Legislators Pass Motion To Borrow $45 Million For Hospital Project
There was overwhelming support in the Legislative Council on Tuesday for a motion brought by BVI leader Honourable Ralph T. O'Neal to borrow monies to finance the new hospital project. The aggregate sum of $45M will be sought from six financial institutions, Chase Manhattan Bank BVI; Scotiabank BVI ltd.; Banco Popular de Puerto Rico BVI; Barclays Bank PLC, BVI; Development Bank of the Virgin Islands and the BVI Social Security Board, which have tendered commitments, in principle, to the government. "The government will be charged with the responsibility of repaying the funds borrowed, together with interest charged and any other expenditure incurred in connection with the borrowing," he moved.
In explaining the motion, the Chief Minister and Minister of Finance noted that it does not go into details and stipulate the rate of interest nor the repayment schedule. He said these are matters that will have to come back to the House. He said what government was proposing that Council gives its approval, in principle, so that government could begin negotiations with the financial institutions. He said preliminary discussions have taken place with Scotiabank, which will act as the lead bank. "This is because of what we experience with the Central Administration Building, when each bank had a different criteria, we had to negotiate with each one and each one was different in its approach and its terms - so it was decided that there would be a lead bank and the negotiations will be between the lead bank and the government." "Another thing Mr. Speaker, we were not able to complete all the detailed drawings and I was only able to give the architect's preliminary sketch of what the new hospital will look like," Hon. O'Neal said. He said government has not yet appointed a Project Manager nor a Quantity Surveyor who will be able to give the detailed estimates. The architectural firm of Paige, Sutherland, Paige of Texas, USA has been given the mandate to design the new hospital.
From as early as the late 1970's /80's, the health sector has been a concern of this territory. Emanating from sources of funding identified by development aid, monies were at one time earmarked to address the provision of services to meet the needs of the hospital. In the 1990's, funding for a psychiatric ward and a morgue was secured from the British government. It was never utilized by the health sector and was later directed to other government projects. As Minister of Health in the mid 1990s, Hon. O'Neal recalled that a programme of Health Sector Reform was initiated which effected some changes, such as the upgrading of the position of Chief Medical Officer to Director of Health. A position of Director of Primary Health Care was also included.
He said the time has now come to re-look this long-standing project in its broader sense. "Mr. Speaker, all of us are aware that the new facility is not the only requirement. What has been done is that there is also a proposal to help to train the staff, so that by the time the new facility is finished, the staff will be able to move into it with a new dimension," he explained. He said this was due to the very excellent work of At-Large opposition Member Hon. Eileene Parsons, when she was Minister of Health.
The Chief Minister said government has committed to the advancement of this project, recognizing the need of the territory. During his budget presentation last year, he indicated that if he had to tap into the reserves, he was prepared to do so, for this project. He reiterated that the figures does not constitute a detailed estimate and may end up being either more or less. But he said the House would be duly informed. "But we do want to be able, in discussing with the bank when we get down to serious negotiations, that the Legislative Council has agreed, in principle to the borrowing of these funds." Chief Minister O'Neal re-emphasized the importance of having split the Ministry of Health, Education and Welfare into two. He contended that it was impossible for one person to carry both portfolios of Health and Education. He said the present Minister has "thrown herself into this task and is working night and day" to see the project through. He mentioned the addition of a dialysis machine at Peebles Hospital and noted that improvements have been made to the health service over the years. He said he had every confidence that his colleagues on both sides of the House will make this project a number one priority of the Ministry of Health and Welfare. "We owe it to ourselves and the people of this territory to ensure the highest possible level of health care is available within our territory." Support for the project came from Deputy Chief Minister and Minister of Communications and Works Hon. J. Alvin Christopher, who rose to second the motion. He said it was long overdue and the people of this territory are ready to welcome this project. Hon. Julian Fraser, Minister of Natural Resources and Labour, referred to this project as the single most important project that this government would be undertaking.
Opposition Members also supported the motion, but raised several questions. Territorial Representative Hon. Ronnie Skelton wondered how government arrived at the figure of $45M, up from an original estimate of $30M. He also questioned the Development Bank as a source, considering its financial status with government having to lend it money and he requested copies of the annual reports of the Social Security Board. Member for the 4th District Hon. Mark Vanterpool said he would indeed be disappointed to go back to the polls and tout the importance of health, if the Legislative Council was not able to deliver on this promise they made during the last election campaign. "We're pleased to see something concrete is happening in the attempt to move this process forward, and hopefully in the year 2001, we can see some major progress made towards providing this facility and all the other services that are important to go along with it to ensure that we have first class medical facilities here in the British Virgin Islands." Opposition Leader Dr. the Hon. Orlando Smith supported the motion from his informed position as former Chief Medical Officer at Peebles Hospital. He made one appeal for the Chief Minister and Minister of Health to involve the workers at the Hospital in the project and get them to "buy in" to the project.
Former Minister of Health, now opposition Member, Hon. Eileene Parsons, took slight issue with the Leader of the Opposition. She confirmed that the workers at the Hospital were involved in the project every step of the way, but "sometimes it was pathetic the resistance you met because you wanted to make a change". She recalled the flak that government took about this project. The critics argued that government's priorities were wrong in putting the building of a race track and a new airport over a new hospital.
New Minister of Health, Hon. Ethlyn Smith thanked everyone who supported the motion. "No-one would imagine how good it makes me feel that we are now on the way, it has been a long journey, but we are getting closer to giving the people of this territory what they so long deserve - a modern hospital - so that some of us donāt have to travel overseas and experience all of the negative situations"
In wrapping up, Chief Minister O'Neal explained that the original estimates only related to the building, but the latest estimates would include the provision of equipment. He added that borrowing from the Development Bank would only serve to strengthen the bank's financial position and in terms of the Social Security Board, he informed the House that the annual report is on the way.