Hospital Board Defends Increased Levy

Northern Advocate, 13 May 1940, Page 2

Hospital Board Defends Increased Levy

“We as a board must realise that our first duty is to the sick and suffering, which are our special care,” the chairman (Mr Mac Kay) remarked at the meeting of the Whangarei Hospital Board today. “After our duty to the patients comes our second duty, which is to the ratepayers, to do this as economically as efficiency will allow.” He was speaking to a resolution passed at the last meeting of the Whangarei Borough Council, and forwarded to the board today.

It read: “That this council views with alarm the constant increases in the hospital levy to be paid to the board and which has amounted to £2270 over the past three years, which amount is represented by a rate of practically three farthings in the pound. The council should like to enquire of the board if it is anticipated there will be further increases in the next year.” Maintenance Increase. The board decided to reply in the following terms to the council: “Replying to your letter, forwarding a eopy of a recent resolution by your council, it would perhaps be in order to mention a few factors which to some extent account for an increase in levy during the past three years. “In that period mentioned this institution has been entirely reconstructed, the costs "over and above loan moneys being raised by levy and subsidy. “Further, all maintenance costs have increased considerably, one item alone, wages and salaries, from £9300 to £14,000 per annum. “In the current estimates, the following items of capital expenditure directly account for the increased levy this year. “They are., in the board’s opinion, necessary in order to bring the surroundings and equipment up-to-date: X-ray equipment, £2700; twin presses (laupdry), £564; grounds improvements, £764; total, £4028. No Definite Promise. “Dealing with your questions as to the future, the board can naturally make no definite announcement.

“It would appear, however, that the capital levy may show a reduction, but, as regards maintenance, I can only point out that the board receives 6/- per day per patient from the Social Security Fund, whereas its costs last year were 17/4, exclusive of overhead, such as interest and administration. “Any increase in the number of patients will probably increase the loss and therefore the levy, subject of course to any rise or fall in the present level of costs.” Not Held Up. An erroneous impression current in some quarters that the council, by taking the action it had, held up the estimates, was cleared up by Mr Jones, the Mayor, who is also a member of the board.

The amendment seeking further information was added to the motion, which was for approval of the estimates.

Criticism of the present estimates was not implied, Mr Jones said, the council seeking to know, if possible, what future hospital levies were likely to be, so that it could view certain proposed works in the light of these commitments.

• For instance, if the hospital levy was to increase to the extent of another £d next year, the council might be prevented from undertaking certain schemes now under consideration.

Nothing antagonistic to the Hospital Board had been intended by the council, Mr Jones said. Reasonable Inquiry. No member of the board resented any criticism of the estimates, which proved that local bodies were alive to what was taking place, said the chairman. Unfortunately, because of circumstances over which it had no control, the board was unable to supply the definite information sought.

Comparisons between Whangarei and metropolitan boards, which had reduced levies, had been made unfairly at the council meeting, Mr 11. Younger alleged. Auckland and Wellington boards had reduced their levies, but their collection of fees before the advent of social security had been much lower proportionately than in Whangarei district.

Whangarei' collected £lO2 per occupied bed, or over 60 per cent, of its fees, while Wellington collected £52, or 30 per cent. To the metropolitan boards the 6/per day now available from social security was a much larger amount, in proportion to fees previously collected, than was the case with the Whangarei board. X-ray Plant. In view of the relatively large amount of £2700 provided for X-ray equipment, the Department of Health desired the board to furnish further information regarding the equipment proposed to be purchased and the necessity therefor, the Director of Health (Dr. M. H. Watt) wrote. “Departmental officers were well aware of the present X-ray facilities at Whangarei, the board replied, enclosing a copy of a report from its radiologist (Dr. Goodwin). Fourteen items were shown on an estimate for complete re-equipment. In the opinion of the board, the present plant was unsuitable and should be brought up to date. The department, ill a further letter, concurred in the provision for capital expenditure as shown by the board. The estimates, however, had to be approved by the Minister for Health, and the department reserved the right to request amendment should circumstances require it.

The department required to be furnished with full particulars and specifications of the proposed X-ray plant for further consideration and, if approved, it would be necessary for the board to obtain competitive prices before applying for Ministerial consent to the expenditure.