After promising there would be no cuts, ministers now want to shrink the promised hospital or dump it altogether and retrofit the old building.
Readers expressed the depth of feeling in the South over the impact of this devastating U-turn:
These hospital cuts are a cruel, thoughtless castration of progress, one of many that the coalition government has already executed.
I cannot forgive the voting majority of this country for what they've done to us, and the fact that they're not even the people getting burned the worst by all of this.
I'm 22, just about to graduate, and I don't know if I have a life here in New Zealand for the foreseeable future.
I just can't take it anymore. I know this is about the hospital, but it's beyond the hospital at this point.
The coalition government is a citadel powered by human suffering, and this is one of a thousand cuts.
Kaea Roberts, Green Island
Seems that only the North Island counts for anything, except for little Auckland (Qtown) and Chch.
Time to cut the cable and introduce South Island passports.
Disgusting behaviour by this pack of nobodies.
We voted based on their promises. Never again.
Dale Brewster, Dunedin
I think the reluctance on behalf of the governments, blue and red, to provide a fully functioning fit for purpose hostpital funded by the countries taxes is a real show that they see the South Island as bunch of second class citizens.
I think we should cut the power cable and see how long they last with out us!
It is never going to be as cheap as it is today!
Wayne Fa'asega, St Clair, Dunedin
I am shocked this is a devastating loss to health provision in the Southern Region.
Politically motivated to claim funding for North Island benefit including the Reti new medical school plan. Vote them out.
This government hates Dunedin because we can see straight through their lack of empathy for people.
Lorraine Cooper, Dunedin
I am deeply upset and angry that the government are not focused on people first just money.
To cut this main hospital build is devastating it's a kick in the guts where it makes you feel sick.
The govt promised us a world class hospital for future generations.
Build the shell at a bare minimum give us at least this hope that one day we will have a world class hospital for all of Otago and Southland.
Jay Mcphee, Dunedin
This is the coalition government breaking its election promise to the people of Dunedin and Southland to build our much-needed public hospital which is also a training hospital for medical students from Otago University.
They have betrayed the trust of many Dunedin citizens who believed in them.
Dunedin and the South deserve much better than that.
Beverley Schofield, Palmerston
I have never been so disgusted in my life with scumbag government. Giving 3 billion dollars for landlords and 216 million dollars to the tobacco companies.
It appears health means nothing. Don't forget the next election vote them out. But do we have alternative party to take power?
James Stuart, St Kilda, Dunedin
The news about the Dunedin hospital downgrade has me feeling angry, appalled and worried.
Recent government infrastructure spending announcements have almost exclusively concerned the North Island.
It feels like most of the South Island is being ignored and neglected, as though we're second-class citizens - even though we pay our taxes like everyone else.
Ultimately, southern people will end up paying for these cuts at the expense of their health and their lives - and what price can be put on that?
Don't give us sticking plaster solutions; invest properly in our hospital and ensure the healthcare needs of current and future generations of southerners are met.
Jen Cattermole, Dunedin
Our country is getting more like America all the time.
Unless one has a comprehensive medical insurance then no one will get treated and basically left to die.
Who can afford comprehensive medical insurance, the answer is only the super-rich.
Most politicians come under the super-rich category, especially the politicians that do their 3 terms then leave politics and go away with a government pension for the rest of their lives, regardless of if they go into another job.
Kathleen Joan Richardson, Gore
I am so disgusted I have had trouble sleeping.
I feel partly guilty for this as I believed Luxon when he said if elected, he will reverse any proposed cuts to the Hospital.
It was one of the main reasons I voted National at the last elections.
Now National have gone back on their promise and are completely gutting the original plans which will lead to Dunedin having a makeshift patch-job of a hospital.
I understand the need for cuts during tough economic times but surely healthcare is not one of them. Especially one that trains doctors of which we have a huge shortage of in this country
Our city has always seemed like a distant afterthought to the government as these cuts would never be so much as considered in the larger centres such as Auckland, Wellington and Christchurch.
I will never vote National ever again.
Samuel Gilchrist, Dunedin
Disgusting the previous Labour Government - plus the personal employed for the new hospital project did not follow due diligently financially - follow every step of process in the financial procedure.
Personally myself have driven people to Dunedin to receive radiation treatment, heart specialist appointments.
Southland communities will have experience or know someone - experience appointments in Dunedin or surgery.
All 120 MPS - in parliament should be hold to account for allowing the disgusting state of affairs of a once proud N.Z. Health system.
We stand behind Otago supporting for the new hospital.
Beryl Geisser, Drummond. Southland
The Government is being extremely short sighted.
They have been given the chance to build an up-to-date hospital in a university city where the doctors and nurses of the future are being trained. Something they promised in their election campaign they would do.
They have the opportunity to say to doctors and nurses ‘stay in New Zealand’ we will give you everything that a good training hospital needs to enhance your quality of life giving the best possible health care every patient in the Southern region of New Zealand deserves.
$1 billion dollars extra is a tiny price to pay for quality and to encourage healthcare workers to stay.
By investing in the Dunedin Hospital already planned they would be saying we value your expertise, we will invest in your future and your children’s future, thank you for giving us this opportunity to build this up-to-date hospital that will reflect well on New Zealand’s healthcare internationally.
They are trying to rob the southern region of New Zealand of an up-to-date hospital when the extra billion dollars could be very easily funded by the introduction of capital gain tax now.
Elaine Wells, Karitane
Underfund everything. Prepare for privatisation.
Vince Southen, Katikati
We need to stop referred to it as Dunedin hospital - yes it is located in Dunedin, but it needs to serve a growing population across a geographical area the size of Belgium for decades to come.
As a tertiary hospital in the South Island there are also benefits that will flow to the wider South Island from attracting and retaining the expert workforce that will be trained and work in it too.
It is not right that the unfortunate costs of inflation and financial crisis we find ourselves in means we might be 'short changed' in terms of what the communities get.
Staging of the development is prudent and palatable, but downsizing it completely is not.
Joanna Schmelz, Dunedin
Only one chance to build new hospital right, don't pinch money now, Invercargill hospital isn't fit for purpose because it wasn't built big enough.
Don't make same mistake with main hospital that serves from Omarau to Stewart Island.
Maybe the Southern Region should just stop paying tax until we are heard.
Angela Caldwell, Arrowtown
Concerning the location, where else could they put it?
Concerning the pricing, please explain how comparing pricing done in 2017 to today is not realistic? Consider that in 2017, the location had not been selected at that time (Cadburys closed 2018). Plus the world is currently still recovering from a global pandemic.
The long term advantages of the government completing a fully functional, up to date hospital, along with the appropriate supporting facilities, will pay dividends in the long run. You get what you pay for!
They save, WE PAY!
Ranei Earl, Tainui
I'd like to see 3/4 of the budget go to a new build hospital in Dunedin and 1/4 of the budget go to expanding Dunstan Hospital. It would save money with rescue helicopters and transporting patients in central otago/southland and relieve the burden on Dunedin.
Christine Skinner, Alexandra
This is personal for me. I am an otherwise fit and healthy 72 year old.
All my life l have been active and have loved the outdoors. Now l have severe arthritis in both knees that has compromised my life in a major way.
Any little excursion causes severe pain and exhaustion.
Although l have been seen by professionals l am still not even on the waiting list for surgery.
I frequently succumb to depression and fear that l will continue to be sidelined until l will eventually be told l'm too old/ debilitated for surgery.
I am an ordinary New Zealander, but l have played my part as a mother and an English language teacher.
I have an university degree and am a home owner. Where is our, once robust, health system for people like me?
It seems unfair that l could still be enjoying life and contributing but instead now spend my days in debilitating pain.
The downgrade of the new hospital in Dunedin will surely affect me, quite possibly shorten my life and it seems like no one really cares a damn.
New Zealand can't just be populated by wealthy, middle aged politicians; it needs a mix of age groups, genders, socio- economic groups and cultural outlooks if it is to continue as a healthy, functional country.
Please think again before you downgrade health services in Dunedin and the Southern Region. The lives of the people who live here depend upon it.
Kay Susanne Joyce, Dunedin