Wait continues as costs mount

Weeks are turning into months for a decision on the new Dunedin hospital, leading to anger from civic leaders and concerns over how much the pondering is costing.

Health New Zealand Te Whatu Ora (HNZ) presented Health Minister Dr Shane Reti and Infrastructure Minister Chris Bishop with new plans and options for the project earlier this month.

Asked whether there could be an announcement today, a spokeswoman for Dr Reti declined to comment.

The government announced in September it would proceed with either a scaled-back version of the new Dunedin hospital project at the former Cadbury’s site, or retrofit the existing Dunedin hospital.

Dunedin Mayor Jules Radich. PHOTO: PETER MCINTOSH
Dunedin Mayor Jules Radich. PHOTO: PETER MCINTOSH
It appears Dunedin could be left waiting over the festive season for the government’s decision.

Dunedin Mayor Jules Radich said the delay was adding tremendous extra cost.

"Estimates for this new southern region tertiary hospital have risen from $1.2 billion by Prime Minister Bill English in 2017 to $1.9b by Prime Minister Christopher Luxon over three months ago.

"That’s an increase of $100 million per year, so the past three months has cost $25m and this three months will cost another $25million.

"A rapid review is one thing, but a lengthy delay is a waste of money."

Several city councillors expressed their frustration about the wait.

Cr David Benson-Pope said the only sensible — and most cost-effective — decision was to complete the build as designed.

"Given the huge costs of the delay already experienced and ongoing, it really is time for progress.

"No-one can be in any doubt about the expectations of the southern community."

Cr Steve Walker said it seemed unfathomable the government was struggling to remember its election promise to the people of Dunedin and the southern region.

"Perhaps during the Christmas/New Year break, Minister Reti and Prime Minister Christopher Luxon may experience a eureka moment and suddenly recall the previously on-the-record promise to build the hospital to the detailed business case.

"Unfortunately, there’s also the possibility of seeing pigs flying above Dunedin come January 2025."

Cr Sophie Barker said it was very disappointing they had not heard anything.

"Delays cost money, so it’s ridiculous to be delaying work.

"Every day’s delay just adds money down the drain.

"We all want certainty around the hospital. There is only one decision that’s acceptable — build the hospital as promised. Anything else would be a travesty."

Crs Carmen Houlahan and Andrew Whiley were more pragmatic.

"Personally, I’d rather they wait than rush a decision and then try to push something through that is not right for our city," Cr Houlahan said.

"Hopefully, after more reflection, they might see that building the hospital they promised is the right thing to do.

"Delays cost money, but a wrong decision could cost lives and livelihoods."

Cr Whiley said he appreciated the frustration many felt.

"The mayor and my fellow councillors will have to continue the hospital campaign.

"It is important that the community continue to let the government know that Dunedin, and the southern region, desperately need a fit for purpose new hospital."

Infometrics chief economist Brad Olsen has previously said costs could rise by $10m every three months the project languishes.

"The lack of momentum in the project is certainly a huge blow to the local community and to local businesses.

"Equally, it sends some pretty strong signals around the country."

Mr Olsen said other areas, such as Nelson and Whangarei, which were waiting for their own hospital projects to progress would also be concerned.

"Let’s be clear, both major political parties are very much at fault of making big commitments and completely fumbling it.

"We often seem to talk up projects far, far earlier than we should, and sometimes probably far earlier than you might in other countries."

matthew.littlewood@odt.co.nz

 

 

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