Nurses Settlement Costs DHB’s $413 Million

Friday 11 Mar 2005
Heather Roy
Press Releases -- Health

The nurses pay settlement will cost District Health Boards $413 million over three years, ACT health spokesman Heather Roy revealed today.

Mrs Roy was responding to answers to parliamentary questions from Health Minister Annette King which show the country's 21 DHB's were required to budget an extra $47 million this year to provide for the recent nurses pay deal.

The figures showed DHB's would also have to find an additional $365 million in the next two years to honour the settlement.

"Nurses deserve a pay rise and should be paid appropriately for their skills," Mrs Roy said. But DHB's, who are already under huge financial pressure, have been caught in the middle and have to foot the bill out of their operational funding. I expect the pay rises will be at the expense of other health services. New Zealanders can expect to see an increase in elective surgery waiting lists."

"I have previously revealed Finance Minister Michael Cullen`s huge concern that hospital productivity has steeply decreased two years running. This extra cost imposed on DHB's will add even more pressure to costs with no gain in health services," Mrs Roy said.

Mrs Roy predicted the Government would have to reimburse DHB's for the nursing costs in this year's budget.

"This is another example of central Government decision making being imposed on regional bodies," Mrs Roy said.

ENDS

For more information visit ACT online at http://www.act.org.nz or contact the ACT Parliamentary Office at act@parliament.govt.nz.

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