A 10 percent increase in wages across the hospital sector, which will follow on from the Canterbury nurses' pay settlement, translates into $600 million extra per year, ACT leader Richard Prebble says.

"The government intends to increase the health vote over the next 18 months by just $400 million - so there's a $200 million deficit just to meet anticipated pay demands," Mr Prebble said.

"There are problems in the hospital sector from Northland to Invercargill. The government's monopoly Soviet health model has failed and can't be made to work."

ENDS

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