Prime Minister Bill English has announced this morning the rebuild of the Dunedin Hospital, the largest rebuild in New Zealand history, which will cost between $1.2billion -$1.4billion.
Mr English said starting again with a complete rebuild of the hospital was the most economically efficient way to go and it was a "step that needs to be taken".
A central city site was preferred however, a final decision on the location had not been made yet, Mr English said.
"I know this will be welcomed news for people in Dunedin certainly but also as the Commissioner pointed out, to the wider southern area."
Health minister Jonathan Coleman said the rebuild would be the largest hospital rebuild in the history of New Zealand.
Mr English was escorted from the hospital by security after about 35 protesters calling for "equal pay" and "better health care" stood chanting at the hospital's front entrance.