HOSPITALS AND CHARITABLE INSTITUTIONS.

Auckland Star, Volume XL, Issue 271, 13 November 1909, Page 8

HOSPITALS AND CHARITABLE INSTITUTIONS.

BILL I3C COMMITTEE. (By Telegraph.—Parliamentary Reporter.) WELLINGTON, Friday. The Hospital and Charitable Institutions Bill -was further considered in committee of the House of Representatives. On clause 42 (consisting of no less than 12 sub-clauses, and providing for contributions by local authorities towards the expenditure of Boards), Mr. Massey pointed out that sub-clause 10 ■of clause 42 gave the Minister of Finance poiver to "lend money to any contributory local authority." This ■was at variance with the cardinal provisions of the State Guaranteed Advances Bill (i.e., Government loans to local bodies to cease). Mr. Fowlds replied that he recognised the clause would require alteration later. Mr. Massey thought that if the Committee was to go on in this way serious trouble might arise. Mr. Fowlds further explained that this bill had been printed before the State Guaranteed Advances Bill had been drafted. Mr. T. E. Taylor protested vigorously against this method of doing business. There was nothing in the bill showing which parts of it were new, and which ■were merely consolidations. Quite recently a Committee had been set up outside Parliament to consolidate the law of the country, and serious complaints had been made about the value of the work. The bill, he said, should be taken back and put into proper form. In its present shape it was simply putting a premium on mistakes. It was a reflection on members of the House. The Minister said the bill would have to be proceeded with. It was out of the question to suggest that this bill should be altered to conform with a clause in a measure which might not be passed. When the bill before the House passed, and the State Guaranteed Advances Bill was under consideration, the necessary provision could be made for protecting the clause under notice. If it was not passed then, and the State Guaranteed Advances Bill did not find its way on to the Statute Book, there would be no power given to these local authorities to borrow money. He claimed that the course he proposed to follow was in accord with j Parliamentary practice. Any necessary amendment could be made later by governor's message in the usual way. Speaking of sub-section 10 of clause 42, Mr. W. H. Herries urged that it would be very cumbersome to allow local contributing authorities to borrow jnoney in certain circumstances. ' He contended that it would he much better if all the borrowing was done by the Boards. The Minister replied that a reasonable amount of elasticity between the two systems, as provided in the bill, was very desirable. It would be more economical and convenient. Clause 47, at the Minister's desire, was amended so as to provide that where there is no contributory local authority, the Governor may appoint three members as representatives of part of the district. Sir William Steward moved an amendment to clause 52 to the effect that the proviso be struck out which made it compulsory for the Minister's consent to be obtained before any grant could be accepted in Trust for the establishment of any new institution. The Minister accepted the amendment, and the words were struck out. ; Sir William Steward moved to add to clause 58 a provision whereby Boards should be empowered to borrow by way of bank overdraft to the extent of unpaid contributions and unpaid subsidy. The Minister said there was no need for the a.mcndment, as it was already possible to get from the Minister for • Finance an advance of subsidy, contribution due, and there was one Board ■which had received an advance of £6,000 in this way. The amendment was carried by 3' votes to 22. THE NEW POLICY. "If a. district is careful and economical in its ■administration it gets an increase ■in .tire rate of subsidy from the Government." This, according to the Hon. G. Fowlds, is the guiding principle of the new schedule of the Hospitals and Charitable Institutions Bill, prepared for the consideration of members at a later stage. The new proposals are contained in a series of schedules, and the Minister was asked by your correspondent for his explanation. "Aβ I explained to tho House in introducing the bill," he said, "there are very wide differences in the rates levied in the several hospital and charitable aid districts, coming down as low as 3/4 on a property valued at £ 1000, up to several pounds on a; property of similar value. There are only a very few that pay over £1, but there is a considerable number that pay from 3/4 to 15/ and 18/, and in some cases you get that big difference in the rate on adjoining properties, which are accidentally situated in different hospital districts. That very often occurs foe-ca-use one district makes no provision for its old people. What I have been striving after is to contrive some method of sutv eidy contribution that would relieve the burden on the poorer and most heavily taxed districts. "There are," continued Mr. Fowlds, "two different methods proposed. The first varies the subsidy in proportion as the ratable value of the district decreases per head of the population, and the subsidy also increases in proportion as the amount levied in the district inj creases. The second alterna-tive in bhe schedule is worked on a different basis, but to my mind meets the difficulty 'better, although it does not raise th« subsidy correspondingly with the increase of rate levied in the district. The rate levied is to rise faster than the rate a.t which the subsidy increases, .and that is the only limitation that is put upon extravagant administration in the districts. In the third schedule we reduce the rate of subsidy as the expenditure per head of the population rises in the district, because the increased rate of expenditure is some indication of extravagant administration. The position under the third schedule is tha-t the districb ■with the lowest ratable value per head of the-population, and tho lowest ratq of levy per head of the population, gets the highest subsidy, and the subsidy decreases as the ratable value per head of the population increases, and as the rate of the levy per head of bhe population increases. ' "Weihave,"'i* went on to say, "worked out very carefully the effects of eaob. of theee. propoeade in rthe different districts, and we find that it very nearly confirm* our own, «»tim*te~ o(f what, would be re- < quired from the different diatricta. Th<j

■rfoheme does not' involve any alteration ■in the hospital districts, but it minimises the evil. of further subdivision of districts, because a wealthy district cutting off from a poor district would bring about a reduction of the subsidy to its own district. Thk means that the subsidy payable on the rates collected over the -whole Dominion will not be reduced, but it "varies their apportionment according .to the needs and deserts of the various districts. Theee proposals are now before .the Select Committee appointed to consider them."