National hits out at funding clamp

National's disability issues spokesman, Paul Hutchison, has attacked Labour over the Health Ministry's decision to suspend contract rate increases for residential care.

The ministry clamped down on increases after higher-than-expected needs assessment spending led to a predicted $8 million overspend.

"This latest fiasco in the health sector follows Labour's long legacy of mismanagement in health and disability," Dr Hutchison said.

Health Ministry spokesman David Chrisp said the budget situation would be reviewed before the end of the financial year.

- NZPA