NEW HOSPITAL

Nelson Evening Mail, Volume XLVIII, Issue XLVIII, 7 May 1914, Page 5

NEW HOSPITAL

At yesterday's meeting of the Nelson Hospital and" Charitable Aid Board the Minister for Hospitais and Charitable Aid> (Hon. B. H. Rhodes) wrote as follows:—

"deferring to your Board's request for the immediate payment of a subsidy of £IB.OOO, on Mr Cawthron's gift of £15,000, or failing that, payment of current rate of interest on the subsidy, I have to inform you that. there being some doubt as to the intention of the Act in regard to the payment of subsidies by way of progress payments or otherwise, I consulted the Crown Law officers as to (1) Whether the subsidy should be paid at once to the Board, presumably for investment until such time as it

•may be required; and (2) failing immediate payment, whether we could legally pay interest on the amount until it was remitted to the Boanl. "As a result I have to reply regarding the first question: That with re-pect to the time of payment it is provided by sub-section 4 that the subsidy payable to a board shall be payable at such time or times and in such manner a.z the Minister of Finance determines. He, therefore, has absolute discretion •whether he will pay the subsidy in a lump sum at once or -whether he will pay it in instalments spread ever a period. In the present circumstances there "would seem to be no sufficient reason to receive the sum at once. It is not at once required" for the purposes in hand ; and- as regards the second question : As to the proposal to pay intereston the subsidy this cannot be carried into effect. There is no authority for the payment of any sum except the capital amount of the subsidy itself. From the above your Board "will soe that it is in accordance with the. spirit and -wording of the Act that this subsidy should he given by way of progress payments to the contractor pro rata with payments from the original donation." Mr Hoult said the letter contained' statements which "could net pass him without being challenged." He -was prepared to move a motion. The Chairman said he had shown the letter to Mr Cawthron. who locked upon the contents as a breach of faith on the part of the Government. The speaker said he had ascertained that when a sum of money was raised in Wellington Co build a children's ward the Government had paid over a lump sum as subsidy. He did not see why Nelson should bo singled out for different treatment. The matter was entirely in the hands c-f the Minister for Finance, who perhaps might not be in office next year. Dr. Valintine had stated the subsidy would be forthcoming when Mr Cawthron handed over his gift; and on this understanding he (the speaker) had induced Mr Cawthron to hand the Btfard a cheque for £15,000. Personally, he was now sorry he had influenced Mr Cawthron to do so-; and felt very much put out over the turn the matter had taken. Mr Lock alleged that the practice of former Governments had been to pay subsidies straight away. Probably the Government, with all its boasted surplus, had not the money. Mr Cawthron had handed over his gift on the understanding that the subsidy should be forthcoming at once. If the" Government did not do so, he contended that it would be a disgrace. A member : No !

Mr Hoult said it was "all very well to hear echoes around this table." The Government, had, he contended, given a guarantee t'o pay the subsidy at once. The Government* was shuffling- over the matter. "Are -we to suffer this disgrace'.'"' asked Mr Hoult indignantly. If he was Mr Cawthron he would demand the £15,000 back.

The Chairman said ho had gone over the correspondence from the Government, and found they had protected themselves by the wording of the communications, Which stated that the subsidy would be forthcoming, but no' particular time had had been stipulated in which it would be handed over. He •maintained, however, that Mr Cawthron had been misled. . Mr Allan said the only serious aspect to him was whether the Board was in danger of losing the money from Mr Cawthron? The Board had no power to pay interest. The Government had intimated they would pay the subsidy when it was wanted. Mr Lock: They will be out of office then! ■,,-,. Continuing. Mr Allan said that according to the law. the subsidy was not yet due. .The Board was losing nothing bv the action of the Minister. "Mr Lock quoted from the correspondence to show that Mr Cawthron was under the impression that the subsidy would bB forthcoming as scon as he handed over his cheque. He moved "That this Beard expresses great regre,, that the Government has not complied with its promise to the Board m regard to paying over the subsidy. Mr Lock .concluded by saying, // 1 am disgusted ■with the Government. In seconding the motion Mr Hoult said he would admire Mr Cawthron it he withdrew his gift. Mr Bell said the Government did nou in*the least repudiate their agreement, and no doubt when the money was needed it would be handed over He was sorry, however, that the subsidy had not Vieon paid over. The Chairman said Mr Cawthron was fully -under the impression, from the tone of the Ministers letters, that the I subsidy would be forthcoming at He moved that the Board hand over to Mr Svtfiron all the interest accruing from his gift. This was not seconded. M rs Fell did not for a moment anx- - ♦„ +W Mr Cawthron would withticipate that Mi Ca d he ?h a Xman be sent to Wellington to m--2-Sw the Minister on the subject. Ml Hewetson thought Government u*A done a verv prudent thing in withholdin- the money until.it was needed noimn- " he said the In reply to an -««"-', b t ne present Government was tne "VrTwaUon moved an amendment :- EKioi St to pay the subsidy of was carried on the V °The'Board then pa«ecl on to the next business.