P.E.I.'s electronic health initiative poorly planned: AG

A plan to move P.E.I.'s health records from paper to computers was poorly planned from the start, says the province's auditor general, and there is still no comprehensive strategy to complete it.

The province began work on the project in April 2005. At the time it was thought establishing the information systems would not cost Island taxpayers anything, but by the end of March 2009 it had cost them $15.6 million.

"The amount and nature of the work required to establish such a system was underestimated from the outset," wrote Auditor General Colin Younker.

"Planning and management oversight for the implementiation of the [Electronic Health Records] was not adequate for such a large and complex initiative."

Despite the extra spending, the project is not complete, Younker wrote, nor are there currently any plans to finish it to national standards. Younker did note there is a $6 million budget for the project over the next five years.

P.E.I. net debt growing faster than GDP

Final numbers from P.E.I.'s  auditor general show a significant growth in the deficit in the 2008-09 fiscal year, despite a large increase in federal transfers and tax revenues. The audited deficit comes in at $33.1 million, as compared to a $3.6 million deficit the year before.

The audited numbers, released in Colin Younker's report Wednesday, come as the province expects even larger deficits, in the range of $85 million, for 2009-10.   In all revenues rose by $73.9 million in 2008-09. That included an extra $39.6 million in federal transfers and $19.1 million more in tax revenue.

But an increase in expenditures of $103.4 million more than offset that. The bulk of that extra spending went to health ($32.4 million) and education ($20.1 million).

Poor market conditions also added to the government's liability on the pension fund, costing $20.4 million. Younker wrote the net debt increased by 4.6 per cent while the GDP grew only 3.9 per cent.

Younker said the trend is worrisome, and rising interest rates would lead to less money being available to spend on programs.

Poor oversight on crab fishery loans

At the request of government, Younker also looked into loans to crab fishermen made in 2005-06.

The loans were provided to allow some fishermen to purchase crab licences from the mainland as part of an initiative to grow the fishery. The loans were worth a total of $13.3 million and have not been repaid. With interest and late payment penalties, those fishermen now owe the government $18 million.

Younker wrote the objectives of the program were vague.

"Performance measures and targets were not established to measure the impact of the financial support provided to snwo crab fishers," he wrote.

Younker also noted while there were more licences, quota for the province was not increased. In some cases the fishermen were not required to have their crab processed on the Island.

At the time of the audit the economic impact of the program had not been reported.