Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Extra support for DHBs for building new facilities

Hon Dr David Clark

Minister of Health


8 July 2019

PĀNUI PĀPĀHO

MEDIA STATEMENT
Extra support for DHBs to help with the costs of building new facilities

Health Minister Dr David Clark has announced that District Health Boards will get financial help worth potentially tens-of-millions of dollars to cover one of the costs of major new building projects.

The Government has set aside a contingency in Budget 2019 to support DHBs with their capital charge costs as a result of building new facilities.

“The Wellbeing Budget included $1.7 billion for capital investment in our hospitals and other health facilities over the next two years. That will deliver much-needed new and upgraded facilities at DHBs across New Zealand,” David Clark says.

“As it stands, DHBs are required to pay back 6 percent of the cost of any Government capital investment in the form of a capital charge each year. This charge is intended to provide DHBs with the incentive to invest and manage capital assets wisely.

“DHBs fund capital charges from their existing budgets. This can have a significant effect on their operational funding for other services following a major investment.

“I’m not convinced of the merits of this approach when it places considerable cost on DHBs with major new investments, such as Canterbury and Auckland DHBs.

“To address this, Treasury was asked to review the effectiveness of the capital system settings for DHBs. That work is ongoing.

“In the interim, the Government has decided to directly fund DHBs for their capital charge costs for new facilities. For example, a DHB could receive up to $18 million annually to cover the capital charge related to a new $300 million hospital building.



“This will reduce some of the immediate cost pressures for DHBs and provide more stability for long term asset planning.

“This also aligns DHBs with government departments which receive direct funding for capital charge costs when the Government makes new investments.

“The change will apply to DHBs which receive Government funding for capital investments from 1 January 2019. It does not apply to capital charges relating to earlier investments.

“A number of other initiatives are underway which will also improve the way DHBs manage their infrastructure assets.

“In partnership with DHBs, the Ministry of Health is developing a National Asset Management Plan to map out the current state of health facilities. This will mean we can make more informed decisions, better prioritise upgrade work and plan for new facilities.

“Budget 2019 also provides funding to lift the capacity and capability within the Ministry of Health, and to establish a new health infrastructure unit which will provide better support to DHBs.

“Treasury’s review of the capital system settings will also support the Health and Disability System Review which aims to future proof health and disability services,” said Dr Clark.

ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

SCOOP COVERAGE: CHRISTCHURCH MOSQUES TERROR ATTACK


Gordon Campbell: On Trump’s Open White Nationalism

At one level, this has been the week that the Republican Party of Abraham Lincoln – which once led a civil war that ended the slave economy of the South – has now defined itself openly as being the party of white nationalism.

By telling those four elected, American born and/or raised women of colour to “go home”, US President Donald Trump’s racist agenda has come out of the shadows. More>>

 

RNZ: Trades Hall Bombing Case Re-Opened, Evidence Released

The cold case has been reopened and the police have recently revealed more details about the bomb's components - including that it was wrapped in a 1977 edition of The Evening Post. More>>

Safety: Govt Targets Fewer Deaths On The Road

“Most roads deaths and serious injuries are preventable and too many New Zealanders have lost their lives or been seriously injured in crashes that could have been prevented by road safety upgrades,” said Associate Transport Minister Julie Anne Genter. More>>

ALSO:

Pay Rise Delay: Teachers Unions Plan Legal Action Against Novopay

Both of the teachers unions - NZEI and the PPTA - have confirmed they will be taking legal action against Novopay. More>>

ALSO:

Emission Statement: 'Consensus Reached' On Agriculture

Today the Government launched a consultation document, informed by the work of the Interim Climate Change Committee (ICCC), on how to bring agriculture into the emissions trading scheme, a key part of the Government’s plan to tackle climate change and reduce New Zealand’s emissions. More>>

ALSO:

Gordon Campbell: On What’s Wrong With Wellington

For many Wellingtonians, it hasn’t been the normal hardships – the workings of central government and the lousy weather – that have recently pushed their tolerance into the red zone. It has been the inability of local government to maintain even the basics. More>>

ALSO:

$1m Compensation Paid: First Gun Ban Event In Christchurch

The Police Minister says the first ever firearms collection event in Christchurch over the weekend was a huge success. But Stuart Nash had concerns about whether the participation reflected the number of weapons in the region. More>>

ALSO:

The Kids: Youth Parliament 2019 Event Kicks Off

120 Youth MPs and 20 Youth Press Gallery members have gathered in Wellington to attend the two-day Youth Parliament event ... More>>

ALSO:

Friends Like These: Foreign Minister To Visit USA

Deputy Prime Minister and Foreign Affairs Minister Winston Peters will travel to Washington D.C. today for talks with senior members of the US Administration, and to attend the Ministerial to Advance Religious Freedom. More>>

ALSO:

Gordon Campbell: On The Aussie Banks’ Latest Fee Hike Excuse

When the Reserve Bank sought feedback on its plans to require the country’s major banks to raise their capital reserves then you might have expected the banks to whine and complain. And so they have. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels