Speaking to media in Auckland today, Christopher Luxon said he understood the frustration expressed in Dunedin, but he stood by the process under way.
When asked, he denied a lack of transparency around the new cost estimates put forward last week.
‘‘I understand the frustration but equally this is a project that started off at $1.2 billion, went to $1.6 billion, we've put almost $300 million more into it at $1.9 billion and we can't have a project like that blowing out and heading towards a $3 billion cost,’’ Mr Luxon said.
‘‘Because essentially that is then choices that we have to make around other regional hospitals we want to support.
‘‘So rest assured, we're committed to building a new hospital but it needs to be within the budget frame.
‘‘As you know we've got a review under way looking at two options.
‘‘Whether on the new site or the old site, we'll take advice on that and move through very quickly.
‘‘We are committed to building a new hospital there but you cannot have a situation as we've inherited around the ferries, as we've inherited around school buildings, where we have cost blowouts and we have to make sure that we can get a good hospital in place for the people of Dunedin and the South, but within budget.
‘‘Because the choice is we have limited amounts of money and the reality is that those are then monies we cannot invest in other regional hospitals, which we also have commitments and investments around as well.
"Our focus is on making sure we get it back within the envelope of the $1.9 billion.
‘‘Even at $1.9 billion it would be amongst one of the most expensive hospitals in the southern hemisphere so we're committed to building a great hospital but we need to do it within budget.’’
