Opposition parties accuse government of using St. Clare's announcement as distraction

Opposition MHAs had questions on Tuesday about the provincial government's plan to replace St. Clare's Mercy Hospital in St. John's and if that plan includes a building contract being awarded to a company with ties to the Liberal Party.

During question period, PC Opposition House leader Barry Petten referenced a report by online news outlet AllNewfoundlandLabrador thatrevealed that during the 2021 election, Marco Group CEO Chris Hickman served as guarantor for$150,000 of a $500,000 line of credit for the Liberal Party.

"Is this new hospital project a way for the premier to hand another contract to your Liberal friends?" Petten asked.

During the announcement about the new hospital on Monday, Premier Andrew Furey said the government is considering a public-private partnership for construction of the new facilitybut hasn't made a final decision. The provincial government also hasn't set a construction timeline for the new hospital, said the premier.

Marco Group has been a part of several public-private partnership projects in Newfoundland and Labrador, includingthe new mental health hospital under construction in St. John's and the new penitentiary.

According to campaign financial statements available onElections N.L.'s website, Hickman was a guarantor for $150,000 on the$500,000 line of credit while former Liberal Party president John Allan was guarantor for $75,000.

Speaking to reporters, Transportation and Infrastructure Minister Elvis Loveless called Petten's question and the insinuated connection between Marco and the new hospital "political silly games."

"Chris Hickman doesn't need to come to me and look for favours. He's doing great work. I pat him on the back for that," he said.

Loveless said the government'sprocess for awarding P3 contracts for projects involving Marco and Chris Hickmanhas been fair.

"He participates in the process, it's done fairly and the results are him getting contracts to provide service in this province."

A Marco spokesperson said Hickman was not available for comment.

Scarce details

While speaking with reporters, Loveless admitted the government wasn't pleased with aspects of the long-term care facilities in Gander and Grand Falls-Windsor, both P3 projects.He said he has asked staff in his department to reflect on what went wrong with the projects.

"This is large infrastructure. This is not a three-bedroom house that we're building here. Things will happen, and there will be deficiencies," he said.

Loveless wouldn't say when the provincial government began planning the new hospital, beyond saying it was within the last year, and he doesn't yet have a ballpark figure for the cost of the facility.

"We have to do due diligence," he said.

In a statement provided to CBC News, the Newfoundland and Labrador Medical Association said the announcement was unexpected.

"We always welcome infrastructure improvements, but we haven't seen the information behind this decision. We appreciate the premier's assurance that this project will not take priority away from the very challenging human resource issues in the health system," said the statement.

Loveless saidthe provincial government, as far as he knows,hasn't completed a feasibility assessment for the new hospital.

'Psychological games'

Interim NDP Leader Jim Dinn criticized the timing of the announcement in light of controversy over Furey's 2021 trip to John Risley's fishing lodge.

"Will the premier admit that yesterday's announcement was simply an attempt to distract from the fishing trip at his friend's lodge and the potential conflict of interest?" he asked.

Risley is a friend of the premier and chairman of World Energy GH2, a company looking to set up a wind-powered hydrogen-ammonia plant on the Port au Port Peninsula. Furey has repeatedly defended the trip, saying he paid for it himself, and the topic of wind farms and hydrogen plants didn't come up.

Dinn said the St. Clare's announcement came "out of the blue."

"On what data did the premier and his caucus make this decision?"

The Tories have repeatedly asked the premier to table his receipts from the trip something so far, he hasn't done.

A spokesperson said the premier wasn't available to speak with reporters on Tuesday.

Petten accused the premier of playing "psychological games."

"That's the diversion make you feel good when things are bad," he said.

Loveless said the opposition is trying to make a connection where there isn't one.

"It's a fair process. There's fairness advisers involved in this so that brings that fairness and that balance to it," he said.

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