BORROWING POWERS

Evening Star, Issue 15481, 1 May 1914, Page 5

BORROWING POWERS

FOB HOSPITAL BOARDS. IMPORTANT POINT RAISED. [Special to the Star.] CHRISTCHURCH, April 30. Should hospital boards have borrowing powers? This question was very prominent at to-day's meeting of the Christihurch Hospital Board. Since this body tame into existence in April of 1910 they have spent £84,000 out of capital account in providing new buildings, etc., and a further £16,600, to be spent this year, makes the tidy total of £101,400. When these figures -were presented to the board to-day they occasioned considerable surprise, and one valiant member declared that this lavish scale of expenditure " must stop" and the board cease from " living like a millionaire." The somewhat damning financial appetite of the Cbristchtrrch Hospital Board at the present is claimed to be a Tesnlt of the state of dilapidation in which matters were before the establishment of the present system of hospital boards. Under the old Act of 1885 only voluntary subscriptions could be utilised for capital expenditure, with the result that the expending needs of the community were neglected. When, therefore, the board came into existence a great Tush had to be made to bring the institution up to date and fife to cope with the requirements of a greatly augmented "popnfetlon. it is this need which has swallowed up that £IOO,OOO. The estimates for the current year showed that £4,147 was required for maintenance and £16,600 for capital expenditure, making a - grand total of £52.000, of which £29,407 would be required from the local bodies. Appalled by this figure, the board clipped £1,250 off the maintenance allowances, and so reduced the levy to £28,157.

To reduce the rate of expenditure, Dr Fenwick moved :—" That this board deride to undertake no fresh building scheme, with the exception of the proposed chronic ward, during the remainder of their term of office." He recognised, he said, that the needs of the city had to be provided for, but the money had been flowing o'lt too freeely. After'discussion, this motion was altered to a general recommendation towards efficiency and economy, and so passed. The most important point which, emerged from the discussion was tie statement that the board's capital expenditure would be at least £35,000 in the next 10 vears, and the suggestion was made that the board should secure legislative power to enable them to borrow this sum. It was pointed out that the board were erecting extensive buildings out of revenue, whereas by raising loans for this work the burden would be more equitably distributed over the whole ceneTation usintr the institution.