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Otago District Health Board—Dismissal of Chair

Wednesday 11 February 2009 Hansard source (external site)

Hodgson9. Hon PETE HODGSON (Labour—Dunedin North) Link to this
to the Minister of Health

Is he contemplating the dismissal of Otago District Health Board chair Richard Thomson; if so, why?

RyallHon TONY RYALL (Minister of Health) Link to this

Yes; because as chair Mr Thomson is accountable for leading a board that operates both effectively and efficiently. He has been the chair of the board since late 2001, during which time the largest fraud in the history of the New Zealand State services was taking place at the Otago District Health Board. This fraud totalled nearly $17 million of taxpayers’ money.

HodgsonHon Pete Hodgson Link to this

Does the Minister rank his judgment higher than that of the people of Otago, who, when very well acquainted with the facts surrounding this fraud, judged that the health board members were part of the solution, not part of the problem, and re-elected every last one of them back to their jobs, Mr Thomson included—or is the Minister blessed with some unique wisdom and insight?

RyallHon TONY RYALL Link to this

I am not considering removing Mr Thomson from the board as an elected member; it is his position as chair that I am considering. This is a matter of accountability.

HutchisonDr Paul Hutchison Link to this

Can the Minister advise what health services could be bought for the people of Otago with $17 million?

RyallHon TONY RYALL Link to this

I can advise the member that $17 million would provide a significant number of services in the New Zealand public health service in Dunedin: over 1,100 knee replacements, or 1,200 primary hip replacements, or over 8,000 cataract operations, or nearly 700 coronary bypass operations.

HodgsonHon Pete Hodgson Link to this

Does the Minister agree with the Otago District Health Board’s Chief Medical Officer, Richard Bunton, who said that the Minister clearly had Mr Thomson in the “crosshairs of his political point-scoring bazooka”, and that Mr Thomson has “the highest integrity and personal standards”; if so, might the Minister consider improving his own integrity and personal standards to match those of Mr Thomson?

RyallHon TONY RYALL Link to this

A $17 million fraud occurred at the Otago District Health Board over 6 years, nearly all of which occurred under Mr Thomson’s chairmanship of the board. It is the largest Public Service fraud in the history of New Zealand. Accountability is a critical role for a chair.

HodgsonHon Pete Hodgson Link to this

Has it occurred to the Minister that should he sack Mr Thomson as chair, then Michael Swann, the guy Mr Thomson helped catch, will be sitting in his prison cell grinning from ear to ear? And why would that be a good thing?

SmithMr SPEAKER Link to this

I alert the Minister to be careful in answering that question, because the people involved in that case have not yet been sentenced. So I just urge that care be taken.

RyallHon TONY RYALL Link to this

I am considering the position of chair, because accountability is a critical aspect of the role of chair.

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