At the end of last week, we learned of the announced truncation of the proposal to build the new inpatient hospital at Dunedin.
The announcement came with the release of a report commissioned by the government dated May 30, 2024, led by Robert Rust, a respected and experienced civil engineer, who in the report discloses he led a review into New Zealand’s infrastructure on behalf of the New Zealand Infrastructure Commission in 2021, had previously advised Health New Zealand on its operating model as part its independent working group and was also a member of the new Dunedin hospital executive/project steering group for two years.
It would appear then, the report upon which the government now relies to justify its decision to can the inpatient hospital as planned, and as promised by the National Party before the election, is by a respected professional who was intrinsically involved in the initial planning process.
This surely is causing damage to the claims of the Minister of Finance that the build is located poorly without due consideration (Hansard, September 26, 2024).
As noted in the speeches recorded in Hansard, most of the financial information in the Rust report has been redacted, although there is sufficient detail to give lie to the claim of the $3 billion blowout.
According to the report, the indicative business case completed in July 2017 included the sum of $1.28 billion-$1.43 billion.
A detailed business case in April 2021 provided for $1.48b, which had increased by December 2022 to $1.58b.
In April 2023 it increased to $1.59b and in March 2024 to $1.88b.
By April 2023, reductions in scope were proposed by the former government, which resulted in the election promises of the National Party to reinstate the items proposed for removal and to build the hospital as originally proposed.
Provisions for pathology, one of the features to be removed from the new build, parking and the demolition or refurbishment of the present hospital building were not provided for, but have been included in the Rust report as part and parcel of the overall development.
On estimates provided for in the Rust report, the provision for these items would add substantially to the overall cost. However, the report suggests questions should be asked as to whether it is the responsibility of the hospital to provide space for outsourced hospital pathology.
It would seem sensible to delay any decisions on the future use of the present clinical block until such time as decisions around the new build are finalised.
The rationale supporting the government’s recent decision to cut the hospital, as recorded in Hansard, are specious at best, rely on placing blame and responsibility elsewhere and are not supported by the overall context of Mr Rust’s report.
This report concludes with the statement: "We believe that the recommendations provided in this report provide ministers, Health New Zealand, the Ministry of Health and the Treasury with some critical strong actions to better position Health New Zealand to successfully deliver this world-class faculty to Dunedin and the southern region".
Thousands turned out on Saturday to protest hospital cuts. PHOTOS: STEPHEN JAQUIERY
I attended the march to the Octagon on Saturday. During the speeches, by design or by chance, a rescue helicopter passed directly overhead.
This evoked cheers from the assembled gathering and is a poignant reminder that this is not solely a Dunedin issue.
The people of the hinterland, many of whom will be supporters of Mr Luxon’s government, will have a high regard for the Otago Southland Rescue Helicopter Service and for the excellent work done day after day by clinicians and supporting staff at Dunedin Hospital.
The time is well overdue for it to be replaced.
It is time to stand up and say "this time you have got it wrong".
The southern district needs to have the facility described in Mr Rust’s report.
— Noel O’Malley is a Balclutha lawyer. He is a past-president of the Otago District Law Society and this year graduated with a master’s degree in peace and conflict studies from the University of Otago.
