CRITICISM OF LOAN

Evening Post, Volume CXX, Issue 111, 6 November 1935, Page 10

CRITICISM OF LOAN

WAIRARAPA HOSPITALS

{Special to the "Evening Post.")

. MASTERTON, This Day. Something like amazement was expressed by members of'the Masterton County Council at yesterday's meeting when notification was received of a proposal by the Wairarapa Hospital Board to raise a loan of £32,000 for capital works at the Masterton and Greytown Hospitals.

The proposed works related to the erection of a new nurses' home at Masterton, the erection of a new operating theatre block at Masterton, erection of a new maternity annexe at Masterton, alterations and additions to the administration block at Masterton, and alterations and. additions to the Greytown Hospital. The annual charges to meet the interest and sinking fund would be met by a rate of 0.0106 din the £ on the rateable capital value of the board's district and Government subsidy.

Pressed for, an explanation of the large building programme, the chairman, Mr. W. I. Armstrong, and Councillor P. R. Welch, both members of the Hospital- Board, said they knew little or nothing about the new. proposals, which had apparently been brought down by the building committee, which was given power to act at the last meeting of the board. Councillor Welch said: "They must have double-banked somewhere; the loan should not be nearly as large as that." Mr. Armstrong said that the new maternity annexe was not essential.

Councillors were of the opinion that the loan proposals were rather extravagant, and thought the council should formally object. After a brief discussion a resolution was passed to the effect that the council viewed with alarm the large amount of money the board proposed to raise by way of loan, and urged that the board should consider the question of endeavouring to reduce the proposed expenditure. "In times of financial strengency," -the chairman remarked, "local bodies should go slow on large expenditures." The motion was moved by the chairman and seconded by Councillor Welch.