Christopher Luxon
Prime Minister
Minister, Ministerial Services
Minister, National Security and Intelligence
Well, kia ora, good afternoon, everyone. Can I just thank all of those of you who accompanied me to Vietnam and say I trust the jet lag hasn’t been too bad and you’ve recovered upon your return. Of course, the reason for visits like Vietnam is that we want to expand our exports. In doing so we drive our economic growth and as a result we’re able to invest in better public services, like healthcare.
Today it’s good to be joined by the Minister of Health, Simeon Brown. As most Kiwis understand, our healthcare system is facing some significant challenges, and it’s important the context and the problem definition, I think, is well understood. To give you a feel for it, we already spend around $28 billion on health each and every year, and on top of that the Government has made a record $17 billion investment into Health New Zealand over three years. So, I do want to be crystal clear that health spending is at record levels. We are spending more on health and no Government, in fact, has spent more in the history of New Zealand on healthcare.
And while we have workforce challenges in some particular parts of the healthcare system, I think we’ve also made some good progress on the health workforce. A good example, for example, would be nurses. In the last year we have actually increased nursing staff by almost 2,000 nurses—or a 6% increase—to 29,500 FTEs. Also, remuneration for nurses has improved dramatically and disproportionately compared to other Kiwis. Since 2014, average salaries for nursing and midwifery staff have increased by almost 70 percent. The average salary of a registered nurse is now currently around $127,000, including overtime and allowances, and that is on par with what nurses are paid in New South Wales despite New South Wales being 30 to 35 percent wealthier than New Zealand.
But despite all of that funding and despite all of that workforce growth, we are not seeing the results that we have invested in. Productivity, as measured by the number of cases per employee, has declined almost 20 percent and it has not kept pace with that increased funding and workforce growth. And that is totally unacceptable because how it translates is that it means that Kiwis are finding it harder to get access to a GP, they wait longer in emergency departments, and for first specialist appointments and for elective surgeries. Those wait times are all too long and we don’t want that, as our goal has to be about providing timely access to quality healthcare for all Kiwis.
To be clear, we have the best doctors and nurses who do an absolutely amazing job helping their fellow Kiwis in need, and everyone who interacts with them will tell you of their positive experience. But it is the system that is letting them down and their patients down: a system dealing with botched health reforms, layers of bureaucracy, poor governance, management, and financial controls, loss of regional and local decision making, outdated infrastructure, and inefficient ways of working.
What we need is a system that puts patients first and is relentlessly focused on lifting performance against the health targets that matter most to Kiwis. Quality and timely primary healthcare is the cornerstone of an effective and efficient healthcare system, and improving primary care access and choice for Kiwis is a top priority for this Government. And that’s why Simeon will be making an important speech later on this week, on Friday, about the healthcare plan in general, and we’ll be making a series of announcements around improving primary care in New Zealand in the coming weeks and months. And with that, I’ll now hand over to Simeon to make the first of those announcements.