National’s deficit stories don’t hold up – Labour

“Te Whatu Ora’s books reveal how much the Government has been gaslighting New Zealanders,” Labour health spokesperson Ayesha Verrall said.

“They spun stories about growth in back office staff and layers of management to justify cuts but these documents released today don’t back those claims.

“It is clear the cause of Health New Zealand’s deficit is underfunding, not over spending.

“It’s what we’ve been saying all along – increased costs for nurses account for much of Te Whatu Ora’s costs.

“National campaigned on there being a workforce crisis, and inherited a successful international recruitment campaign from Labour.

“Both the health minister Shane Reti and the finance minister Nicola Willis became aware of nursing costs exceeding budget in March, but decisions taken in May did not address these costs. The Government’s own choices caused Health New Zealand’s structural deficit.

“More than $500 million of Te Whatu Ora’s deficit was caused by Cabinet deciding not to transfer funds put aside for pay equity for nurses, midwives and allied health staff.

“It’s hard to see how the Minister can say there’s no hiring freeze of frontline staff when it’s clear as day in these documents. As early as April this year, a “recruitment pause” has been in place.

“They’ve broken multiple promises to New Zealanders about cuts not affecting frontline services, and made up a fairytale to explain why.

“They are supposed to be providing the best health system they can, instead they’re backing out of their commitments and pretending they aren’t. New Zealanders just want to know the health system is there for them when they need it.

“They are now cutting services and penny-pinching, blaming back office staff who keep the health system functioning.

“Reckless tax cuts mean National can’t fund the health system we all need and rely on. It’s an absolute mess,” Ayesha Verrall said.