ECONOMY AXE

Evening Post, Volume CXI, Issue 106, 7 May 1931, Page 12

ECONOMY AXE

HOSPITAL ESTIMATES

WARNING FROM BOARD

LETTER TO PRIME MINISTER

The Wellington Hospital Board has sent the following letter to the Prime Minister and the Minister of Health concerning the estimates and levies and subsidy for 1931-32, as passed by the board at its meeting held this week:—

".At the request of the Director-General o£ Health, the Wellington Hospital Board has cut down its net estimated expenditure to £120,789, this being ,£14,831 less than the amount provided in the first estimates submitted, 'which, in the opinion of my 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, my board desires to point out that the reduced amount will in all probability seriously jeopardise the efficiency of the board's services, and unduly limit the amount of money available for the proper maintenance of • wards and buildings. It may seriously imperil the welfare of the sick and injured, 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 efliciency, 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 tlie 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, and that these demands will be go urgent and numerous that the funds available will be exhausted before the financial year ends. "Under these circumstances my 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 %sk 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; but 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.cleavly 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. . "A copy of this letter is also.being sent to the local contributory bodies for their information."