Health Minister Dr Jonathan Coleman yesterday announced approval for $22.5million funding to upgrade the ICU, gastroenterology unit and audiology unit, and for ''urgent'' deferred maintenance.
No timeframes were given for the projects.
The maintenance component is $7.3 million.
Also announced by Dr Coleman was the appointment of a group to oversee the $300 million rebuild of the clinical services building, which is separate from the $22.5 million works.
The rebuild has stalled for months because of upheaval and uncertainty at the Southern District Health Board, and the appointment of the group - who will be paid - is being held up as a sign of progress.
Another person will be added in due course. Contacted yesterday, Mr Thomson insisted the formation of the group was significant.
''I would hope that the ODT and the people who read it would understand that this is the signal that they've been looking for, that this rebuild is actually going to happen.
''This is the point that we've been waiting for. I would hope that people would see this for what it is.
''We're finally winning here.''
Asked if all of the $22.5 million spending had been approved, Mr Thomson said $11 million for the ICU had been held back to allow more planning.
But it was not bad news, as it had happened because it is believed the project could be sped up by revising the plans, Mr Thomson said.
The ICU, which is in the ward block, will be redundant when another ICU is developed in the new clinical services building.
It made sense to have it close to operating theatres rather than in ''splendid isolation'' in the ward block.
It has to last seven or more years until the rebuild happens.
''Some of the money will go down the toilet, to put it bluntly.''
Along with Mr Thomson, the Southern Partnership Group comprises consultant Andrew Blair (chairman), of Hawkes Bay, Medical Council chairman Andrew Connolly, of Auckland, and consultant Dr Tony Lanigan, of Auckland.
The fifth member would be a clinical expert, Dr Coleman said.
''The Southern Partnership Group will provide governance oversight of the redevelopment process, working closely with the DHB and commissioner,'' Dr Coleman said.
''The group's first step will be to review current services and prepare the service-planning component of the business case, which is now in the early stages.
''To be done well, hospital redevelopments take time - particularly in the early stages, where considerable work is needed to define how services will work in the future and how best to configure them.''
The group members' pay was yet to be determined, but would be within State Services Commission guidelines.
A similar process was followed for Christchurch and Greymouth hospital rebuilds, Dr Coleman said.
Asked to clarify the ICU situation, Dr Coleman said $11 million had been approved to ''progress an implementation business case ... which includes a review of ICU required capacity and will consider options to fast-track the delivery of the project''.
Health board commissioner Kathy Grant said the announcement was ''great news''.
''It signals that we are now under way with the rebuild, as well as having the go-ahead for more urgent work in Dunedin ICU, gastro and audiology facilities.''
The ICU's training accreditation was withdrawn last year by the College of Intensive Care Medicine of New Zealand and Australia partly because of the state of the facility.
