Media release from the Alliance Party

The failure of Otaihape Health Trust to manage its budget shows the danger of relying on private providers to service New Zealand's health needs, says Alliance Party Health Spokesperson Tom Dowie.

The trust which runs the majority of Taihape's health services is facing bankruptcy and is trying to get staff to take massive pay cuts to stave off bankruptcy.

"This is a situation where management budgeting failures have resulted in demands that hard working nurses, who are the backbone of any health service, are being asked to take massive pay cuts, or lose their jobs."

Mr Dowie backed calls from nursing staff for a statutory manager to take over the running of Taihape's health service.

"When admin expenses increase threefold in one year, someone has lost sight of the primary reason for the service, which is health care. The sooner a statutory manager is appointed, the better."

The Alliance Party believes that health is a Government responsibility and should be delivered by the Government.

"Trusts can always wind up and walk away from their responsibility and the Government should not be supporting this risky form of health provision".