Question over rise in expected deficit

Richard Thomson
Richard Thomson
Southern District Health Board member Richard Thomson has asked whether there was a "cunning plan" to spend almost up to the board's approved deficit unnecessarily.

At the board's meeting yesterday in Invercargill, Mr Thomson asked how an expected operating deficit of just over $6.7 million had increased to a forecast $10 million.

"Is that a cunning plan to say we had a $10.5 million deficit and that's approved [by the Government], so as long as we come into that ... ?"

He was suggesting the DHB was trying to draw additional items into the current financial year because of its approved deficit.

The difference between the two figures comprised building valuation write-downs and one-off investments.

The expected building valuation write-down was about $1 million, with one-off investment dependent on project approval.

Chairman Joe Butterfield closed down the discussion, telling Mr Thomson the financial "detail" would be dealt with in the public-excluded session of the meeting.

"It is not a cunning plan," he said.

In January, the DHB had a $167,000 deficit.

For the year to date, the deficit was $1.2 million, which was $2.5 million better than expected.

Key factors in the year-to-date position included underspending of $1.5 million on mental health, $800,000 unspent primary health funds, and payments from other DHBs for services.

 

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