Thank you, Madam Chair. Again, for the record, the original estimates that were done did show, in fact, there was going to be a substantial increase from the old facility. The attachment provided to members shows that, for example, electricity, the units that they would use, 2.8 million kilowatt hours, as well as unit cost of that, the heating costs of 25,000 gigajules and the unit costs for that. What happened was the original estimate was done in 1999. It showed a substantial increase. As the facility came online, there was another estimate done using newer information, and it showed once again that the numbers were substantially higher; a $300,000 difference from the first estimate in 1999 to the 2003-04 year. Based on the concern that the numbers were continuing to change, direction was given to not use these estimates. These estimates were there, but the direction was given that they would not come forward for a request for more money until they could actually prove the hard costs. So until they had one full year of operation that showed actual costs for running the facility -- and that shows on the third one -- actual expenditures for 2003-04 were up to $1.6 million. The problem -- and it is not a problem, it is a matter of direction given to the health board -- was that they were not going to get any new money with estimates or not. They were going to use existing funds until they had actual costs. Once they had actual costs, then they would come and make their substantiation to the health board or to the Department of Health and Social Services and then to ourselves as FMB. So that was the understanding.
Again, for the record, just to clear the air, estimates were done, but they were not used as it was felt that the numbers had changed substantially, and we would rather just go ahead and come up with actual costs. Once they had the actual costs, then this process kicked into place of coming forward for more money. So I just want to be clear. There was not a missed estimation or an underestimation done. Estimations were provided and tracked as the project came online, but the feeling was do not go ahead on that basis. Use your existing dollars. Once you have the actual costs of the year, then come forward. That is why we are here now. Actual costs have been proven and brought forward. Thank you, Madam Chair.
