Thank you, Mr. Speaker. Mr. Speaker, earlier in a response to Mr. Ootes, Mr. Todd mentioned the Baffin Regional Hospital and a $48 million request. I should clarify that there was no request for $48 million for the Baffin hospital. That was a study to indicate the cost of a new facility would be $48 million. I am just going to follow up on that under the P3 initiative. Mr. Todd mentioned a $25 million envelope that he has set for the hospital construction. I am wondering if the financial contribution that now is forthcoming in answer to earlier questions in this House by the Health Minister from the federal government, if Mr. Todd could indicate if that monies could be used toward the $25 million that we already have allocated under the P3 initiative for the Baffin hospital and have that money in a revenue stream for the Baffin hospital, so that we can actually get to the point where we could have the facility that the study indicated? Thank you, Mr. Speaker.
Debates of May 29th, 1998
Topics
Question 593-13(5): Funding Arrangements For Baffin Hospital
Item 6: Oral Questions
May 28th, 1998
Page 1491
Edward Picco Iqaluit
Question 593-13(5): Funding Arrangements For Baffin Hospital
Item 6: Oral Questions
Page 1491
The Speaker Samuel Gargan
The Minister of Finance, Mr. Todd.
Return To Question 593-13(5): Funding Arrangements For Baffin Hospital
Question 593-13(5): Funding Arrangements For Baffin Hospital
Item 6: Oral Questions
Page 1491
John Todd Keewatin Central
A very important question my honourable colleague has asked me and I will take the question as notice to be sure. I will give him the appropriate accurate answer earlier in the week.
Return To Question 593-13(5): Funding Arrangements For Baffin Hospital
Question 593-13(5): Funding Arrangements For Baffin Hospital
Item 6: Oral Questions
Page 1491
The Speaker Samuel Gargan
Question has been taken as notice. Oral questions. Mr. Ootes.
Question 594-13(5): P3 Initiative Accounting Process
Item 6: Oral Questions
Page 1491
Jake Ootes Yellowknife Centre
Thank you, Mr. Speaker. Mr. Speaker, I would like to address again the P3 process with regard to a balance sheet and cashflow projection at the end. It would seem to be critical for us as a government to understand what the financial debt load might be down the road. Could the Minister tell us using the perimeters of the P3 with regard to the Auditor General's approach in this, could he confirm that there are certain stipulations that the Auditor General would require in order to meet the P3 process? Thank you.
Question 594-13(5): P3 Initiative Accounting Process
Item 6: Oral Questions
Page 1491
The Speaker Samuel Gargan
The Minister of Finance, Mr. Todd.
Return To Question 594-13(5): P3 Initiative Accounting Process
Question 594-13(5): P3 Initiative Accounting Process
Item 6: Oral Questions
Page 1491
John Todd Keewatin Central
My honourable colleague is correct. There are obligations that we have, an entity to meet the Financial Administration Act, to meet other legal fiscal obligations and we are under discussions with the Auditor General at this time to get a clear definition of what his expectations are so we can develop and design the policy accordingly.
Return To Question 594-13(5): P3 Initiative Accounting Process
Question 594-13(5): P3 Initiative Accounting Process
Item 6: Oral Questions
Page 1491
The Speaker Samuel Gargan
Oral questions. Supplementary, Mr. Ootes.
Supplementary To Question 594-13(5): P3 Initiative Accounting Process
Question 594-13(5): P3 Initiative Accounting Process
Item 6: Oral Questions
Page 1491
Jake Ootes Yellowknife Centre
Thank you, Mr. Speaker. Mr. Speaker, the Minister spoke in reply to an earlier question that it is difficult at the moment to get the cashflow projection. However, could the Minister do a projection of a cashflow sheet for us? Thank you.
Supplementary To Question 594-13(5): P3 Initiative Accounting Process
Question 594-13(5): P3 Initiative Accounting Process
Item 6: Oral Questions
Page 1491
The Speaker Samuel Gargan
Mr. Todd.
Further Return To Question 594-13(5): P3 Initiative Accounting Process
Question 594-13(5): P3 Initiative Accounting Process
Item 6: Oral Questions
Page 1491
John Todd Keewatin Central
Again, my honourable colleague, of what?
Further Return To Question 594-13(5): P3 Initiative Accounting Process
Question 594-13(5): P3 Initiative Accounting Process
Item 6: Oral Questions
Page 1491
The Speaker Samuel Gargan
Mr. Ootes.
Supplementary To Question 594-13(5): P3 Initiative Accounting Process
Question 594-13(5): P3 Initiative Accounting Process
Item 6: Oral Questions
Page 1491
Jake Ootes Yellowknife Centre
Thank you, Mr. Speaker. Mr. Speaker, in the normal course of corporate business, we would say we are going to spend $80 million to $100 million. Can we get an idea of what that would cost us on an annual basis? A cashflow projection, in other words, and what the stipulations are at the end? There would be a 10 or 25 percent buyout hypothetically. That is what I am driving at, so that we get a clear picture, Mr. Speaker, in the end, of what our financial picture will be.
Supplementary To Question 594-13(5): P3 Initiative Accounting Process
Question 594-13(5): P3 Initiative Accounting Process
Item 6: Oral Questions
Page 1491
The Speaker Samuel Gargan
Mr. Todd. I heard two questions.
Further Return To Question 594-13(5): P3 Initiative Accounting Process
Question 594-13(5): P3 Initiative Accounting Process
Item 6: Oral Questions
Page 1491
John Todd Keewatin Central
I believe, I originally said that we thought that the ballpark figure, and I believe I said it to the committee and I said it before, that it was going to be in that range. If you spend all the money, let us a $100 million deal, depending on what the price of money is and depending on what the deal is, depending on what the time and investment is, a ballpark figure is somewhere in the region of $20 million on an annual basis, based on a $100 million worth of leases. Based on $100 million worth of P3 projects, but I do not think that is the way to handle it, if I may, Mr. Speaker. I think we need to work each project, as I said, based on its merits and we need to develop a cashflow. There has to be a return for an investment somewhere here for the government. We are intent to do that. I am reluctant, not because I do not want to, I am reluctant to fully understand my honourable colleague's question. I could say that $100 million worth of projects out there, I can work on the assumption that money is going to cost 7 percent, that the investor is going to want 9 percent return on investment and
therefore, it will cost us the following. I could do that. There are a thousand of those scenarios. We need to get out there and get the RFPs out, get some meat on the agreements and then, do a comprehensive cost benefit analysis and provide my honourable colleague and others with that. Right now, we are trying to develop the boiler plate to do that so we can do it quickly and provide the Members with the net result. Thank you.
Further Return To Question 594-13(5): P3 Initiative Accounting Process
Question 594-13(5): P3 Initiative Accounting Process
Item 6: Oral Questions
Page 1492
The Speaker Samuel Gargan
Oral questions. Final supplementary, Mr. Ootes.
Supplementary To Question 594-13(5): P3 Initiative Accounting Process
Question 594-13(5): P3 Initiative Accounting Process
Item 6: Oral Questions
Page 1492
Jake Ootes Yellowknife Centre
Thank you, Mr. Speaker. Mr. Speaker, we are looking at $100 million hypothetically this year, 80 to 100 and a cost in the neighbourhood of $20 million per year in mortgage costs. Could the Minister tell us are we able and in a position to do that amount of substantial P3 projects every year or is this just a one time shot that we are looking at? Thank you.
Supplementary To Question 594-13(5): P3 Initiative Accounting Process
Question 594-13(5): P3 Initiative Accounting Process
Item 6: Oral Questions
Page 1492
The Speaker Samuel Gargan
The question is out of order. Do you want to rephrase the question, Mr. Ootes?
Supplementary To Question 594-13(5): P3 Initiative Accounting Process
Question 594-13(5): P3 Initiative Accounting Process
Item 6: Oral Questions
Page 1492
Jake Ootes Yellowknife Centre
Thank you. I would like to, Mr. Speaker. This year, we are looking at the projects as pilot projects. Can the Minister tell us that these will be used as examples and will do the same volume next year? Thank you.
Supplementary To Question 594-13(5): P3 Initiative Accounting Process
Question 594-13(5): P3 Initiative Accounting Process
Item 6: Oral Questions
Page 1492
The Speaker Samuel Gargan
Mr. Todd.
Further Return To Question 594-13(5): P3 Initiative Accounting Process
Question 594-13(5): P3 Initiative Accounting Process
Item 6: Oral Questions
Page 1492
John Todd Keewatin Central
Thank you, Mr. Speaker. Unfortunately, I cannot predict the future. I wish I could. The reality is, I am going to be serious with this because I know the importance of the issue to my honourable colleague as well as to myself. A detailed cost-spend analysis is going to be done on those projects. That cost-spend analysis has to be done and there has to be a return for investment, one way or the other, by this government. When we have done that we will then know what the short and long-term fiscal obligations are to this government and the future governments. This Finance Minister, under the P3 projects, does not want to leave a legacy of debt for future governments if they cannot afford it. The affordability issue has been essential right from the very beginning I would ask my colleague to be patient on this issue and he will get the answers he wants. Should he get elected in the next election, he will be able to deal with what happens next year. I cannot predict what is going to happen next year.
Further Return To Question 594-13(5): P3 Initiative Accounting Process
Question 594-13(5): P3 Initiative Accounting Process
Item 6: Oral Questions
Page 1492
The Speaker Samuel Gargan
Question period is over. Item 7, written questions. Item 8, returns to written questions. Item 9, replies to opening address. Item 10, petitions. Mr. Evaloarjuk.
Petition 4-13(5): Pay Equity And The Collective Bargaining Process
Item 10: Petitions
Page 1492
Mark Evaloarjuk Amittuq
(Translation) Mr. Speaker, I would like to present a petition dealing with the matter of pay equity and the collective bargaining process and the outstanding pay equity complaint from the current collective bargaining process. Mr. Speaker, the petition contains 16 signatures of residents of Pond Inlet and, Mr. Speaker, the petitioners request that the Government of the Northwest Territories separate the outstanding pay equity complaint from the current collective bargaining process that is being negotiated at this time. Thank you, Mr. Speaker. (Translation ends)
Petition 4-13(5): Pay Equity And The Collective Bargaining Process
Item 10: Petitions
Page 1492
The Speaker Samuel Gargan
Petitions. Mr. Ootes.
Petition 4-13(5): Pay Equity And The Collective Bargaining Process
Item 10: Petitions
Page 1492
Jake Ootes Yellowknife Centre
Mr. Speaker, I seek unanimous consent to return to item 7, written questions.