Coleman Jonathan: New Zealand Public Health and Disability (Southern DHB) Elections Bill — First ReadingText is incorporated into the Bound VolumeColeman Jonathan: New Zealand Public Health and Disability (Southern DHB) Elections Bill — First Reading[Sitting date: 08 December 2015. Volume:710;Page:8608. Text is incorporated into the Bound Volume.]Hon Dr JONATHAN COLEMAN (Minister of Health): I move That the New Zealand Public Health and Disability (Southern DHB) Elections Bill be now read a first time. I nominate the Health Committee to consider the bill. At the appropriate time I intend to move that the bill be reported to the House by 11 April 2016. The effect of this bill is to allow for the term of the Southern District Health Board commissioner to be extended until the triennial election scheduled for 2019. This provides the commissioner with sufficient time to develop oversee and implement a financially sustainable turn-round plan for quality health services for the people of Otago and Southland.Without legislative change the commissioner would have less than 18 months to improve the position of the Southern District Health Board. The bill will provide for the Southern District Health Board to be exempted from holding an election for its board scheduled for October 2016 in the triennial cycle as currently required by legislation. In June 2015 I dismissed the board of the Southern District Health Board and appointed a commissioner for the district health board following my serious dissatisfaction with the performance of the board—in particular its management of the district health board’s finances had caused me to lose confidence in its ability to deliver on its strategy for the region including delivering much-needed capital redevelopments at Dunedin Hospital.Financial deficits have been a feature of the performance of the Southern District Health Board for some years. However earlier this year the situation deteriorated considerably. The district health board recorded a deficit of approximately $27 million for 2014-15 which was nearly twice its originally budgeted plan of a $14.8 million deficit. For 2015-16 the district health board submitted draft budgets as part of the annual plan process that ranged up to a $42 million deficit. I have recently agreed to a planned result of a $35.9 million deficit. This is an improvement on previous budgets submitted but needs to continue to improve in future years.Early indications from the commissioner are that resolving the Southern District Health Board’s financial issues will take some time and that they are unlikely to be completely addressed by the end of her current term on 2 December 2016. She has developed a work plan to begin to address the financial challenges which she has been consulting on with the district health board’s staff. The plan spans a range of solutions including more medium-term actions that need to be implemented after December 2016. It is important that the district health board’s financial performance improves so that the Government can invest with confidence in the health infrastructure for the region.In parallel with the work undertaken by the commissioner on the district health board’s financial and clinical sustainability the Government is working with the district health board on two streams of capital development. In September the Government approved $22.5 million for urgent hospital maintenance as well as upgrades to gastroenterology audiology and intensive care units. These projects will ensure that the immediate demands around delivery of services continue to be met while planning for the major redevelopment progress. To ensure the robust oversight of this significant project I also established the Southern Partnership Group in September. The Southern Partnership Group will work closely with the district health board and commissioner to oversee the redevelopment of Dunedin Hospital. I have also recently appointed an experienced clinician to work with that group.I did not propose the cancellation of a local district health board election lightly. The bill therefore impacts on only one election at the Southern District Health Board and will help ensure that the next board to be appointed as part of the 2019 local body elections will begin its term on a more secure financial footing. I have asked the select committee to report back early on the bill because preparations for local elections will begin around May next year. The appointment of a commissioner offers an opportunity to resolve the district health board’s financial challenges and to help secure more sustainable health services and health facilities for the people of the southern district. The commissioner has already begun to address the deficit challenge and it is vital that she is given time to complete this important work.It is also challenging work and I want to acknowledge and thank the commissioner Kathy Grant and her deputies Richard Thomson Graham Crombie and Dr Angela Pitchford for all the work they are doing. I also want to acknowledge the input the advice and the ongoing support of my National Party colleagues based in the Southern District Health Board region. They are doing a great job. I am also looking forward to Labour Party colleagues based in that region getting behind the Government’s plans for the Southern District Health Board because in the end this is all about getting the best possible health services available for the people of Otago and Southland. [Interruption] I greatly look forward to the contribution of the member for Dunedin North as he steps in to endorse the sound work that we are progressing in the Southern District Health Board. I commend this bill to the House.