Pressing the Government About Shannex-Hogan Court Spending

On September 10 I asked the Minister of Health and Wellness to tell us what the public is getting for the $120 million thee government is spending on the Shannex Hogan Court facility. Below is our exchange:

SUSAN LEBLANC : My question is for the Minister of Health and Wellness. In March of this year, representatives from the Nova Scotia Health Authority said that agreements with Shannex over the sale of the Hogan Court hotel were ongoing and that it would be finalized in a matter of weeks. At the time, full costs were still unknown. Shannex's rate was being negotiated and consultants were still being paid for the work on the project. My question is: Can the minister confirm if a final agreement is in place and what is the total cost to Nova Scotians?

HON. MICHELLE THOMPSON : Certainly, we continue with this exciting project that we are happy to partner with Shannex on: Parkland West Bedford , a state-of-the-art transition to care facility. While they have taken over the property itself, we continue to work with them and more details will be available.

SUSAN LEBLANC: That's a disappointing response, actually. The Auditor General's February report on the facility raised serious questions about this government's use of untendered agreements, even with Shannex themselves, and despite this criticism, the government's tender database shows a June 13th approval of a startling $120 million untendered contract to Shannex. My question is: Can the minister tell us what this $120 million is getting us, and why, despite the warnings and criticisms from the Auditor General, this government is still spending massive sums of taxpayers' dollars in the dark?

MICHELLE THOMPSON: The building and the model that has been innovated and imagined in Nova Scotia at West Bedford is something that we should all be very proud of. We have world-class experts who are going to be providing care to frail, elderly people who are in hospital currently, who are transitioning to a home that is going to provide state-of-the-art elder care, which we need in this province. We are so fortunate to have that and we will continue to work on innovative ideas. It does happen through an alternative procurement offer which allows us to be nimble. We are either too fast or we are too slow, but on this deal, I think we are just right.

Question to Minister: Why did gov pay developer’s tax bill on Hogan Court?

SUSAN LEBLANC: Speaker, my question is for the Minister of Health and Wellness. In the Auditor General’s report on the Hogan Court hotel deal, it was revealed that the highly unusual and concerning transaction was negotiated with a developer who didn’t even own the property and then included $500,000 to cover the developer’s deed transfer tax after they bought and flipped the hotel to the Province. My question is -and I think we would all like to know this -why is the government paying this developer’s tax bill?

HON. MICHELLE THOMPSON: We continually talk about Hogan Court, and I’m so pleased to be able to stand up and talk about that first-in-the-province transition-to-care facility. This is a monumental change. I can appreciate that they’ve . . . (interruption).

THE SPEAKER: Order. We’re all a little bit too loud in here today. We’re going to start again. The honourable Minister of Health and Wellness.

HON. MICHELLE THOMPSON: Thank you. I’d like to thank the members opposite for just helping me prompt my response there. I might have missed that opportunity if they hadn’t said something. We are really pleased with this development. There was a right of first refusal that informed how we proceeded with the project. We bought this facility so that we can get more care faster to Nova Scotians, particularly our seniors who are waiting in hospital. There are things we can absolutely learn from the Auditor General’s report. We have accepted them. Certainly the last Auditor General’s report had said that I was going too fast and doing too much, and I will take that any day over other . . .

SUSAN LEBLANC: Speaker, many may find it hard to believe, but despite spending a massive amount on this shell of a hotel, the government missed a pretty important part: the driveway. Shockingly, the government’s new overpriced hotel doesn’t even have road access. Instead, this government had to negotiate service and access agreements with the developer to make up for the omission. Why did the purchase of this hotel fail to include a driveway, and how much are we paying the developer for road access to our own building?

MICHELLE THOMPSON: If the only thing the member opposite can find wrong with Hogan Court is that it doesn’t have (interruption). The only thing we’re talking about today is a little driveway. I feel confident in our ability to put in an adequate driveway that will help families pick up their loved one and take them home after they receive excellent care in a transition-to-care facility.

Susan Leblanc Asks Government About Careless Spending on Hogan Court

SUSAN LEBLANC: Speaker, the government’s approach of “going like hell” -and I’ll table that -has proven to be high-risk but not high-reward. In fact, care seems to be missing entirely from the government’s approach to health care spending. Carelessly handing out untendered contracts has resulted in out-of-control costs, and a decrease in the promised number of additional health care beds. My question for the Minister of Health and Wellness is: When will the government take responsibility for its poor decision on the Hogan Court project?

HON. MICHELLE THOMPSON: There have been historic investments to date with a new budget coming. We have made incredible decisions. We have made incredible investments -60,000 more primary care appointments per month. We’ve invested in 60 new and strengthened primary care clinics across this province. We are finally using pharmacists to the fullness of their scope, resulting in 95,000. We are working with seniors in long-term care with the Nova Scotia Health Authority to transition seniors in this province in a respectful way to appropriate places for them to recondition and finally get home. We have a new Cape Breton Medical Campus. We have a surgical wait-list that has reduced by 27 per cent since April 1, 2022. I have about six more pages . . .

SUSAN LEBLANC: Money is tight these days. Nova Scotians go to the grocery store and compare costs before deciding what items to buy because they understand the importance of getting value for what they are spending. On the other hand, this government -as we have heard from the Auditor General bought a $35 million hotel without even a proper appraisal. While many Nova Scotians are scrounging to save a few cents, the government is recklessly throwing around millions of dollars. Will the government apologize to Nova Scotians for taking such a careless approach to health care spending?

MICHELLE THOMPSON: What I really want Nova Scotians to know is that this is a government that fully invests in their health, in their wellness, and in their ability to transition, based on the stage of their life, to an appropriate place where they can live. We did not buy a hotel; we bought a transition-to-community facility. When you have people who are world-class clinicians -like Dr. Christine Short and Dr. Rockwood excited about the prospect of the ability to care for our elders in this type of environment, it is more than value for money. Nova Scotians should be very proud that this government has their shoulders to the wheel, and that we show every day how we value them, because nobody on that side did for the last 12 years.