Health New Zealand has admitted to exaggerating its deficit.
Health New Zealand has revealed "accounting judgement errors" that have led to a deficit used to justify wide-ranging job cuts. The agency was forced to correct its accounts by the Auditor-General, and its Chief Financial Officer has left, with non-disclosure agreements tying up its finance team. Labour health spokesperson Ayesha Verrall claims this is all highly unusual and part of a government-manufactured crisis to justify cutting the health system's workforce.
Ayesha Verrall stated that decisions on which jobs will be cut have not been made yet, questioning the justification for including these costs in the current year. The Government has faced criticism over its failure to meet targets for reducing wait times at emergency departments and elective surgeries. Health NZ Commissioner Dr Lester Levy also told a select committee that there would be no cuts to services, adding to concerns about his understanding of the health system's situation.
The controversy surrounds how the deficit was used to justify job cuts, with Labour arguing the government is manufacturing a crisis to drive through its changes. With healthcare professionals and patients already feeling the effects, the issue has sparked intense debate over the future of New Zealand's health services.