Health Minister Annette King today released the Crown Company Monitoring Advisory Unit's report on leasing arrangements for the Napier Health Centre and a letter from Healthcare Hawke's Bay critical of aspects of the report.

Mrs King said she was releasing both documents in line with her policy of keeping the public informed about health issues whenever that was possible.

Mrs King called for the report into HCHB's leasing arrangement with Calan Healthcare Properties Trust when informed HCHB was paying an annual leasing cost of $1.2 million on a building with a capital cost of $11.8 million.

"The public is going to have to wear the costs of a bad decision made by the previous Government that forced HCHB into the course it took. As Minister I will keep an open mind on all feasible financing options, and will be willing to help boards examine them. The previous Government's strict adherence to the competitive model has ended up costing taxpayers dearly."

Mrs King said it was now important, however, to look to the future. "The Napier centre is state of the art, and it is vital the local community benefits fully from the facility. I am happy to acknowledge that HCHB was under considerable pressure to complete the closure of the old Napier site and to provide replacement services in Napier, and that board members acted efficiently and responsibly. It is unfortunate the previous Government was not prepared to consider the board's alternative financing proposals."

Attached:
1. Report from CCMAU on the Napier Health Centre's leasing arrangement, with various deletions made to protect the commercial interests of HCHB under s9(2)(b)(ii) of the Official Information Act 1982. You have the right, by way of complaint to an ombudsman under section 28 (3) of the Act, to seek an investigation and review of the Minister's refusal to release the deleted information.
2. A letter from HCHB to the Minister of Health, dated March 6, 2000.

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