The Dunedin Mayor says he is expecting thousands of people to protest tomorrow over a proposed downgrade for the city's new hospital. 

The Government has asked Health New Zealand to cut costs - after an independent review found it's hurtling toward an overspend. 

Mayor Jules Radich says he is urging the community to march against what amounts to clinical cuts for the critically needed facility. 

He told Heather du Plessis-Allan the Government must re-engage in contract negotiations. 

Radich says he believes the project can be completed if prices are brought back within reason, as the piles and plans are all done. 

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