Only a Labour-led government will continue to invest in the health of all New Zealanders and ensure they have fair access to quality services and equal opportunity to enjoy good health, said Health Minister Pete Hodgson.

Budget 2007 provides a $750 million per annum boost to the health budget and funds major new investments in the health of New Zealanders of all ages including children and young people and families.

"Over eight budgets, the Labour-led government has invested heavily in health. This budget builds on that work, rebuilding a health sector torn apart by the reforms of the 1990s," Pete Hodgson said.

"Budget 2007 funds a four-year $124.2 million investment in child and youth health. Immunisation is a powerful tool to prevent ill health, disability or even death. The prevention of illness and the problems associated with pneumococcal meningitis is a crucial service we can offer the youngest family members.

"This Budget recognises the diversity of our society and invests accordingly. It contains the largest ever investment of $150 million over four years to the Aged Residential Care sector and better support to the workforce that cares for them. A further $81.2 million will further enable older New Zealanders to maintain their independence in their own homes and the Budget provides $48.3 million over four years to support those with disabilities in their own environment.

"I am determined to see continuous improvement in access to quality health services. An $80 million funding boost over four years for our pharmaceutical spend will enable the cost of most community prescriptions to be no more than $3 and help keep pace with developments in hospital-based drug therapy," Pete Hodgson said.

Another $10.2 million over four years in Budget 2007 will go towards improving bedside verification of drugs to patients, a key step in the on-going work we are doing to reduce adverse events in hospitals, Pete Hodgson said.