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The Government this week announced $110 million in additional funding for the project to address a $200 million budget blowout.
The remaining $90 million will be saved by design changes to the now a $1.58billion project.
Changes include a reduction in hospital beds to 398, 12 fewer than planned, and fewer operating theatres — 26 rather than 28.
Dunedin Mayor Jules Radich welcomed the announcement, saying it was pleasing the Government had been "working hard to deliver on its promises for our residents".
"It’s a bit of an early Christmas present for us all," he said.
On the cuts he said: "Building such a large piece of critical health infrastructure is always a challenge, and more so in the current economic climate, so it’s only right that the Government has been keeping a close eye on the bottom line.
“Yes, there have been changes including to the architectural design of the buildings, but the most important thing is that a new hospital is built, and that it delivers an improved and appropriate level of service for our residents and the wider region."
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"I’ve read all the quotes, and I’m appalled by them.
"Telling them it was a Christmas present or that they’re happy with the issue and it could have been much worse, defies belief," he said.
He had called on his colleagues for "a more robust response" following the announcement, which confirmed several changes, resulting in the loss of services within the build.
"Be in no doubt about how feeble I think the response has been to date."
He said the council needed to be direct in its approach to avoid leaving the Government in any doubt - cuts and losing services were not acceptable.
"I don’t want to see the bulk of the build compromised in any way ... Any resiling has to be resisted and reversed," Cr Benson-Pope said.
He said a resistance to further cuts and a possible campaign to save the hospital services might be necessary.
"We have a good record for campaigns and this might be the next one. Who knows," he said.
Mr Radich’s comments were also criticised by previous mayor Aaron Hawkins on social media.
He had previously warned the Government of protests if it made cuts to the project.
Cr Carmen Houlahan said the region would not stand for further cuts to its hospital build.
"People will go to the streets to protest and I will be in the front line with them if they do."
Mr Radich could not be reached for comment yesterday.