Debates of February 7, 2018 (day 5)

Date
February
7
2018
Session
18th Assembly, 3rd Session
Day
5
Members Present
Hon. Glen Abernethy, Mr. Beaulieu, Mr. Blake, Hon. Caroline Cochrane, Ms. Julie Green, Hon. Jackson Lafferty, Hon. Bob McLeod, Hon. Robert McLeod, Mr. McNeely, Hon. Alfred Moses, Mr. Nadli, Mr. Nakimayak, Mr. O’Reilly, Hon. Wally Schumann, Hon. Louis Sebert, Mr. Simpson, Mr. Testart, Mr. Thompson, Mr. Vanthuyne
Topics
Statements

Question 49-18(3): Impact of Collapse of Carillion Canada on Stanton Renewal Project

Thank you, Mr. Speaker. Mr. Speaker, my questions today are for the Minister of Finance, and they are with regard to the Stanton Renewal Project and the partners in the Boreal Health Partnership. Mr. Speaker, the Minister of Finance has stated that the service contract with Carillion Canada is business as usual. However, we know now that subsequently Carillion Canada has sought creditor protection, and this is in effect for 30 days, and its leadership is currently assessing the situation and working with stakeholders to ensure continuity of operations. I want to ask the Minister: is the Minister, since his original statement, still confident that it is business as usual? Thank you, Mr. Speaker.

Speaker: MR. SPEAKER

Masi. Minister of Finance.

Thank you, Mr. Speaker. Mr. Speaker, as the Member noted, Carillion Canada's financial situation has changed dramatically, and it required CCA protection so that it could stabilize its operation and secure financing to ensure the company remained operational over the long term. Thank you, Mr. Speaker.

Thank you to the Minister for the reply. I think what I'll do is, because I respect that there are probably other questions coming down later today, I'll then jump to my second question instead of asking for more detail there. What action is the GNWT taking to mitigate the impacts of the potential sale of Carillion Canada and the potential loss of Carillion's considerable expertise both in project and in operations experience? Can the Minister give us the reply to that?

First of all, they are partners in the construction, and the hospital is for the long term. It's the Department of Health that would provide health services, health care in the new Stanton Hospital, so they are partner in the consortium that's building the hospital and the service provider in the long-term care.

We have not entered into any contractual arrangements with Carillion Canada to provide service for the Stanton Hospital. BHP, the Boreal Health Partnership, it is their job to find a replacement service provider in the event Carillion Canada is not able to stabilize its operations.

Thank you to the Minister. Okay, well, I guess then if there's the opportunity that the structure of the partnership might change because of the possible sale of Carillion Canada, which almost seems imminent, I just would like to get clarification from the Minister: does he expect that there would be any delay in planning implementation of the 30-year project agreement?

No. As I previously noted, this was the Boreal Health Partnership's issue to resolve in a timely manner. There are financial incentives for them to do this.

Speaker: MR. SPEAKER

Masi. Oral questions. Member for Yellowknife North.

Thank you, Mr. Speaker. Mr. Speaker, given that we know that there might be, and likely will be, a change of one of the players within the partnership, there's still an underlying concern out there as to whether the GNWT will get the opportunity to have any oversight or any input into the possible replacement of this partner. Can the Minister explain? Will we have any input into the possible replacement for the partner of Carillion? Thank you, Mr. Speaker.

BHP ultimately remains responsible for the performance of the services, or it will face significant financial penalties. Further, the project agreement requires any replacement service provider entering a service agreement with BHP on same or similar terms as was agreed to by the existing service provider. There are also a number of restrictions on which entities can be selected as a replacement. For example, the GNWT can refuse or accept or replace an entity whose standing or activities are inconsistent with or likely to compromise the reputation or integrity of the GNWT or the delivery of public services in the Northwest Territories.

Speaker: MR. SPEAKER

Masi. Oral questions. Member for Yellowknife Centre.