Health minister silent over DHBs' highest pay packets

David Clark
David Clark
Health Minister David Clark has been unwilling to give his views on the size of the highest pay packets at district health boards.

However, his just-released December letter of expectations for district health boards for 2019-20, says a Government priority is raising the wages of the least well-paid workforces which will require a different approach to traditional bargaining which has been based on across-the-board percentage increases.

Dr Clark did not respond to a question about whether information was being gathered on board employees on the minimum wage and whether there was any expectation boards should move to pay the living wage at a particular time.

In his letter, he says boards are expected to develop bargaining strategies consistent with the Government expectations on employment relations in the state sector and to act collaboratively to ensure any potential flow-on implications across workforces are understood and addressed.

Last financial year, the top DHB pay in the band $1,330,000-$1,339,000 went to an Auckland DHB surgeon. Three other Auckland surgeons' pay also exceeded $1million, and a further 11 employees at that DHB received amounts of $600,000 or above.

Of the 14 DHBs which have published their 2017-18 annual reports, seven recorded paying their highest-paid employee more than $600,000.

The State Service Commission's senior pay report shows chief executives at three DHBs - Auckland, Waitemata and Canterbury - had pay packages exceeding $600,000 for the 2017-18 year.

Only two of the 20 boards had chief executives whose packages had remained unchanged from the previous year.

In most boards the highest-paid person was likely to be a clinician.

When approached for the minister's view of these high amounts - in light of the Government's push to limit pay increases for top public servants - Dr Clark's office initially said this was a matter for DHBs to respond to. But it later released the December letter of expectations.

One of the factors listed by the Auckland DHB in its high pay to surgeons was paying a premium for Saturday elective surgery work due to the pressure of meeting government targets in this area.

Dr Clark did not respond to the question of whether he had any plans to ease pressure in this area, but his letter of expectations says he is enabling boards to take a ''refreshed approach'' to the delivery of elective surgery under a broader planned care programme.

This will allow greater flexibility ''in where and how you deliver services'' and would also allow more care to be delivered within the funding.

His letter also says he is considering devolution of certain unspecified services and expects to be making decisions on this ''in the New Year''.

Boards will be consulted on this ''to ensure the financial and service implications are well understood'' and, once decisions have been made, will be expected to work with the Ministry of Health to ''ensure a seamless transition of responsibilities''.

Dr Clark will soon update his letter to include detail on the implementation of the Mental Health and Addictions Inquiry recommendations.

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