Tony Ryall has decided to introduce more reduction in health services as Director General of Health Stephen McKernan has resigned.

"Mr McKernan's departure leaves Mr Ryall with the opportunity he has been looking for to make even further cutbacks in health without any objection from those in charge. Rumors have been rife for months that the newly created health bureaucracy which will be headed by National- Act Government crony Murray Horn was little more than a cost cutting exercise that will not result in new services”, said Labour Health spokesperson Ruth Dyson.

The departure of Mr. Stephen McKernan, announced yesterday, revealed the complicated relationship with Health Minister Tony Ryall.

McKernan revealed that he had not resigned his job due to any political pressure.

Savings of $700 million in more than five years and loss of around 500 jobs will be seen by the health sector, which is suffering with many changes.