Dr. Swann: Thank you very much, Mr. Speaker. What the Premier and minister of health do not realize is that by failing to take action and put an end to the extravagant bonuses handed out to the Alberta Health Services executives, they agree with giving these people handfuls of taxpayers’ dollars as a reward for bringing the health care system virtually to standstill. 

To the minister of health: will you or will you not put an end to the system that erodes public confidence?

Mr. Zwozdesky: I don’t know if I’ve heard such a silly question in this Chamber in all the years I’ve been here. There are no policies in place to erode the system. What we have is an excellent system of health that we’re still trying to improve. We’ve done that by providing additional dollars, by streamlining some of the processes, and by continuing to provide Albertans with the very best health care possible in these difficult circumstances.

Dr. Swann: Well, Mr. Speaker, given that contracts don’t guarantee bonuses, why are bonuses being given out to Alberta Health Services senior executives for poor performance? Why?

Mr. Zwozdesky: Mr. Speaker, there’s no poor performance associated with any of this. What there is are very specific, targeted performance measures, very specific benchmarks. Everybody is going to be very accountable. That’s where we’re at today. I’m not going to comment on stuff from the past, which is where the hon. leader appears to be living at the moment.

Dr. Swann: Mr. Speaker, why is it that this minister is going to wait for yet another review when he already knows what everybody in Alberta knows and wants him to do? Will he or will he not do the right thing? Put an immediate end to executive bonuses and guarantee that not a single bonus payment in ’09-10 will be made in Alberta Health Services.

Mr. Zwozdesky: Mr. Speaker, I think I clarified quite clearly that what we’re doing is honouring the commitments that were made, contractual commitments from a previous era. That is being done as we speak. I think it’s important for people to know that there are a lot of streamlining costs that point to very outstanding performance.

For example, instead of 12 CEOs, now we have one. Instead of 66 senior vice-presidents, we have seven. That has saved millions of dollars, that are going back into providing outstanding care for Albertans across the province.

Health Services Executive Pensions

Dr. Swann: Thank you very much, Mr. Speaker. Well, the story goes on. The executives at Alberta Health Services not only have rich six-figure salaries; they also have two pensions. Count them: two, the local authorities pension plan and the supplemental executive retirement plan. The second, the supplemental executive retirement plan, does not require any employee contributions. To the minister: why are these executives so special that they are entitled to two pensions, one of which is totally paid for by taxpayers?

Mr. Zwozdesky: Mr. Speaker, I indicated that all of this is under review, as are all the roles, responsibilities, and the very mandates of some of the positions he’s talking about. What has to be kept in mind here is that while these individuals have been transferred from previous authorities into the new Alberta Health Services, they have inherited additional work. They are being compensated for that additional work because there’s an increased workload, there are increased responsibilities that come with it, and we want the very best people occupying those positions.

Dr. Swann: Well, we know from documents that the Towers Perrin group has been working on this review for 10 months, Mr. Speaker. How many of the executives at Alberta Health Services are entitled to these gold-plated retirement plans paid for by taxpayers?

Mr. Zwozdesky: Mr. Speaker, to my knowledge the SERPs, as they’re commonly referred to, are under review, and I’m not sure if they haven’t even already been eliminated. But I will look into that.

Dr. Swann: Please do, Mr. Minister.

Given that the old executives who were simply transferred to Alberta Health Services are still entitled to these gold-plated retirement packages, what is the minister going to do to change the policy and this abuse of taxpayer funding?

Mr. Zwozdesky: Well, Mr. Speaker, it’s not my policy, but I am ultimately responsible, and I’ve said that I will look into it. These are policies that were brought into place by Alberta Health Services. It’s the board that reports to me. It’s the board that is responsible for overseeing the overall direction that it’s going. But I have to account for it, and I will look into it.

Alberta Hansard, April 15, 2010

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