Labtests to appeal contract ruling

NZPA | Tuesday, 17 April 2007

Labtests New Zealand will appeal a High Court ruling invalidating its $560 million contract for pathology services in Auckland.

But it will do so without the services of former chief executive Tony Bierre, the ex-Auckland District Health Board member whose alleged conflict of interest played a key part in Justice Raynor Asher's decision in the High Court in Auckland annulling the original contract.

Bruce Dixon, the managing director of Healthscope, the Australian company which owns Lab Tests, said Justice Asher made a number of errors, "including incorrectly finding that Dr Tony Bierre had access to and misused confidential information which favoured Lab Tests over Diagnostic Medlab".

"In the context of awarding this major commercial contract, we do not believe there was any unfairness or prejudice against Diagnostic Medlab or any advantage to Lab Tests.

"Lab Tests strongly denies any conflict of interest with regard to the tender process or the letting of the contract."

Mr Dixon said Dr Bierre had recently decided to resign as chief executive and company director to pursue other opportunities.

No appeal will be filed by Auckland's regional district health boards (ARDHBs), which handed Lab Tests the original contract.

A statement from the boards said their focus would be on "ensuring that the people of Auckland continue to have access to laboratory services that meet the needs of all members of the community".