Health Minister Glenn Hart sidestepped questions in the legislature and was "disingenuous in his responses” over financing the $17-million nurses' residence, says Liberal Leader Arthur Mitchell.

This criticism was among several Mitchell levelled at the government today aimed at keeping the heat on the Yukon Party over its decision to offload capital expenditures worth more than $100 million to a pair of Crown corporations; the Yukon Hospital Corp. and the Yukon Development Corp.

"Despite receiving almost $700 million in annual funding from Ottawa, the Fentie government has taken out unprecedented levels of debt,” reads a Liberal press release.

During an April 27, 2009 exchange on the floor of the assembly between Mitchell and Hart over financing of the new health infrastructure, Hart said he did not have the specifics, but would endeavour to get those to Mitchell.

"Never. He never did,” said the Liberal leader when asked if Hart ever furnished the details. "And I continued to ask in the fall session, as well and couldn't get any straight answers.”

Two weeks ago, YHC chair Craig Tuton revealed the hospital corporation obtained a $17-million construction loan at prime interest rates and could enter into a fixed mortgage with the lender – Canadian Imperial Bank of Commerce – when the corporation was ready.

According to documents the Liberals obtained from an access to information request, as of January 2009, three mortgage options were available, ranging from a five-year 3.03 per cent interest rate to a 10.5 year deal at 3.55 per cent.

Under these arrangements, the Yukon government, which is backing the deal in accordance with the territory's health act, would fork out between $4.4 million to $5.2 million in interest.

Today, Tuton said the corporation is also considering a 15-year mortgage but no decision has been made. He offered the following explanation as to why it took so long for the corporation to inform the public on the financing.

"Change of heart is not the right phrase ... we had an understanding based on what our agreement was with the Bank of Commerce (and) the media was showing an interest in what these (details) were,” said Tuton. "That would be fair to say (of why we released the information). We haven't done this before.”

Which is part of the problem, according to Mitchell.

Over the next two years, the government plans to build a hospital in Watson Lake ($25 million), another in Dawson City ($25 million) and the nurses' residence while the development corporation will borrow $52.5 million to cover the Mayo B hydro project and Phase 2 grid expansion between Pelly and Stewart.

For each project, the cash will be borrowed by the corresponding Crown corporations as opposed to coming out of the government's capital budget in a lump sum.

Hart did not return calls from the Star to comment on this story. Premier Dennis Fentie has stated in previous interviews that this approach permits necessary infrastructure to be constructed without compromising program and service delivery.

Mitchell countered this financing tactic would burden Yukoners with unnecessary debt, but sidestepped the question of what he would do if he were calling the shots.

"Without taking a specific project, I would've phased them in so we weren't dealing with a huge capital expenditure at one time,” Mitchell said.

Other factors include the inevitable cost increases to deliver health care in Watson Lake and Dawson City once new hospitals are completed. Tuton estimated these costs would double in Watson Lake and triple in Dawson City to $4.4 million annually at each new facility.

Last year, Watson Lake's cottage hospital's operation and maintenance bill was $2.2 million and Dawson City's small health centre cost just $1.3 million to operate.

While Tuton said infrastructure spending should not be determined by future operating costs, Fentie claimed the new facilities would ultimately make the territory's health care expenditures more manageable.

"If we don't (build hospitals) in Watson Lake and Dawson City, we'll have to address (health care issues there) at Whitehorse General Hospital, or outside the Yukon with the cost of travel,” Fentie told the Star Jan. 12.

But Mitchell remains skeptical of what he called decentralized health care.

"It's very questionable that's an affordable model based on the population in each area,” said Mitchell.

"We're not going to have a CT scan in every community, so as (patients' health issues) become more serious or involved, you're still going to be bringing patients to Whitehorse.”