Hospital Staff Cuts To Curb Spending

Press, Volume CVI, Issue 31345, 15 April 1967, Page 14

Hospital Staff Cuts To Curb Spending

(New Zealand Press Association)

WELLINGTON, April 14.

The Wellington Hospital Board will have to reduce estimates of expenditure by over £350,000 as a result of new curbs on spending.

Already several employees have been dismissed and vacancies created by resignations will probably not be filled.

The staff cuts will affect the 11 hospitals, maternity homes, convalescent and . other institutions, administered by the Wellington board.

Other hospital boards are reported to have dismissed staff in an endeavour to keep expenditure within the limit recently imposed by Government

The secretary of the Wellington Hospital Board, Mr A. F. Wilton, said tonight that the board’s estimate of expenditure for the current year would have to be reduced from about £4.8 million to a little under £4.5 million. “The only possible way we can reduce this estimate is by making staff reductions,” he said.

“We employ over 3500 people and they accounted for 68.5 per cent of our total expenditure last year. “To save this £350,000 it will virtually be necessary to make do with six persons for every seven we now employ. Staffing Policy

Mr Wilton said this reduction did not mean that the board would make wholesale dismissals. The heads of departments had been advised that in the event of resignations they should exercise the utmost caution before employing a replacement “There have been several dismissals of redundant staff, but these have been made

with utmost care and discretion.” Mr Wilton said the board would actually receive a slight increase (over the 1966-67 allocation) of less than £20,000, but this would disappear in increased charges. “Food price increases alone will account for over £15,000 and then we have to add on the increased charges for electricity and telephones,” he said. A senior officer of the Health Department said that restrictions on hospital board spending were the first imposed by any Government. “Last year the Minister of Health (Mr McKay) asked boards to restrict their spending to a maximum of 2j per cent increase or their 196566 figure,” he said. “Some boards made little if any attempt to comply with his request. Their expenditure has been increasing at an average of 10 per cent compounded every year.” The allocation to all hospital boards for running expenses would total £39.84 million for the year ended March 31. Expenditure for this year has eeen closed at a maximum of 1 per cent more than the 1966-67 figure. The spokesman said the allocations to individual

boards had yet to be approved by Government

Allocation Policy

Boards will be allowed (on an average) a maximum of 1 per cent increase over their expenditure up to March 31 this year. Those with a high rate of expenditure will face cuts, those with a low rate and/or those with a high population increase would be allowed proportionate increases.

Five South Island boards— Buller, Greymouth, Inangahua, Westland and Otago—would face cuts of 10s per head of population. Eight boards regarded as “low cost” would receive an extra grant. A further seven, with population growth rates above the national average would also receive extra allocations. Dunedin Protest

The Mayor of Dunedin (Mr R. J. Calvert) today agreed to call a special meeting of all interested parties in Otago to protest at the Government’s slashing of the Otago Hospital Board’s maintenance budget. Mr Calvert said he had decided to call the meeting after a plea from the Dunedin Labour Representation Committee to call a protest meeting, and from the Otago Hospital Board chairman, Mr H. L. Gibson, for the “backing of the city,” in the case to be presented. The move follows the threat that some Otago hospitals might have to close down, and wards in Dunedin Hospital may also have to be closed. The reduction for the board amounted to £62,370. “No allowance has been made for the extra expenditure involved through being a teaching hospital,” he said.