NDP calls for government audit of SHNB to ensure no more ‘failures’

Following news that the entire roof on the Saskatchewan Hospital North Battleford (SHNB) needs to be replaced due to faulty panels, the Saskatchewan NDP are calling for the province to fully audit the facility.

After staff discovered water leaks at the hospital during spring melt, the contractor was called in to investigate and found the modular panels had shrunk and created gaps across the entire roof. The consortium that built the SHNB said a full replacement is needed to remedy the situation.

“We want to know that all the materials that were chosen in the other parts of this brand new building were appropriately chosen,” SaskBuilds critic Cathy Sprolue said, citing the fact such major repairs are needed this early on in the building’s life.

In a letter sent to Gord Wyant, the minister responsible for SaskBuilds, Sprolue said the roof replacement “raises significant concerns about the viability of the construction of this P3 build and the potential for further failures over the lifespan of this facility.”

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Speaking to battlefordsNOW, Sproule called into question the public-private partnership (P3) model. While the province points to this as a saving grace, noting the costs to replace the roof do not draw from government coffers, the NDP MLA said contractors build contingency fees into their bids, which is why they are willing to take on the risk. This drives up the overall cost and ultimately costs the taxpayer, she said.

“The taxpayers are responsible for this and I think the Sask. Party needs to be much more accountable to the tax payers for the types of expenses that are being paid for by us,” she said. “In the Sask. Party’s hurry to divest themselves of this risk concern, they are not taking into account the cost.”

She further pointed to a lack of transparency and accountability in P3s, as the contracts are protected by commercial sensitivity and can’t be accessed through freedom of information requests.

In traditional builds, the government is directly responsible for all the decisions and what products and materials are used, she said, therefore “the responsibility is there.”

According to government records, Sprolue said taxpayers will fork out an average of $4.2 million per year for operations, maintenance and rehabilitation of the facility for the next 30 years. In 2017, a report from the former Prairie North Health Region showed it spent $4.8 million on repairs and maintenance for 33 facilities.

That money will go to SNC-Lavalin, who was selected by Graham Capital Partners LP in January to fill the vacant facility management role left by U.K.-based builder Carillion, which went bankrupt in 2018.

“Somebody is making a lot of money here on repairs and maintenance,” she said.

Sprolue said she believes the recent unfoldings have sent a chill down the spine of the general public about P3 procurement projects.

“Why [is the government] so quick to jump on these when we know that traditional builds have served us very well over the decades,” she said. “There may be smaller or other projects where you think private financing makes more sense, but ultimately, the debt belongs to the taxpayer so we are going to pay one way or another.”

But the government has rejected the New Democrats’ call.

In an emailed statement to battlefordsNOW, Wyant said the audit is not needed as the contract already requires ongoing evaluation of the facility.

“The work that was undertaken by the proponent to evaluate the structure and determine repairs proves that the agreement that is in place works,” he said.

The minister called into question the NDP’s claim that taxpayers will be on the hook for millions of dollars more in yearly maintenance costs.

“One advantage of using the P3 model means that maintenance costs for government are fixed – any repair and associated expense is the responsibility of Access Prairie Partnership,” he said, calling the NDP “rich” for criticizing the maintenance budget given their record.

“In 2004, a health region study recommended a new facility be constructed to replace the aging hospital; in response, the NDP’s 2005-06 budget provided zero dollars for maintenance to that same region,” he said.

He said while the NDP continues to make false claims and criticize the model, there have been savings in both construction and maintenance costs. Wyant added the government “will focus on what’s most important – providing care for our patients.”

The 284-bed facility replaced a century-old psychiatric care facility and two correctional centres when it opened in November 2018.

The $407 million price tag made it the largest investment in mental health treatment in the province’s history.

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tyler.marr@jpbg.ca

On Twitter: @JournoMarr