However, there were few signs cuts as drastic as those now being contemplated might be coming.
Those options — which could involve either cutting back the planned inpatient building or not constructing it and retro-fitting the old hospital instead, in an effort to stay within a $1.88 billion project budget — led to a huge public march in Dunedin on Saturday.
There are now questions about what might fit within this programme, as well as a separate allocation of $225 million for data and digital components.
Assuming the government agrees with project reviewer Robert Rust, the combined budget is above $2.1b.
The government released the Rust review last Thursday after it had been completed in May and the document commented the approved budget "is probably not sufficient at this stage".
The review signalled three documents would provide more certainty in the coming months.
The ODT has some familiarity with one of them, via a leak.
It said contractor CPB’s pricing to Health New Zealand Te Whatu Ora (HNZ) was significantly above the budget and it was working with subcontractors, HNZ and consultants to reduce the overall cost of the project to better align with the budget.
This included CPB re-tendering some of the key subcontractor packages.
This was the situation at the end of July and there was an attempt by HNZ to bring the region’s mayors up to speed last month.
Mr Radich said yesterday the Rust review was not mentioned and last Thursday’s announcement was the first time he had heard of it.
"He didn’t say anything when I was in Wellington, and it was a big surprise when he came down here and revealed ... what they’re thinking", Mr Radich said.
"However, it’s not over yet", he said.
The government is accused of breaking pre-election promises.
"They haven’t made a decision", Mr Radich said.
"And it’s our job to influence that decision and influence them to keep to their promise."
Mr Radich also said he would like to see copies of the documents mentioned in the Rust review.
He took issue with the way the government had arrived at a figure approaching $3b for what had been suggested the project risked blowing out to.
Elements considered to be out of scope had been added in, Mr Radich said.
Information provided by HNZ this month was a source of some contention among southern mayors.
It led to Clutha District Mayor Bryan Cadogan saying he had received "categorical assurances" from HNZ officials that did not align with last week’s announced cuts.
However, HNZ head of infrastructure delivery Blake Lepper said he tried to be "as accurate as possible with the complex, and nuanced, and moving information".
The Otago and Southland mayoral forums met last night with HNZ.
Otago forum chairman and Waitaki District Mayor Gary Kircher said Mr Lepper initiated the meeting.
Infrastructure Minister Chris Bishop’s office said recent cost estimates came in several hundred million dollars over the $1.88b appropriation.
"The plain facts are that $1.88b for this hospital is an increase of $290m on the amount funded by Labour and is a sizable commitment by our government", Mr Bishop said.
Dr Reti’s office said the issues were complex and of great public interest and financial sensitivity.
"Successive governments have been aware of cost overruns around the project.
"This appears to have been one consistent feature of planning since 2017.
"This government is committed to building a new hospital in Dunedin."
Unanswered questions
— What is in scope and what is out of scope for the $1.88 billion (budget)?
— Does the appropriation now include things that were outside the scope of the new Dunedin hospital project, such as carparking, a pathology lab and decommissioning or refurbishment of existing facilities?
— What is the status of the separate allocation of $225m for data and digital?
— Regarding the option of a staged redevelopment of the old hospital, did the government do any preliminary work to explore the
feasibility of this before last Thursday’s announcement? If this option is considered to hold some promise, what is this based on?
