Thank you, Mr. Speaker. Mr. Speaker over the past two weeks there have been many concerns raised with the financing of the construction of the new hospital to be built in Iqaluit. This hospital is to serve the people of the Baffin Region. It was first discussed in the 1988 health transfer agreement between the GNWT and the federal government. Subsequent to that agreement was a commitment in letter form to replace, not renovate the existing facilities. Mr. Speaker, last week the Honourable Goo Arlooktoo chaired the meeting with the chair of the Health Board, Ms. Ann Hanson, and the chief executive officer of the Health and Social Services Board, Ms. Pat Kermain. The Baffin MLA along with Minister Ng and senior officials with the Department of Health and Social Services also participated. The discussions were a combination of meetings held between myself, Ms. Hanson and Kermain, going back to November, 1995.
This past summer at the Baffin Member's meeting and again with the chairs of the Nunavut health boards and Finance Minister Todd, we met in Iqaluit to discuss the construction and funding for the facility. The confusion, Mr. Speaker, in the media and with the public at large needs to be clarified.
First of all, the question of replacement and renovation, it has always been our understanding that the federal commitment based on the original 1988 agreement called for a contribution based on the aboriginal population of the region preceding construction. Today, that is approximately 85 percent. After questioning the Minister of Health and Social Services in this House, it came out that the federal government had issued approximately $10 million since the 1988 agreement to the Government of the Northwest Territories. This money, as per the understanding, would be accessed for the first facility under the 1988 agreement, Inuvik or the Baffin hospital to be built. However, the money was, as is the custom, deposited in a consolidated revenue fund and had been spent. Thus, the Government of the Northwest Territories has to replace these funds. With the deficit reduction plans in place, it is outside the monetary ability of the government to finance both Inuvik and Baffin hospitals from general revenue, and therefore, private financing in conjunction with the Government of the Northwest Territories is needed to build the facilities.
The meetings held over the past 22 months and again last week were to discuss and update these plans. With the clock ticking towards division, it is imperative to begin these projects during this, the last budget cycle of the Government of the Northwest Territories. The concern in the Baffin region was the accessing of private financing to help facilitate the construction of the hospital. On August 7th, in Iqaluit, a mechanism to accomplish this was signed by Ms. Hanson and Jerry Ell, chief executive officer of the Qikiqtaaluk Corporation.
Mr. Speaker, I would seek unanimous consent to continue my statement.