HOSPITAL FINANCE

Dominion, Volume 24, Issue 231, 26 June 1931, Page 10

HOSPITAL FINANCE

Extravagance Assailed “STARK BANKRUPTCY” Mr. Campbell Begg’s Plea TIME FOR INQUIRY Strongly condemning the extravagant expenditure on hospitals, and tile mounting cost of social welfare activities, Mr. R. Campbell Begg, at yesterday’s meeting of the Wellington Hospital Board, forcefully urged that the finances of the board be > n ' vestigated, and that a scheme be formulated for raising necessary funds. ‘‘Stark bankruptcy staring us in the face,” said Mr. Begg, was the position. He denounced as futile and unjust attempts to raise further money from the Government or local bodies. Some members indicated that they would not support any proposal to run a lottery. The following motion, moved by Mr. Begg, was carried: — “In view of the fact that the money authorised and available to the board for social welfare purposes will at the present rate of expenditure be exhausted before the end of the financial year, and that it is unjustifiable at the present time to throw further burdens on the taxpayer by asking the Government to increase the subsidy already granted, . the board take immediate steps to estimate what money will be required, and formulate a scheme for raising this sum.” Mr. Begg said that the financial position’ of the board was one to give rise to grave anxiety, and it was doubtful if the Government could render assistance if asked. More than £13,000 had been spent out of £39,000 available for the year for social welfare work, and at the present rate the whole would be exhausted by September. The general hospital expenditure would be £BOOO higher on the same basis, and the receipts £BOOO lower than estimated, and no help could be derived from that source for social welfare. Facing Bankruptcy. “Undel- what are apparently the most favourable, conditions,” continued Mr. Begg, “we shall thus have for the year the following deficit: • Social welfare, £28,500; hospital, £16,000; unpaid on the Ewart Hospital additions and not allowed for in the estimates, £5000; making a total of £49,000. With a probable increase in social welfare expenditure and a decrease in receipts the deficit may be much heavier. This means in effect that the funds for all purposes for hospital and charitable aid purposes will be exhausted completely by the end of January, if not before, leaving nothing whatever with which to carry on the hospital, district nurses, superannuation fund, out or in-patient relief for the two months of February and March. “In addition there will be an overdraft charge of anything from £lOOO to £2OOO to meet, and this is not provided for in the estimates. This is the position in which we are placed, with starii bankruptcy staring ns in the face, and it. is right that the public of the Wellington Hospital district should be placed in possession of the facts.” “How are we going to meet this and remain solvent? Whatever measures have to be taken must be taken at once or the position cannot be retrieved., £5OOO for Ewart Hospital. “Under the Act it is possible for the board to make a supplementary estimate in regard to capital expenditure. .There is a sum of £5OOO to be found, which the present board should not have had to face. Additions to the Ewart Hospital were carried out by the previous board, and full provision was not made to secure sanction for the loan. Apparently this £5OOO was spent from funds available, on the assumption that the i Loans Board would sanction the loan retrospectively. We are informed this is illegal. No provision is made on the estimate, so some means has to be adopted to raise it at this late hour. The suggestion has been made that it can be raised by additional levy on the rates and subsidy from the Consolidated Fund. To force the City Council to raise £2500 by rates after it has with difficulty made up its estimate for the year, end the taxpayer to find the remainder, is a procedure that those concerned would find hard to forgive. “Fortunately for the city,, there is no power to raise additional levies for maintenance expenditure, and the Government if it gave additional subsidy, which is more than doubtful, would be compelled under the existing statute to deduct it from the next year’s estimates, which are bound to be cut down in any case. Such a solution is only postponing the issue.” Having indicated that little, could be dope to reduce hospital expenditure. Mr. Begg said that it was essential in making any appeal to the public by any method whatever for funds that the people should have confidence that not a single penny was being 'spent except for ,absolutely essential purposes, and that social welfare activities should be efficient, so that nothing was being given except to those who were in dire need of it Weight of Social Senice. It was probably in the minds of a good many people that the Government would help them out of their desperate financial position, but he thought they could have little hope in this direction. Some local bodies already had had to ask for time to meet their commitments, and in order that defaults may be avoided the Government would have to find sums possibly totalling seven figures. There were other social services besides hospitals whose expenditure would have, to be drastically curtailed, and the Prime Minister never said a truer word than that' the social services would founder this country yet “We stand on the brink of the greatest disaster with which tliis country has yet been threatened. I say on the brink—l am not sure we are not past the brink.” “The hospital services of this country have been carried on at an expenditure far beyond what the resources of this country will permit, and on the whole they have been carried on badly,” said Mr. Begg. “Hospital boards have piled expenditure on expenditure until the taxpayers could no longer stagger under the load. The department got a grant of £600.000 or thereabouts as subsidy for the year, and this represented a disproportionate burden on the taxpayer and paid its contribution to causing further distress. It asked the boards to cut down their expenditure. It could, in my opinion, have asked them to cut down much more without any jeopardy to the care of the sick. “Next year I do not think for a moment a Government faced with the greatest difficulty in maintaining the national credit will find a sum for hospitals anything like so large. It is the duty of boards not to cut down their estimates to the expenditure suggested by the department, but to aim at a figure far below that sum on their own initiative. “Knowing as I do the wasteful and extravagant expenditure of hospital boards I do not think they were nearly drastic enough considering the universal destitution with which the country is faced. Every £l6OO more demanded from the Government means that there will be several more unemployed; every £lO.OOO means that some firm will crack under the strain of extra taxation. A demand on the Government at this time is a demand for more distress and more

money required tor unemployment and social welfare. "Any hospital board which refuses to accede to the call of a country in distress,” said Mr. Begg, “and fails to cut down its estimates should be replaced at once by a commissioner who will see that what is necessary is done. I should suggest immediate legislation for that purpose and would add to it that those resigning from boards under the stress of these difficulties should be debarred from membership of local bodies for a period of ten years. If they have sown the wind they should be prepared to reap the whirlwind. Any further demands on the Government to make up deficits was unpatriotic and asking for more distress. . He had reason to doubt whether' the Treasury would be able to find money for the subsidies on the estimates, let alone meet deficits, and if they did the evil day would only be postponed till next year. There was thus a call for all patriotic men to meet the situation now and answer to the country’s call of distress. Mr. Begg concluded that he felt their organisation insufficient to cope with the present position thrust on the social welfare departments, and would be glad to see representatives of the Government, local bodies and free charities appoint a commissioner to co-ordinate all this work for the district. If they must carry on it could only be done by drastically restricting hospital services to the minimum, and in addition they must take means to raise funds to carry them through direct from the public. Mr. Begg said he had his own suggestions, which he was not prepared to elaborate just now and which he thought would meet the base. If the board carried the motion that matter could be discussed, but it was essential that the board should face the position, however desperate; without flinching, and then apply the remedy. Never Dreamed Of. Mr. A. T. Markman seconded the motion, saying there must be many avenues of expenditure which could be avoided, for things were being done which were not necessary to be done. The position was a difficult one. When relief was mentioned in the Hospital Act of years ago it was never anticipated that the amount would grow to the dimensions it had reached to-day. How the funds should be raised had yet to be considered, but the scheme they had in mind was one which he believed would bring a good deal of assistance. Mr. G. Petherick said it was never dreamed that they would have to deal with unemployment on such a scale. They had estimated for £45,000 this year, and that amount was cut down. Apart from unemployment the social welfare work would not be a source of worry as compared with ten or twelve years ago. Mrs. Preston considered there was no return for a great deal of the work being done by the unemployed, but a return could be made under proper supervision. So far as she could see they had practically got to the dole. Is It a Lottery? The chairman, Mr. Castle, said that if the mover and seconder of the motion had a scheme why did they not trot it out? Were they ashamed of it? “If it is a lottery you have in your mind why don’t you tell us?” tell us. I would definitely refuse to support a lottery in connection with the New Zealand Hospital system,” said Mr. Castle. The question of finance was a matter for the Government. The motion was quite indefinite, and he hoped the board would not accept it. Mrs. Fraser urged that the relief of unemployment should not be the job of .the Welfare Committee at all. Such a scheme as hinted at was never mentioned at the election time. Mr. I. Van Staveren pointed out that the finance had to be provided by the Government or the citizens. He thought the board might ascertain what moneys would be required, but they should leave out the proposal “to formulate a scheme for raising the amount.” He thought the mover of the motion was taking too gloomy a viow. Mr. C. M. Luke stressed the fact that the medical men had been consulted in the administration of the hospital, and in regard to the buildings, and reminded the members that it was at the request of the medical men that the medical superintendent was sent to England, and the United States to inspect other hospitals, and his advice was largely followed in the erection of the new hospital block. Mr. Luke had no objection to finding sources of wealth which could be tapped, but declared himself against conducting lotteries to raise funds for the hospitals. Unemployment arose ten years ago, and the Prime Minister and the Government referred then to the hospital boards. Succeeding Ministers had done the same, and the problem had now grown beyond them. They must throw this responsibility back upon the Government, upon whose shoulders -it rested. Cannot Stand Strata. Mr. E. Windley could see nothing to' which objection could be taken in the' motion. The board had admitted it could not carry on under the strain through the financial vear. How were'they to carry on? Would they appeal to ratepayers again? The ratepayers were in the same position, and could not meet such a levy, as they could not meet last year’s obligations. He did not favour a lottery, but it would be more to the credit of all concerned if the lotteries going on were in aid of the hospital, instead of benefiting a few individuals. He supported the motion. Dr. D. M. Wilson considered that the Hospital Board should not be responsible for the relief of unemployment, yet was saddled with it. If there was a war on to-morrow they would g6t the money, and people would come forward with large sums. The unemployment question would be with them for some years, for all those men would not be found work at once. There should be one body responsible, for dealing with the problem, instead of their being so many bodies overlapping in the work they were doing. . My. Begg said his only desire was to render a service to the community. The position was so serious that next year the Government ’might not'be able to provide more than half the amount provided this year. “The curse of this country is the leaning on the Government,” said Mr. Begg. Judging from what some of the members had said they were not only bankrupt in money, but in ideas as well. He only asked the board to adopt the principle of not going to the Government for further assistance. Let them keep down every possible expense, and if they went to the public for money they would get money. . . ~ . The motion was then put to the meeting and carried. GRATUITY GRANTS £5OO for Pocket-money Among the accounts presented for payment by the Social Welfare Committee to the Wellington Hospital Board yesterday was an item, “gratuities. £42/12/-;' for the month of June. Mr. R. Campbell Begg asked what the gratuities were. . Mr. G. Petherick, ehairman of the Social Welfare Committee, replied that it was the amount distributed in pocket-money at Ohiro Homes. In days gone by it was not the policy of the board to provide poc-ket-money, but later it was decided to give a little cash to ..inmates of Ohiro Homes. Some of the men did some work and received more than others, two or three being tradesmen at their particular job He believed the maximum amount was £1 a month. There were several old age pensioners among them. Mr. Campbell Begg said the amount worked out at about £5OO a year. No further action was taken.