Hon Tony Ryall
National Party Health Spokesman

29 March 2006

Financial crisis at Capital and Coast DHB

Capital and Coast District Health Board is facing a financial crisis with a $43 million blowout in its construction budget and a $19 million decline in financial performance, says National’s Health spokesman, Tony Ryall.

“Some Wellington health services are at risk because the DHB will have to carry the cost of this blowout,” says Mr Ryall.

“The DHB is being forced into including special one-off accounting entries in order to avoid publishing a deficit.

“Two years ago it was assuring the public that the $303 million budget would complete the project. Now it has sought an additional $43 million to complete it.”

DHB bosses also told Parliament’s health select committee today that the DHB expected to break even this year by including a $10 million asset revaluation, and would break even next year by selling land in Porirua.

“Without including these one-off special items, Capital and Coast DHB is actually facing a deficit of $10 million. That’s a huge turnaround on the projected $9 million surplus – a massive $19 million collapse in financial performance.

“All the while, the Minister of Health continues to ignore the problems. Despite billions of extra dollars the health system is increasingly moving into deficit and threatening cuts to services,” says Mr Ryall.

ENDS

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