Brown unveils unfunded health plan for small NZ

Old and outdated buildings being demolished at Wellington Hospital in 2018. The new infrastructure being funded today will not be sufficient for future population size and some will not be built by 2035. File photo: Lynn Grieveson

Long stories short from our political economy on Thursday, April 17:

1. Simeon Brown has unveiled a ‘clear pipeline for health infrastructure’ investment of ‘over $20 billion’ over the next decade, although it is unfunded and does not include detail of which projects will be built over what time and at what cost.

2. Brown said the Government planned smaller upgrades, renovations and retrofits of hospitals, plus new rural medical centres, rather than new ‘mega projects.’

3. But the plan showed some of the 56 projects would not be built before 2035, and would be signed off one-by-one by Cabinet, rather than as an assured pipeline. However, Brown did include detailed plans for 11 new car parking buildings at hospitals to be paid for and run by private companies.

4. The $20 billion ‘plan’ is in response to requests for more than double that amount and uses a population forecast for 2073 of 6.6 million at 0.5% growth per year, rather than the 10.1 million more likely if the 1.28% growth seen over the last 25 years was replicated.

5. Nicola Willis yesterday confirmed the Reserve Bank had agreed to 25% budget cuts over the next five years. Governor Adrian Orr resigned unexpectedly and without a reason last month after Willis asked for the cuts.

6. The World Trade Organisation estimated¹ last night that trade between the United States and China would drop 80% if the current tariff levels continued, and that global GDP would be seven percentage points lower if the current decoupling created two distinct trade blocs.

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The big things from our political economy today

Simeon Brown opts for car parking buildings & renos