Hospitals due for $400m to plug gaps

By VERNON SMALL

Election-year health spending is in for a big boost as the Government faces mounting political pressure from health workers.

Behind the scenes at Labour's annual conference in Auckland at the weekend, there were indications that up to half the money for new spending in next year's budget will go to basic hospital services.

The pressure on the Government increased yesterday as 3000 Canterbury health workers walked off the job.

Radiation therapists in Auckland, Hamilton and Palmerston North will follow today. A shortage of radiation therapists has already forced the Government to send patients to Australia for treatment.

Only skeleton staff remained in the Canterbury region's 16 hospitals yesterday.

Several nurses wept as they walked off the job to join picket lines over stalled contract negotiations

National Union of Public Employees secretary Ivan Finlayson warned that the industrial action could mount.

There was a deep feeling of anger at the way the health board operated, and the "contempt" he said Health Minister Annette King had shown nursing staff by standing on the sidelines.

At the Labour conference, senior party sources said the Government was "talking real money" for next year's boost.

It would also improve tax collection to increase the money available for health.

This year's Budget set aside $815 million for new spending in 2002-03. Extra health spending could account for about $400 million of that, possibly more.

Government sources said the extra money would give health a greater proportion of public spending.

The Government also plans to announce a new, three-year programme of higher payments for District Health Boards under pressure on services and wage costs.

An announcement was due before Christmas, said Mrs King.

"In the Budget this year there will be a three-year funding path for DHBs," the minister told delegates at a workshop on health at the party conference.

She said the boards had asked for certainty and the package had been agreed on after talks with Finance Minister Michael Cullen.

The Government's economic and fiscal update, including new spending and growth forecasts, will be released on December 18.

The Government last year screwed down extra health spending, arguing that health had been generously financed for years and restraint was needed.

But Labour sources said the move now to boost the allocation was a recognition of new pressures on health services.

The money would probably be aimed at hospitals to use in existing programmes rather than new activities.

The increase will also help defuse Opposition plans to improve health spending with the revenue it would gain from cancelling the Government's huge superannuation fund.

Papers released under the Official Information Act show that Inland Revenue postponed a project to stop the overpayment of family support and tax credits to low income families when cabinet decided it should give priority to introducing paid parental leave, which starts next July.

No major incidents were reported at any of the hospitals despite dire warnings earlier in the week that lives could be lost if the strike went ahead.

Extra staff had been rostered on at the city's after hours clinics to cope with patients diverted from the Chriustchurch Hospital emergency department, but few had turned up looking for treatment.

"I think people knew today was not a good day to seek health care unless they really needed it," Dr McCormack said.

GPs were doing all they could to care for the frail and sick but there was "no alternative to hospital for acutely ill people".