Compass seeks legal advice on releasing meal cost information

The Compass Group is consulting lawyers over whether to release price per meal information requested under the Official Information Act.

The Otago Daily Times asked for the information, which forms part of a 15-year contract awarded to the multinational for Southern District Health Board food services.

In what could be its last significant decision, if it is sacked by Health Minister Dr Jonathan Coleman, the board approved the controversial outsourcing last month, defying public opposition.

Health Benefits Ltd is handling communication requests, and this week extended the time allowed under the OIA by another 12 days, partly to allow Compass to seek legal advice.

The ODT lodged the request on May 12.

''In order for me to make a decision on this part of your request, it has been necessary for HBL to consult Compass and Southern DHB for their views regarding disclosure, and we are awaiting their comments.

''Compass is seeking legal advice,'' interim chief executive David Wood said.

Compass will take over the service on October 1, trucking frozen Meals on Wheels from Auckland, and assembling other meals on site with pre-prepared ingredients.

The board initially said the outsourcing would save $7 million over 15 years, but then said that was too conservative, and the saving would be about $1 million a year.

Set up by then health minister Tony Ryall in 2010 to cut costs through bulk purchasing, HBL will be wound up at the end of this month.

HBL was unpopular in the DHB sector because of concern over the approach it took in some of its cost-saving projects.

It will be replaced by a new organisation called NZ Health Partnerships Ltd, which will be equally owned by all health boards, Dr Coleman said in a statement this month.

Dr Coleman said HBL and DHBs had achieved more than $300 million in savings.

eileen.goodwin@odt.co.nz

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