HOSPITAL FINANCE.

Auckland Star, Volume LXIII, Issue 93, 20 April 1932, Page 15

HOSPITAL FINANCE.

ECONOMIES EFFECTED. DEFICIT OF £53,593. STATEMENT BY CHAIRMAN. A concise statement of the present state of the finances of the Auckland Hospital Board was made at yesterday's meeting of the board by the chairman, Mr. William Wallace. He explained that the board was required to estimate to a net expenditure fixed by the Department. That meant that, compared with the previous year, maintenance requirements were reduced by £43,783, and capital reqiiirement-s were reduced by £7100, a total reduction of £50,583. That meant a reduction in levies on local bodies of £20,051, or 17 per cent, and a reduction in the subsidy of £30,232, or 25 per cent. Apart from relief, the principal effect was an enforced reduction, impossible to fulfil except by drastic curtailment of services, in hospital maintenance payments of £28,801. Savings had been made at the hospital totalling £16,000 odd, but this still meant the estimate was exceeded by £12,000 odd. The saving of £10,000 represented a reduction of 10 per cent on provisions, 14 per cent on dressings and drugs, 19 per cent on domestic and establishment, and 7 per cent on salaries and wages, proving attention had been given to every division of service. Without drastically curtailing facilities, no greater saving could have been made. Additional economies of £13,000 were anticipated in the current year. Cost of Unemployment. Savings were made at the Infirmary, so that the board did not exceed its estimate there. It also succeeded in reducing its expenditure in all other directions except relief and in maintaining its receipts. The total deficiency at March 31 was £53,593, and for that the hospital was responsible for £12,239 and relief for £41,094. The cost of unemployment relief was £49,800. Unless that amount was re funded by the Government (most unlikely ), then the local bodies would have to meet an increased levy this year, and incidentally the Government, by way of subsidy. The relief estimate for 1931-32 was £40,500, nominated by the Government. It was inevitable at the beginning that that estimate would be exceeded unless the Government helped in respect of unemployment. That it failed to do. Lottery Suggested. Mr. Wallace mentioned that the economies effected had taken place in between seven and eight months, and he felt sure that next year would see a reduction of £25,000 compared with last year's figures. The Government had made the board a grant of £32,000 by way of subsidy on next year's figiires. If the board had to refund that sum the levies on local bodies would have to be increased. Mr. E. H. Totter said that on the figures lie did not think an increased levy would be necessary, and anyhow he would oppose it. Mr. G. T. Parvin, speaking as a country representative, was insistent that there should be no increased levy. Mr. J. Rowe said all the money necessary could be raised by a lotterv. The money was going out of the country for the Irish and other sweeps, and he did not see why a lottery should not be legalised in New Zealand. He said he would movo in that direction later.