Newly released papers reveal that the Dunedin hospital rebuild project has been plagued by poor governance, leading to significant delays and cost overruns.
Between 2021 and 2022 under the previous Labour government, the project’s budget surged by $200 million, with an additional $300 million increase reported later, pushing the total potential cost to $3 billion.
A series of reviews reported by state media highlight that weak oversight and governance issues were identified as the major causes of the project’s struggles.
Despite efforts by the Labour government to address these challenges by replacing the Southern Partnership Group with a new executive steering committee, five critical months were lost, exacerbating tensions and delaying necessary decisions.
Treasury had warned in 2020 that successful delivery of the project was at risk due to poor governance.
The project’s financial issues have sparked a “Save Our Southern Hospital” campaign, with doctors warning that rushed design changes could compromise healthcare services in the region.
The cost blowout has forced the government to reconsider its approach, while governance failures continue to be a point of contention. Labour’s associate health spokesperson, Tracey McLellan, defended the previous government’s handling, citing global supply chain disruptions due to COVID-19.
Someone took away the punch bowel
A sobering reality