The good
News that the government is going to fund fifty four new medicines is great news. That twenty six of these are cancer related is also very positive. The reality of cancer is very present to just about every New Zealander – be it something we suffer ourselves, or we know someone who is.
I have spent considerable time in the oncology ward over recent weeks due to an ill family member. Speaking with them of course, but also with other patients and their families, it is abundantly clear that the pharmaceutical options that exist in many other countries are just not available here. New Zealand is miles behind particularly with cancer-related immunotherapies.
So the announcement of substantial more funding for Pharmac is very good. It is something like $600 million over four years. It will make a difference and should be rightly celebrated.
So the announcement of substantial more funding for Pharmac is very good. It is something like $600 million over four years. It will make a difference and should be rightly celebrated.
The bad
However, if we take a step back from the announcement itself, the amount of money, and of course the welcome benefit it will give to cancer patients – there are some issues that need highlighting.
The first remains that the original election promise to fund thirteen new cancer drugs was ‘missed/forgotten’ in this year’s Budget. It remains a mystery how this case of political mismanagement happened.
The resulting scramble to fix things has seen a fairly predictable political response – find the money and announce more than originally promised. So a win for patients as the funding is no longer for the thirteen election-promised drugs, but double that.
However, the problem is that there is no spare or extra money in this year’s Budget. This $600+ million is being taken from next year’s Budget. This is an incredibly early pre-Budget commitment. Not only that, the amount promised is around one fifth of the discretionary extra spending of next year’s budget - what is referred to as an operating allowance. Analogously, it is a bit like you or me making spending commitments today based on what you think your income will be next year.
I need to be clear, funding cancer and other pharmaceuticals is good. But this should have been sorted out via the current Budget. By the oversight that occurred and the subsequent need to politically manage the mistake by being even more ‘generous’, it creates a financial headache even before next year’s Budget process begins.
The ugly
It is not lost on any of us - our country is in a real financial mess. I would argue courtesy of the last government’s actions and decisions. I have confidence that the current government has the right intentions. It is saying the right things. However, many of the actual actions are not encouraging. As I have noted before, we have just had a Budget that sees more money being spent than when Labour was in power. The Crown’s debt is going even higher. And now government has magicked up $600+ million from a future Budget that has not yet being developed.
Alongside this, we are seeing very clearly the consequences of years of infrastructure underspending by successive governments and councils. There is no quick fix or silver bullet. Things are already ugly financially but there is much more down the line to address and fix, and it all takes money. Lots of money!
We see the inter-island ferries failing, with the Awatere recently literally on the rocks! The cost to fix this - even by rightly throwing out Labour’s earlier mad plan - is enormous. There is much talk in the defence space of developing new capabilities – think naval and air assets. Where is the money for these eye-watering amounts going to come from? And doubly so when you consider this government has just cut overall defence funding. Finally, let’s not mention the Royal New Zealand Airforce’s 757 that keeps breaking down and commitments from those on the trade trip to replace it. How? And with what money?
As I say, things are ugly.
But if we return to the beginning, there is also much good. I celebrate with those patients and their families who now have access to often life-saving and life-changing pharmaceuticals. We just might need some Panadol for the many other financial issues coming down the line!
Simon O'Connor a former National MP graduated from the University of Auckland with a Bachelor of Arts in Geography and Political Studies . Simon blogs at On Point - where this article was sourced.
It is not lost on any of us - our country is in a real financial mess. I would argue courtesy of the last government’s actions and decisions. I have confidence that the current government has the right intentions. It is saying the right things. However, many of the actual actions are not encouraging. As I have noted before, we have just had a Budget that sees more money being spent than when Labour was in power. The Crown’s debt is going even higher. And now government has magicked up $600+ million from a future Budget that has not yet being developed.
Alongside this, we are seeing very clearly the consequences of years of infrastructure underspending by successive governments and councils. There is no quick fix or silver bullet. Things are already ugly financially but there is much more down the line to address and fix, and it all takes money. Lots of money!
We see the inter-island ferries failing, with the Awatere recently literally on the rocks! The cost to fix this - even by rightly throwing out Labour’s earlier mad plan - is enormous. There is much talk in the defence space of developing new capabilities – think naval and air assets. Where is the money for these eye-watering amounts going to come from? And doubly so when you consider this government has just cut overall defence funding. Finally, let’s not mention the Royal New Zealand Airforce’s 757 that keeps breaking down and commitments from those on the trade trip to replace it. How? And with what money?
As I say, things are ugly.
But if we return to the beginning, there is also much good. I celebrate with those patients and their families who now have access to often life-saving and life-changing pharmaceuticals. We just might need some Panadol for the many other financial issues coming down the line!
Simon O'Connor a former National MP graduated from the University of Auckland with a Bachelor of Arts in Geography and Political Studies . Simon blogs at On Point - where this article was sourced.
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