King bats off double attack on health budget

Annette King

Health Minister Annette King has been forced to defend her portfolio on two fronts after a damning poll on public perceptions and a Treasury paper raising concern at the sustainability of growth in health spending.

Act health spokeswoman Heather Roy tackled her in Parliament yesterday on a Treasury Budget paper which cites "serious concerns" at the sustainability of the current rate of growth in health spending.

In 1999 health operating funding was 6 per cent of gross domestic product (GDP) but is projected to hit 13.6 per cent by 2020, assuming the current rate of increase is maintained.

Asked what action she was taking to address Treasury's concerns, Ms King said high health spending, especially its growth, was an issue New Zealand did not face alone.

"Both the level and growth in New Zealand's health spending are in line with OECD norms and trends," she said.

The sustainability of the spending was taken seriously by the Government and she and Finance Minister Michael Cullen had commissioned a review of health spending.

She had also asked Dr Cullen about the impact tax cuts would have on health funding.

Act leader Rodney Hide tackled Ms King on waiting lists, asking why those waiting for first specialist assessments had risen from 96,000 in 1999 to 120,000 now.

Ms King also batted off that attack, saying the important thing was how long people were waiting for their assessment.

"The time they are waiting is considerably less than it was in 1999, and the number of people waiting is considerably fewer, so we have seen some real improvement."

United Future leader Peter Dunne and National health spokesman Paul Hutchison used question-time to bore in on Ms King over a recent Herald DigiPoll survey showing few voters believe education or hospital services have improved despite the billions poured into them.

The survey showed 73.8 per cent believed hospitals were offering the same or worse services - 17.7 per cent said they were better, 38.3 per cent worse and 35.5 per cent saw no difference.

But Ms King said the poll referred only to part of the public health system - hospitals. "It does not take account of the fact that more than 50 per cent of New Zealanders now receive cheaper primary health care and prescriptions."

She said the health system was performing 44,000 more medical and surgical case discharges and 27,500 more day procedures this year than in 1999.

"I have to say that all of that would be at risk if tax cuts come at the expense of health spending."