UNDER PROTEST

Dominion, Volume 24, Issue 189, 8 May 1931, Page 8

UNDER PROTEST

Revision of Estimates

HOSPITAL FINANCES

Board Warns Minister

Fears that reduced finances may impair hospital efficiency and service are expressed in a letter forwarded to the Prime Minister, Right Hon. G. W. Forbes, and the Minister of Health, Hon. A. J. Stallworthy, by the Wellington Hospital Board. The reduced estimates, levies and subsidy for 1931-32 were passed by the board at its final meeting last Tuesday. Copies of the letter forwarded to the Ministers have been sent also to contributory authorities. It is as follows :—

"At the renuest of the Director-General of Health the Wellington Hospital Board has cut down its net estimated expenditure to £129,789, this being £14,834 less than the amount provided in the first estimates submitted, which in the opinion of the board was a reasonable amount to provide under existing conditions. The revised estimates now submitted will result in a 20 per cent, reduction in the Government subsidy and a 20 per cent, reduction in the levies; as compared with last year’s provision. "In submitting these estimates, the board desires to point oiit that the reduced amount will in all probability seriously jeopardise the efficiency of the board’s services, and unduly limit the amount of monjy available for the proper maintenance of wards and buildings. It may seriously imperil the welfare of the sick and injured, and may seriously limit the amount available for charitable aid, relief of unemployment distress, and the demands for maternity assistance. “The Director-General has.-' asked the board not to budget so as to finance by way of overdraft, and also not to reduce so as seriously to impair efficiency, but owing to the drastic and arbitrary cut below last year's expenditure, it would seem impossible to avoid both of these conditions. It is contended that the general economic position is rapidly increasing the demands for both hospital and charitable aid in Wellington, owing to the drift of single and married unemployed and their dependants to this centre. These demands will be so urgent and numerous that the funds available will be exhausted before the financial year ends. “Under these circumstances the board feels compelled to advise and warn you that in the event of the present demands for treatment and relief being continued at the present rate, or increased by epidemics, increased unemployment or other causes, it will be necessary to ask you to make special grants, or else arrange for finance by way of overdraft. Of course, the board will do its utmost to live within its income, and has budgeted for increased receipts from patients, which income now shows signs of decreasing. In view of the fact that people are being told that no one will be allowed to starve and that hospital boards will meet the situation, the Wellington Hospital Board takes this opportunity of placing the real position before you, so that you may clearly realise the gravity of the situation from the board's point of view, and take what steps you can to meet a very probable shortage in our finances for the current year.”