At Labour’s insistence, Te Whatu Ora financial documents have been released by the Health Select Committee today showing more cuts are on the way for our health system.

“The Government has manufactured a financial crisis to justify stripping back the health system. These cuts are affecting patient care,” Labour health spokesperson Ayesha Verrall said.

“The Government said it wouldn’t touch the front line, but it has broken that promise.

Te Whatu Ora’s internal budget shows all four regions of New Zealand are getting less than the previous year of between about six percent and 14 percent, an average of nearly nine percent across the country.

“We have seen communities in Buller and Dunedin march in the streets demanding better health services for their people. Labour will stand with communities and fight for the health services they need and deserve.

“Te Whatu Ora’s deficit can be explained in part by hiring more nurses, doctors and allied staff such as physiotherapists, necessary and consistent with the workforce plan Labour put in place. This is exactly where the Government should be investing, not cutting.

“However, the FTE numbers show what frontline staff have been telling us – that there is now a hiring freeze starting to take effect.

“The Government also withheld $529 million from Te Whatu Ora to pay nursing, midwifery and allied staff the pay increases they got in 2023. This would account for a big chunk of Te Whatu Ora’s deficit in the last financial year.

“The documents further undermine the Government’s story that Te Whatu Ora’s deficit is fuelled by back office roles. It’s important the health system is staffed by those who care for patients and keep the whole system functioning – like those booking appointments, orderlies and cleaners.

“If there is any bump in non-clinical staff, it’s under Minister of Health Shane Reti’s watch, as there is an almost doubling of management and admin personnel costs in June 2024. Given that he has brought in expensive commissioners and regional CEs he needs to come clean about the cause of this increase.

“These financial documents don’t support the Government’s spin. Shane Reti made up claims about 14 layers of management to justify cuts to frontline services.

“The Government has the wrong priorities – its reckless tax cuts are harming the health services New Zealanders need and depend on,” Ayesha Verrall said.

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