Reti denies wobbling on Dunedin hospital promises

Health minister Shane Reti has denied dodging earlier promises about the new Dunedin hospital, reaffirming the government’s pre-election pledge during a site visit yesterday.

However, he would not rule out further cuts to the project, which faces ballooning — but as yet undisclosed — costs.

Dr Reti denied being ambiguous and kicking the can down the road with comments during a health committee meeting suggesting a decision on National’s election promise to reverse cuts to the project could be years away.

"Maybe when I’ve said it in terms of ‘it’s not off the table’ ... people haven’t understood what I’m meaning by that," he said yesterday.

"We will maintain what we said, that we would return and refit those parts of the new Dunedin hospital back to its original description."

Dr Reti’s long-awaited visit yesterday was the first to the site since becoming health minister.

Southbase senior project manager Anthony Francicevic (right) shows Minister of Health Shane Reti...
Southbase senior project manager Anthony Francicevic (right) shows Minister of Health Shane Reti work under way at the new Dunedin hospital site yesterday. PHOTO: GREGOR RICHARDSON
However, in Dunedin last July he and other National Party members announced a $30million boost to roll back some of the Labour government’s cuts and pledged to build the hospital to the specifications originally intended.

The funding boost would pay for the reinstatement of 23 inpatient beds, two operating theatres and the country’s first publicly owned PET scanner.

At a health select committee meeting on Tuesday, Dr Reti said the changes were still on the table, related to the final stage of the new inpatient building.

"We have to understand that’s part of fit-out, and the build itself, as you heard the [chief executive] say, could be six to 10 years away."

Yesterday Dr Reti said this was a comment on how long a hospital could take to build generally.

Despite the ongoing wrangling with Australasian construction company CPB Contractors that had already delayed the start of the inpatient building’s above-ground construction by about six months, the building was still set to be finished in five years.

"The current completion date is 2029," Dr Reti said.

He would not be drawn on any doubts about CPB, which has a history of delivering government projects over schedule and over budget.

The ODT understands the total hospital budget has now climbed beyond $2 billion, but he would not confirm this, citing commercial sensitivity.

The outpatient building, which Dr Reti toured yesterday, was on track for completion in 2026, delivered by Southbase Construction.

The government was committed to the new hospital, but did need to seek value for money, he said. More details would be contained in the implementation business case due to be completed later this year.

He would not guarantee there will be no further cuts, but said it was not in the government’s plans.

"I would be surprised if any minister has ever guaranteed an infrastructure build — a commitment is a good, strong indication," Dr Reti said.

As Mayor Jules Radich was out of town during the visit, Dr Reti met deputy mayor Cherry Lucas, who afterwards said she was greatly encouraged.

"Dr Reti told me the government will deliver everything they promised — beds, operating theatres and the PET scanner, which will be part of the fit-out stage — and that he wants to see the new facility built sooner rather than later.

"Our council expects nothing less than a hospital that meets the needs of our community ..."

 

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