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Fee increase for District Health Board members


20 December 2006

Fee increase for District Health Board members

District Health Board members are to get their first fee increase in five years, the Ministry of Health says.

DHB board fees have not been reviewed since December 2001, although one or two small local adjustments have been made. Cabinet has recently issued a revised version of the Fees Framework, which sets out remuneration bands for DHB board members.

Having reviewed current annual member fees against the Framework, and given the increase in complexity in DHB operations since 2001 (in terms of increased revenue and assets), a modest increase is warranted for most DHBs.

'An average increase of seven percent takes fees to a level which better reflects the responsibility of board members, expected to govern complex organisations providing a range of services to local people,' said John Hazeldine, Acting Deputy Director-General DHB Funding and Performance.

Government funding to the health and disability sector - largely delivered by DHBs - has increased dramatically since 2001.

'Setting DHB board member fees at an appropriate level will help ensure a correct balance between responsible public expenditure and the ability to attract DHB members with the necessary mix of skills and experience to govern the DHBs,' said Mr Hazeldine.

'It's also relevant to note that the fees are still modest in comparison to many of those paid to directors of similar sized entities in the private sector.'

The changes to fee levels have been approved by the Minister of Health and will take effect on 1 March 2007.

Background - DHB Board Fees

- · a revised version of the Fees Framework (Cabinet Office Circular CO(06)08, Fees Framework for Members of Statutory and Other Bodies Appointed by the Crown) was issued on 6 November 2006: available online at http://www.dpmc.govt.nz/cabinet/circulars/co06/8.html - · the Fees Framework states that fees should be reviewed regularly - · current DHB board member fees have not been reviewed since 2001 (with the exception of one or two small local adjustments) - · fees are set by the Minister of Health under the Crown Entities Act 2004, within the ranges set by Cabinet and recorded in the Fees Framework - · fees are set according to relative responsibility and this can be measured by DHBs' respective revenue and asset bases - · between 2001/02 and 2005/06, revenue increased such that lowest increase is 44 percent (Waikato DHB) with the largest increase at 129 percent (Waitemata DHB) - · further, asset levels have also increased, with the lowest increase at 14 percent (Counties Manukau DHB) and the highest at 163 percent (Southland DHB) - · increases in fees reflect these added responsibilities, but are modest and fit within the ranges set by Cabinet in the Fees Framework - · overall fees are also modest in comparison with similar sized organisations in the private sector, and in local government - · total board members' fees represent 0.05 percent of Vote: Health for 2005/06. - · fee increases are effective as of 1 March 2007 - · board fees are reported each year in DHBs' annual reports.

New DHB board member fee levels as of 1 March 2007 |---------------------+------------------+------------------+------------- -----| |DHB | Member Fee | Deputy Chair Fee | Chair Fee | |---------------------+------------------+------------------+------------- -----| |Northland | $21,000 | $26,250 | $42,000 | |---------------------+------------------+------------------+------------- -----| |Waitemata | $25,000 | $31,250 | $50,000 | |---------------------+------------------+------------------+------------- -----| |Auckland | $26,000 | $32,500 | $52,000* | |---------------------+------------------+------------------+------------- -----| |Counties Manukau | $25,000 | $31,250 | $50,000 | |---------------------+------------------+------------------+------------- -----| |Waikato | $25,000 | $31,250 | $50,000 | |---------------------+------------------+------------------+------------- -----| |Bay of Plenty | $22,000 | $27,500 | $44,000 | |---------------------+------------------+------------------+------------- -----| |Lakes | $18,000 | $22,500 | $36,000 | |---------------------+------------------+------------------+------------- -----| |Tairawhiti | $16,000 | $20,000 | $32,000 | |---------------------+------------------+------------------+------------- -----| |Taranaki | $18,500 | $23,125 | $37,000 | |---------------------+------------------+------------------+------------- -----| |Hawke's Bay | $20,000 | $25,000 | $40,000 | |---------------------+------------------+------------------+------------- -----| |MidCentral | $22,000 | $27,500 | $44,000 | |---------------------+------------------+------------------+------------- -----| |Whanganui | $16,500 | $20,625 | $33,000 | |---------------------+------------------+------------------+------------- -----| |Capital & Coast | $25,000 | $31,250 | $50,000 | |---------------------+------------------+------------------+------------- -----| |Hutt Valley | $20,000 | $25,000 | $40,000 | |---------------------+------------------+------------------+------------- -----| |Wairarapa | $16,000 | $20,000 | $32,000 | |---------------------+------------------+------------------+------------- -----| |Nelson Marlborough | $19,500 | $24,375 | $39,000 | |---------------------+------------------+------------------+------------- -----| |West Coast | $16,000 | $20,000 | $32,000 | |---------------------+------------------+------------------+------------- -----| |Canterbury | $26,000 | $32,500 | $52,000 | |---------------------+------------------+------------------+------------- -----| |South Canterbury | $16,000 | $20,000 | $32,000 | |---------------------+------------------+------------------+------------- -----| |Otago | $23,000 | $28,750 | $46,000 | |---------------------+------------------+------------------+------------- -----| |Southland | $18,000 | $22,500 | $36,000 | |---------------------+------------------+------------------+------------- -----|

* The current chair of Auckland DHB is paid a fee outside the Framework.

ENDS

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