Yesterday’s bombshell report from the Auditor General of Canada showing the territorial government was oblivious to a hospital renewal contract that swelled 62-per-cent over-budget to more than $1.2 billion, drew some expected reaction in the NWT Assembly today.
Range Lake MLA Kieron Testart was in the 18th Legislative Assembly in 2015, when then-health minister Glen Abernethy signed off on a $750 million P3 partnership to renovate and expand the old Stanton hospital, with the new Stanton Territorial Hospital opening in 2019.
As plans changed and more features were introduced by department officials, nobody was minding the public purse.
“Instead of a renovation and expansion, the project now included building a new hospital and renovating the existing hospital to lease it out. The 30-year cost is estimated at over more than $1.2 billion,” said Testart.
“Deputy Auditor General Andrew Hayes said he was perplexed by the series of decisions that were reached by the government without doing updated analysis to identify value for money.
Range Lake MLA Kieron Testart in NWT Assembly on Wednesday. (Image courtesy of Assembly livestream)
“Perplexed is a good word, because if you were listening to the government at the time, you would have been told everything was fine.
“I used to call this a billion-dollar hospital. Much to the chagrin of the health minister of the day, who insisted it was a cool $600 million.
“Well, Glen, turns out I was right, $1.21 billion and 62-per-cent over budget.”
Testart said he has spoken about the need for the GNWT to better control infrastructure costs.
He recalled when the Stanton renewal project was being promoted by the Premier Bob McLeod and his cabinet, he was told the project was on time and on budget, with tens of millions of dollars being paid out to Northern businesses.
Łıwegǫ̀atì Building ground floor. The old Stanton hospital has been completely re-purposed, part of the Campus of Care with the new Stanton Territorial Hospital across the parking lot. (James O’Connor CKLB)
“Now we know that wasn’t the case. If anyone needed to wonder why this government is in such dire financial straits, then look no further to the persistent failures to ensure good money, good value for money, analysis across numerous projects.
“The government is now saying things have changed, policies, practices, monitoring all these things are now in place.
“But here’s the thing, back in the day, many of those exact same policies were in place, they just weren’t followed, and because those decisions weren’t followed, northerners have been saddled with hundreds of millions of dollars of debt for the next 30 years.
“If anyone thinks the GNWT has changed its colours and identified good value for money. I have a $90 million windmill in Inuvik to sell you.”
Construction of the Inuvik High Point Wind turbine was initially budgeted at $40 million in 2019.
Monfwi Jane Weyallon-Armstrong, said current cabinet ministers should not be blamed for the “financial mess” created by past governments.
Signing a beam for new Stanton hospital in 2016 are, Health Minister Glen Abernethy, MLA Kevin O’Reilly, Finance Minister Robert C. McLeod, and MLA Julie Green. (Photo courtesy of GNWT)
“Our people are going to be the ones left paying for the increased cost of this project,” she said. “Our small communities are hurting. People are not getting medical treatment in their own communities, and our programs and services need more funding.
“The Auditor General’s report shows this project is going to have a long-term impact. We are not going to have money we need to fix our health-care systems or support operations in small communities.”
Meanwhile in the Assembly today Mackenzie Delta MLA George Nerysoo again address the condition of the Dempster Highway during the summer and fall season.
He said the section heading into Inuvik from the Yukon border “has never been this bad before,” causing damage to both commercial and private vehicles who must travel the road.
“I have seen vehicles driving on the wrong side of the road just to avoid the potholes in rougher portions of the highway,” he said. “Residents stated that they have they have unforeseen wreckage to their vehicles, the tires and rims.
Travellers prefer to see the Dempster Highway in good condition such as this. (CKLB files)
“Tourists are posting pictures of the damage that they have encountered while driving this portion of the highway.”
Also in the Assembly on Wednesday, Tu Nedhé-Wiilideh MLA Richard Edjericon noted that over 20-per-cent of NWT households struggle with food insecurity, and most of those households are Indigenous families.
“When those children go to school hungry, their academic performance suffers severely, as does their ability to interact with their peers,” he said.
“This is because nutrition of food is becoming prohibitively expensive, especially in the smaller communities, and they don’t have reliable access to the traditional harvest of food and which sustains generations before them.”
Edjericon was pleased with Tuesday’s announcement by Education Minister Caitlin Cleveland that a deal is in the works with the Government of Canada for a three-year expansion of the NWT school food program: Healthy Food for Learning.
All 49 NWT schools, and all junior kindergarten to grade 12 students will have access to the program as needed.
“I am very I’m very hopeful that this new agreement will greatly benefit children across the Northwest Territories, but I hope there are provisions to expand school meals for Indigenous students with with traditional food source and provide educational opportunities for both culture practices,” said Edjericon.
“We need a school food program that can teach them the importance of balanced diet and the benefit benefits of nutrition and the values of sustainable respect for the land.
“By incorporating culture education to lunch program, we empower children to do well, to make better choices, but also to embrace their heritage.”
Minister Cleveland said each education body can decide to work through community partnerships, to work with local harvesters and subsistence hunters to prepare traditional foods in schools.
