1News: Treasury warns hospitals need investment, says Govt should borrow more
In a rare public intervention, Treasury Secretary Iain Rennie has warned that New Zealand’s ageing hospitals will require significant investment over the next decade and that the Government should be prepared to borrow to fund it.
Speaking to 1News, Rennie acknowledged that decades of under-investment have left many hospital buildings some dating back to the 1950s through to the 1980s reaching the end of their usable life.
His message was clear: if we want modern, fit-for-purpose hospitals, we need a long-term plan and the political will to fund it.
Treasury’s view is that borrowing for quality, long-term infrastructure is legitimate. New Zealand’s debt levels remain low by international standards, and Rennie argued there is still a window of opportunity to invest in a staged and sustainable way if decisions are made soon.
Association of Salaried Medical Specialists executive director Sarah Dalton said borrowing to invest in core public services was essential.
Patient spokesperson for Kaitiaki Hauora Malcolm Mulholland said Treasury’s intervention reinforced what patients and frontline health workers have been saying for years.
“This call has been coming for some time from patients and from health workers,” he said. “We now have the words of Treasury. We just need the will of politicians to put money where their mouths are.”
The issue now shifts from diagnosis to action. With an election year underway, the question becomes whether political parties will commit to properly funding the public health infrastructure New Zealanders rely on.