City councillor Jim O’Malley, who last month announced his bid for the Dunedin electorate to advocate for the new hospital, said the $90m in savings sought through design cuts would "all be eaten up".
Health Minister Dr Ayesha Verrall last month pledged to provide separate pathology building within 1000m of the new hospital — a pledge reiterated by local Labour MPs yesterday.
The recent public release of a Te Whatu Ora Health New Zealand (HNZ) document detailed results of the pathology services review upon which the decision was based.
"The recommendation from the review team of experts is that a single 4000sq m off-site laboratory, within close proximity to the NDH, is the most efficient method of providing pathology services," the document said.
Initial cost estimates were "around $45m".
Mr O’Malley said he queried the estimate.
"That comes in at $11,250sqm but the hospital comes in at $16,150sq m.
"Both buildings will have to be built to the same specifications, so I can’t see how it will be able to be built at 70% of the cost."
"I predict that the final cost will be more in line with the construction cost of the hospital, and it will rise to $65m before it is completed."
The cost of the inpatient building redesign and the inflation hit caused by the delay would eat up the remaining savings, he said.
The in-hospital laboratory was reduced from 1300sq m to 350sq m as part of last December’s $90m cutback.
The cutback was made alongside $110m in additional funding to meet a $200m budget blowout.
A further $10m was reinstated to the project earlier this year.
Mr O’Malley said decision makers appeared to lack familiarity with large capital works programs, and HNZ did not appear to have a capital works budget.
Best practice would have been to fund the inflation hit and complete the new hospital project as planned.
The HNZ document also drew criticism from medical laboratory scientist Terry Taylor, as reported by the Otago Daily Times yesterday.
Mr Taylor was concerned by the recommendation of a $5m pneumatic tube between the new hospital and the current pathology laboratory, as this could mean the new building was put of indefinitely, although it was urgently needed.
In a joint statement provided to the Otago Daily Times yesterday, local Labour MPs Ingrid Leary and Rachel Brooking said the party had committed to building the new Dunedin hospital, including world class laboratory facilities.
"The minister of health made this commitment months ago and we as local MPs will be sure to hold our colleagues to that promise," the statement said.
The minister took the decision to improve laboratory services and create room in the building to create more space for older persons mental health.
"This is a win for Dunedin and the community and it’s something we advocated for very strongly in our caucus. "It’s politically expedient for political opponents to cast doubt while we are getting on with the work."
