Street Maryan: Questions for Oral Answer — Questions to Ministers 
Text is incorporated into the Bound Volume 
Street Maryan: Questions for Oral Answer — Questions to Ministers 
[Sitting date: 28 February 2012. Volume:677;Page:577. Text is incorporated into the Bound Volume.] 
9. 
Hon MARYAN STREET (Labour) 
 to the  
Minister of Health 
: How much funding for district health boards in the 2011-12 Budget was new money for additional services and cost of living adjustments and how much was the result of reprioritisation of funding which had been maintained from previous budgets? 
Hon TONY RYALL (Minister of Health) 
: 
 As stated in the Budget released last May $585 million was made available for new health initiatives made up of $420 million in new money and around $165 million from savings. In the Budget released last year we also advised that district health boards received around $400 million of this amount made up of $350 million of new money and an estimated $50 million from the Ministry of Health for population-based contracts. Despite these difficult economic times the Government is determined to protect and grow the public health service.  
Sue Moroney 
: What does he understand to be the reasons for the Waikato District Health Board having to find savings of $20 million in the forthcoming financial year and another $5 million in both of the next two financial years? 
Hon TONY RYALL 
: All district health boards strive to live within their budgets and looking for efficiencies really is business as usual. They are often moving their money around to improve services. That funding has been increasing year in year out. In the last 3 years the Waikato District Health Board had funding of $129 million extra. 
Sue Moroney 
: Did he provide Waikato District Health Board with funding to cover its $3.2 million KiwiSaver obligation which was previously funded centrally by the Crown and if not what does he expect the district health board to shed in order to find that money? 
Hon TONY RYALL 
: I think the district health board will be expected to meet that obligation in the next financial year. That budget will be announced at an appropriate time. But I have to tell you the Waikato District Health Board has a budget in excess of $1 billion and I am sure that with prudent management of its finances it will be able to meet those challenges. 
Sue Moroney 
: I wish to table two documents. The first is a memorandum to the Waikato District Health Board dated 22 February 2012. 
Mr SPEAKER 
: From whom? 
Sue Moroney 
: It is the chief executive’s report. It indicates that savings of about $25 million are required in 2012-13 and a further $5 million in each of the two out-years. 
Mr SPEAKER 
: Leave is sought to table that document. Is there any objection? There is no objection. 
Document by leave laid on the Table of the House. 
Sue Moroney 
: The second document then is a memorandum from Craig Climo to all staff of the Waikato District Health Board in which he states that if the savings cannot be found elsewhere they would have to come from reducing staff numbers.  
Mr SPEAKER 
: Leave is sought to table that document. Is there any objection? There is no objection. 
Document by leave laid on the Table of the House. 
Hon Maryan Street 
: Why is the Hawke’s Bay District Health Board having to look at cutting up to 35 jobs some of which are likely to be in front-line services?  
Hon TONY RYALL 
: The Hawke’s Bay District Health Board in the last 3 years has received an additional $45 million from the Government. It is expecting to remain in surplus but as the chief executive said it is looking at ways that it can make savings so it can balance its budget and meet important projects in its area such as a new health centre in Wairoa a new renal and endoscopy suite an improved rheumatology service a new lecture theatre and a number of other projects. So it is all about providing better services for the people of Hawke’s Bay within an increasing budget.  
Hon Maryan Street 
: Can he explain why Auckland District Health Board is reported to be attempting to save $60 million in its budget and does he think a possible cut of that magnitude might affect front-line services?  
Hon TONY RYALL 
: Auckland District Health Board’s budget over the last 3 years has increased by $125 million. It will be getting additional money in this year’s Budget. I think in response to that question I had best quote the chairman Dr Lester Levy who in respect of the media reports of those savings said “These service cuts are categorically not on the agenda.”  
Hon Maryan Street 
: Can the Minister confirm his media release of last Budget day when he indicated that there was $420 million worth of new spending for district health boards when his own ministry had advised him that $576 million was required simply to keep up with cost growth leaving a shortfall in funding to the district health boards of $156 million and that any additional services this year will have to be funded from the cutting of existing services?  
Hon TONY RYALL 
: That is absolutely consistent with the very first answer that I gave. We have got $420 million of new money; the additional $165 million came from reprioritisation. That adds up to $585 million which is more than the $576 million that the member just quoted.