There has been considerable discussion in the South about the proposed revisions to the new Dunedin hospital plans. I want local people to know that I am very aware of health issues in the South and understand the community’s concerns about securing a positive future for the region’s tertiary hospital in Dunedin.

I am deeply committed to advocating for the people of Southland and will continue to do all I can to secure the best possible health services for our community.
Related: Dunedin Hospital Costs Could Reach $3 Billion

The Government is currently seeking advice on two options for delivering the new Dunedin Hospital project within its existing funding allocation of $1.88 billion.

The options are:

  1. Redesigning the inpatient building on the new site to be smaller and less expensive.
  2. Undertaking a staged development on the old hospital site, including constructing a new clinical services building and refurbishing the existing ward tower.

We have had to take this difficult step because rising costs have become untenable, and an independent review has shown that the hospital, as currently designed, cannot be delivered within budget.

It's fair to say that we have been incredibly frustrated by issues surrounding this project—many of which have been out of our control over the preceding six years. I assure you, however, that I am fully aware of the community's needs and am working closely with Health Minister Dr Shane Reti and other ministers to find the best way forward for this project and the people of the South.

In March, Cabinet authorised an additional $290 million to keep the Dunedin project moving.

While the health needs of our region are a priority, we must balance this with the needs of other communities around the country. The rising costs of Dunedin Hospital cannot be justified when other hospitals and regions are also calling for maintenance, upgrades, and new facilities—including our own Southland Hospital, which needs an emergency department upgrade and more theatre space.

Local people should be reassured that the needs of Southland Hospital are also on the Government’s radar.

We are committed to ensuring the people of the South get the modern, fit-for-purpose medical facilities they need, but we also must apply the financial rigour that taxpayers expect.

While the two options for the new Dunedin Hospital are being considered, existing Dunedin Hospital services will continue to be delivered, and construction of the new Outpatients Building—including clinic rooms, day surgery facilities, and planned radiology—will proceed, with completion on track for 2026.

The Government is committed to delivering long overdue solutions to our region's health infrastructure needs, and I will ensure that the South’s voice is heard.

Publuished by arrangement and funded by Parliamentary Services.

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