10:15 AM
A total revamp of the country's health system is today being proposed in Government legislation.
It is being heralded by Health Minister Annette King as the restoration of the public health system.
The health system will be run by 21 elected district health boards and the Ministry of Health, and
will be fully operational by July 2002.
Under the reforms the district health boards will be exempt from paying tax.
Mrs King says the tax-free status reflects a not-for-profit approach the Government believes the boards should be taking.
The boards will also need to seek approval of the Health and Finance Ministers for any significant investment in, or sale of assets.
Money for major investments, such as new hospitals, will have to be borrowed from the Government, rather than the private sector.
Mrs King acknowledges the public may be wary of change, but says it has to happen.
For the first time, a Treaty of Waitangi clause has been included in social policy and Maori will be represented on each district board.
- IRN
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