DHBs told MPs questions could lead to big savings

DHBs told MPs questions could lead to millions in savings

District health Boards should be careful before criticising efforts to have them report on efficiency.

A MidCentral Health Board member, Jim Jeffries, has criticised MPs on Parliament's health select committee for asking too many questions, and cites examples including ones about emissions measurement.

But business leaders say the answers could be of “extreme value” to the boards, patients and taxpayers.

Some of the questions ask about emissions measurement, which mostly directly relates to energy use. Others ask about vehicles, equipment and paper buying.

The New Zealand Business Council for Sustainable Development says efficient, sustainable procurement by health boards could save them tens of millions a year which, in turn, could help meet budget blow outs and maintain services.

“Not to question, measure and report means the DHBs and other organisations have no hope of making better procurement and investment decisions,” Business Council Chief Executive Peter Neilson says. North Shore City Council has saved 30% on its vehicle costs by buying on a whole of life cost basis, not just day one price.

“DHBs run the risk of wasting millions in energy, fuel and other bills if they don’t apply efficient procurement rules.

“It might sound unusual at first glance for a health board to be asked how it has cut its greenhouse gas emissions – but that leads to information which allows boards to analyse their energy, fuel and other emissions sources. It then gives them the chance to look at ways of cutting energy use and procuring more energy efficient equipment, vehicles and other goods, like sustainably sourced paper, which can withstand social scrutiny.”

The Business Council’s 73 members last year adopted new rules requiring themselves to measure emissions within 12 months and come up with a plan to reduce them, and to each procure sustainably from six of their top 10 supplies within 36 months of joining.

Members’ annual sales of $59 billion a year equate to 43% of GDP in dollar terms.

“Businesses know there’s money to be saved from efficient procurement, in addition to taking better care of the environment and people. We also think it’s vital to lead in this area. The DHBs will benefit from doing the same.”

The spread of sustainable procurement procedures through central Government alone could save the taxpayer about $1.6 billion a year, according to new research the Business Council is planning to publish in the next month.

“We shouldn’t complain about being asked questions. We should complain if they’re not being asked – and massive waste of public funds through inefficient practices and procurement is allowed to continue,” Mr Neilson said.

ENDS

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