Hospitals allocation slightly increased

Press, Volume CXVI, Issue 34127, 13 April 1976, Page 2

Hospitals allocation slightly increased

The increase in allocation to the North Canterbury Hospital Board would barely start to meet urgent requirements in the board’s area, the chairman of the board ( Mr T. G. Grigg) said last evening.

Mr Grigg was commenting on the 2 per cent increase in the board's allocation, announced by the Minister of Health (Mr Gill). Mr Grigg said that the Government had recognised that th? North Canterbury Hospital Board would have a problem staying within its allocation, and had said that it would send a special investigating team of Health Department and Treasury officers to Christchurch. No date had been set for the team to arrive. “We will not be making any cuts in services, but in areas where we should be expanding we will not be able to,” said Mr Grigg. “There is tremendous pres-

sure on us to increase our staff, but there will not be any increase,” he said. The increase in allocation would be swallowed up by increased costs.

A supplementary grant was available to cover approved rises in costs, and wages were also covered by a supplementary grant. The 2 per cent increase would have been hopeless without these two grants, said Mr Grigg. s3BBm ALLOCATED The Press Association reports from Wellington that the Government has allocated $3BB million to hospital boards for the new financial year. Announcing this yesterday, the Minister of Health (Mr Gill) said the real grow th of the allocations would amount to about 5 per cent. He said the allocations were for operating grants, minor capital works, and equipment for both general and psychiatric , hospitals. Further allocations would be made for new commissionings, and hospital boards would be compensated later in the year for rises in the hospitals price index.

Mr Gill said the announcement included an allowance of 2 per cent of last year’s allocation for real growth. Once the grant for new commissionings was decided, the real growth allowance could be increased to about 5 per cent. • “Under existing economic conditions and in view of the need to cut Government expenditure, I am sure that hospital board representatives will appreciate the situation facing the Government in funding various sectors,” he said. “It is essential that activities and ’ services are planned to meet these conditions within funds now made available.

‘TOO LOW’ “In saying this, J am aware that several hospital boards have pointed out that last year's grants were too low to meet their commitments, and in most of these cases, supplementary assistance had to be provided by the Government.

“The situation is such that boards should not expect similar supplementary assistance this year,” the Minister said.

The Auckland Hospital Board would not be able to improve and expand its services this year with the $74.4m allocation announced said the chairman (Dr Frank Rutter). He said the restric-

itions imposed by the board over the last year would have to continue. “We won’t be able to start any new services,” he said. “It may well be, with the growth of Auckland, that there will be further restrictions.” Dr Rutter said the allocation was $1,115,000 more than last year — an increase of just under 2 per cent. Not satisfied “It’s about what we anticipated. When you consider that Auckland’s population growth is 5 per cent a year we can’t be satisfied. “We have to play our part in re-establishing stability in the economy. Though we don’t like it we have to accept it and do. the best we can.” He said that on the brighter side, the board would have limited scope to provide geriatric services in South Auckland based at Middlemore Hospital. - Already the board had earmarked money for this out of the expected growth factor.

“Would the provision of health services in Auckland suffer because of the amount of the allocation?” he was asked.

“I think suffer is too strong a word. It means we won’t be able to improve and expand services, as we would like to and ought to in this rapidly expanding city,” he replied.