Wairarapa Hospital’s $90M settlement leaves locals demanding answers over funding
A legal dispute over alleged defects in Wairarapa Hospital’s construction and consenting process was settled last year. The confidential agreement between the district council and Health NZ has since sparked criticism over how the funds were used. Locals now question why the money did not go toward fixing the troubled facility.
The out-of-court settlement resolved a claim seeking $90 million in damages, plus interest and costs, for the hospital’s reported flaws. Though the exact sum remains undisclosed, Health NZ later confirmed only NZD 1.1 million was earmarked for Wairarapa Hospital itself.
Labour MP Kieran McAnulty criticised the handling of the funds, arguing that locals had lost out twice. He claimed the government redirected the settlement money elsewhere instead of repairing the hospital. The Chief Ombudsman later recommended that Health NZ disclose what percentage of the settlement, if any, was specifically allocated to the facility.
In response, Health NZ stated it had not ring-fenced any portion of the funds for Wairarapa Hospital. National’s Wairarapa MP, Mike Butterick, blamed the previous government for stripping local control over capital funding decisions. He emphasised his ongoing efforts to secure major upgrades and proper funding for Masterton Hospital.
The settlement’s lack of direct funding for Wairarapa Hospital has left community leaders and politicians frustrated. With only NZD 1.1 million set aside, calls for transparency and better financial commitments to the hospital continue. The facility’s future upgrades now depend on further advocacy and funding decisions.
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