Liberal Leader Arthur Mitchell says the Yukon Party government has lost its defence of using sole-source contracts to promote local employment.

Three more contracts totalling $635,900 for the new multi-level care facility in Watson Lake have been sole-sourced but two firms are from Whitehorse, Mitchell pointed out in an interview Monday.

'This is beginning to have all the look of a project going off the rails,' Mitchell said. 'I have also heard there is a problem with the project.'

By sole-sourcing work to two Whitehorse firms, it can no longer be argued there is a need to ignore regular contracting guidelines to ensure maximum local employment for the town of 1,544, Mitchell suggested.

Northern Climate Engineering Ltd. of Whitehorse was given a $341,500-contract recently and Dorward Engineering Ltd. of Whitehorse was given a $236,400-contract.

Raketti Construction of Watson Lake also received a sole-sourced contract last fall, in the amount of $58,000 for continuing project management work, on top of the two other contracts totalling $351,000 given to the company last summer.

Mitchell wonders why the two contracts were recently sole-sourced to Whitehorse companies, as there are other companies here qualified to do the same work, but were given no opportunity to bid.

It's well understood, said the Liberal leader, that the public tender process is the best way of ensuring fairness and the best value for taxpayers.

'I guess we can no longer say this is Mr. Jenkins' approach to doing things,' said Mitchell, referring to former Health minister Peter Jenkins and his resignation from cabinet in November. 'This is the Yukon Party approach to doing things.'

Health Minister Brad Cathers declined comment. The Lake Laberge MLA, the youngest of the Yukon Party caucus, was appointed in December as Jenkins' successor.

Mitchell said Premier Dennis Fentie is well aware that Yukon contractors are not happy with the soul-source contracts in the premier's hometown.

While still in charge last fall, Jenkins said the work being directed to Watson Lake businesses was the preference of the community. He said it was a means of maximizing local employment and local opportunities, and a means of avoiding a publicly-tendered contract going to a low bidder from Outside.

It should be no surprise if the entire $5-million project is sole-sourced, Jenkins said back then.

'I guess perhaps he (Jenkins) has left Mr. Cathers his marching orders, or somebody has,' Mitchell said of the recent sole-sourced contracts.

'It appears Mr. Cathers is following through with the same We know best' approach.'

Mitchell also questioned why nothing has been done on the site for the past two months. He suggested the inactivity is a reflection of problems now being encountered with design and construction plans.

He said he's heard there's been a major design change because somebody has figured out the new multi-level care facility is not as compatible with the old hospital, as originally thought.

John Greschner, deputy minister of Health and Social Services, explained Monday the project is not having problems.

'There has been a period of little or no activity there but that is because we are in the final design stage,' Greschner said.

The deputy minister said it has always been the intent to finalize the design in time to have it before management board this month for final approval. That is still the intent, he said.

Greschner said the decision to change the initial design of having one main entrance and a common foyer to service both the new multi-care facility and the hospital was made in consideration of concerns raised by seniors.

'They did not want to feel like they were going to the hospital every time they were going home.'

He said there will now be two separate entrances, though there will still be access between the two buildings through a utility door.

The deputy minister said how future contracts will be awarded, whether they will be sole-sourced, is not his decision to make.

The multi-level facility is also being designed so its heating and other mechanical systems can be tied into the old hospital if it's ever rebuilt or renovated, Greschner explained.

Raketti Construction, owned by Ivan Raketti, father of Yukon Party cabinet minister Elaine Taylor, was awarded a $71,000-contract last summer to serve as project manager for construction of the multi-level care facility.

Four days later, Raketti Construction was awarded another $281,000-contract to complete the foundation work.