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Decision to contract out improper says union

1 March 2006

Decision to contract out improper says union

The Public Service Association considers that the decision to contract out District Health Board laboratory services to Southern Community Laboratories (SCL) is improper while a report from the Office of the Controller and Auditor General is still pending.

"We understand that the Auditor General's Office has been investigating concerns about the Otago and Southland District Health Boards to contract out their laboratory services since July last year,” said Mark Ryan, PSA Organiser for Otago and Southland District Health Boards.

“That investigation must be completed before any decisions about contracting out are made.”

The PSA is the largest state sector union representing over 52,000 public service workers in central and local government, the health sector and in community services.

“Claims by the District Health Boards that they have lost 'millions' because of the Commerce Commission decision to block the first contracting out decision is in our view little more than a cynical justification to privatise a core public hospital services."

“The work of these laboratory staff should be retained in public hospitals, not sent to private companies, public interest in this important work must be the paramount consideration,” said Ryan


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