CTU Informs Cuts in Health Sector

Highlighting the funding shortfall, it has been revealed by CTU that the health services across New Zealand will be witnessing cuts of almost $100 million in the upcoming year.

It has been stated by a Union Economist and Policy Director that, after an insightful and magnified study of Budget health allocation, the details funding shortfall, the exact picture of reprioritized savings, inflation and cost shifting from ACC have become apparent.

This was concluded in the CTU’s analysis of the Budget Health Vote ‘Did the Budget provide enough for Health’.

According to Bill Rosenberg, the $508 million in additional operating funding, that was announced in the Budget can just reach and cover only the earlier costs.

The CTU said that around $118 million of cuts or other deterioration in the system are needed for betterment of health services.

Rosenberg added that most of the burden needs to be shared by DHBs.

Also, regarding the increased pressure on operating budgets, DHB deficit support for next year is $20 million less than what was predicted for the year to June 2010.

PSA says that these funding shortfalls in the Health system will force some of the services to end.

PSA National Secretary Richard Wagstaff said that this kind of burden cannot be put on system without affecting services and cutting jobs.