(sent on behalf of Linda Jeffrey)


Thank you for taking the time to write to me. While I am not your specific Member of Provincial Parliament, you have written on a very important topic that impacts all of Brampton. I have taken the liberty to copy my colleagues, Mr. Vic Dhillon and Dr. Kuldip Kular, the other MPPs for Brampton.

It is difficult to explain the current status of our hospital without going into the background and history of this project. I apologize for what will be a lengthy email, but you are entitled to the full facts.

The former government signed a deal in August of 2003 to build our hospital. It was to be built under the agreement of a public-private-partnership (P3). The P3 deal was structured so that the company building the hospital (the consortium of companies that comprise The Health Infrastructure Company of Canada, or "THICC") would own and operate the hospital and lease the use of the hospital back to the public.

Our government, within days of taking office after the election of October 2nd, amended the agreement signed in August to ensure that the hospital would be a publicly owned, operated and accountable hospital. This was a fundamental change in the agreement that modified our hospital from a P3 to a public hospital.

People have asked why we can't just build our new hospital the way we used to when the government financed the whole project.

Times have changed and because health care costs have significantly escalated, the government is unable to use traditional funding models.

Our government had hoped prior to the election that we could simply scrap the deal negotiated by the former government and re-tender the project. Following the election, it was determined, upon evaluation of the contract, that it was in the best interests of the taxpayers of Ontario to amend the agreement.

There were two factors which clearly made this conclusion inevitable - there has always been a threat of significant penalties, ultimately paid by the taxpayers - and all government infrastructure, be it a school, a bridge or a hospital, must be subject to public scrutiny and evaluation. Unfortunately this process, although transparent, is time consuming. The process of
re-tendering the hospital project could mean that the hospital would be potentially delayed until 2009 or later.

The agreement signed in August 2003 was just one step of several in building a hospital. The final agreement is referred to as "financial close." Financial close means that THICC can apply for a credit rating and gather funding to begin construction. It is the last step in the agreement before bulldozers and cranes arrive on site.

In September 2003, a group comprised of the Ontario Public Services Employees Union (OPSEU), the Ontario Health Coalition and the Ontario Council of Hospital Unions launched a legal suit against the former government.

This lawsuit has negatively impacted our hospital's potential construction in two ways. First, this suit has cost our hospital Board and the Ministry of Health and Long-Term Care millions of dollars to provide adequate legal defenses. Secondly, and more importantly, this suit has had the effect of undermining the financing of this project. The company with the winning bid
must secure potential investors to help secure the necessary funds. Lawsuits bring uncertainty to the deal and ultimately investors avoid uncertainty.

The court case, although launched against the former government, is still active against the current government. The status of the hearing is that it has been deferred until the fall of 2004.

The hospital board, THICC and the Ministry of Health and Long-Term Care spent many months attempting to move forward with financial close without waiting for a decision on the court case. On May 18, 2004, the government gave the hospital board permission to move forward with an agreement that would allow THICC and the board to reach financial close and move forward with construction without waiting for a decision from the courts.

This was an important and necessary step and the board, THICC and Minister Smitherman need to be applauded for their perseverance.

Currently, the board and THICC are discussing certain cost escalations that have arisen from the delay due to the court case. They are proceeding amicably towards financial close and I hope to update you on this point in the near future.

In the interim, important work is being done on the detailed design of the new building and planning is moving a head for capital equipment.

I, Mr. Dhillon and Dr. Kular have worked tirelessly since being elected to move this project forward. We are in constant contact with the Ministry of Health and the hospital. This is an issue that consumes a significant majority of my day. You are correct in saying that what is needed by our community is a new hospital. I assure you this is a top priority of mine.

Urban sprawl is an important issue for our government - for the very reasons you outlined. Our government is currently undertaking a review of the Ontario Municipal board, which is the Board that reviews plans for development. I would encourage you to put your thoughts on this issue, in writing, in a separate email, so that I may pass it along to the Minister of
Municipal Affairs and Housing.

Thank you again for taking the time to write to me.

Linda Jeffrey