Cost of merger is on the rise
$20M-plus price tag of welcoming Health and Social Services Authority into GNWT
Paul Bickford
Northern News Services
Monday, June 12, 2017
HAY RIVER
The GNWT is taking another look at the potential cost of bringing the Hay River Health and Social Services Authority into the territorial public service.
The issue arose May 25 in the legislative assembly when Hay River North MLA R.J. Simpson asked Health and Social Services Minister Glen Abernethy whether the authority will soon be amalgamated with the NWT Health and Social Services Authority, which was created last year.
The Hay River authority was one of the two left out of the amalgamation because it was engaged in union negotiations, although the MLA said the primary reason appears to be the cost associated with bringing it on board, due to its underperforming pension plan.
"This pension issue has been going on for over a decade, and the price tag is growing," said Simpson.
"Every time I bring it up, it is a different number: $20 million, $15 million, $25 million. I am bringing it up again because I see the negative effects of being excluded from the NWT Health and Social Services Authority in relation to issues like medical travel, staffing and mental health."
Simpson again asked Abernethy how much it would cost to bring the Hay River authority into the territorial organization.
Abernethy responded he doesn't know.
"I know that when we looked at bringing the health authority in during the last assembly, the cost estimates were about $20 million," he said.
"Things have changed since then. We have put in 12 new positions in Hay River.
"The bottom line is I can't tell you what the number is today, but it is likely still around that number, maybe slightly higher."
However, Abernethy noted new steps are being taken.
"Rather than waiting for the collective agreements to be done," he said, "I've already directed the department to do an updated analysis on what it would cost but also to develop a plan on how we can move forward prior to having these agreements concluded so that we can move forward."
Simpson welcomed the new information.
"That's great to hear," he said, and asked the minister for a commitment that the Hay River authority would be brought into the NWT Health and Social Services Authority before the end of the current assembly.
Abernethy said he could not make that commitment, since any financial hit is going to have to be considered along with all other costs the government is facing.
