New Zealand / Money

Claim $90m in 'savings' for new Dunedin Hospital will be meaningless by opening date

16:02 pm on 27 March 2023

A concept sketch of the new Dunedin Hospital. Photo:

The Dunedin City Council has been told planned cuts to the city's new hospital are "stupid".

Dunedin's planned new hospital has been plagued by delays and budget blowouts since Labour campaigned in 2017 on getting the project underway by the 2020 election, and even before that under the previous National government.

Te Whatu Ora confirmed late last year the government had approved another $110 million for the project.

However, beds had been cut as had operating theatres, imaging services and other aspects of the $1.5 billion build to accommodate $90m in savings.

The Dunedin City Council is leading a campaign to have the hospital built to the specifications signed off by Cabinet.

The council heard this morning from several speakers opposed to the planned cuts, including doctors and Grey Power Otago.

Senior emergency department doctor and former Southern DHB board member John Chambers said by the time the hospital opened in 2029, the savings would be gone.

"Will this $90 million be saved in the end when the new hospital opens? Absolutely no way, absolutely not," he told councillors.

"I think because of other inflationary things and other things happening - both known and unknown - the final bill will probably exceed the $1.5 billion by the order of a couple of hundred million dollars. So the savings will not be made in fact."

The redesign and debate had caused another delay.

Labour campaigned in 2017 on getting it completed before the 2027 timeframe claimed by the-then National-led government.

After taking the reins of power, Labour reiterated that promise, however, not the project was not due to be completed until 2029.

Junior doctor Janet Rhodes told the council meeting the current facility did not have enough space and neither would its replacement.

She also told them of the strain on staff working in the current hospital with more than 2000 operations deferred or cancelled in the past two years and long work hours.

"I'm getting paid to work 60-65 hours a week, but on a mad week I'll work 90," Dr Rhodes said.

Maureen Carruth said cutting the number of elderly mental health beds was nuts.

"Taking away the pavilion for staff time out spaces is stupid as well," she said.

The council had previously committed to funding a $130,000 campaign - titled They Save, We Pay - to fight the changes.

The government had constantly labelled the changes as savings, in opposition to many of those in Dunedin and the lower south - who called them cuts.