Auckland, Sept 14 NZPA - Prime Minister John Key has waded into the dispute over the new multi-million contract for laboratory testing in Auckland.

Australian-based company Labtests took over the contract with three Auckland district health boards from Diagnostic Medlab this month but within days problems surfaced over the speed of tests and results, and communications with clinicians.

During the weekend the Auckland boards ordered their own senior representatives to take over at Labtests and sort out the problems.

It came as Labtests apologised to people who had had trouble with the company since the takeover.

Auckland District Health Board chairman Pat Snedden said there were indications the public might be at risk over inefficiencies.

Mr Key said Health Minister Tony Ryall had made it clear to Auckland's district health boards, and therefore Labtests, that the situation was not acceptable.

"The people of Auckland rely on this service, this is a $500 million contract -- they have had a couple of years to get themselves organised," Mr Key told NewstalkZB today.

"While I don't think any of the specific issues are so serious that they can't be fixed, now is the time for Labtests to actually stand up and deliver a proper product to the people of Auckland."

Mr Key said he was confident Labtests could get on top of the issues.

Labtests said today in a newspaper advertisement it took responsibility for fixing the problems and was working extremely hard to sort out the issues.

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