Tax on Income To Pay for Hospitals

Manawatu Times, Volume 68, Issue 58, 10 March 1943, Page 6

Tax on Income To Pay for Hospitals

Of the £40,022,622 raised for SoCial Security purposes during the first three years of the operation of the scheme, only £5,268,372 was paid to hospitals by way of subsidy. This fact was emphasised in a letter the lvairanga County Council received yesterday from the secretary of the Counties Association, in which the case for a new system of financing hospitals was advocated. The letter said that both the Municipal and Counties Association, l’or the past 3 years, had advocated that hospital rating on property should cease and be replaced by a hospital tax : on income, salaries and wages. If a hospital tax of twopence in the £ were levied, an amount of £1,352,500 would be obtained—a sum in excess of the present levy paid by the contributing authorities. Both the Municipal and Counties Associations were insistent on (1) a change of basis ol‘ taxation so that the incidence will fall equitably on all and (2) an immediate increase in the occupied bed subsidy which is now 6/-. Tiie Council reaffirmed its decision to leave no stone unturned in an endeavour to get an alteration in the present system of taxation. Manawatu County Views. The question of rising hospital maintenance costs was mentioned at yesterday’s meeting of the Manawatu County Council when councillors had before them the same statistical data. Councillors agreed that a conference of county delegates should be ealled this year to discuss the matter of hospital rating. Councillors while anxious to have this question debated, expressed the hope that the conference would not bo called unless arrangements were made for the accommodation of the delegates in Wellington.