REDUCTION IN SALARIES.

Press, Volume LXVII, Issue 20224, 30 April 1931, Page 9

REDUCTION IN SALARIES.

—« — HOSPITAL CHARGES * INCREASED. ESTIMATES FOR YEAR. BUDGETING FOR REDUCED SUBSIDIES. From May Ist the salaries of all employees of the North Canterbury Hospital Board will be reduced by 10 per cent. The fees for adult patients in hospital are to be increased from 9s to 12b a day, and for maternity patients in country hospitals from 12s to 15s a day. The full feo for the operation of tonsils and adenoids is to be £3 3s, and persons receiving treatment in the venereal diseases' department are to pay 2s Cd each visit. The possibility that services might have to "be curtailed was mentioned by the chairman (Mr H. Otley). After lengthy discussion, the report of the Finance Committee incorporating these changes was adopted by the Board at its meeting yesterday. Considerable opposition was given by the Labour members, and several amendments were proposed and defeated. The Finance Committee reported:— "In view of the very serious financial position existing at the present time in New Zealand and the fact that the Board haß been instructed by the Government to reduce itß expenditure by over £43,000, the question of ways and means has received very careful consideration. "The Board is recommended (with a view to effecting some small improvement in the receipts, and recognising that many persons enter the hospitals who can afford to pay more than 9s per •day or for maternity cases in the country hospitals more than 12s per day) that the fees for adult patients in hospital—medical or Burgical—shall be increased from 9s to 12s per day and for maternity patients in the country hospitals to 15s per day; and that the full fee for the operation of tonsils and adenoids, and allowing for two days' stay in hospital, shall be £3 3s. Further, although it is contrary to the policy that has existed with the Board for a number of years, it has been decided to Tecommend that persons receiving treatment in the venereal diseases' department shall pay at the rate of 2s <sd per visit or treatment the same as ordinary hospital outpatients. Bequest for Wage Reduction. "The estimated requirements for various institutions have been very seriously considered and reductions made in every possible manner. The principal reduction that has been made was at the request of-the Department, namely: that all salaries and wages shall be reduced by 10 per Cent, and, further, that those receiving emolument in the shape of house allowance, or free house accommodation, or who 'live in': that is to say, who have board and lodging, shall have these assessed and 10 per cent, taken off., "The result has been that the committee, in preparing the estimates, has allowed 10 per cent, off all cash payments, and nas from those cash payments taken a further 10 per cent, value of the 'living in' which is assessed at £52 per annum: and where there are persons who have free house and other emoluments, that they shall bo assessed at £ 100 per annum. This relates to the medical superintendent of the Hospital, the medical director of the tuberculosis institutions and his assistant. "In the statement of the actual amount required for each institution or department, apart from the reduction of 10 per cent, of salary and emoluments, the known reduction in prices of commodities have been taken off, and a further amount Equivalent to about 7 per cent, has been taken from the total arrived at. Officers in charge of institutions will be required to make such economies in the administration as will balance the budget of the institution. Advices from Government. ! There were appended to the report copies of three circular letters received from the Director-General of Health (Dr. M. H. Watt). The first stated that the Finance Act, 1931, provided for a 10 per cent, reduction in the amount payable to hospital Boards and that Boards were expected to follow the example set by the Government, and reduce all wages and salaries by 10 per cent. It was desired to warn Boards of the probability of a reduction in the amount available for payment of subsidies beyond that indicated in the Act; and it was therefore urged that immediate reductions in wages would make it less difficult to meet a probable further reduction in subsidies. The second letter set out that the Dominion's difficulties required a substantial reduction in taxation for hospital purposes for the coming year. Cabinet had named £1,040,000 as the definite total sum available for the maintenance expenditure of Hospital Boards and other institutions under the Act. Tho ' North Canterbury Board's amount was £117,169. The Board was asked, therefore, to take economy measures that the net estimated maintenance expenditure, that is, the amount to be levied on the contributory local authorities, together with subsidy, should not exceed the amount named. This letter was supplemented by a third, emphasising that 'levies on local bodies must not be increased, and making suggestions for the "proposed economy measures. Estimates for 1931-32. The Finance Committee added a statement of the maintenance requirements of the Board for the year 1931-32. The total requirements were estimated at £186,254, compared with £216,982 for 1930-31. From this total was_ deducted £62,500 by estimated receipts and £l2lO by reduction in staff, making the net total required £122,883. This sum it was proposed to raise by n levy on contributing local authorities of £63,786, together with a subsidy of £59,096. Last year the levy was £73,057 and the subsidy £73,105. The chief maintenance items were the Christchurch Hospital £66,775 (£78,865) and outdoor relief £12,370 (£24,875), Capital proposals for 1931-32 amounted to £9534, less estimated cash, levies, and subsidy, which together reduced the total to £7832. The capital proposals included:—Tennis courts, £300; laun. dry presses, £200; record room basement, £200; various services; and sinking funds.

Chairman's Statement. Tho Board's difficult position wag first discussed by the chairman (Mr 11. J. Otley), in his annual statement. "The principal item of expenditure by the Board is in the Christchurch Hospital, with its various departments," said Mr Otley. "There again is to be i'ound a very marked increase of expenditure between the years 1924-25 and 1930-31. In 1924-25 the expenditure was £60,167, whilst in 1930-31 it was £78,336. This increase is largely accounted for by increased staffs, and in certain marked increases in tho salaries of certain grades of nurses. On tho medical side there has been the appointment of an extra registrar, who was appointed largely for the benefit of the outpatients.department. "Now a time has come when it is really essential that a halt has to be called, not only in expense, but possibly in the amount of service that the Board may be able to give. It is hoped that in no way will tho efficiency of the service be diminished, but it is possible that, to meet the considerable shrinkage in funds, there may have to be a marked diminution in the service that can be given. "It is not at present contemplated to close any portion of the general hospital, although if things continue as at present, it may be necessary and desirable to close some of our outlying hospitals temporarily. "The committees have made a drastic cut in the salaries and wages of all employees, which will amount to £10,719. Tho total aconomy called for by the> Government as against our last year's expenditure, or as against our last year's vote, was £34,099 and £26,877 respectively. Assuming that our estimated requirements and receipts for maintenance purposes are carried out, the demand on the local authorities for main- j tenance levy will be £63,786 14s lid, as against £73,057 7s 4d last year, and the demand for capital levy will be £3916 as against £4788 last year—a distinct saving in this year's levy of £11,155. 'lt may be necessary to make economes in various departments, and perhaps the Board will think it advisable to appoint a small sub-committee, with power to act. This committee should not be a big one, but it should have full power to confer with the officers of various departments to see whether savings can be effected. Reductions Regrettable. "It is to be regretted that reductions have to be made, although under the circumstances everybody will admit that it is unavoidable. Let us hope that at the end of the present year there will be a brighter promise than ■appears at present." ■ air L. *B. Evans said that it was his most unpleasant duty to move the adoption of the report. Mrs E. R. McCombs opposed the adoption, and moved that the report should be referred back to the committee. Almost every clause either increased the cost of living to the working people or reduced their wages. From beginning to end it hit the working people both ways. The cost of treatment was to be increased to 12s a day. A member: The same as other hospitals. No such argument should affect their decision, continued Mrs McCombs. While increasing costs, they were reducing the wages of the workers. In the maternity hospitals charges were increased to 15s a day. They were told that the cost of social services had become unbearable, and that the people were being made less selfreliant. These services were extended after the war when it was found that tho physique of the British race was far below par. The policy they were pursuing would drive many people back to being unable to attend to the physical needs of their children. The nurses and the maids of the Hospital were to have their earnings reduced by 27 l-3rd per cent. Mrs T. Green seconded the amendment. "Iniquitous and Criminal." Mr J. S. Barnett said that a nurse in her first year's training would receive only 7s 3d a week under the new proposals. It was an iniquitous and a criminal thing. The Auckland, Gis borne, and other hospitals had refused to reduce salaries below £2OO by 10 per cent. The Board proposed to reduce the relief rate by half. The chairman: Don't siay that; that's not correct. . , They were proposing to spend onehalf of what they spent on outdoor relief last year. Hie was sure that hardheaded business men had hearts, and he urged them not to take this drastic step. He was glad that the chairman hoped for a brighter day 'soon. Mr Otley: You won't get it with crying. When Mr Barnett sat down,-Mr A. T. Smith remarked, mournfully : Here endeth the first lesson: Mr \V. P. Spencer : agreed with the report, but urged that the reduction should not be made in the lowest wages. He agreed with the Auckland Board that no reduction should be made in wages tfhder £2OO. Mr Otley said that the Auckland Board had not balanced its budget, while the Canterbury Board had. Miss E. J. M. Cardale thought that the report should go back to the committee. She opposed a reduction in the nurses' wages and also the increase in the charges for adenoids operations. Mr. Otley: We don't ask them to pay if they can't. Increase in Wages Bill. Mr F. Horrell said that since the Unemployment Board had been set up, and the levy imposed, the committee felt that it was not its duty to deal with the genuine unemployed men. Perhaps the salary reduction was a little severe, and they might reduce staff instead. In 10 years the salary bill had grown from £14,000 to £31,000, and there was a nurse to about a bed and a half in the hospital. Probably a graded cut would have been more satisfactory, but the committee followed the Government's recommendation. He asked whether the 6i per cent, commission which the architects got on the £60,000, which the Nurses' Home was to cost, would also be reduced by 10 per cent. He opposed the increase in maternity charges. Mr W. Anderson, while regretting ' the reduction in Government subsidy, thought that' perhaps social service had been made into a super-service. They had gone, past tho original idea of a hospital, and now tended to make.each one a department of research. He wondered whether they were not becoming specialists instead of servants. People were receiving attention who were able to pay for outside service. If greater attention were paid to the people who came to tho hospital for special treatment, he was sure that costs might be reduced. Could they encourage scientific research at the cost of the poor people, for whom hospitals were originally intended. Modern transport made many of the country hospitals quite unnecessary. Many of them were dead assets. The Board should close them down and sell them. Mr H. H. Holland said that a committee was investipatina the position of country hospitals. The fees were increased,' hut thev were only payable by people who could pay. Unfair to Probationers. Mr W. J. Walter agreed that the report should be referred back to -the committee. It waß not fair to ask a probationer to work for 12 months for £2l 16s. He gave notice of a motion that no reduction should be made in salnries of £IOO or under. The ainendment moved by Mrs McCombs was lost by 14 votes to 6. In reply to a question, Mr Brans ■aid that if Mr Walter's propoiai

were adopted it would cost the Board about £BOO a year. It was pointed out that this proposal would loavethe third year nurse receiving less than the second year. Mr Otley urged that the only fair thing to do was to reduce all wages by the same percentage.,,. They had been forced to the position, And had to meet it. ' : Mr Anderson urged that the £3O salary should not be interfered with. The further amendment moved by Mr Walter was lost by 12 rotes to 7. '■ Dr. P. S. Foster moved that all nurses receiving leas than £IOO should have their wages reduced by 6 pW cent. The amendment, in turn, was I®®' by 10 vote# to 9. Mr Spencer moved that the question of staff salaries bo referred to a subcommittee comprising Mrs McCombs, Messrs \nderson, and 'Evans, and the chairman. This amendment was lost. The Finance Committee's report was adopted by 14 votes to o. On the motion of Mr F. Horrell, it was decided that the reductions should come into force on May left. The appointment of sub-committee, as suggested by Mr Otley, was held over until the next meeting. At a special meeting the estimates were confirmed. DIAMOND ENGAGEMENT RINGS. One Month Special Display. Largest Selection in N.Z. Superior Diamonds Platinum Set. About Half-Price. Never- before has such value been offered. If you can't call, write. : JONES and SONS, The Manufacturing Jeweller*, 278 High street, Christchurch. ■ v M|*o