Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Has the Government Budgeted enough for health?

2019 Health Budget Analysis - Has the Government Budgeted enough for the health of New Zealanders?

CTU Economist and Director of Policy Dr Bill Rosenberg along with Lyndon Keene, Director of Policy and Research at the Association of Salaried Medical Specialists (ASMS) have completed their detailed line by line analysis of the Governments 2019 health budget.

Rosenberg and Keene’s research in the lead up to the 2019 Budget estimating what funding was needed to maintain the same level of service as the previous year, can be viewed here: http://www.union.org.nz/wp-content/uploads/2019/05/How-much-funding-is-needed-to-avoid-the-condition-of-the-Health-System-worsening-2019.pdf

"In summary, the Government has not budgeted enough. We have estimated that there is a shortfall of $134 million. There is not enough money in the 2019 Budget for the Government to fund the new services they have announced, increasing costs, population growth and the effects of an ageing population, when compared to the 2018 Budget," Rosenberg said.

"We welcome the boost given to primary mental health services, which have been neglected for far too long, costing people’s lives. However the new funding to the Health system will start slowly this year and we estimate that the existing DHB ring-fenced funding for specialist mental health services for people facing the most severe challenges received $55 million less than what it needed to cover cost increases, pay settlements and population growth. We are concerned that the services for people with severe mental health needs will continue to be under-resourced and we will continue to see crises within these specialist units at the cost of both people with severe needs and the staff who have to cope with insufficient resources to meet these demands," Rosenberg said.

Key findings:

- The Health vote operational funding in the 2019 Budget is an estimated $134 million behind what is needed to cover announced new services, increasing costs, population growth and the effects of an ageing population, compared to the 2018 Budget.

- District Health Boards (DHBs) received an estimated $139 million less than they need to cover increased costs and demographic changes during the year, and to fund new services.

- We estimate an accumulated funding shortfall in annual spending power of $1.6 billion between the 2009/10 and 2019/20 financial years. It means that in the next Budget the Government will need to find over $2.5 billion extra for 2020/21 if it wishes to restore the value of funding to the 2009/10 levels.

- Health Vote operational expenses are forecast to remain static as a proportion of Gross Domestic Product (GDP) compared to last year, at 5.73 percent of GDP. If it had maintained the proportion of GDP it had in 2009/10, it would be $1.7 billion higher in 2019/20.

- Centrally managed national services such as National Disability Support Services, National Maternity Services and Public Health services together received $4 million less than what they needed to cover cost increases and demographic changes and to fund new services.

- National Mental Health Services received $73 million additional funding compared to the 2018 Budget, but DHB ring-fenced funding for specialist mental health services received $55 million less than what it needed to cover cost increases, pay settlements and population growth.

- The Ministry of Health was underfunded by $2.3 million and has had significant reductions in staff numbers since 2010.

- The pay equity settlement for care and support workers was funded $414 million, this year including Mental Health and Addiction Support Workers ($36 million) following their inclusion, agreed in 2018.

- Capital funding announced was $1,713 million, $460 million more than was announced in last year’s Budget, which in turn was almost double the amount announced in 2017.

The full report can be found here http://www.union.org.nz/wp-content/uploads/2019/08/Did-the-Budget-provide-enough-for-Health-2019.pdf

The Excel spreadsheet is here http://www.union.org.nz/wp-content/uploads/2019/08/Health-vote-2019-post-Budget.xlsx

ENDS


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Political Twins, And On Labour Extending Its Wage Subsidy Scheme


A quick quiz for the weekend. Which political party currently represented in Parliament issued a press release yesterday that contained these stirring passages:
“[We have] long supported a free trade and free movement area between Canada, Australia, New Zealand, and the United Kingdom…on trade, immigration and investment, New Zealand must favour countries who share our values. New Zealand must do its part to reinforce freedom and democracy around the world by diversifying our markets and building stronger relationships with those who share our values... More>>

 

Parliament Adjourns: Adjournment Debate: Speaker Trevor Mallard

The 52 Parliament has sat for the last time before the September Election. It sat for 245 days... More>>

ALSO:

E-Cigarettes: Vaping Legislation Passes

Landmark legislation passed today puts New Zealand on track to saving thousands of lives and having a smokefree generation sooner rather than later, Associate Health Minister, Jenny Salesa says. The Smokefree Environments and Regulated Products (Vaping) ... More>>

ALSO:


National: $4 Billion Investment To End Wellington’s Congestion Woes

A National Government will invest another $4 billion in transport infrastructure across Wellington, igniting the economy and delivering the congestion-busting solutions the region has long been crying out for, National Party Leader Judith Collins says. ... More>>

ALSO:

Gordon Campbell: On The Virtues (and Fluffed Opportunities) Of The Operation Burnham Report

One unspoken rule of thumb in any official public inquiry is : whatever you do, don’t conclude you were made to listen to “a litany of lies” even if the evidence of a deliberate cover-up is right there under your nose. In that respect, the report ... More>>

ALSO:


Horizon Research Limited: How Judith Collins Stopped The Bleeding

Horizon Research includes questions on voting from time to time in its surveys – for both forthcoming referenda and general elections. More>>

Your Vote 2020: Bringing Election Coverage To Viewers Across TVNZ Channels And Platforms

As New Zealand gets ready to head to the ballot box this September, 1 NEWS is bringing voters comprehensive coverage and analysis of this year’s General Election. TVNZ’s coverage will draw on the depth of experience held across the 1 NEWS team, says Graeme ... More>>

Economy: 30% Believe Households Worse Off, 298,000 Expect To Lose Jobs

64% of New Zealanders feel the economic position of their households is the same or better than a year ago – and 30% think it is worse or much worse, while 298,000 think they will lose their jobs in the next 12 months. Households’ perceptions ... More>>

State Services Commission: Findings Of Investigation Into COVID-19 Active Cases Privacy Breach

Deputy State Services Commissioner Helene Quilter has today announced the findings of an investigation into a breach of privacy regarding sensitive personal information. The investigation looked into who or what caused the disclosure of the information, ... More>>

International Security: New Zealand Suspends Extradition Treaty With Hong Kong

The New Zealand Government has suspended its extradition treaty with Hong Kong and made a number of other changes in light of China’s decision to pass a national security law for Hong Kong, Foreign Affairs Minister Winston Peters says. More>>

ALSO:


 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 


 

InfoPages News Channels