Health NZ's bid to remove Milo from staff rooms could have cost it $3 ...

Photo: RNZ / Melanie Earley

Health New Zealand's "misguided" bid to remove Milo from staff rooms could have ended up costing it millions of dollars, according to one doctors' union.

Health Commissioner Lester Levy personally intervened after hearing of the move, part of wider cost-cutting across the sector.

Along with acting chief executive Dale Bramley, he issued a fresh directive on Wednesday afternoon "to ensure that Milo remains available to all".

"When I first became aware yesterday that it had been proposed that Health NZ switch to an alternative to Milo to save some money, I immediately put a stop to that and issued a communication to all staff that in the case of Milo the status-quo will prevail," he wrote.

"I know from our staff on the front-line that they particularly enjoy Milo, and it should continue to be available to them."

Tea, coffee, hot chocolate, Milo, and sugar remained available for staff, he said.

Resident Doctors Association executive director Dr Deborah Powell said she was "somewhat surprised" to hear the commissioner had involved himself at this level - but confirmed staff were relieved by the backdown.

She was contacted by outraged members last week about the original decision, which would also have seen sugar replaced with sucral.

"I have to say it really annoyed a lot of people," she said.

"I've had nurses get in touch to say 'We can't give patients much these days, but at least we can keep offering someone a drink of Milo if they've been waiting for hours in an over-booked outpatient clinic'.

"So it's not just clinical staff affected."

Provision of hot drinks was actually enshrined in some health workers' collective contracts, she said.

"If that isn't provided the employer has to pay an allowance. So if this was done as a cost-saving measure, it would have done anything but.

"I think I calculated it would have added $2.3m cost for nurses alone to Te Whatu Ora if they removed that provision."

Powell said the proposal was probably the result of "over-enthusiasm" on the part of some official.

"I know they're under pressure to contain costs but there are implications to many of the things we do and consultation is required so we make good decisions.

"It's not just a bit of window dressing, it's so we don't make mistakes."

Powell said she hoped the episode would send a message to Health New Zealand management that staff needed to be involved in decision-making.

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