Dyson: DHB chief's resignation over cuts not the last

Labour MP Ruth Dyson. File photo / Kenny Rodger

The departure of Capital Coast District Health Board (DHB) chief executive Ken Whelan because of pressure to cut costs will not be the last, Labour MP Ruth Dyson says.

Mr Whelan announced publicly he had resigned because he intended to have a much needed break before pursuing other opportunities.

He told DHB staff it was because it was not possible to cut any more costs despite government pressure to do so.

He said he was unable to find any more efficiencies within the DHB without hurting services.

Ms Dyson said DHBs were having to cut services to save costs under the Government's direction and Mr Whelan was likely to be the first resignation because of it.

The Government was cutting mental health services, smoking cessation, public health services and diabetes services, she said.

"It's clear that the Minister of Health's demands for cuts are having a negative affect on patients and the people charged with delivering patient services."

Ms Dyson called for an immediate halt to cuts.

Health Minister Tony Ryall would not comment on reports that pressure to cut costs was behind Mr Whelan's departure except to say he was doing a very good job.

"He was making a real difference at Capital and Coast DHB," Mr Ryall said.

Green Party health spokesman Kevin Hague said Mr Whelan's comments showed frontline health services were being cut.

"DHBs have no more fat to cut... efficiency gains can and should be made but not at the expense of public health," he said.

"It is frightening to see the Minister of Health driving deep cuts to services that mean better health for everyone."

Labour's deputy leader Annette King said Mr Ryall's relationship with the Capital Coast DHB board was completely dysfunctional.

"Tony Ryall's interference with the running of Capital Coast DHB is legendary and a disgrace."

Mr Ryall had misled the public about issues at Capital Coast and must take responsibility for his role in the situation, she said.

DHB chairman Sir John Anderson said Mr Whelan had put the organisation on a very positive track towards a sustainable health service.

Mr Whelan, who took up the job in 2008 amid a junior doctors strike, oversaw the completion of the new regional hospital at Wellington. The $377 million project, paid for entirely through a loan, has been described as a wonderful facility but a financial "albatross".

In March, Mr Whelan said he was cautiously optimistic that efficiencies and savings would slash the DHB's operating deficit this financial year to $0.4m from $21.6m last financial year, although new regional hospital costs would add $39.7m to that.

- NZPA