Thank you, Mr. Chairman. I was wondering if the Minister could tell us, what are the biggest cost drivers that have led to the nearly $10 million increase that we are looking at on page 6-18?

Thank you, Mr. Chairman. There was a little over a million dollars for collective agreement adjustments for boards; $1.4 million dollars to increase the standardized physician contracts; $1.4 million for the medical clinics' operating costs; $3.9 million to forced growth for boards; enhancements for the primary care health services delivery model, $840,000; and the third internist at Stanton, with associated support for the whole team, of $400,000.

Thank you. Also under health services programs, there is a significant increase in the contributions to boards of management for health services programs. I am wondering, I know there were three boards that had significant deficits in the past couple of years. Can the Minister outline what is happening with the resolution of those deficits? Have they been resolved? Have the budgets been accepted that the boards have put forward? How is the department dealing with the deficit issue?

Thank you, Mr. Chairman. Mr. Chairman, if the Member is asking about the accumulated debt prior to April 1st of this last year, then I can indicate to him that we are working with the boards to come up with a shared response in terms of trying to deal with that accumulated debt. The anticipated plan of attack is that from here on in, the boards will be required to cover off any year to date deficits as they occur at this point, other than forced growth items that may occur. Thank you.

Thank you. Just so I get a better understanding, for instance, I know Stanton had a significant deficit. Can the Minister outline to us how specifically we are going to deal with the deficit at Stanton and have them in a balanced position going forward?

Thank you, Mr. Chairman. Mr. Chairman, the agreement I am operating on as Minister is that for the accumulated debt, the department will cover 60 percent. The boards will be expected to come up with recovery plans to deal with the remaining 40 percent and we are just working out those details with the health boards, so that we make sure that service levels are not negatively impacted. At this point, that is the plan. Thank you.

Thank you, Mr. Chairman. How is the 60/40 split arrived at?

Mr. Chairman, that was the figure that I put on the table with the boards. There was some movement, but the figure that was settled on was 60/40 as a way to resolve the issue and as a way to recognize that up until April last year, the board budgets may not have been accurately funded and there were some costs that were not anticipated. It was a number that I agreed to as Minister. Thank you.

Thank you, Mr. Chairman. So the Minister has said that this is an arbitrary figure that he happened along and felt was fair. He said that he made this offer to the boards. Was this offer made to all of the boards that were in deficit, or was this an offer that was made to Stanton alone?

Mr. Chairman, This 60/40 split is on the table for all boards with committed debt. Thank you.

I am just wondering about the process. Was the process where the Minister wrote to the boards and suggested this split so that the boards could consider that at a board meeting, or was this something he discussed with the board chairs of the three boards involved?

Thank you, Mr. Chairman. This was something of a process. It was an issue that needed addressing. There had been some ongoing protracted negotiations with the various boards trying to come to a resolution. When I became Minister, it was one of the items I thought was important that we try to resolve, so it was put on the table. It was put on the table with all the board chairs as the approach that I was hoping to take. Thank you.