21 May 2011

DHBs expected to manage extra costs

7:28 am on 21 May 2011

Health Minister Tony Ryall says district health boards will be able to manage the extra costs associated with having to meet the costs of employees' superannuation schemes.

The Government aims to save $650 million by making State agencies meet the costs of super funds such as KiwiSaver from their own budgets.

It estimates that DHBs will have to come up with an extra $45 million next year when the requirement comes in.

Labour says DHBs will be under more pressure and hospital services will have to be cut.

Mr Ryall says DHBs are getting $400 million more in the Budget to run public hospitals and other programmes.