HOSPITAL FINANCE

Dominion, Volume 11, Issue 211, 25 May 1918, Page 10

HOSPITAL FINANCE

LEVIES AND SUBSIDIES

VIEWS OF THE MINISTER Tho Minister of Public Health ft he Hon. G. AV. liussell) made- an important statement yesterday on Che question of subsidies to hospital boards, and the recent discussions on tho increase in levies demanded by tho boards from local bodiee. The .Minister said that it was true us re-ported Unit ho had in 1916 promised the Karori Borough Council that ho would endeavour to readjust the system on which subsidies vrero paid, in order to bring about more equitable treatment. .Formerly the Government paid subsidies of £ for £ on maintenance levies, but before'ho look olfice tliis system was aitered to tho present complicated, inequit. able scheme, under which consideration was given to rateable value and population. Shortly, after coming into office he had found this innovation working out unfairly, and lie at onco betriin to evolve a system which would assist the poorer hospital districts, and would have the effect of placing the richer districts upon practically the snmo basis. This reform was prepared for the session of VJIC, and was ready for the session of 11117, but tho decision of Cabinet that legislati m should be confined to war measures prevented Mr. Itussell from having nil opportunity of bringing Ms proposals before tho Houflt , . It was inequitable that the Auckland Hospital district should receive a subsidy of 3s, in tho £ more than tho amount paid to "Wellington; it was only the decision of Cabinet that had prevented hini from having the anomaly removed.

The Minister gave an opinion that the subsidy should depend on flie rate levied '■by the local authority. If ■ a district levied a rate above tho average (now about l-7d. in the .£), the subsidy should bn increased. To show the peculiarityof the present system, Mr. Russell quoted tVe folWinj; fiijtires for the year ended March 31, 1918:— Subsidy. Hospital Tt,ife per J District. levied. of rates. d. per &. £ s. <1. Auckland 0.167 0 19 3 Wellington 0.1H7 0 Hi 3 Ghristchurch ... 0.216 0 15 3 Duneilin 0.2« 1 0 3 Waihi :..... 1.216 1 " 3 WaitnM O.Oit 0 19 3 Innngnhua 1.203 10 3 Grey 0832 0 19 3 Westland :. 1.083 0 19 3 Tlie Minister declared that he was abeolutely unable to explain on what basis the figures wero prepared to produce such a result. He proposed to bring the matter before Cabinet again as one of urgency, with a view to an alteration of the uniau system, during next- session. A Bill would be prepared for that purpose. Tho Minister mentioned that the averaßO subsidy for the year 1917-18 was 178.

3d i The maintenance expenses of the public hospitals throiißhout the Dpmimon increased by during the same year. The capital expenditure was about the same—.£7s,ooo. Another aspect to be considered wrj that hospital boards were now borrowing largely for the purpose of capital expenditure. He had advised tnat the making of extensions should be by loan?, with the object of easing the ratepayers durin» tho difficult time of war, and also making posterity pay its share for permanent works. This policy would also «aso the Minister of Finance, because the Government subsidies would be thus on rates levied to meet interest and sinkms fund, instead of on large sums raised by rates tor capital expenditure.