﻿Mr SPEAKER: Question No 6, the Hon Annette King.
Hon ANNETTE KING (Deputy Leader— Labour) to the Minister of Health:
When was he informed that the Ministry of Health request
for a capital injection to fund the fit out of its new headquarters
was not supported by Treasury,
and "exposed a serious failure of financial management within the Ministry”?
Hon Dr JONATHAN COLEMAN (Minister of Health): I was informed
by the Director-General of Health in mid-February 2015.
The director-general advised me that he was calling in
PricewaterhouseCoopers to both give advice on resolving
the funding issue and to provide independent advice
on improving the ministry’s financial management.
I told Mr Chuah very clearly that what had happened was unacceptable,
that it would not happen again, and that the matter had to be resolved,
and subsequently it has been.
Hon Annette King: In light of the exposure
of serious financial management problems within the Ministry of Health
under the current director-general when he was acting in the role in 2013,
did the Minister raise any concerns with the State Services Commission
before agreeing to the permanent appointment
of the director-general in 2015; if not, why not?
Hon Dr JONATHAN COLEMAN: I think it is very unfair
to go after a defenceless public servant, but what I will say
is the State Services Commissioner was very happy—
Hon Annette King: I raise a point of order, Mr Speaker. [Interruption]
Mr SPEAKER: Order! [Interruption]
Order! Could the Minister please resume his seat.
Hon Annette King: You accepted the question—
Mr SPEAKER: Order! I now want to hear the answer.
Hon Annette King: Well, he was not answering it.
Mr SPEAKER: Can we now give the Minister an opportunity to answer the question.
Hon Dr JONATHAN COLEMAN: I have answered it.
Mr SPEAKER: Well, then, I did not hear the answer,
so I invite the member to ask the question again.
Hon Annette King: Thank you, Mr Speaker. In light of the exposure
of serious financial mismanagement in the Ministry of Health
under the current director-general when he was acting in the role from 2013,
did the Minister raise any concerns with the State Services Commission
before agreeing to the permanent appointment
of the director-general in 2015; if not, why not?
Hon Dr JONATHAN COLEMAN: I think it is pretty bad form
for the member to attack a public servant
when he cannot defend himself personally, but Mr Chuah
was appointed because he was the very best person for the job.
[Interruption]
Mr SPEAKER: Order! I will allow the member an additional
supplementary question because I do not think it has been answered.
Hon Annette King: No, thank you, Mr Speaker.
Why did he not make the PricewaterhouseCoopers report
into the serious financial management public
after it was presented in June last year,
rather than wait for it to be discovered
through an Official Information Act request—could the Minister
please answer that question?
Hon Dr JONATHAN COLEMAN: Well, I know the member
is trying to make out there is some sort of cover-up,
but that is complete nonsense.
[MEMBERS INTERJECT]
Hon Annette King: Why did he only receive verbal briefings
on the issue of serious financial mismanagement
from the Director-General of Health after he was informed
there was a problem?
Hon Dr JONATHAN COLEMAN: I am quite satisfied
with the way that this whole issue has been resolved.
[MEMBERS INTERJECT]
Hon Annette King: I raise a point of order, Mr Speaker.
I seek leave to table a letter
from the Ministry of Health to our research unit,
saying the Minister only received verbal briefings
from the director-general on this matter.
Mr SPEAKER: Leave is sought to table that particular document.
Is there any objection?
There is none. It can be tabled.
Hon Annette King: What—[Interruption]
Mr SPEAKER: Order! Supplementary question, the Hon Annette King.
Hon Annette King: What—[Interruption]
Mr SPEAKER: Order! If the Hon Paula Bennett would prefer
to leave question time, she is welcome; otherwise, please cooperate.
Hon Annette King: What was the cost of the PricewaterhouseCoopers report—
an inquiry that the Secretary to the Treasury requested
and not the Director-General of Health, even though he claimed
he had asked for it on Radio NZ this morning?
Hon Dr JONATHAN COLEMAN: I am happy to go and find the answer
to that question for you, but I have not got it on me now.
Hon Annette King: Supplementary question—this is one I asked—well,
you gave me an extra, did you not, Mr Speaker?
Mr SPEAKER: I gave you one more, yes.
Hon Annette King: Where will the Ministry of Health, to quote him,
“be finding that $18 million” needed to pay for the refurbishment”?
Will it be coming from funding better used for health services?
Hon Dr JONATHAN COLEMAN: That is an excellent question.
It is coming from the departmental expenditure.
Under the Labour Government, that was $230 million.
We have reduced that to $190 million.
There were 1,500 people in the ministry
when Annette King was running it; there are now 1,100,
but we are producing better results for NZers.
So very good question, thank you.
Mr SPEAKER: Question No 7.
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