NURSES' HOME.

Press, Volume LXIX, Issue 20918, 27 July 1933, Page 5

NURSES' HOME.

| MORE MONEY NEEDED, j HOSPITAL HOARD'S DILEMMA. Owing' to the cost of completing the new nurses' home in Riccarton avenue exceeding the original estimate. the North Canterbury Hospital Board is to attempt to secure legislative authority to raise a Curt her rti G.'iC'.o to meet outstanding commitments. It was explained by the chairman of the ; finance committee, Mr L. B. F.van;■. in a j report adopted b.v the board yesterday, ' that AIBSOO additional was needed, but ■ that the board had p;;wer to raise only an additional LI 1511)5. so that legislation would be recjinretl (o enable the : Local Government Loans Board tc sanction further borrowing, i "The board is aware," said Mr ! Evans, "that the contract had been I entered into and although there was I not sufficient money in the loan acI count to make final payments, it wa:- ! essential that the board should honour engagements entered into with the contractor. which means that when the architect gave certificates the board had to pay in accordance with them, otherwise there would have been a considerable penalty indicted upon the board. "When it was obvious that the amount of the loan would not be .sufficient, it was believed that, the board would have the same right as other local bodies, that is. that it would be able to obtain an additional loan of 10 per cent. This would have mot 1 hr* Hiol rn It v

"On making formal application lor this permission. the board v,ms informed that the 10 per cent, additional loan was not applicable to hospital boards. Tin; result was that all the initial steps for a completely new loan had to be gone through, thus causing a considerable amount el delay. The consequence was that the contractor's payments had to be met from time to time. This meant that the money was paid out of the general account anticipating authority for the new loan to recoup the board. "Now it has been shown that there is no .statutory authority for authorising a loan for any amount that has to be used for recouping the board's general account. Thi.is probably a very wise proviHoii ;i; it prevents local bodies from spending money and then (Icterminnr, to raise a loan. "In the board's case the provision ul the act presses somewhat harshly and I think it is generally admitted that this case is one of exception. The consequence is that of the amount applied for, authority has been given for the board to raise only £2lo:s, that beinj'i the amount still owing to the contractor and architect. The rate of interest is £4 2s 6d per cent. "The board can only accept llie decision your committee recommends (hat an endeavour be made to promote legislation to give 'die Local Government Loans Board the neces.-a'y authority to grant application for the amount of £0113;").