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Budget papers reveal massive incompetence

Budget papers reveal massive incompetence and mismanagement of Health- ACT

Heather Roy Thursday, 2 June 2005 Press Releases - Health

Newly dumped Treasury budget papers confirm health spending is unsustainable and out of control, ACT Health Spokesman Heather Roy said today.

“The papers, released today, are an absolute humiliation for Annette King and Labour.

“Treasury declares in these papers that health spending is spiralling out of control.

“Treasury says the funding increases are unsustainable and that there could be a possible blow-out in Vote Health from 6% in 1999 to nearly 14% of GDP in 15 years time,” Mrs Roy said.

“Treasury warns that the increase of $1.08 billion for 2008/09 is so huge, it is as big as the average size of the Government’s entire budgets for Budgets 2000, 2001 and 2002.

“This record increase has seen health spending surge to $9.6 billion per year since Labour has been in power, the biggest increase ever for any portfolio in our history. Yet, we have DHB deficits blowing out from around $70 million this year to $100 million next year and the following year!

“Despite population growth of 4.3% between 2000 and 2004, there has only been 1.3% increase in operations, 269,252 in 2000/01 to 272,881 in 03/04

"This is unbelievable given Labour’s injection of billions of taxpayers’ money into health.

“What responsibility will Annette King take for 61,314 people waiting for surgery and the 119,696 waiting for a First Specialist Assessment at the beginning of March?

“What responsibility does she take for the serious collapse in productivity in our hospitals with Treasury last year reporting a 7% increase in funding and only a 1.5 % increase in outputs, despite her unbelievable injection of extra taxpayer dollars into health?

“The health system is heading for a crisis as soon as the economy softens. It is a prime example of Labour’s failed ideology. Their belief that taxing hard working families more and spending billions more on Health, regardless of outcomes, has failed.”

“Annette King should resign. A new government is needed to harness greater use of the private health sector which is the answer to reducing waiting lists,” Heather Roy said.

*The report can be found on www.treasury.govt.nz/release/budget2005


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