HOSPITAL CONTROL

Greymouth Evening Star, 5 February 1947, Page 6

HOSPITAL CONTROL

MINISTER INDICATES CHANGES PENDING RESULT OF STATE FINANCE (F.A.) DUNEDIN, Feb. 5. Addressing the opening of the New Zealand Hospital Boards’ conference this morning, the Minister of Health, Mr Nordmeyer, said the decision of the Government to fix the maximum cost for the local hospital rate at 0.5 d in the £ capital value was considered by some as merely a reduction of the permanent, rate, but others appreciated that the decision inevitably meant a change in the relations between the department and the boards. Some people advocated the abolition of the local rate, while others realised that some local contribution was necessary, lest local control be jeopardised. The Ministei' of Finance, Mr Nash, had announced that fixing the maximum level would mean stricter control of the board’s finances but this did not mean interference in domestic afffiirs but merely that the Government must see that expenditure was wisely incurred. The Government believed it would be necessary to fix a maximum with regard to certain expenditure forms, and, if a board could operate efficiently at a certain rate, then there would be little justification for another board offering a similar service at a rate 50 per cent, in excess of that. The Minister declared the time had come for the amalagamation of the smaller boards to ensure maximum efficiency. This would not mean lack of control of local institutions, for there would be a group of men around each hospital to secure its welfare.