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Health Services—Cuts

Tuesday 3 August 2010 Hansard source (external site)

Dyson6. Hon RUTH DYSON (Labour—Port Hills) Link to this
to the Minister of Health

Why have there been numerous announcements of health cuts in the last 20 months if, as he said last week, the health budget in the last 20 months has increased by over $1.3 billion?

RyallHon TONY RYALL (Minister of Health) Link to this

The member is correct that the health budget has increased by over $1.3 billion in the past two Budgets. We are getting more front-line services. Despite this increase, district health boards still have to prioritise their spending as they have always done. That is why under the previous Government the Feilding maternity centre was closed, home care in Wanganui and Otago was reduced, 30,000 people were culled off waiting lists, and elective surgery was reduced by some district health boards.

DysonHon Ruth Dyson Link to this

If the district health boards are so awash with money, as he says, why are front-line nurses and other health workers in Taihape being forced to take a 10 percent wage cut in order to keep their health centre running?

RyallHon TONY RYALL Link to this

The Government has never claimed that district health boards are awash with cash. The fact is that we are coming out of one of the worst recessions since the 1930s and the Government has been requiring everyone to look for value for money in spending that extra $1.3 billion well. Ōtaihape Health is in serious financial trouble, and an independent report into its future has identified several things that need to change if it is to continue. It is getting strong support from the Whanganui District Health Board.

DysonHon Ruth Dyson Link to this

Is the option of front-line nurses and other health workers taking a significant cut in their wages an acceptable way for him to keep our health services operating?

RyallHon TONY RYALL Link to this

The Ōtaihape Health Trust is not owned by the Government; it is funded by the Government. The conditions by which people are employed are a matter for the trust.

DysonHon Ruth Dyson Link to this

Given the desire he expressed to Treasury to be a more hands-on Minister, why did he not intervene and appoint a statutory manager to Ōtaihape Health, as proposed to local member of Parliament Simon Power, rather than washing his hands of involvement and allowing the workforce to be forced to take this significant pay cut?

RyallHon TONY RYALL Link to this

I just comment that from that question it is quite clear the member does not have an appreciation of what was happening at that private organisation, Ōtaihape Health Trust. We know that an arrangement has been reached that should allow services to continue in that community.

BlueDr Jackie Blue Link to this

What reports on front-line services for the thousands of New Zealanders who need access to medicine has he seen?

RyallHon TONY RYALL Link to this

I am able to report that the Government’s $60 million boost to the medicines budget is benefiting over a quarter of a million New Zealanders. Pharmac has used the additional funding for medicines to introduce newly subsidised medicines, including the first Alzheimer’s drug and new diabetes medicines. Access has been widened for patients suffering from conditions including several cardiac and respiratory problems, depression, Crohn’s disease, and severe psoriasis. These patients could not have received access to these subsidised medicines just 2 years ago.

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