HOSPITAL RATING

Ashburton Guardian, Volume 56, Issue 97, 5 February 1936, Page 7

HOSPITAL RATING

THE NATIONAL HEALTH SCHEME. CONFERENCE OF LOCAL BOPIES A conference of delegates from the New Zealand Hospitals Association, the Municipal Association of New Zealand, and the New Zealand Counties Association will meet in Wellington tomorrow to discuss the whole question of hospital rating and of a National Health Scheme. Among the matters to be discussed will be:— (a) That the Government be urged to promote a compulsory national health scheme for medical, dental and hospital treatment of wage earners and their dependants. (b) That the financing of such a scheme be met by compulsory contributions from employers and employees, subsidised by the Government, and that provision be made for the inclusion of workers on their own account, e.g. farmeis and small-business men. (c) That the Health Department should " have complete control offer the planning and co-ordinating of the proposed National Health Service. (d) That it be a recommendation to the Government that the services of an experienced National Health, official from England be utilised by the Health Department in launching a National Health Scheme for the Dominion.

There are 47 Hospital districts throughout the Dominion, with at least one large hospital in each district. The maintenance of these'hospitals costs nearly £1,51)0,000 annually whilst buildings etc. and rcpavjnent of loans account for another £250,000. During three recent years the principal sources of revenue have been: — P’cge. of tl. 1931-32 1932-33 1933-34 rev. £ £ £ Govt, subsidy ... 619,096 656,221 640,274 39.5 Local body rates. 564,134 578,901 586,310 36.0 Patients’ „ _ fees 295,342 261,048 273,490 20.0

The basis of levy on local bodies is the rateable capital value of propelties within each Hospital district, and the levy amounts to about id in the £ or rateable value. According to the latest statistics the rateable capital value of Counties was £329,165,753, whereas that of Boroughs, etc., was £287,092,053. In other words, rural ratepayers are contributing 53 per cent of local body rates to Hospitals, whereas city and town dwellers find 47 per cent. Expressed in money, rural ratepayers find £304,884, whereas city and town dwellers contribute £281,431, out of an annual levy on local bodies of £586,315. From time to time protests have been made by various rural interests against this inequitable incidence, especially as urban dwellers must make more use of our hospitals than do rural ratepayers. Among the proposals advanced by rural organisations are:-

(1) That levies bo abolished, and the maintenance of hospitals he paid out of the Consolidated Fund. Seeing that the Government pays about £700,000 every year toward the upkeep of our hospitals, it is not likely that it would entertain such a proposal at present. Moreover, as the urban population forms the greater souice of revenue for the Consolidated bund, a strong protest would be made by city ratepayers against further increase in taxation. (2) That the levy on each local body be assesed on a population basis. According to the latest statistics, the population of counties is 612,260 and that of urban areas is 939,430. This means that 39 per cent of the people live in rural districts and 61 per cent in cities and town*. Hospital levies on local bodes for 1933-34 totalled £586,315, and if this amount were apportioned on population only, the result would he:

At present on On population capital value. basis only, Counties 304,884 288,663 Boroughs 281,431 357,652 Thus the cities and towns would have to pay £128,989 more than the Counties, a proposal which they would never agree to, as the taxable capacity of a population would be too uncertain, and those able to pay would Have to make up the deficiencies of those unable to do so.

(3) That tho incidence of the levy on local bodies be altered from the present system of being based sole- • ly on valuation, and be apportioned on the basis of 50 per cent capital value anti 50 per cent on population. This proposal, which has been very popular among rural organisations in recent years, is a compromise between levy on capital value, and levy on population. It means that out of the total national hospital levies of £586,315, £293,158 would be divided in the ratio of the relative capital values, and a similar amount in the ratio of the relative populations, thus-

50 per cent 50 per cent valuation population Total £ £ £ Counties 155,374 114,332 269, 1 06 Boroughs 137,784 178,826 315,610 For the whole Dominion, the hospital levy based on a 50-50 basis would result in a saving of £35,178 to rural ratepayers, or not quite £IOOO pei Hospital district. Thus the saving to each individual ratepayer in a Hospital district would be almost negligible. (4) That the levy on local bodies be abolished, and a universal levy on the adult population, similar to the Unemployment levy be adopted. During the past two years the principle in this proposal has been widely' supported, and is incorporated in the National Health Schemes submitted to the electors of the Dominion by the various political parties prior to the recent election.