GNWT to update analysis of cost to bring health authority into territorial organization
Abernethy can't commit that change will be made during current assembly
Paul Bickford
Northern News Services
Wednesday, May 31, 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.
R.J. Simpson: MLA wants to see Hay River Health and Social Services Authority amalgamated into territorial authority. - NNSL file photo
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The issue arose on 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. There have been some other changes. There has been staff turnover. 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."
The minister noted that, since 2005, the GNWT has topped up the authority's pension plan with an average of $1 million every year.
"Last year, the top-up on the pension was about $872,000 and, for this year, we have an early estimate that suggests we're going to have to top up their pension $1.2 million," he said.
However, Abernethy noted new steps are being taken.
"Rather than waiting for the collective agreements to be done, 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 to find a way to bring health units in Hay River into the public service," he said. "This is something that I'd like to see happen. This is something that many of us would like to see happen, but we have to be cognizant of the fact that it is going to cost a large amount of money."
Simpson welcomed the new information.
"That's great to hear," he said, and asked the minister for a commitment that the Hay 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.
