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The new Dunedin Hospital could compound parking issues in the city and put staff at risk, some city councillors fear.

However, speculation the hospital might have no parking at all has been dismissed.

Concerns about parking erupted at a Dunedin City Council planning and environment committee meeting yesterday and Cr Carmen Houlahan said ratepayers would be angry about any proposal that removed car parks from the city.

People complained often about not being able to get parks near the existing hospital, and business people were concerned about parks being taken up near their sites "and they’re afraid that’s going to get worse with this new build".

Cr Rachel Elder said staff needed to be safe when they were getting to and from shifts and accessibility was crucial.

However, New Dunedin Hospital project chairman Pete Hodgson said after the council meeting that rumours the hospital might have no parking were not true.

Details had not been worked out yet but there would be parking at the site, he said.

"It will have to be provided to cater for all the needs."

At the meeting yesterday, councillors debated the implications of a new national policy statement on urban development, which comes into effect this month.

One result is that parking requirements will be removed from district plans and this could make it easier for developments to proceed in higher-density areas. The number of car parks could be driven by market demand, rather than minimum standards.

Cr Houlahan said she did not support efforts to make people uncomfortable about getting around the city.

"I cannot support this strategy at all.

"It will have serious implications for our city."

Committee chairman David Benson-Pope said after the meeting there was some concern the new rules might "capture the hospital accidentally" but an acceptable solution would be found.

He was dismissive of the "panic" about parking.

"We all know there will be parking required," he said.

"We will need it for staff and visitors, and the city council has advocated for parking.

"If it transpires there is a problem, we will find the best solution."

Mr Hodgson said the national policy statement was irrelevant.

"You can’t build a hospital of that size and not have car parks. That’s a really dumb idea."

grant.miller@odt.co.nz