The Saskatchewan legislature resumed this past week with its spring sitting, and once again the use of public-private partnerships in hospital builds was a hot topic.
On Wednesday during question period, opposition leader Ryan Meili took aim at the government on the issue of the potential use of P3s with a new and expanded hospital in Prince Albert. Portions of his exchange with Premier Scott Moe is reprinted here, as recorded in Hansard.
Mr. Meili: — Thank you, Mr. Speaker. The expensive P3s from the Sask Party: they’ve driven up costs; they’ve eliminated transparency; and they’ve helped the friends and donors of the Sask Party get ahead while leaving the rest of us behind, Mr. Speaker. A Prince Albert hospital needs to be built, and it needs to be built right.
Will the Premier commit today to building a hospital in Prince Albert, built by Saskatchewan workers? Because New Democrats will.
The Speaker: — I recognize the Premier.
Hon. Mr. Moe: — Mr. Speaker, I wonder if New Democrats used Saskatchewan workers when they tore down the Holy Family Hospital in Prince Albert, Mr. Speaker. Mr. Speaker, the fact of the matter is, is the Saskatchewan Party has committed not only to build a new and expanded Victoria Hospital in the city of Prince Albert, we have also committed to fund 100 per cent of that hospital.
… And if the member from P.A. [Prince Albert] Northcote wants to learn more about that, she isn’t going to have to wait very long.
The Speaker: — I recognize the Leader of the Opposition.
Mr. Meili: — ... On February 6th, the government posted a tender on the SaskTenders website asking for advice on how to proceed with a $200 million social infrastructure project. This looks an awful lot like the Sask Party’s looking for someone to guide them in how to plow ahead with yet another P3 project and leave Saskatchewan workers behind — maybe a P3 hospital in Prince Albert, Mr. Speaker, the $2 billion Regina bypass, schools where you can’t open the windows, a North Battleford hospital that continues to leak. Problem after problem, Mr. Speaker.
... With this latest tender, what is the Premier building with the new P3 project? And why does he insist on continuing with this failed P3 model?
The Speaker: — I recognize the Premier.
Hon. Mr. Moe: — Mr. Speaker, if the Leader of the Opposition, the member from P.A. Northcote want to learn more about how the facility in Prince Albert is going to be built, I would invite them to what will be a very public announcement in the next number of days in the city of Prince Albert, Mr. Speaker.
Mr. Speaker, with respect to how we procure our infrastructure here in the province, Mr. Speaker, all of that procurement goes through a value-for-money audit with our very trusted Provincial Auditor here in the province, Mr. Speaker.
… Mr. Speaker, we are building hospitals across the rural areas of the province. We built, as I mentioned, the Jim Pattison Children’s Hospital in Saskatoon; a hospital in Moose Jaw, Mr. Speaker; the Saskatchewan Hospital in North Battleford, Mr. Speaker.
... We will make no apologies for the infrastructure that we have constructed on behalf of the people and communities in this province. It’s building strong families. It’s building strong communities, Mr. Speaker. And we’re going to continue to invest, starting with the Prince Albert hospital very shortly.
Later in Question Period, the Saskatchewan Hospital North Battleford came up, as it had frequently during the fall session. Opposition critic Vicki Mowat grilled the minister of Central Services, Ken Cheveldayoff, on the contents of Freedom of Information documents the NDP had released earlier.
Ms. Mowat: — Thank you, Mr. Speaker. You want to talk about scare tactics? I think we’ve seen a few of those today.
We only need to look at Sask Hospital North Battleford to see how this government’s approach to infrastructure has been going. Documents released through freedom of information show this government plowed ahead with modular roofing from the same company that provided faulty insulation panels in the walls. This, despite the fact that they had to rebuild the walls to fix the defects.
On the roof, a SaskBuilds official wrote, “The roof was a serious bone of contention during design and construction, and unfortunately the authority’s concerns were well founded.”
It’s no wonder the SHA [Saskatchewan Health Authority] was worried. Why on earth would this government allow the proponent to plow ahead and install products that had proven to be faulty in 2017?
The Speaker: — I recognize the Minister of Central Services.
Hon. Mr. Cheveldayoff: — Thank you very much, Mr. Speaker, for the question. Certainly the Saskatchewan Hospital North Battleford is something that was long overdue. That was another example of something that was ignored by the members opposite for year after year, term after term of their government. We’re very proud that we were able to build the facility.
The facility has had some short-term building issues. Back a couple of months ago in January, we awarded a third-party audit. And that is taking place right now, and the report will be offered to us in late spring. There have been some issues, Mr. Speaker, as is normal with many facilities that are built. But most importantly, it was built in a way that the taxpayers aren’t responsible for any of those additional dollars.
This is a facility that saved taxpayers $15 million in construction alone, and $90 million over the 30-year period that it will operate. So thank you for the question, and I look forward to others.
The Speaker: — I recognize the member for Saskatoon Fairview.
Ms. Mowat: — Mr. Speaker, this isn’t normal. The roof had more than 20 leaks and acoustic material was falling from the ceiling. We already have more than $3 billion worth of repairs to do on our existing health infrastructure, and apparently this government thinks Saskatchewan people should accept crumbling infrastructure in our brand new hospitals as well.
Emails between officials indicate there were additional issues with the hospital’s real-time location system. And on the day the minister was set to announce the roof issue, communications officials emailed urgently about additional repairs. It’s clear that the public doesn’t have a clear picture of this issue yet. We called for a full infrastructure audit 10 months ago. Will the minister make the full infrastructure audit of Sask Hospital North Battleford public today?
The Speaker: — I recognize the Minister of Central Services.
Hon. Mr. Cheveldayoff: — Well, Mr. Speaker, no I won’t make it public today because the audit is still going on. The audit is taking place. The information is being . . . [inaudible interjection] . . . No and, you know, we take this very seriously. We want to ensure that this hospital, one that was long overdue, one that was ignored by members opposite and that wasn’t built . . . It’s a hospital that will serve the needs of Saskatchewan residents for many decades into the future.
It’s having some short-term issues, so we’re concerned about that. That’s why we initiated the audit. We look forward to the audit’s findings, and we’ll ensure that the builders of the hospital correct any deficiencies that may show up. Thank you.
The Speaker: — I recognize the member for Saskatoon Fairview.
Ms. Mowat: — Thank you, Mr. Speaker. What if they can’t pay for those deficiencies? In December, Moody’s issued a credit opinion on Access Prairies Partnership that significantly degraded their credit rating based on the mess that’s unfolded at Sask Hospital North Battleford. Moody’s credit negative rating was based on the full roof replacement as well as “significant remediation work for water damage as a result of faulty shower assemblies that leaked behind the walls across the facility.” It says the repairs will cost the proponent $25 million and construction will not be completed until the summer of 2021, two years after it was supposed to open.
Has the minister seen the report? And is he at all concerned that the P3 partner might not be able to pick up the tab for the needed repairs, leaving Saskatchewan people holding the bag?
The Speaker: — I recognize the Minister of Central Services.
Hon. Mr. Cheveldayoff: — Thank you very much, and I thank again the member for the question. It is a really important issue because this hospital is so important to the future of health care in Saskatchewan. Again it was a hospital that wasn’t built under the NDP, that they ignored, and we were happy to open the hospital one year ago.
And again, Mr. Speaker, it’s a hospital that is experiencing some short-term issues, not unlike other hospitals or other facilities as well. That has our attention. We’re very concerned about it, but we will make sure that they are rectified and we have the confidence in the companies and their financial wherewithal to get the work done. And we will ensure that that happens for the taxpayers of Saskatchewan. Thank you.
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