Fees increase questioned.

I have been reading the October edition of Kai Tiaki Nursing New Zealand and am impressed by the new took. The articles show what a dynamic, interesting and challenging time nursing in New Zealand is in. The debate between the Nursing Council and NZNO around the scopes of practice for enrolled nurses (ENs) is healthy. I only hope that both parties avoid the trap of thinking they have superior motives, knowledge or insight to the other and instead recognise the value in each other. In the same edition we read that NZNO's financial future looks a bit grim, so much so that my membership fees will rise by 15 percent from next April (see p13), yet in the same journal we are told of the possibility of not one, but two new, full-time paid positions, with combined salaries of around $140,000 per annum. [This year's NZNO conference decided that the president and Te Runanga chair should be paid, full-time positions, and salaries of $140,000 were suggested. This decision will be revisited in further discussion next year. Ed.]

NZNO has always been a principled organisation. To justify the increase by comparing it to what is paid in other unions or to a bottle of milk ignores the principles. At a time when NZNO is telling the Government and the public how underpaid nurses are, it is increasing our fees by 15 percent. Banks, petrol stations and everyone else who are increasing the cost of living are also justifying, with sound argument, their increases.

We are told that NZNO is involved in 40 large and small projects with a combined budget of more than $1 million, and that, in the last financial year, expenditure has increased by $745,000 (October issue, p13). Without more information, surely one can be forgiven for wondering why NZNO doesn't just make some hard decisions and decide what it wilt not provide to remain within budget without a fee increase and without introducing more costs, eg new salary positions. It would also be useful to know how much in total the increase is expected to net. This way I, and others, could intelligently support a 15 percent increase.

Darryl Rhodes, RN, Manukau

NZNO business services manager Dragon Radic replies: Justification and recommendation for a 15 percent fee increase were not simply based on comparison with other unions or to a "bottle of milk'; NZNO did not take this decision lightly. In the last eight years, there has been only one modest increase of five percent in 2000, hence comparing this increase with petrol stations, banks etc is hardly valid.

Furthermore, comparison with other "similar" organisations was only one of the six key arguments for a fee increase. Increases in operational costs over the last few years have been significant, imposed by NZNO suppliers. NZNO reserves are very modest when related to the size of the organisation with its 37,000 members and current liabilities.

Most importantly, the strategic landscape in which NZNO currently operates is quite positive. Hence NZNO intentionally chose to invest in projects and capitalise on this positive external environment. This strategy ensures NZNO progresses, and requires our financial and staffing resources to "stretch" rather than to "fit" within the existing resource base. The success of our strategy is evident in our membership growth of over 40 percent in the last five years. While the projects and the operations are management responsibilities, the issue of having a paid president and Te Runanga chair is a membership decision that was part of the overall review of NZNO's external structures. The fee increase is expected to net $1.2 million.