Saskatchewan’s health minister says he can’t pull the plug on a contract with an American company offering lab services in the province.
Jeremy Cockrill says he’ll look at the deal with LifeLabs once it’s up for renewal but that patient care comes first.
LifeLabs is where Regina and Saskatoon patients go for blood tests ordered by family doctors.
The facilities came under American ownership last year, being purchased from a Canadian public pension fund by U.S. based Quest Diagnostics.
The province has granted the company a one-year contract extension despite pledging to seek Canadian alternatives as the Canada/U.S. trade war continues.
“Not a bad deal for them Mr. Speaker and it would seem that now their contract has been quietly extended without a competitive process,” NDP MLA Meara Conway argued during question period.
LifeLabs had a seven-year $60 million government contract which expired earlier this year. Cockrill has suggested that there was no time to explore Canadian alternatives.
“We are talking about contracts that deliver important and essential services to the people of this province,” he said, in response to questions from the NDP Opposition.
The Opposition NDP have questioned the Saskatchewan Party government about the deal, after Premier Scott Moe promised to look into procuring more Canadian supplies for public projects and services.
Moe made the pledge after U.S. President Donald Trump imposed tariffs on Canada and mused about annexing the country.
Next week, provincial parks will begin accepting summer campsite reservation through a company situated in the U.S.
The NDP feel the government isn’t very serious about supporting Canadian companies.
“You don’t hear a commitment that they are looking seriously at ensuring that we are awarding these kinds of lucrative contracts to local companies,” Conway added. “That would be the bare minimum that I would expect from them and I don’t think I heard that from them in there.”
Cockrill says Saskatchewan is still reviewing procurement and will look at all options when the contract ends.
“You know we’re not just going to pull the plug on lab services overnight,” Cockrill explained. “People in Regina and Saskatoon depend on those services, our system depends on those services in those cities so again, we’re going to continue discussions with LifeLabs.”
The province has the option of extending LifeLab’s contract for an additional two years. It’s currently assessing what to do.
Should it decide to explore additional options, competitors would be invited to make proposals.
-With files from The Canadian Press.
