Blue Jackie: Questions for Oral Answer — Questions to Ministers 
Blue Jackie: Questions for Oral Answer — Questions to Ministers 
[Volume:630;Page:2359] 
12.  
Dr JACKIE BLUE (National) 
 to the  
Minister of Health 
: What reports if any has he seen on the tendering of district health board laboratory contracts? 
Hon PETE HODGSON (Minister of Health) 
: 
 I have seen a number of reports particularly relating to processes currently under way in the Wellington region Otago and Southland. 
Dr Jackie Blue 
: Has he seen the views of Hutt Valley general practitioners who say that their collaborative working relationship with the current labs are at risk and that patient service may suffer and how does he think that a district health board facing a $10 million dollar deficit can do a job better? 
Hon PETE HODGSON 
: Yes I have seen the views of the Hutt Valley general practitioners and I am aware sadly that the private contractor—or one of the private contractors—currently providing the service is running a public relations campaign over the names of five pathologists and targeting patients. Service coverage and access are matters for the district health boards which must assure me that patients overall will not be negatively affected. 
Dr Ashraf Choudhary 
: Are all district health boards proposing to bring community laboratory services in-house? 
Hon PETE HODGSON 
: No not all district health boards are proposing to bring community service laboratories in-house. Many district health boards are putting laboratory services out to tender but the tender results differ. In Otago or Southland for example the outcome may well be that the private sector wins out over the public sector. 
Dr Jackie Blue 
: How can taxpayers be sure that a district health board considering awarding itself a major contract is not a conflict of interest and that the tender costings do not involve any cross-subsidy from another part of the district health board? 
Hon PETE HODGSON 
: As the Minister of Health it is my expectation that district health boards conduct their operational affairs in an appropriate manner. I have been advised that in the case of the Hutt District Health Board and Capital and Coast District Health Board tender processes for laboratory services a probity auditor was appointed and has not raised any concerns. 
Dr Jackie Blue 
: Has the Minister seen reports by the New Zealand Medical Association that state there is a risk that laboratory services will become fragmented and why are some district health boards contracting out their laboratory services to the private sector because they get better services yet here is a Wellington district health board that wants to do the complete opposite? 
Hon PETE HODGSON 
: One assumes the market is at play. I have a question for the member: why when she cancelled Southern Community Laboratory’s contract in Auckland when she was on the board of the Auckland District Health Board and it complained to the public and to the Minister saying that the sky was going to fall in did she not do something about it? Why is it that that member took a rational decision then but wants to do populism now? 
Dr Jackie Blue 
: When was the last time the Government took over something from the private sector that maintained quality and cost less? 
Hon PETE HODGSON 
: I am not sure but quite possibly when we bought back Air New Zealand or when we took back rail. If the member is asking about the health sector it was quite possibly when the West Coast District Health Board stepped into primary health. I seek leave to table a one-pager by Valley Diagnostic Ltd which states to patients that this may be bad for them and that they may not be able to get testing within their region any longer. 
Document by leave laid on the Table of the House.