"The Budget has both pluses and minuses for the public health system which is going to be under increased pressure," said Mr Ian Powell, Executive Director of the Association of Salaried Medical Specialists, today.

"While it is good that the government is honouring part of its commitment to continue with the funding increases committed by the former Labour-led government, it is disappointing that this is only for one year rather than the committed three.

District Health Boards perform more effectively when they are able to plan ahead when they know what their minimum funding will be over a longer period of time.

The government's decision to stick to only one-third of this commitment will put increased pressure on DHBs to make short-term decisions that risk reducing cost effectiveness and the ability of senor doctors to provide quality patient care."

"It is as certain as night follows day that the effects of the economic recession will lead to increased illness and poorer health in communities.

This, in turn, will inevitably lead to increased demands for access to services provided by the public health system.

The economic recession is an opportunity to ensure that DHBs can plan to strengthen their capacity to meet the needs of their populations."

"The increased funding to train more doctors and recruit the extra workforce necessary for the planned expansion of operating theatres in public hospitals is welcome.

However, what is also needed is an effective recruitment and retention strategy that provides terms and conditions of employment which enable New Zealand to compete against Australia.

Currently we are over 40% behind Australian averages for senior doctor salaries.  This highlights our medical workforce crisis."

"It is financial wastage to train doctors for the benefit of Australia and elsewhere rather than New Zealand's public health system" concluded Mr Powell.