Health Funding Authority Admin Costs Low

Health Minister Bill English said today steps were being taken to further reduce the cost of administering the public health service.

"The Health Funding Authority's operating costs are only 1.25 percent of the total health budget, but my aim is to see them reduce further.

"In the next few months the Authority will complete the process of merging four regional health authorities into one national organisation. This will cut out duplication and reduce costs to the taxpayer."

Mr English said Labour MP Annette King was talking rubbish to compare spending on the four regional health authorities in 1993 compared to 1996, because the figures failed to take into account the extra work taken on over that time.

"The Authority does a lot more than it did when it was set up in 1993, in particular the disability support services work which is $1 billion of services of the health budget.

"There is also a strong community desire for consultation on health issues. When there are changes in our small communities, our public agencies need to be there. It might not matter to Annette King, but it matters to the Government and to every small community in New Zealand," he said.