Thank you. Mr. Chairman, on behalf of the Minister of Health and Social Services, Mr. Ng, I would like to introduce Bill 17, An Act to Amend the Territorial Hospital Insurance Services Act.
The Territorial Hospital Insurance Services Act is legislation that ensures that all residents of the NWT are eligible for insured services. It authorizes the Minister of Health and Social Services to establish boards of management for health facilities and programs. It makes employees of hospitals and health facilities members of the public service. Schedules A and B of the Public Service Act also make boards of management employees part of the public service. The proposed amendments would exempt doctors from the public service. Because the physicians on staff with boards has increased significantly as a result of the 1997 increase in the employee contribution rates under the federal super-annuation plan for employees earning over an excess of $98,600. The increased cost to boards has adversely effected their ability to employ physicians.
As well, the Federal Special Retirement Arrangements Act provides for a retirement compensation arrangement where the 1997 contribution rate for employers is 15 times that of the employee. The net result is the annual contribution will cost boards an average of an additional $65,000 for each general practitioner and $145,000 for each specialist working for a board. With these amendments, the boards and physician staff will be able to enter into another compensation arrangement that would significantly reduce the cost for the boards and address the unique needs of physicians who hold staff positions and operate a private practice at different stages in their careers. The NWT boards of management and the NWT Health Care Association are supportive of these amendments.
In closing, I want to emphasize that these are necessary amendments that will allow boards that employ physicians to reallocate significant amounts of money. The physician will have adequate benefit packages outside the federal systems. The public will also benefit as more money will be available for health care. I will be pleased to answer any questions. Thank you, Mr. Chairman.