Health board deficits look sick, says Act

District Health Board deficits are not going away and Labour projections have proved wrong, said Act's Heather Roy. She was commenting on Friday's announcement that the boards had a $26.5 million deficit for the six months to December.

"In 2002 then health minister Annette King said she was aiming at a deficit 'close to zero' within three years," Mrs Roy said.

"By June 2005 she had changed her tune saying that she and [Finance Minister] Michael Cullen had agreed to a sector deficit of $13.4 million for 2005/06."

Mrs Roy said the 2005 December Economic and Fiscal Update predicted the deficit for the whole of 2005/06 at around $80 million.

This was more likely to be correct because of pay increases for nurses, changes to the Holidays Act and asset testing.

On Friday the Ministry of Health's District Health Board funding and performance manager John Hazeldine said boards were managing their financial performance well and deficits were $9.8 million better than planned, with the $26.5 million deficit less than the expected $36.3 million.

- NZPA