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Hawke’s Bay District Health Board—Conflict of Interest

Thursday 14 February 2008 Hansard source (external site)

Ryall7. Hon TONY RYALL (National—Bay of Plenty) Link to this
to the Minister of Health

When does he expect to receive the Ministry of Health report into potential conflicts of interest by members of the Hawke’s Bay District Health Board, which was commissioned in July 2007?

CunliffeHon DAVID CUNLIFFE (Minister of Health) Link to this

The report will be given initially to the Director-General of Health, who has commissioned it. I am advised that a firm date for its completion is not yet available.

RyallHon Tony Ryall Link to this

Is the Minister aware that while he awaits the completion of this investigation, the Dominion Post reports today that the Hawke’s Bay District Health Board’s chief executive is on indefinite sick leave because of exhaustion, that a board member has refused to come to meetings, that the board is facing an $8 million deficit, and that it still does not know who its chairman will be; and is this what he meant with his comment to the House that he is running the show now?

CunliffeHon DAVID CUNLIFFE Link to this

Yes, I am aware of all of those factors, and I am keeping the situation of Hawke’s Bay District Health Board under very close scrutiny.

FairbrotherRussell Fairbrother Link to this

Does the Minister know the origin of recent reports of the Hawke’s Bay District Health Board’s intending to utilise the proceeds from the sale of capital assets to offset operating deficits?

CunliffeHon DAVID CUNLIFFE Link to this

No. A lot of misinformation on these issues is being distributed in that region, either through ignorance or mischief. But the board was told by previous Ministers, and will be told again by the ministry, that the use of capital sales to fund deficits is unacceptable and at odds with the legislation. I will table the relevant letters at the end of this question.

FairbrotherRussell Fairbrother Link to this

Does the Minister stand by his earlier statement that no Hawke’s Bay District Health Board appointments will be made until the report has been received?

CunliffeHon DAVID CUNLIFFE Link to this

I am very concerned at the rapidly deteriorating situation of the Hawke’s Bay District Health Board. As the member opposite has noted, the chief executive is now out on stress leave, there is a rapidly rising deficit projection, and there are continuing apparent tensions within the present board and with clinicians. Against that, I note further that the final date for the director-general’s report is not yet available.

FossCraig Foss Link to this

Will the report examine information discovered from a forensic audit of a May 2005 computer back-up tape of the Hawke’s Bay District Health Board that had somehow been damaged, but when repaired by forensic experts has revealed that senior Hawke’s Bay District Health Board management personnel were illegally recording meetings and conversations with staff and board members; if not, does the member endorse the covert recording of discussions with staff and board members?

CunliffeHon DAVID CUNLIFFE Link to this

As the member knows, all matters concerning the director-general’s governance review remain confidential to the process. I have had no access to a draft report, nor have I had access to the incoming evidence. If the member feels he has had such access, that would seem to imply that someone is at odds with his or her obligations under the confidentiality deeds.

TremainChris Tremain Link to this

Will the report examine the conflict of interest between Hawke’s Bay people and the Ministry of Health with regard to how $12 million from the sale of Napier Hospital was allowed to be accrued to the 2007 annual accounts of the district health board to fund multi-year operating deficits, when health Minister Pete Hodgson wrote in a letter to the board and in regard to the hillside site sale: “I draw your attention to the requirements of the NZPHD Act, which requires HBDHB to use all the proceeds for ‘the purchase, improvement, or extension of publicly owned facilities for health purposes unless the Minister, by written notice to the DHB approves a different use.’ ”; why were those sale proceeds allowed to be used to fund the deficit, and when was approval given?

CunliffeHon DAVID CUNLIFFE Link to this

I am extremely glad the member asked that question, because it would appear that somebody has not abided by the law of the appropriate governance process. I repeat, without the Minister’s permission capital assets cannot be used to fund operating deficits. If the member is concerned about the deficit of that district health board, he may want to look at the fact that it has not achieved the efficiency gains that it projected.

FossCraig Foss Link to this

How on earth can the people of Hawke’s Bay have confidence in that Minister, when our cardiac patients die from preventable deaths, when the Government overrides advice and appoints a board member from outside the Hawke’s Bay region whose company planned to tender for a multimillion-dollar contract with that same district health board, when the Minister refuses to communicate with the board about impending deficits, leading to yet another absolute shambles in the public health sector, and when this is from the Minister who says he is running the show?

CunliffeHon DAVID CUNLIFFE Link to this

It is intriguing that the member’s questions have violated proper process on not one but two inquiries. Perhaps the member would like to clarify whether he is asking me to make an early decision about board appointments.

TremainChris Tremain Link to this

I seek leave to table the 2007 annual accounts of the district health board, which show—

WilsonMadam SPEAKER Link to this

Leave is sought to table that document. Is there any objection? There is objection.

PetersRt Hon Winston Peters Link to this

I raise a point of order, Madam Speaker. In the interests of certain standards in this House, I would ask you to ask the National Party member at the back who used the phrase “Tell the Minister to get off his”—and I will not say what else he said—to apologise to the House for that very intemperate language.

WilsonMadam SPEAKER Link to this

I did not hear the comment. [ Interruption] I think the difficulty, Mr Peters, is that it was not heard at this end of the Chamber. That is a continuing problem; it is very difficult to hear in the Chamber.

PetersRt Hon Winston Peters Link to this

What matters is that I heard it, and so did my colleagues down here. I understand the member did not say it loudly, but it was loud enough to be heard, and I am sure it could be heard in the gallery. That member knows what he said. He should be getting up on his feet and apologising.

WilsonMadam SPEAKER Link to this

Would the member who made the comment please withdraw it and apologise.

BorrowsChester Borrows Link to this

If the use of a colloquial phrase—

WilsonMadam SPEAKER Link to this

Just withdraw and apologise, and then we will be able to move on, please.

BorrowsChester Borrows Link to this

I withdraw and apologise.

CunliffeHon DAVID CUNLIFFE Link to this

I seek leave to table a letter dated 20 October 2003 from the then Minister of Health to Mr Kevin Atkinson, chairman of the Hawke’s Bay District Health Board, noting that he may not use the proceeds of the sale—

Document, by leave, laid on the Table of the House.

WilsonMadam SPEAKER Link to this

It is very difficult to hear, so members will be leaving. I simply cannot maintain order in this Chamber if this level of chatter continues.

FossCraig Foss Link to this

I seek leave to table an article from today’s Hawke’s Bay Today entitled: “Bugged emails reveal tapes”.

WilsonMadam SPEAKER Link to this

Leave is sought to table that document. Is there any objection? Yes, there is objection.

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