Cost, politics, affect work on hospital — Mr Palmer

Press, 15 July 1983, Page 5

Cost, politics, affect work on hospital — Mr Palmer

Parliamentary reporter

The 5100 million cost, and Labour’s poltical domination of Christchurch, have caused the Cabinet to drag its feet over the future development of Christchurch Hospital, says the Deputy-Leader of the Opposition, Mr Palmer.

He led a group of Labour members of Parliament to see the Minister of Health, Mr Malcolm, to discuss the matter yesterday. Urgent action was needed on this vital project, he said. Labour was critical of the delays and prevarications which had occurred.

The development was now being held up because of an unproved theory that savings in capital expenditure could be made. “The Minister does not and will not quantify these savings,” said Mr Palmer.

“He began by talking about achieving $1 million; he is now talking about a target of $lO million.” Some members of the Labour deputation to Mr Malcolm thought the Minister was caught in a bind. The original costing of the development had been too low at about $5O million, but a review and recosting had beeen frighteningly high at about $lOO million three years later.

Cabinet had set up a review but the review had not provided Mr Malcolm with significant cost savings.

“It is clear that stage one of the hospital development could be given the green light immediately and work could start on the foundations,” Mr Palmer said.

This would mean hundreds of jobs in Christ-

church. Work on the main building was not contingent upon decisions about the other buildings or land decisions, he said. Labour would support and facilitate sensible proposals to start the work. “But Christchurch, in the Government’s scheme of things, does not enjoy the priority some northern or more populous centres seem to enjoy,” Mr Palmer said. “The preponderance of Labour representation for Christchurch in Parliament, and on the Christchurch City Council, seems to be a factor in the Cabinet’s mind, although I don’t think it is particularly in Mr Malcolm’s mind.

“For whatever reason, however, it is clear that the Government lacks the will to make a decision to allow the development of Christ-

church Hospital to be built,” he said. Labour would in future make bipartisan approaches to the Minister, and would invite National members from the Christchurch region to attend.

The Labour members said the Christchurch City Council should now give rapid and positive consideration to the proposal from the Minister to swap land with Hagley Park. “But if the City Council agrees, there will still be considerable delays,” Mr Palmer said. “A local act of Parliament would be needed to change the status of the land, which might take two years.” The key decisions over the hospital still lay with the Government, and could not be shoved off on to another body.

He said the Minister was only asking the City Council for a positive approach. That could be conditional on proving substantial savings. While all parties should treat the matter as urgent, the Hospital Board and CityCouncil were entitled to precise cost saving figures immediately. “If the savings are real, the Minister’s proposal should be given rapid consideration. If they are dubious, as we fear they might be, there should be a smart return to the original plan,” said Mr Palmer. The Labour members also criticised the Minister’s refusal to release the report of the review committee. But they were assured by the Minister it would be published once it had gone to the Cabinet, although that might be still a month away.