Southland District Mayor Rob Scott has promised the south will not take Thursday's (26 Sept) decision to downgrade Dunedin Hospital sitting down, while Invercargill MP Penny Simmonds has said the health needs of the province need to be balanced with the needs of other communities around the country.

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The government announcement to downgrade Dunedin's planned new hospital came after costs were projected to escalate to as high as $3 billion.

Dunedin Hospital is a critical medical facility for Southland, offering a wide range of specialist services that are not available elsewhere in southern New Zealand. It is also an acclaimed teaching hospital.

Southland District Mayor Rob Scott. Photo: SDC

Southland District Mayor Rob Scott said Dunedin Hospital was vital for the region and Southland would not take Thursday's 'incredibly disappointing' decision sitting down.

"This [decision] isn't a short-term solution, a medium-term solution and is definitely not a long-term solution, putting something like this on ice."

"It needs to be resolved."

"[Dunedin Hospital] has a very important role in the greater scheme of things."

"We've already got a postcode lottery down here."

Scott said the system was broken and that had been reflected in the fact that Southland had gone and built its own hospital to address that problem faster than the government had done in Dunedin.

Scott said the Dunedin Hospital project had been going for a long time, with the gap between the start of the project and when soil was actually turned over, making things get more and more expensive.

"We need to look at how we manage our infrastructure in New Zealand and not repeat this kind of thing."

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"We need to take the politics out of infrastructure and get more long-term decision making that we actually stick to... more outcome focused than political leaning focused."

"It needs to be addressed, and it needs to be addressed fast," he said.

The Otago Southland mayors were meeting regularly and having discussions about a combined, united approach, and Scott said he would be doing whatever he needed to do.

He had already written to Health minister Dr Shane Reti, prior to Thursday's announcement, highlighting Southland's position.

Saturday's (28 Sept) protest in Dunedin where 35,000 people turned out in support of the new hospital was only just the start, he said.

"The South is pretty good at fighting for its supper."

"I think the government's going to realise that the south isn't going to take this one sitting down."

"They'll be standing up and they'll be fighting for what we deserve, which is not the postcode lottery."

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Invercargill City Mayor Nobby Clark

Invercargill City Mayor Nobby Clark said he was very disappointed that there is to be a significant re-scoping of the new Dunedin Hospital build.

"I am able to wear many hats on this issue – that of a Mayor, the President of the Southland Kidney Society, and an inpatient through both open heart and cancer surgery."

"The re-scoping does not bode well for Invercargill as we are very reliant on the specialist services and capacity of Dunedin Hospital as a regional facility."

"After nearly 16 years in the design stage, how this project can go from $1.59b to now forecast at $3.0b in less than a couple of years is unacceptable. That is double the original costing."

"I find that the government’s reliance on Health NZ to “come up with alternatives by Christmas this year” is a concern, as they have managed this project scoping for years."

"How could they get it so wrong?"

"Stating that laboratory services and car parking were also not included is beyond belief," Clark said.

"I also noted that at the ministerial meeting with Ministers Bishop and Reti, the Dunedin Mayor asked if the current range of clinical services in Dunedin would remain – and he got no confirmation that they would."

"I believe health is the number 1 focus for any government, because without adequate resourcing, people will actually die.”

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Gore District Mayor Ben Bell said he recognised the Government's concern of budgets blowing out to three billion dollars.

"At this stage, we are optimistic that they can deliver the services needed within the $1.8 billion packet that has already been agreed to."

"While this rework is happening, it shows the importance of our rural hospital beds and the dependency our communities have on the existing network," Bell said.

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Invercargill MP Penny Simmonds

Invercargill MP Penny Simmonds said she was aware of the strength of feeling around securing a positive future for the region’s tertiary hospital in Dunedin, and promised she would continue to advocate for the best possible health services for the province.

“We have had to take the difficult step of reviewing this project because the rising costs of the Dunedin build have become untenable, while an independent review has shown that the hospital, as currently designed, cannot be delivered within budget," she said.

“And it’s fair to say that we have been incredibly frustrated by issues surrounding this project - many of which have been out of our control over the preceding six years."

“However, I want to assure Southlanders that I understand the needs of our province and am working closely with Health Minister Dr Shane Reti and other ministers, to find the best way forward for this project and for the people of the South."

“The Government is currently seeking advice on two options for delivering the Dunedin Hospital project, within its existing funding allocation of $1.88 billion."

"These options are either redesigning the inpatient building on the new site to be smaller and less expensive or undertaking a staged development on the old hospital site, including a new clinical services building and refurbishment of the existing ward tower."

“Meanwhile, cabinet has already authorised an extra $290 million, in March of this year, to keep this project moving."

“The health needs of our region are my priority. However, those needs must be balanced with those of other communities around the country."

“Unfortunately, the costs of Dunedin Hospital can’t be justified when other hospitals are also crying out for maintenance, upgrades and new facilities - including our own Southland Hospital, which needs an emergency department upgrade and more theatre space."

“We are committed to ensuring that the people of the South get the modern, fit-for-purpose medical facilities that they need – while applying the financial rigour that taxpayers expect."

“In the meantime, while the Dunedin Hospital options are being considered, daily services will continue and construction of the new Outpatients Building, including clinic rooms, day surgery facilities and radiology, will also advance with completion on track for 2026."

Southland MP Joseph Mooney said on his social media channel that the government remained committed to building a new hospital in Dunedin.

However there had been significant cost overruns and poor oversight over the past six years, he said, and no business case or sufficient funding allowed for things like carparking, a pathology lab and refurbishment of the existing facilities which could add an additional estimated $400 million.

Mooney said government ministers had confirmed they were fully committed to making sure they deliver long overdue solutions to the southern region’s health infrastructure needs.

He would continue to be strongly advocating for this as they worked through the current challenges, he said.