Sage advice over Iqaluit hospital deal
Baffin health board not willing to take the money and run

by Jeff Colbourne
Northern News Services

NNSL (Oct 20/97) - It's like being given a blank cheque and told to buy a vehicle without considering what your need one for.

You may end up going out, buying a Volkswagen Beetle and discover later that you need it to transport around a football team.

That's how Doug Sage, acting CEO of the Baffin Regional Health Board, describes the situation facing the board over a new Iqaluit hospital.

"First things first," said Sage.

Before the board decides to sign a loan or lease deal with the Qikiqtaaluk Corporation to build a new hospital they want to know the cost, a hospital design and details about what functions it will serve.

The board also wants to avoid running the risk of going too far into debt over the deal. "These are the issues, and I don't think they're insurmountable," he said. "We're just trying to be responsible with the public purse."

A tender ended last week to get a company do an analysis of the hospital deal, Sage said. And until the review is complete, all the board can do is sit and wait.

"The region needs a hospital ... but we need to slow down a bit," he said.

The board's decision to hold off entering into an agreement immediately with Qikiqtaaluk over the hospital's construction is coming under the scrutiny of the Baffin Regional Chamber of Commerce and the Iqaluit Chamber of Commerce.

The Baffin chamber has even gone as far as asking Health Minister Kelvin Ng to remove chief executive officer Pat Kermeen from her position.

Kermeen was out the territories and unavailable for comment last week.

In the heat of the debate, health board chair Ann Hanson made her sudden resignation. She, too, could not be reached for comment.

In a letter to Ng, Rhoda Arreak, president of Baffin chamber, said that they want him to "appoint a competent administrator charged with the task of entering into an agreement with QC immediately."

"There's not much time at all," said Arreak. "If there's no deal signed, like right now, we might lose the hospital. Everything else is in place, she said but the construction part is still iffy."

In a recent press release the chamber said it supported the construction of a hospital by Qikiqtaaluk for lease-back by the board or a 20-year lease-to-purchase deal. Any time during that 20-year period the board or a Health Foundation could buy out Qikiqtaaluk's interest for a price.

Arreak said they need this deal because there's no way they can raise the money themselves. To date she said they have raised only $4,000.