Health given extra $585m

Health Minister Tony Ryall. Photo / Ron Burgin

Health spending is to rise by $585 million, by far the biggest sector increase in the Budget, but critics say it is barely enough to keep up with inflation and population growth.

Some $90 million of the increase is from money not used this year, and $75 million from underspending and "reprioritised" health programmes.

Including capital expenditure, Vote Health rises to $13.953 billion. In last year's Budget, the vote was $13.573 billion, revised down to $13.365 billion during the year.

"Vote Health is the biggest recipient of Budget 2011," Health Minister Tony Ryall said last night.

The additional $585 million was a "very significant investment in health. District health boards would receive around $400 million, he said.

But Council of Trade Unions economist Bill Rosenberg said DHBs needed $461 million just to stand still.

"Most DHBs have announced cuts to their services, mainly in areas of community services [such as] home help for the elderly."

Labour's health spokesman, Grant Robertson, said it continued National's policy of the ambulance at the bottom of the cliff, such as boosting elective surgery, at the expense of things that could keep people healthy.

He highlighted the reduction in public health service purchasing.

This was voted $517.5 million a year ago, falling to $461 million during the year, although the estimated actual figure was less still, at $449 million. Yesterday it was given $453.7 million.

Mr Ryall said the $165 million of reallocated money included risk-reserve and DHB deficit-support funds that had not been needed, and savings from staff cuts at the Health Ministry and lower-than-expected uptake of the HPV vaccine

His announcements of additional funding over four years included:

* Dementia care: $40 million for nearly 200 extra beds in the next two years.

* Elective surgery: $68 million to help keep the number of operations well ahead of the 4000 extra a year promised.