STRAINED FINANCES

Evening Post, Volume 32, Issue 32, 6 August 1931, Page 14

STRAINED FINANCES

UNEMPLOYED RELIEF

HOSPITAL BOARD'S POSITION

APPEAL TO-GOVERNMENT

| The strained.financial position of tho (Wellington Hospital Board in tho mat- | tor of providing for unemployment relief was placed before the Primo Miniistcr this morning by a deputation from tho Hospital Board, which pointed, out that at the present rato of expenditure 1 tho board could not carry on relief after ( tho end of September. The Prime Minister promised to consider further assistance for tho board.

Outlining tho board's financial position, the chairman of tho board (Mr. F. Castle) said that in order to comply with tho cut imposed by the Health Department they had cut their estimated expenditure for maintenance purposes to £188,019, which was £13,137. below the actual expenditure for- the previous year. They had also budgeted for receipts in excess of what they could expect under present conditions. ' In view of the large expenditure required for unemployment relief, they did not anticipate that they. could live within tho amount provided for this financial year. The board had advised the Government to that effect on- 6th May. ' VERY GRAVE POSITION. "Wo have now gone through four months of this financial year," said Mr. Castle, "and the figures show clearly that wo cannot carry on the, relief of unemployment distress if we are to balance our budget, and unless the Government gives the board some special assistance it will be necessary to stop further expenditure in unemployment cases at the end of September. We feel wo cannot take this step.without placing the position before you, for there is ho doubt that if this relief is stopped by the board a very grave position will arise entailing great distress for a large number of people, who will be compelled to put their needs before the Government.'' The figures for the board's expenditure during tho four months. April to July, said Mr.' Castle, showed a debit balance of £11,890 for the period. This was made up of £1588 over-expended at the Hospital, £-7917 over-expended iv outdoor charitable aid, £2869 -receipts below the estimate, and £484 uiidcr-expendituro at the. head office and at the Ohiro Home. If the present rate of expenditure was continued,! the board would be over-spent £35,670 at the cud of March, 1932. FURTHER ECONOMIES. The chairman assured the Prime Minister that the'board would continue as far as possible to cut down expenditure. He anticipated that the over-expendi-ture on the hospital side (£1588) would be altered considerably during tho next eight months, and that the board would bo considerably under-spent for hospital purposes at the end of the current financial year. "Whether the expected saving there would balance the shortage in receipts,he was unable to say, but unless unforeseen circumstances arose the-* position on the hospital side should bo much improved.1" But in connection with the relief of unemployment distress,'' ho added, " the outlook is very unsatisfactory, for thero has been a continuous increase in the number of persons assisted and in expenditure since March, 1930, and the principal cause of this is unemployment. The position in that regard is hopeless. Since March, 1930, the number oi" persons assisted by th.c board has trebled, and the numbers are increasing more rapidly just now. Expenditure, however, has not increased at tho same rate, but it is obvious that we cannot go on mnch longer in our present financial condition."

During the January-March quarter this year 11,141 unemployed persons had been assisted at an average cost per head of 24s sd, and during the AprilJune quarter 17,004 at an average expenditure of 16s per head. The increase in the number assisted was a big one, and had' been go rapid that it ■was impossible for the board to finance under present conditions. He could see no possibility of the board carrying on longer than the end of September -with unemployment relief. Mr. W. Colo stated that the number of persons assisted from the Ilutt district, had increased from 50 to about J.OOO a week. MB. FORBES TO CONSIDER. In roply, the Prime Minister (the Eight Hon. G. AY. Forbes) said'he recognised that great financial strain, was being imposed on. the board and all other similar institutions. He pointed out that the Unemployment1 Board was still without funds, and that it was operating on moneys that had been advanced to it in anticipation of money coming in under tho recent amendment to the Act. Actually the board was £400,000 to £500,000 behind at present. Tie Government anticipated that as the result of the new legislation tliero would be about £2,000,000 available for expenditure. He hoped that in the . summer months there would bo some lightening of the burden, because farming occupations would call for a good deal of labour. However, he realised that the "Wellington Hospital Board was reaching a stage when their finances threatened to run out, and that something required to be done. He would go into the matter and see what could be done to afford assistance. Mr. A. T. Markman pointed out that for the last three quarters last year the boaid's expenditure for social welfare was greater than the expenditure for the first quarter. Mr. Forbes: "You may have attracted people to Wellington." Mr. Castle pointed out that relief schemes were just being put into operation. He was inclined to think that the position relatively would not be any -worse this year than last year.