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Budget 2011 is delivering an extra $2.2 billion to public health services over the next four years, including an additional $585 million in initiatives in 2011/12.

“Vote Health is the biggest recipient of Budget 2011,” Health Minister Tony Ryall says. “This demonstrates the Government's strong commitment to protecting and growing our public health services, despite the difficult economic times.

Budget 2011 is delivering a further $68 million over four years to increase funding for elective surgery. 

The extra money is in addition to funding provided to District Health Boards through population and price adjustments and will provide even more operations for New Zealanders who need them.

Budget 2011 is delivering the final part of the Government's election commitment to increase the pharmaceuticals budget by $180 million over three years, Health Minister Tony Ryall says.

This year's $20 million increase means that spending on medicines has increased over previous levels by $40 million in the 2009 Budget, $60 million in 2010, and $80 million in this Budget. The $20 million this year is included in the funding increase DHBs are receiving.

Budget 2011 delivers an extra $44 million over four years to look after people living with dementia. 

“This significant funding increase includes $40 million for residential dementia services. This is expected to lead to the provision of almost 200 extra dementia beds over the next two years,” Health Minister Tony Ryall says.

“Dementia is a severe and devastating disorder for both sufferers and their families – and with more of us living beyond 85 years, it is increasingly making itself felt in our communities.

The Government believes there is significant merit in extending the mixed ownership model to four state-owned energy companies and reducing the Crown’s majority shareholding in Air New Zealand.

It will help reduce Government debt, increase investment opportunities for mum and dad investors and improve the companies’ financial performance, Finance Minister Bill English and State Owned Enterprises Minister Tony Ryall say.

The Government today announced new initiatives for maternity services and to help new mothers and their babies.

Health Minister Tony Ryall says, "It will mean better teamwork and provide extra help to mothers and babies who need it.

"This Government has invested an extra $1.2 billion in health services over the past two years, and Budget 2011 will provide an extra $33.2 million for maternity services over four years to improve safety and quality.