Health Minister outlines plan for Dunedin Hospital

Health Minister Simeon Brown has confirmed the new inpatient building for Dunedin Hospital will be built on the site of the former Cadbury factory.

Brown, who was allocated the portfolio earlier this month, said there would be 351 beds, with the capacity to expand to 404 over time.

"Today I am giving the people of Dunedin certainty that we will build the new Dunedin Hospital that will futureproof the provision of timely, quality healthcare for the people of Dunedin and the surrounding Otago and Southland regions," Brown said.

He added that action had been taken to get cost overruns under control.

Upon opening, the new Dunedin hospital will provide:

The inpatient building was originally proposed to have 410 beds, with a 53-bed emergency department.

The Government announced in September last year that it was seeking advice on two options for delivering the project after a report found current plans could not be delivered within the previous budget. Costs had increased to $3 billion, which the Government said was unafforable.

These options included a reduction in the number of floors and delaying the fit-out of some areas until they're required, or a staged development at the old site.

The potential cutbacks prompted furore from the community, with Dunedin Mayor Jules Radich saying it was "completely unacceptable" and a protest march being attended by an estimated 35,000 people across the Otago and Southland regions.

Brown said the Government had listened to Dunedin and that it was committed to building the hospital the region needed.

Last year, the Government invested a further $290 million towards the project, bringing total funding to $1.88 billion, he said.

"We are focused on delivering a safe, modern hospital complex that Dunedin deserves."

There were few stable sites on which the hospital could be located, Brown said.

"The former Cadbury factory site purchased by the previous government has numerous construction challenges such as contamination, flood risk, and access issues.

"However, we are confident that these can be overcome, and it’s clear that using this site to build a new hospital would be far less disruptive than constructing a new complex at the existing hospital."

Radich said he was "as happy as can be expected" about the news the inpatient building would go ahead.

"This is the biggest thing in terms of business and development for Dunedin, what we've got is the right structure being built.

"Clearly, we're not getting all services and facilities up front, but there's clear intention to provide them."

Labour's health infrastructure spokesperson Tracey McLellan said the people had won an almost year-long battle to have the hospital confirmed, but delays have been costly.

"We have always said there is money to pay for this hospital, and the announcement today proves National was trying to make savings at the cost of good healthcare for the Southern region."

She said the building of the new hospital falls short of the promises National made during the campaign but that it was "the best of a bad situation".

"We’ll be watching closely to make sure this Government actually delivers on their promise and doesn’t try to cut corners down the line, both in Dunedin and at other hospitals which they said were threatened by the Dunedin project."