Hon Tony Ryall
Minister of Health
24 May 2012
Health receives largest increase in spending
Health receives the largest increase in government spending in the Budget, with $435 million available to help fund cost
pressures and new initiatives in 2012/13, Health Minister Tony Ryall says.
“Despite tight financial times, the Government is spending $14.12 billion in 2012/13 on health – the biggest investment
ever,” he says. “This demonstrates the National Government’s commitment to protecting and growing our public health
Budget 2012 provides an extra $1.5 billion for public health services over the next four years. This includes $435
million for new initiatives and cost pressures in 2012/13.
This is made up of $358 million in new money for health, $47 million of savings and under-spends, and $30 million from
drugs coming off patent.
“District health boards will have around $350 million available this year – as well as additional funding from the
Ministry of Health for service contracts,” says Mr Ryall.
The extra funding over four years will fund cost pressures and new initiatives including:
$33 million for better, faster cancer treatment, including dedicated cancer nurses to support patients through the
course of their treatment.
$16 million to speed up diagnostic tests for patients.
$48 million for more and faster elective surgery.
$20.5 million to strengthen maternity services and boost PlunketLine and WellChild services.
$133 million to improve services and access for people with disabilities.
$28 million to provide free after-hours doctors’ visits for under-sixes.
$12 million to provide more support services for older people.
$40 million for increased dementia services.
“Around $47 million of savings and under-spends in Health have been shifted to higher priority frontline public health
services in 2012/13,” Mr Ryall says.
“Budget 2012 also changes the adjustment for the residential care exemption from a flat increase of $10,000 a year to an
annual inflation adjustment in line with other aged-care support adjustments.
“The Government has previously announced the pharmacy co-payment will rise from $3 to $5 per prescription, the first
increase in this payment in 20 years. No family will pay more than $40 extra in a year as a result of these changes.
“Importantly, there will still be no charge for under-sixes or those with a Pharmaceutical Subsidy Card.
“The Government is investing in improving key services for New Zealand patients,” he says. “Despite tight financial
constraints, it is maintaining its commitment to protecting and growing our public health services.”