and on the other side we had the NDP say, ‘you shouldn’t give the landlords any money.’

“But some of these people are on a fixed income, they have maybe one or two units in their house, they invested in that so they could supplement their income as seniors, and it’s really important to them.

“At the same time, I think it was important to use our knowledge of the impact of inflation.”

“I wanted us to be able to take that into account. This was also a commitment I made and sometimes part of the job is to identify the pathway you want to go on, and follow through on those commitments,” Pillai said.

When the Liberals signed the CASA with the NDP in late January 2023, he said within the year he wanted to bring in a program addressing the concerns about the rent cap.

“I didn’t want to see any more Yukoners lose their homes, and at the end of the day I’d rather be someone following though on their word, even if it upset some people.”

Still, Pillai said it’s not likely the program will continue.

“This year is a different scenario. We don’t have to deploy the money going into the next fiscal year.

“Inflation has dropped below the five per cent level where the rent cap sits, so landlords will be able to work better with that.”

The Yukon Party has a slightly different perspective on the matter.

“The government (needs) to drop both their rent control policies and Landlord Assistance Program to restabilize the rental housing market,” the party said last week.

“With the Yukon still experiencing inflation above target levels and landlords restricted in the amount they can raise rent to offset rising costs, Yukoners are wondering if the Liberal government will continue their Landlord Assistance Program in 2024.”

Pillai, of course, answered that question during his interview with the Star.

“We know the premier only launched the landlord subsidy program to offset the harmful rent control policies he now endorses himself,” said Yvonne Clarke, the Yukon Party’s housing critic.

“Yukoners, NGOs, both tenant and landlord organizations, and the opposition have all criticized the program. We hope the Liberals will start acting in the best interests of Yukoners and reject ineffective and harmful policies.”

NDP Leader Kate White said, “The Liberals handed out a landlord subsidy in the middle of a housing crisis, knowing there was zero evidence that it would help Yukoners.

“It wasn’t about helping tenants. It wasn’t about stabilizing the rental market. It was just the Liberals caving to pressure from people least affected by the housing crisis.”

The Yukon Party noted, “The Yukon Party brought a motion forward on the last day of the fall sitting to defund and eliminate the Landlord Assistance Program funding.

“Despite the criticism from multiple sectors, the NDP surprisingly voted to support the program and fund it, even though removing it would not have brought down the government.”