Govt confirms new Dunedin Hospital will be built on old Cadbury factory site
Ben Tomsett
Multimedia Journalist - Dunedin, NZ Herald·NZ Herald·
31 Jan, 2025 01:08 PM
Health Minister Simeon Brown confirmed aspects of the Dunedin Hospital project’s future amid cost concerns.
The Government capped funding at $1.9 billion, sparking a 35,000-strong protest.
Proposed downsizing or staged development has faced a public outcry.
Dunedin’s new hospital will be built on the old Cadbury factory site despite several “construction challenges”, confirmed today by Health Minister Simeon Brown.
The Government has also released details of the hospital’s scale with Brown stating it will offer 351 beds, 58 emergency department spaces, 20 short-stay surgical beds and 22 theatres.
It’s the latest development in a project marred by delays and cost blowouts. Tens of thousands of Dunedin residents protested as the Government decided to stick to the new hospital’s price tag of $1.9 billion when more recent estimates put the cost at $3b.
Brown, who became Health Minister less than two weeks ago, today said the Government agreed to build the inpatient building of the new hospital at the site of the former Cadbury factory as was originally planned under the previous Labour Government.
“The former Cadbury factory site purchased by the previous Government has numerous construction challenges such as contamination, flood risk, and access issues,” he said.
“However, we are confident that these can be overcome, and it’s clear that using this site to build a new hospital would be far less disruptive than constructing a new complex at the existing hospital.”
He claimed the hospital would be “futureproofed for growth” as he outlined the scale of the new facility:
351 beds, with capacity to expand to 404 beds over time
20 short-stay surgical beds, a new model of care
22 theatres, with capacity to expand to 24 theatres over time
41 same day beds to provide greater capacity for timely access to specialist and outpatient procedures
58 ED spaces, including a short-stay unit and specialised emergency psychiatric care
20 imaging units for CT, MRI and X-ray procedures, with 4 additional spaces available for future imaging advancement.
“The new Dunedin Hospital will be able to adapt and expand in years to come to ensure it responds to changing needs,” he said.
A small group of protesters gathered outside as Brown made the announcement, holding signs in protest of cuts to health funding and the privatisation of health services.
When Brown left the building, the protesters swarmed his car, which was escorted by police.
Dunedin Mayor Jules Radich said he was “as happy as can be expected” with the announcement.
“What we’ve got is the right structure being built as planned, and that was our message to the minister — step one is to build the structure. Clearly, there are some things we’re not getting all at once, but there’s a clear intention to provide them," he said.
“I believe they’ve got the price down, and although contractual negotiations aren’t complete, they’ve got it to something workable.
“Thousands of people marched in the streets, and the Government has listened in response.”
Radich said he believed the Government would stand by the announcement.
The hospital for Dunedin was a key election promise from both Labour and National, but the project has since been mired in delays, budget blowouts, and political controversy.
Work on the inpatient building, on the former Cadbury factory site, was paused last year following an announcement by former health minister Dr Shane Reti and Infrastructure Minister Chris Bishop.
Concerns about potential cutbacks to the hospital’s design led to a massive public outcry, culminating in an estimated 35,000 people marching through Dunedin in protest.
Since last year’s announcement, Prime Minister Christopher Luxon has maintained that the hospital will be built for $1.9b, but not at the higher estimated cost of $3b.
An estimated 35,000 people marched against the Government's proposed hospital cuts in Dunedin last year. Photo / Ben Tomsett
An estimated 35,000 people marched against the Government's proposed hospital cuts in Dunedin last year. Photo / Ben Tomsett
The Dunedin City Council, along with the grassroots Save Our Southern Hospital campaign, has been pushing back against any cuts.
Clinicians and hospital staff have warned that further reductions would create an inefficient, fragmented facility that could compromise patient safety.
The Health Minister admits the site brings with it construction challenges.
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