Mr. Speaker, during the past year, the federal and territorial governments have been negotiating an out- of-court settlement for the health care billings dispute. The dispute arose over the federal government's refusal to pay territorial claims for hospital services provided to status Indians and Inuit. Court action was taken against the federal government in December of 1992, after extensive efforts to resolve the dispute failed. The court
action sought $79 million from the federal government for outstanding hospital claims.
Mr. Speaker, over the past six months, the terms of an acceptable settlement have been reached on the dispute over billings for the period 1986-87 to 1991-92. The terms of settlement also contain provisions which relate to the period 1992 to 1995, and a contribution agreement for the next three fiscal years.
Mr. Speaker, the terms of settlement make the following financial arrangements:
- A one-time payment of $24 million in settlement of claims;
- A contribution agreement for 1994-95 with payment of up to $33.5 million for hospital and physician services to NWT status Indians and Inuit;
- A three-year contribution agreement, including an option for a one-year extension, with payments escalated from 1994-95 by six per cent, three per cent and three per cent in the first, second and third years of the agreement; and,
- At the conclusion of the third or fourth year, the escalated amount will be added to the gross expenditure base of the territorial government and increased thereafter under the terms of the formula financing agreement.
The agreement also includes provisions which are important for the territorial government, status and aboriginal residents and Nunavut. More specifically:
- The terms of settlement cannot be used to impede discussions surrounding the administration and financing of health services in the two new territories created by division;
- The terms cannot be used to restrict access by the government to federal assistance to help in dealing with emergencies;
- The terms cannot be used to restrict access by the government or aboriginal residents to national health programs; and,
- The terms cannot be interpreted to prejudice treaty or aboriginal rights, or future self-government arrangements.
Mr. Speaker, because this dispute concerned the delivery of health care services by the GNWT to status Indians and Inuit, discussions with representatives of aboriginal organizations were initiated when the territorial government decided to take the federal government to court.
Aboriginal organizations in the Northwest Territories were advised in writing on March 15th that we were close to settling out of court and were provided with the terms of settlement for the health care billings dispute. The letter was also provided to all health boards, our Members of Parliament and copies were sent to MLAs. Follow-up phone calls by myself and the Minister of Finance were arranged to provide additional details and answer questions. No major concerns or opposition to the settlement were raised during the discussions. As a result, I have signed the terms of settlement for the health care billings dispute, as well as contribution agreements for 1994-95 and the period 1995-96 to 1997-98.
Mr. Speaker, the territorial government has negotiated the best possible terms of settlement, especially given the federal government's current and ongoing deficit and debt situation.
However, even though the package calls for increases in federal contributions for the next three years, measures will be required to make the best possible use of resources available, particularly in view of future federal cutbacks to territorial transfer payments. Thank you, Mr. Speaker.
---Applause