The National-led government will demand "value for money" as it makes decisions on the new Dunedin hospital, Associate Finance Minister Chris Bishop says.
Mr Bishop, in Dunedin yesterday for a post-Budget speech, reiterated that the hospital build would go ahead.
"However, I am not going to pretend that the project is without problems," he said.
"We need to make sure that the project delivers value for money and that it can be delivered as expected."
After his speech, when asked whether "as expected" meant in accordance with the promise Prime Minister Christopher Luxon made on the campaign trail last July that "we’re going to build this [Dunedin] hospital back to the specification that was originally intended", Mr Bishop would not be drawn.
Mr Luxon made his promise in the wake of ongoing fury in the South over a review of the project ordered by the previous government, which had identified several potential savings on the inpatient part of the build.
Mr Luxon’s pledge, if honoured, would mean the reinstatement of 23 inpatient beds, two operating theatres and a PET scanner.
Some of the announced cuts were reversed by Labour before the last election, but spiralling costs on the project and silence from the new government over whether it will keep its promise have led to uncertainty it will be kept.
"Let me very clear, the coalition government remains committed to completing a new hospital for Dunedin," Mr Bishop said.
"The current government has inherited a project that is off track.
"We want to build a new hospital, but we are being cautious. The Minister of Health and I, along with key colleagues, are considering advice for the next step for the new Dunedin hospital."
They called for "public health not private wealth", pay equity for support workers and nurses and the Fast-track Approvals Bill to be cut.
Mr Bishop was earlier forced to make a hasty exit from the opening of a social housing complex in the former Loan and Mercantile building after he was approached by a group of protesters while getting his photo taken outside.
Mr Bishop’s driver for the event quickly escorted him away from the protesters.
Before making his exit, Mr Bishop said the conversion of a heritage building into a social housing complex was "one of many" approaches needed to address the country’s housing crisis.
He said he could not be more impressed by the conversion of the Heritage New Zealand category two-listed former Loan and Mercantile building into a space which would house 30 apartments for low-income tenants on the Housing Register.
"People should be really proud of what they have done here."It was the brainchild of Dunedin developer Russell Lund, and has taken years to complete.
Mr Bishop also met Dunedin Mayor Jules Radich, the pair discussing a range of housing issues, including the proposal to use the Kāinga Ora-owned Aaron Lodge Holiday Park in Kaikorai Valley Rd to address the homelessness issue.
Salvation Army social housing manager Greg Foster said the team were interviewing potential tenants and expected to fill the former Loan and Mercantile building in two weeks.
"It’s going to be pretty transformational for the tenants.
"Dunedin has some beautiful heritage buildings, so this could be potentially a new way forward."
Mr Foster was reluctant to confirm what type of tenants would feature, other than to say "about 50%" would come from transitional housing.
