CONFIDENTIAL TO BOARD MEMBERS ONLY
NEW ZEALAND BLOOD SERVICE
Minutes – NZBS Board Meeting
Minutes of the NZBS Board
Meeting held at:
New Zealand Blood Service
71 Great South Road
Epsom
Auckland
In at endance:
Mr David Chamberlain (Chair)
Dr Jackie Blue (Deputy Chair)
Dr Bart Baker
Ms Cathryn Lancaster
Dr Paula Martin
Ms Fiona Pimm
Mr Ray Lind
Apologies:
None
Management:
Ms Sam Cliffe (CEO)
Mr John Harrison (CFO)
Board Secretariat:
Karen Martin (acting Board Secretary)
Date:
30 May 2019
9.30am
BOARD ONLY TIME
Board only time commenced at 9.32am and K Martin was asked to leave the meeting at 9.40am.
S Clif e joined the meeting at 10.00am.
J Harrison and K Martin joined the meeting at 10:15am.
D Chamberlain mentioned to the Board that S Clif e’s objectives are stil to be finalised. D Chamberlain to complete and
circulate for comments.
ITEM 1.0 APOLOGIES
There were no apologies for this meeting.
ITEM 2.0 INTERESTS REGISTER
2.1
Updates to the Interest Register
F Pimm undertook to provide updates to her interest register and R Lind provided updates on his fees for Health Workforce
and the Harvard Macy Institute.
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2.2
Declarations of Conflicts of Interest for this Agenda
There were no conflicts of interest acknowledged for any items on the agenda
ITEM 3.0 MINUTES OF PREVIOUS MEETING/ACTIONS REPORT
3.1
Confirmation of Minutes – 28 March 2019
It was noted that it was not recorded that C Lancaster arrived at 9.45am, the fire dril should have read from 9:30-9:45am
and the arrival time of J Scott should have read 10.45am
Motion:
The presented minutes of the 28 March NZBS Board meeting were accepted as a true and correct record
of that meeting with the above amendments.
Motion by:
B Baker
Seconded by: F Pimm
Carried:
Al present in favour
3.2
Confirmation of Minutes of extraordinary Board Meeting - 2 May 2019
It was agreed to delete the sentence on page 2 on the paragraph starting ‘There was discussion on how the DHBs ...’
Motion:
The presented minutes of the extraordinary Board Teleconference on 2 May 2019 were accepted as a
true and correct record of that meeting with the above amendment.
Motion by:
P Martin
Seconded by: R Lind
Carried:
Al present in favour
3.3
Schedule of Outstanding Action Items from Previous Meetings
The status of all action items as outlined in agenda item 3.3 were noted.
The fol owing action items were discussed:
Item 10.4 C Lancaster and J Harrison to col aborate on the financial reporting currently being received in the
Board pack. C Lancaster favours a dashboard report and J Harrison agreed to discuss / progress as
part of a broader Board education session. S Clif e added that there has been a lot of KPI dashboard
work done of late but was not yet ready to table with the Board. Ideal y S Cliffe was expecting a daily
report tracking KPI metrics together with weekly/monthly/yearly measures. S Cliffe would also like to
see a set of Board agreed KPIs.
Item 3.2 R Lind advised the Board that the Harvard faculty recently presented to the Minister of Health a five-
page proposal of a detailed programme for a three-day workshop on Governance training aimed at
DHBs. It was planned for a Friday/Saturday/Sunday, with a panel discussion taking place at the end
of Sunday with the Prime Minister, Minister of Health and others in at endance.
Cost would be individual y funded for those in NZ which a current cost of $5k per person plus the
cost of travel. The Minister yet to decide on whether to devolve the workshop to the DHBs . Proposed
dates are 20/21/22 February 2020. Harvard would provide case study methodology for teams to
work through with a peer report. R Lind to keep the Board appraised on the progress of the workshop
noting he would be away next week on a 10-day teaching session in Boston which would give him
the opportunity to talk further with the faculty on the planned workshop.
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3.3
Matters Arising (Not Covered Elsewhere)
Various Board members had completed Health & Safety visits around the country. B Baker noted on his visit to the
Palmerston North Blood Bank and donor rooms this week that it was evident that the new staff member employed from
Pathlab with health & safety experience had been very positive with improvements already in place.
J Blue had visited the mobile in Rotorua and noted she had been unaware of just what was involved in set ing up, running
and dismantling the mobile sites. The same team also service Gisborne and New Plymouth. S Clif e advised the Board
that NZBS was currently trialling the outsourcing of mobile pack up / set down. Dunedin had designed a trolley for their
needs and the design may wel be replicated in other areas. Further discussion ensued and S Cliffe acknowledged J
Blue’s comments.
C Lancaster was at Lincoln University by chance and popped in to see the mobile on site as they were set ing up. C
Lancaster advised that staf were happy and had secured a good room.
S Cliffe confirmed to the Board impromptu visits were perfectly acceptable. The Board acknowledged that the volunteers
were amazing and S Cliffe advised one of our long-term volunteers Beth Malcolm had been nominated for a Ministry of
Health Volunteer award.
D Chamberlain acknowledged to the Board that he is yet to visit a site in this rotation.
ITEM 4.0 CHAIRMAN’S REPORT
D Chamberlain advised he would fol ow up on the status of the Board appointment process.
ITEM 5.0 CEO’s REPORT
S Cliffe presented the CEO’s report and during discussion the fol owing mat ers were specifical y highlighted:
Strategic Overview The past two months have been extremely busy. NZBS had experienced high demand for al fresh products as wel as
chal enges in fil ing appointment slots. It is unusual to see this level of demand and pressure across multiple blood groups
at the same time. The demand levels in turn placed pressure on keeping stock levels at adequate levels. There had been
site closures over Easter and ANZAC in the mix as well. Stocks were now returning to adequate levels.
Organ Donation S Clif e advised in her report that a formal submission on the Bil to the Health Select Commit ee was made with D
Chamberlain, P Martin and S Clif e presenting this to the Select commit ee. D Chamberlain asked S Clif e for the footage
of the presentation and for S Clif e to send the link to Board members.
S Clif e met with ADHB yesterday but has not yet met with ODNZ. It was noted that ODNZ did send a submission to the
Select Commit ee albeit a week late on 23rd May, which was the day after the Select Commit ee meeting. S Cliffe has not
seen this submission and advised the Board that we have been very up front with ADHB as to what our submission
contained. ADHB seemed uncomfortable about the broad scope if transplantation was to be included.
NZBS is hosting a Transplant Coordinators workshop which includes ODNZ staff on 11 June and S Cliffe wil be opening
the workshop. We are currently working through a proposal with ADHB on how we consult with ODNZ staf , this will also
include involvement from Unions. S Clif e also advised that our new CMO, Dr Sarah Morley will be involved in this process.
Serum Eye Drops
We have been making this product for wel over 20 years with the product highly valued by patients and ophthalmologists.
There had recently been a fault with the droppers. MedSafe was advised early and advised NZBS to initiate a product
recall. The NZBS National Component Development Laboratory (NCDL) worked extremely hard to make sure patients
were supplied with replacement product.
NZBS received some amazing let ers from patients and contacts saying how wel this mat er had been managed by NZBS.
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Motion by:
F Pimm
Seconded by: B Baker
Carried:
Al present in favour
6.4
Financial Guidelines Policy – Annual Review
J Harrison advised the Board this was an important policy document as it frames NZBS financial management and provides
a measure of transparency to the DHBs on the subject if required. This policy also provides the mechanism to rebate any
surplus back to the DHBs. C Lancaster observed the current policy’s conservative debt ratio set ing. With ISBT 128 a big
capital-intensive project as previously noted as well as the likely Waikato tenancy relocation (a $2-3m likely spend) J
Harrison believed it was an appropriate time to review the debt level set ing.
D Chamberlain noted the moderate debt range of 35% to 45% and felt with al the mat ers in front of NZBS a shift to the
45% upper set ing was justified and appropriate. J Harrison concurred with moving to the upper limit 45% debt cap. J
Harrison noted any change to the policy is required to be communicated to the Ministry noting they took a very keen
interest in last year’s policy changes.
The Chair did not want the change to be seen as reactionary but equal y didn’t want to see incremental increases year to
year, rather a debt cap set ing that enabled NZBS to appropriately accommodate al required development initiatives
without undue constraint. R Lind stated that since debt was cheap presently that assisted greatly in ensuring productive
investments could be made. D Chamberlain noted the debt ratio lowered again over time, providing the capacity for further
investment in the future.
J Harrison expected maximum debt exposure to be the point of the completion of the 71GSR redevelopment that now is
expected to stretch into 2022. The term debt facility planned for the redevelopment works had the interest rate struck of
the 10-year bond rate plus a 2% margin which will likely see rates under 4% over most of the redevelopment timeframe.
R Lind raised the question of what kind of innovations wil material y improve our service and health system given the
ability to utilise the current low debt ratio. J Harrison advised the Board the redevelopment funding was now expected to
be more spread over time such staggering likely providing additional borrowing capacity if needed. Historically NZBS had
prided itself on its financial prudence and the meeting of al statutory requirements.
The Board agreed that the proposed lift in the debt cap to 45% rather than changing incremental y every year. J Harrison
to update the policy for this change.
Motion:
The Board:
1) Reviewed the Financial Guidelines policy with the changes as presented and approved the amended
policy document together with the change arising from the Board’s review.
2) Authorised management to provide a copy of the amended policy to the Ministry of Health in
compliance with the Minister of Health’s stipulated requirement in his let er of 29 July 2013
Motion by:
J Blue
Seconded by: C Lancaster
Carried:
Al present in favour
6.5
Annual Review of the Treasury Policy
The Board noted the tabled Treasury policy with a further change required for the Debt cap change to 45% as per the
amendment to the Financial Guidelines policy.
Motion:
The Board:
1) reviewed the updated Treasury Policy noting the recommended changes as marked-up and approved
the updated Treasury Policy together with the debt cap change arising from the Board’s review of the
Financial Guidelines policy.
2) confirmed, based on management recommendation, the reappointment of Bancorp Treasury Services
for a further 12-month term, as the Treasury advisor to New Zealand Blood Service.
Motion by:
R Lancaster
Seconded by: F Pimm
Carried:
Al present in favour
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ITEM 7.0 DISCUSSION PAPERS
7.1
eTraceline post implementation review
The Board were presented with a post implementation review of the eTraceline blood bank management system.
Referencing the business case NZBS considered we are where we intended to be. eTraceline does give us the ability to
utilise Smart Fridge technology and we are currently working with MAK on which smart fridges are most suitable.
In terms of key objectives, the system is safe and supported, aligns with eProgesa and provides the platform for smart
fridge technology. However, the implementation was much more complex than was original y anticipated. At the time
Scotland were using Traceline but not eTraceline and there were a couple of users in the United States but no like for like
with NZBS requirements. NZBS planned to connect 36 blood banks to the system (a world first) which along with the
number of products to be managed were the main drivers of the increased complexity.
These factors made implementation far more complex than MAK had envisaged and they were somewhat unprepared for
the implications of that number of blood banks. S Cliffe confirmed to the Board that in the table on Page 16 of the paper
the ‘brown’ indicates the matter is still outstanding.
S Cliffe requested if the Board had any further technical questions to send them to her and she wil get a response from C
Van Tilburg (currently overseas at IMUG). There is a separate project currently being undertaken on smart fridges. The
Board was further advised that MAK have staf in Paris, London and Croatia and have software systems for blood banks
and hospitals in Australia, Ireland, Hol and, Scotland, Singapore and with various large systems in America (about 24/25
countries in total) that are supported by MAK- System (a lot of English speaking countries that we can swap notes with).
Importantly there is a well-established international MAK User Group (IMUG) that meets twice a year and two NZBS staff
have been sent to the current IMUG (C Van Tilburg and Mark Bevan the BMS Manager). S Clif e did acknowledge that 4-
5 years ago the relationship with MAK was not as it should be but this had improved over the last few years. While there
are other software suppliers in the world, to change would come at an extremely high price, however S Clif e noted the
Board’s concerns about single supplier reliance.
The Board noted that they have received and reviewed the report.
Motion by: J Blue
Seconded by: R Lind
Carried:
Al present in favour
ITEM 8
MONTHLY/REGULAR REPORTS
8.1
Director Finance Report – Financial Performance – 10 months to 30 April 2019
J Harrison took the Director Finance’s report as read and noted that financial y the reported position was considered a
satisfactory position. On current forecast demand, NZBS is on track to report a small surplus albeit dependent on a spot
rate at 30 June of 0.9350 and no unexpected accruals at balance date. The level of liability for the Holiday Pay Act
remediation is currently being updated back to 2010 based on the MBIE/DHB Framework’s updated set ings. The current
provision sits at $484k and the current forecast has al owed for that figure to increase to around $880k. The remediation
uncertainty aside everything is generally looking positive heading to balance date.
Motion:
The Board received and noted the Directors Finance report
Motion by:
C Lancaster
Seconded by: R Lind
Carried:
All present in favour
8.2
Q3 Organisation Health & Safety Report
PSA haven’t engaged or responded in a timely manner re the ongoing Periodic Driver Medical Programme dispute. We
believe this is a good initiative for our drivers, for the people they are carrying, products and other drivers on the road. It’s
not our drivers who are rejecting this initiative it’s the PSA and this is extremely frustrating.
S Clif e advised the Board of her disappointment in the uptake of the flu vaccination. DHBs have done much bet er. We
are get ing push back from staf with the message we do not want to be vaccinated. The lowest uptake appears to be our
nurses and this seems to always have been the case.
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Motion:
The Q3 Organisation Health & Safety Report was received and noted
Motion by:
B Baker
Seconded by: P Martin
Carried:
Al present in favour
8.3
Q3 Contracts & Leases Register
J Harrison advised the Board of the successful termination of the lease for 11 Great South Road, Epsom.
The Contracts & Leases Register was received and noted by the Board.
8.4
Q3 Statement of Performance Monitoring Report
J Harrison advised that the Q3 Statement of Performance Monitoring Report has been sent to the Ministry.
The Statement of Performance Monitoring Report was received and noted by the Board.
8.5
Q3 Board Expenditure Overview
S Cliffe advised the Board that this was a new item for information only and wil be provided on a quarterly basis in order
to give Board members bet er transparency on Board member expenditures. D Chamberlain supported with this initiative.
R Lind queried his travel amount under Q2. V Siddins undertook to investigate and advise on the outcome.
Received and noted by Board
8.6
Q3 Cybersecurity Report
S Clif e advised that we continue to work through recommendations previously presented by KPMG and this is progressing
wel .
The Q3 cybersecurity report was received and noted by Board
Motion by:
C Lancaster
Seconded by: R Lind
Carried:
Al present in favour
ITEM 9
INFORMATION PAPER
9.1
2018/19 Year in Review
S Cliffe presented the foreword to the 2018/19 Annual Report which will be published in September. D Chamberlain was
happy to take comments on what the Board would like to see. S Clif e advised that there would be a fold out in our Annual
review of our 20-year history timeline and the Board would see a draft prior to publication.
S Clif e also advised the Board that there would be a separate supplement on the Christchurch Incident on 15 March. Liz
Thrift, Transfusion Nurse Specialist (TNS) is to discuss the Christchurch Incident at a presentation at Blood 2019 being
held in Perth in October 2019. S Clif e would look at get ing this published international y and would like the story from the
perspective of the laboratory staf as well as those of the TMS/TNS personnel. B Baker acknowledged that the
Christchurch incident was incredibly wel managed. S Clif e asked the Board to provide any further feedback on this mat er
to her.
ITEM 10 Correspondence
10.1
Letter from Auditor-General - 21 March 2019
The let er received from the Auditor-General dated 21 March 2019 was noted by the Board.
10.2
Letter from MBIE/Internal Affairs re NZBN Implementation – 3 April 2019
The let er from MBIE/Internal Af airs re NZBN Implementation dated 3 April 2019 was noted by the Board.
10.3
NZBS Submission to the Health Select Committee on the Organ Donors and Related Matters Bil
The Submission to the Health Select Commit ee on Organ Donors and Related Mat ers Bil on 14 May was noted by the
Board.
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ITEM 11 General Business
Christchurch Blood Bank
S Clif e advised the Board that Dr P Flanagan had recently sent a letter to the CMO of CDHB re the relocation of the
Christchurch Blood Bank. The response back was understanding but noted the matter was in the hands of the Ministry.
ITEM 12 Board Matters
12.1
Board Work Programme and Calendar
The NZBS Board Work Programme was noted by the Board.
12.2
Board Member Tenure Timetable
The Board Member Tenure Timetable was noted by the Board.
ITEM 13 Next Meeting
13.1
The next Board meeting is a Teleconference on the 2018/19 financial results scheduled for Thursday,
1 August, commencing at 9.30am
Close of Meeting: The meeting closed at 3:20pm.
Certified as a true and correct record:
________________________________
David Chamberlain – Board Chair
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