He was commenting on a recent report that senior doctors in New Zealand are paid an average of 35% less than Australian doctors, feel undervalued and are dissatisfied with their working environment.
In its submission to a commission set up by the director-general of health to help solve New Zealand's shortage of senior healthcare workers following a contentious round of contract negotiations, the association said step 1 on the specialist salary scale would have to rise from $128,596 to at least $213,066 and step 9 from $164,852 to at least $280,747 for New Zealand to be competitive with Australia.
The next round of negotiations is due next year.
Mr Powell said Government delays in dealing with the salary gap would only make matters worse.
However, a report by the commission said raising salaries would only partly improve recruitment; training more, recruiting more, retaining more and making better use of the workforce were required.
One key factor was that senior doctors did not feel valued.
Many doctors said not being valued drove them to leave, rather than pay and conditions.
The report said clearer regional and national processes for delivering services were needed, requiring clusters of district health boards to work together with shared accountability.
Geographical isolation, low remuneration and smaller hospitals and communities put New Zealand at a disadvantage in the international market for senior doctors, although New Zealand had been reasonably successful in securing recruits, the commission said.
The commission wanted more reliable and objective data.
It was impossible, for instance, to substantiate or refute the assertion senior doctors were leaving New Zealand in increasing numbers to take up more attractive opportunities overseas.
"[Contract] negotiations should not be seen as a periodic opportunity to address accumulated claims and frustrations; rather they should be a joint problem-solving exercise."
Health Minister Tony Ryall said the Ministry of Health had accepted, and already started implementing, all 13 recommendations made in the report.
A progress report would be made in December, he said.
