5. Question No. 5—HealthHon MICHAEL WOODHOUSE (National) to the Minister of HealthQuestion No. 5—Health5. Hon MICHAEL WOODHOUSE (National) to the Minister of Health: Does he believe the financial performance of DHBs has improved since he wrote to all DHB chairs at the end of last year expressing disappointment with their collective financial performance"?Hon Dr DAVID CLARK (Minister of Health): Financial performance varies from DHB to DHB. Nine DHBs ended their 2018-19 year with a result close to budget or an improved result if we exclude one-off costs. However overall deficits have increased due overwhelmingly to the historical underpayment of staff under the Holidays Act which dates back as far as 2010. Just last month that was estimated to cost DHBs $590 million causing more than half of the overall deficit. But following audit work I've been advised this week that that figure relating to the previous Government's neglect has now climbed to $756.8 million. I make no apology for cleaning up the mess I inherited with the historical underpayment of staff.Hon Michael Woodhouse: Well what has led to the $500 million deterioration of DHB finances that isn't related to the Holidays Act?Hon Dr DAVID CLARK: A good question. It is indeed the neglect of the previous Government when balance sheets started to run out in 2013 and the trend since that time has been clear. We make no apology for hiring additional staff: 1500 more nurses in the system than when I became Minister nearly 600 more doctors and over 500 more allied health workers. We are cleaning up the mess that we inherited.Hon Michael Woodhouse: Well if money is the solution why did he increase cost pressure funding for DHBs by just $20 million in Budget 2019 and reduce equity support for DHB deficits?Hon Dr DAVID CLARK: I'd have to check the member's numbers on the former but in terms of equity support of course equity support is what Governments past and present do to ensure liquidity to make sure staff are paid. It's business as usual.Hon Michael Woodhouse: Will he admit that despite his rhetoric of funding increases funding increases have not kept pace with cost increases especially in staff costs and that has led to the dramatic deterioration in DHBs' financial position?Hon Dr DAVID CLARK: What I can confirm is that the $2.3 billion that they stripped out when they were in Government is something that I have inherited to clean up and so we have put in a record amount in the 2018 Budget. The member's right. We have increased funding to the health sector. We put even more in in 2019. We make no apology for dealing with the mess that we inherited.Hon Michael Woodhouse: Has he received a report on DHBs' combined financial performance for the period 1 July to 30 September 2019 and does that indicate an improvement or deterioration in their financial situation compared with the same period in the previous year?Hon Dr DAVID CLARK: I don't have all of those details in front of me. If the member wants to put down a more detailed question like that I'd happily make sure it's answered.Hon Michael Woodhouse: Well if he's so worried about financial performance why does he not know whether the last-quarter performance has improved or deteriorated?Hon Dr DAVID CLARK: Each quarter has different of course details across all the DHBs. DHB performance varies. As I said at the outset some DHBs have met their budget in the past financial year—for example once those one-offs that relate to historical neglect are taken into account. Different DHBs have different outcomes. We make no apology for intervening in those DHBs that are not performing. We've put Crown monitors into three DHBs; we've put a commissioner in in the Waikato. DHBs have to continue to deliver services even though they're dealing with historical neglect. We make no apology for dealing with the mess that we've inherited."