HOSPITAL BOARD'S PURCHASE.

Northern Advocate, 22 July 1915, Page 2

HOSPITAL BOARD'S PURCHASE.

BOROUGH COUNCIL'S ATTITUDE

MEMBERS' CRITICISM

REQUEST TO MINISTER.

Strong criticism of the Hospital and Charitable Aid Board's decision to purchase the Kamo Springs Hotel was expressed at a special meeting of the Whangarei Borough Council called yesterday afternoon to discuss the matter. There were present the Mayor (Mr D. W. Jack), Crs R. H. Harrison, J. S. Dent, F. Cutforth, P. Jones, L. T. Pickmere, J. E. Holmes; with the acting-town clerk (Mr G. A. Esther).

The Mayor detailed the object of the meeting and referred to the Council's request to the Board for further particulars, which, however, were not given. He said he had called the meeting at the request of some councillors and of a very great number of ratepayers. He had also sent a telegram to the Minister for Public Health, asking him to look carefully into the purchase before sanctioning it.

On the motion of Cr. Dent, secondel by Cr. Harrison, the Mayor's action in sending the telegram to the Minister was approved. - . '

Cr. Harrison said he understood that a hospital board could not raise a loan without the sanction of the Minister. He therefore moved, "That this Council requests the Minister" for Public Health before granting the Whangarei Hospital and Charitable Aid Board borrowing powers for the purpose of purchasing the Springs Hotel, to thoroughly investigate the proposal."

In support of his resolution Cr. Harrison said the price that was suggested to be paid, £6000, was much in excess of the amount for which the property Was sold about four months ago. The property was sold to the present owner for £3500, yet without any advance in the price of property in the district, and without improvements having been effected, the price was suddenly increased to £16000. Then, again, no inspection was made of the property by the Board's architect. Considering that th e value of two-thirds of the purchase price consisted of buildings on the property, he thought that an inspection should have been made before any price was fixed. The Government would be loth to subsidise a building built of material which 'they would not specify in one of their own construction. The locality was another objection. A Board member had informed him that the Board had been given medical opinion to the effect that if the old men were housed on the site proposed to be purchased they would die. Tt was unsuitable for an old men's home. Personally he knew the site to be very much subject to fogs. He had seen it covered with fog when surrounding land was clear. He believed that almost any night it would be found to be covered with fog. Such a place was not suitable for an old men's home, or for a sanatorium. There was no doubt that the spring had medicinal properties, but their virtues were very much lessened by the fogs. A considerable part of the land included in th e purchase lie knew to be swampy, and it was very difficult to drain, being -low in the centre. Commenting on the fact that the purchase was decided on by ' the casting vote of the chairman of the Board, Cr. Harrison thought that in such a contentious question the Department should have been consulted. It would have been a simple matter to have referred the sites offered for a dairy farm to the Department. . There was another question. It was common talk in the. town that behind the purchase there was a secret arrangement, of which only certain Board members had knowledge. It was an arrangement which would bring no. credit on the subsidy system. Further he understood that the Board had given up the idea of producing butter and he did not think it a sound proposal to have to cart milk from a place ;so far distant as the Springs Hotel, ' 7 .miles. Two return journeys would have to be made daily. He believed that there was a suggestion made for the Board to take shares in a creamery s) that they would be able to get butter at cost price. At the present they were getting it within one penny per lb of cost price. Another objection was that when the matter of the purchase came before the Board there was no suggestion as to what uses the property should be- put. The suggestion was merely to purchase the, property for the ostensible purpose of a dairy farm. Everybody knew that as a sanatorium the property had not been a payable proposition. The cost of upkeep had not been discovered. Interest and sinking fund alone would cost roughly £7 per week and he understood that the whole of the produce used in the hospital cost £ 1 2 per week.

Cr. Cutforth seconded "the resolu-

tion

Cr. Holmes moved an amendment that further particulars be requested. The members of the Hospital Board were men who were engaged in land and he reckoned they knew what they were talking about. The Council had not sufficient data. In regard to the price it was known that some time ago the Government sent commissioners to value the property, there being some talk of Government purchase. They valued it at about £14,000 but the owners wanted £22,000. H e was quoting the figures from memory. If that was so the fact that it was sold lately for a very low.sum did not Indicate that the property was of no value. It showed that it was not worth more for its present pur-

pose but it did not follow that it was not worth more for other purposes. If the buildings represented two-thirds of the purchase price then the figure was very reasonable for the land was of very good quality. True the land wanted draining, but that might do away with the fogs. On the other hand it might affect the springs which gave the property, its principal value. He took it that the springs would be drained to come out below the property.

Cr. Jones seconded.. He declared that the Board members evidently were doing their best for the district. It would be harsh to condemn theni without particulars. Cr. Pickmere asserted that he would prefer a stronger - form of resolution. The Minister should be "told that the Council had not received information and that they protested against the purchase proceeding further until the information was given. Cr. Dent said he was strongly opposed to any rumoured secret arrangement.

Cr. Harrison in reply said that land adjourning the property had been sold at £40 per, acre, and it was land which , -was of -better quality than the site in question. He knew that the land attached to the Springs property was impreg-. nated with soda water and alkali.*; About six • inches under the surface there was a layer of stone which was almost rotten with alkali. Local bodies thought that if the Government provided the monejy. the Government.could be fleeced. Other places besides Whangarei were after Government money, • and boiled down it meant .-.that every -place paid. Whether it was Government money or not it was public money and it should be safeguarded. The amendment was lost, only the mover and seconder, voting in its favour. The Mayor expressed the opinion that when a property was In the market for a considerable time and the price that could be got for it was £ 3500, that, sum represented the property's value. When the Government valuation was made it was considered that the property was valuable as a sanatorium, but it had never been successful as such and the value had been reduced to' £3500. In his opinion £6000 Was a sum representing a value higher than that of the property, especially for any purposes to which the Board could put. it, Cr. Harrison stated that the matter of a secret arrangement had been freely talked about, by members of the Hospital Board. Cr. Harrison's resolution wasthen carried unanimously, and the mover, with Cr. Pickmere and the acting Town Clerk were deputed to draft the communication to the Minister. - •