POLICY SOUGHT

Greymouth Evening Star, 2 August 1946, Page 4

POLICY SOUGHT

HOSPITAL LEVY ISSUE MINISTER PRESSED BY MR. HOLLAND GOVERNMENT’S INTENTIONS (P.A.) WELLINGTON, August 2. After prompt despatch of formal business, the House of Representatives to-day resumed its discussion on the report of the committee on local government. Mr. T. H. McCombs (Govt., Lyttelton) concluded his speech by saying that there was a case for examination by the proposed commission, for the amalgamation of one county which, he doubted, had more than 50 substantial ratepayers, with another with no more than 300 ratepayers. It was because of the subsidy system that counties found it more profitable to remain small and he suggested that the Government would do well to adopt the committee’s recommendation of one method of subsidy for all counties. The present subsidy system he described as chaotic. Mr. R. M. Algie (Opp., Remuera) said he could not adhere to -the description by Mr. R, McKeen (Govt., Wellington South) of the position of local bodies in Auckland as chaotic. There was a considerable number of local bodies operating in Wellington with, he suggested, a corresponding amount of overlapping. Legislative Powers. Mr. Algie said the permanent commission which was recommended in the committee’s report could never become a lawmaking body because no Government could bind its successor and, in any case, Parliament could not, without surrendering some of its own functions, give lawmaking power to any commission. The public should be told that the actual position was that the report, proposed to set up an advisory commission and that the committee’s report went a long way toward solving a vexed problem by recommending a magnificent democratic procedure, but that was all. Legislative sanction to any changes remained, as it must, m the hands of Parliament.

The Minister of Finance, Mr. Nash, reviewing the setting up of a commission, as recommended by the committee, said its findings would lie on the table of the House for 30 days and if not objected to, would become law. That gave the commission power to make the law. A Direct Question. When Mr. Nash said he wanted to refer to hospital rating, Mr. Holland, the Leader of the Opposition, interjected: “Will you tell us the Government’s intentions? That is what we are trying to get at.” Mr. Nash said it was clear that the substantial increase in hospital costs since 1939 was due not to increased sickness—the health of the community to-day was quite as good as it had ever been—but to two major factors. People who had previously received medical attention in their homes were now sent to hospitals and others, who previously had not received attention when they ought to have, were now being adequately cared for. Mr. Holland: Tell us which side you are on in regard to hospital rating, the Prime Minister’s side or the committee’s side. Mr. Nash said that, as he saw it, there was a case, insofar as the increase in hospital costs was due to the passing of the Social Security Act, for some of the increase being levied on the social security funds. That was a matter for analysis and investigation. Charge on Land. Mr. Nash said that there was, however, no case for a reduction of the charges now made upon the land if, by a reduction in those charges, the selling price of land was automatically increased. If, however, reduction would enable the man on the land to meet his costs, which he could not otherwise continue to meet, then there might be a case. Mr. A. Hamilton (Oppn., Wallace): If a reduction in rating charges increases the value of land, does not an increase in hospital rating decrease the value of land? Mr. Nash agreed. An Opposition voice: Isn’t that what actually happened? ' Mr. Nash said that whatever case there might be for,re-examination of the matter, it must be remembered that the additional value which accrued to land as the result of the efforts of the whole community should be returned to the community and did not rightfully belong to the landowner. Primary producers should also remember that land tax was paid not only by primary producers. Any reduction in the charges upon land would benefit large companies holding big city properties. Mr. Nash said he was concerned that any benefits should go to those who worked in the community and not to those who were merely smart and dealt in things which the people could not generally obtain. Mr. Savage’s Statement.

Mr. H. T. Morton (Oppn., Waitemata) said the statement by the late Michael Joseph Savage that when social security was brought in the hospital levies would be eased seemed to have been departed from. One hospital board had levied 73 per cent, more this year than last year. When was the increase going to stop? Mr. W. J. Broadfoot (Oppn., Waitomo): When the owners’ interests in the land are destroyed. Mr. Morton: A minor form of disinheritance.

Mr. Morton added that the hospital levies were crippling local bodies. In his opinion it was not right or proper that any part of the hospital taxation should come from local bodies. It should come from the State. The smaller local bodies were in a difficult position because their surplus finances went to meet hospital taxation. The House adjourned for lunch at 1 o’clock.

U.S. Cultural Relationships. The Washington correspondent of the New York Sun says both the State Department and the Foreign Liquidation Commission are vague about the furtherance of the cultural relationships clauses in the New Zealand and Australian lend-lease agreements, but when the United States previously ventured in this field she obtained singers, exhibits, and students for her money.—New York, July 30. Jet Fighters for Switzerland. * Three de Havilland Vampire single jet fighters, which were recently sold to Switzerland, were flown there non-stop. One, piloted byjthe famous night fighter, Wing Commander John Cunningham, travelled from Hqtfield aerodrome, near London, . to the Geneva airfield—a distance of 475 miles —in 71 minutes. —London,. July I 31.