Thank you. Mr. Speaker, health and hospital boards face tremendous challenges to identify ways to save this government money. A reduction of $9.25 million in funding to the eight health and hospital boards is projected over the next two years. This is slightly less than a 10 per cent reduction in the funding provided to the boards through the territorial health insured services activity over the next year.

Mr. Speaker, I met with representatives from the health and hospital boards in February to discuss their reduction targets and ask them to develop submissions to the department to identify proposed reductions using broad guidelines. These guidelines required that impact on programs and services be minimized; access to health care services be maintained; government policy was complied with; reductions did not simply shift the burden to others; and, plans were consistent with community wellness, prevention and health promotion strategies.

The department has reviewed all submissions from boards to ensure they meet the guidelines. Mr. Speaker, in mid-April, the department provided the feedback to the boards, advising which of the proposed reductions were consistent with this government's directions and priorities and which reductions either required further explanation or simply could not be supported.

Departmental officials have been working with the boards to resolve issues surrounding reductions that have not been supported or to assist in identifying others.

In the meantime, boards have been encouraged to begin implementing reduction initiatives that are consistent with this government's direction. Mr. Speaker, this process will take more than one year; next year boards will face further challenges.

This will mean changes in the way some services are provided. However, residents will continue to have access to the health care services they require. I ask that all MLAs support the boards as partners in the government's effort to meet the current fiscal demands.

Mr. Speaker, only through collaboration and partnerships do we have an opportunity to meet these challenges creatively and improve client care as we move towards operating more efficiently. Thank you, Mr. Speaker.