46750 (2024). Debbie Ngarewa-Packer to the Minister of Health

46750 (2024). Debbie Ngarewa-Packer to the Minister of Health: What actions, if any, will the Minister take to address the current levels of overspending at Health New Zealand?

Hon Dr Shane Reti: This Government has taken early action to respond to the known risks of Health NZ's governance, including putting in place a Crown Observer to the Board in November 2023 and agreeing to appoint a new Board member with financial expertise in February 2024. The changes provided clarity of financial issues and following the resignation of the Chair of the Health NZ Board, I quickly moved to appoint Professor Lester Levy to the position of Board Chair from 1 June 2024. These three appointments have been instrumental in unveiling the extent of financial issues, which we are now taking steps to remedy. Strongest of these steps and ministerial interventions available to me under the Pae Ora Act 2022, has been the removal of the Health NZ board, and my appointment of Professor Levy as Commissioner. I have made my expectations of the Commissioner very clear in my letter of appointment, I refer the Member to the following link: https://www.health.govt.nz/system/files/documents/information-release/hnz_commissioner_appointment_letter_prof_lester_levy_watermarked.pdf. Professor Levy is tasked with implementing a turnaround plan to ensure financial balance, and incorporated actions that strengthen governance and management. I have strengthened my Ministerial oversight of Health NZ’s financial position through regular meetings held with the Commissioner and Chief Executive of Health NZ, together with Ministry of Health and Treasury. The Ministry of Health is developing an enhanced monitoring model with the Treasury to ensure that financial and non-financial performance and risks are appropriately monitored over 2024/25 as the turnaround plan is implemented.