Business.Scoop » Health NZ admits errors led to alleged deficit

Press release – New Zealand Labor Party

The agency today revealed errors in accounting judgment that led to a deficit that was used to justify vast cuts in staff and services.

Health New Zealand exaggerated its deficit to justify job cuts.

The agency today revealed “errors in accounting judgment” that led to a deficit that was used to justify vast cuts in staff and services.

“Early redundancies and furlough pay have been used to exaggerate the deficit, which is in turn used to justify vast job cuts,” Labor health spokeswoman Ayesha Verrall said.

“Health NZ was forced to correct its accounts by the Auditor-General, its CFO resigned and its finance team was bound by non-disclosure agreements. This is all very unusual.

“Decisions about which jobs will be lost haven’t even been made yet, so what justification can the government have for trying to consolidate these costs a year early?

“The government has manufactured a crisis to justify cuts to the health system, and New Zealanders feel it every day.

“We constantly hear about people who can’t get the care they need and staff tell us they can’t hire to meet patients’ needs.

“Only Monday, the government showed it had made no progress on its targets to reduce wait times at emergency departments and elective surgeries.

“Today, New Zealand Government-appointed Health Commissioner Dr Lester Levy also told the select committee there was no reduction in services.

“It is astonishing that the person appointed to lead Health New Zealand is so out of touch with what is happening within the health system,” Ayesha Verrall said.

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