Health Costs Not Reason for Lack of Savings

Health Minister Bill English said today New Zealanders spent more on alcohol and tobacco than they did on private health costs and it was wrong to blame private health spending for our failure to save.

A Statistics New Zealand report, Consumer Expenditure 97, said average household spending was $662.80 a week. Medical goods and health services made up $19.60 of this amount.

"This is less than $20, or three percent of the total weekly spending in an average household. It is a bit of an exaggeration to say this explains New Zealanders' low rate of savings as was reported yesterday.

"The same report shows that spending on tobacco and alcohol is $23 a week.

"Medical goods includes prescription charges, other pharmaceutical supplies and medical equipment and is $4.70 out of the $19.60 total. The remainder is spent on health services, which covers things like GP and other doctors' fees, dentists, optometrists, and health insurance costs.

"Over the last four or five years user charges in public health services have been consistently reduced, including the introduction of free visits to GPs and free prescriptions for under-sixes announced in the Coalition Agreement.

"The Government is committed to a publicly funded health system. Total health spending in the 1998/99 year will be more than $6 billion - a 6.2 percent increase on the year before.

"This spending confirms the Government's commitment to the provision of a publicly funded health system. We are determined to improve access to, and the quality of health and disability support services for all New Zealanders," said Mr English.