Health funding slashed $1.7b: Labour

Research commissioned by the Labour Party claims health funding has been ''slashed'' by $1.7 billion since 2010.

The claim was dismissed yesterday in Parliament by Health Minister Dr Jonathan Coleman, who attacked Labour's record in managing the health budget.

Labour's health spokeswoman Annette King said in a statement the Infometrics report showed health had been cut in four out of six budgets.

The $1.7 billion figure was reached by estimating the additional cost of inflationary and demographic pressures since 2009-10.

''A shortfall of $500 million this year means the sector's funding has been slashed by $1.7 billion over six years.

''The Government paints this as a quest for efficiencies. That is only one part of the picture.

''DHBs are facing a financial double whammy, confronted by rising costs - due to factors such as cost pressures, demographic changes and an ageing population - at the same time they are being told to make savings of millions of dollars.

''Indications from Treasury are that cost pressures will only intensify over the next few years, requiring ever more significant changes to the health system,'' Mrs King said.

Questioned by Mrs King in Parliament, Dr Coleman said health expenditure had increased by $3.3 billion to $15.6 billion.

''In tight economic times this increase covers all demographics and most, but not all, inflationary pressures.

''Under this Government it is all about delivering results that matter for patients, rather than pouring money in with little to show for it, as happened between 1999 and 2008.

''Frankly, it is a better health service than the Labour government presided over,'' Dr Coleman said.

eileen.goodwin@odt.co.nz

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