Stephen McKernan

Wellington, March 17 NZPA - One hundred and thirty jobs are proposed to be cut at the Health Ministry, Director-General of Health Stephen McKernan said today.

The ministry is consulting staff about its restructure proposal designed to support the changes to the health system that began in October last year.

The proposal recommended reducing the number of full-time positions within the ministry to 1390 by the end of this financial year and 1290 by July 2011.

The ministry currently has around 1420 full-time equivalent staff.

"While the proposal would change some roles and disestablish a number of positions, exact numbers will not be known until all ministry staff have had the opportunity to provide feedback and the structure is finalised around mid- to late-May," Mr McKernan said.

"The priority for the ministry now is managing the consultation process and supporting staff who are potentially affected by the proposed changes."

In October last year, Health Minister Tony Ryall said as many as 500 jobs could go across the ministry and district health boards (DHBs).

A National Health Board (NHB) is to be established within the ministry, overseeing IT, payroll, procurement and logistics. Mr Ryall said reducing duplication of those services across the 21 DHBs could save hundreds of millions.