DHB rejects frozen food plan

Hawke's Bay District Health Board chairman Kevin Atkinson (right) supported a recommendation not to adopt a Government plan to outsource food services to Compass Group. Photo / Warren Buckland

A controversial Government plan to out source hospital food services and cut jobs has been rejected by the Hawke's Bay District Health Board.

In February it was proposed the DHB contract out food services to international catering giant Compass Group, endangering eight jobs and local suppliers.

The scheme, developed by government agency Health Benefits Limited (HBL), has been adopted to varying degrees in hospitals throughout the country, and was estimated to save $155 million to $190 million over 15 years if all hospitals were to proceed with it.

It would have seen eight full-time jobs or 20 per cent of the DHB's food service jobs cut if Hawke's Bay accepted the business case. Food preparation would have also changed to a "cook chill" method used by Compass Group, which would involve frozen ingredients arriving at the hospital, to be cooked or re-heated in bulk.

At yesterday's board meeting, the DHB's human resource services general manager, John McKeefry, said feedback from the consultation had relayed people's concerns the scheme could have a negative impact on local suppliers, jobs and food quality.

The board recommended not going forward with the business case. DHB chairman Kevin Atkinson supported the recommendation.

"The impact on the local economy and the excellent relationship we have with the local producers would have been jeopardised," he said.

"We have heard from some of the smaller food suppliers that they would have had to close their doors and lay off staff if outsourced food was adopted - I can't support that.

"Anything that has an impact or effect on employment has an effect on health. There were too many negatives and minimal benefits for us to adopt this proposal."

He did not believe the DHB should monitor the implementation of the HBL food services plan in Auckland and southern DHBs, and review their success after six months.

The decision not to go ahead with the business case was carried unanimously, with a round of applause following the motion.

"Hawke's Bay's the fruit bowl of New Zealand, not the frozen food bowl of New Zealand," said board member Ngahiwi Tomoana.

The proposed scheme has proven controversial both locally and nationally. In March, the Service and Food Workers Union (SFWU) presented a petition opposing the scheme to a board meeting, with more than 1000 signatures, mostly from DHB staff.

Meanwhile, about 200 people packed the terraces in Dunedin's Octagon this month to protest the Southern DHB's decision to adopt the scheme, and SFWU has indicated it is considering taking the matter to court.

HBL were asked to attend the meeting via teleconference, but chose not to.