The amount of funding being injected into restoring the poor state of hospitals is a good start but only scratches the surface, says Association of Salaried Medical Specialists (ASMS) director of policy and research Lyndon Keene.

This afternoon, the government announced that $750m would be allocated to District Health Boards' capital spending to tackle urgent building needs for hospitals all around the country.

Keene said it was much bigger than last years' $150 million but there was a lot more needed.

Before the announcement the Government had forecast health boards needing $14 billion for capital alone over the next 10 years.

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"The $750m is only a small chunk of that but I guess it's a start."

That money was in addition to the $3.2b boost for health services over four years.

Keene said it didn't stack up to the $8b promised by Labour pre-election and on the face it didn't seem sufficient to restore the shortfall.

"The health sector is still going to be under a lot of pressure but at least it has managed to maintain current levels of service and not dropped like it has done in the past."

Health minister Dr David Clark said the Coalition Government was beginning an historic reinvestment to restore our neglected hospitals and health infrastructure, bringing them up to the standard New Zealanders deserve.

"This Government is committed to rebuilding the critical public services, like health and education, that keep our country strong and prepare us for the future," said Clark.

Clark said New Zealanders were sick or injured they deserve world-class healthcare in world-class facilities.

"They shouldn't be worrying about mould and rot in the hospitals they are treated in."

But Keene emphasised much more funding was needed for this to happen.