THE NEW HOSPITAL

Nelson Evening Mail, Volume LII, Issue 160, 3 July 1918, Page 4

THE NEW HOSPITAL

FURTHJER. CONSIDERATION OF TENDERS. NEW OFFER BY THE GOVER.NilENff. A spec:>' n'•■.-.■ting of the Nelson Hospital Board was held to-day to further consider tenders for the new Hospital. There were present: Messrs T. Neale (chairman), T. Hewetson, G. Macma'hon>, O. R. Fell, R- Win,, A. I. Manoy, Mrs Watson. The chairman said the matter required the very serious consideration of the < Boa.rd. He had given it much attention, and would' place the position fully be- J fore the Board. He had vititod Welling- j ton and had interviewed the Minilater | of Finanre and the Minister for Hos- | pitals. It was necessary to obtain, the j consent of the Minister for Finance to build during the war- and' the consent of the Minister for Hospitals to a,c- j cept a tender that exceeded the e-ti- ( mate bv over 10 per cent. The chairman, read a letter received from the How. G. W. Russell, in which the Minister stated that he gathered that the t position was that the total estimated J cost of the building was £76.000. .towards which there was available £34.000. leaving a .balance to be found j of £42,000. The Minister's letter pro- j C 6 Gel's *~ ~~ j "In" view of the altered circumstamGes I of the icase. arising from the larger i work now proposed and the extra cost entailed bv war conditions, I am prepared to authorise the payment, of subsidy at the usual rate, viz.. £ for £ on'the ba;si<» of the £42.000 required, instead of requiring, as stated in my letter of the 13th September, that the capital borrowed would have to, be repaid enrtirelv by the ratepayers of your district. My agreement that the Government will .pay its of. the estimated balance of £42,000 is, however, subject to the understanding that your Board proceeds to borrow "the money, the same to be re-paid bv anmuail instalments over a period (if of thirty-six and not less than thirty years. Under these circumstances the Government will pav annually a subsidv of £ for £ equal to the fiims levied in. each vear for sinkine fund as repayment .'of the capital, whilst the nual -pavment of interest wr.il be borne by the' eonltaibvrtory ijocal authorities and the Government, in accordance with the rates of subsidy for maintenance levies.

"A further is that . your Board expend not less than £IO.OOO on for infectious diseases on r>lans duly approved by the Department, the work to be commenced within one year from date. _ The amount raised bv levies for this, purpose will carry the usual £ for £ subsidy for capital expenditure, and should be spread over a period of from rthree to five years. * - "I understand that at will be eary to provide a doctor's residence. I am not prepared to, authorise any expenditure for a new building until. *he other work has been proceeded with. Any money spent in moving the existing building should be charged to capital expenditure* and as such would be paid for equally by way of levy\ and subsidy. ''' ■•'■,.-,■ «I'P.;S.—Ab previously ilnitimated Ifche subsidy on the Cawthrou, bequest wil be pavable only after the Board has expended the canital of the bequest and accrued interest." Mr Neale went on to say.that he had interviewed the-Public Trustee, who -w-as prepared to lend the £42,000 at 51 per cent- interest with a 1 per cent stroking fund. The Board would have to fhi : d £ISOO a vear in respert of the "Eoeinita! and £775 a year for the fever ,->vard. but the latter figure would be reducible by one-fif.lh each year for five vears, when it vanished. At present the local bodies were ■levied on for £4OOO a vear, and upon this a Government siib'sidv of 20s 9d in the £ was paid. But "if the Board, raised another £2275, it'would lo?e 3s 6d in the £ (<the Government subsidy being calculated on the rateable value per head of population, and the rat© of levy per •lead of population). or a total of £11.85. To maike ur> this loss the Board would have to lievy for £6275 plus £llßs—total '£7460; reducible by £IOOO each vear for five years off the amount owing to the bank .plus corresponding reduction, of interest. Tiro present and -proposed payments of local bodies would be as. follows : '

The chairman made ami exhannnve statement regarding the financial portion', and concluded by stating that the erection of a fever ward was am urgent necessity—even more important than the erection of a new hospital. _ 1 Members expressed their sense of indebtedness to the chairman for the sweat amount of Itime he had given to the question and the ability he .had brought to bear. iOn the motion of Mr Fell, seconded by Mr Macmahon, a minute was, recorded expressing appreciation) of Ithe cha.irman'.sr services. The motion was gracefully acknowledged by the chairman!. 4 central discussion ewned, in the course of which Mr remarked that there would be lincreased' charges for maintenance of the be- | ddfis the extra lew for buildinc. Mr Fell said that they should leave everything else out of connide-ration for the ask themselves whether the spending of, in round figures. ■PIOOOOO on-a hospital at the present time, was iustified. He felt that the Board would never again have surh. financial advantage* as at present. •Mr MacmahonVaid a.U fcvere anxious to . see a new Hospital built, but the Board ' was not justified in going on with it in view of the expense. The Government could be asked to leave its offer open for a few yeare, the Board in (the meantime simply maildng provision for the I fever ward. The chairman said that after five years the additional levy would be £ISOO a year plus increased cost of maintenance, but the Government etibsidv would- acain go.up. \ The chairman said the rp?p<.jnsibilaty on the Board was a very heavy one, | as what wap done was done for __ all i -time. Had there been a tender anywhere in the .vicinity of the estimate ' the*-Board 'have accepted it.. Fever was racing' in. New Zealand;: Nel ! - 1 son having' 49 cases, and it was the j Board's duty- to provide acoommoda- j tion for these castes. As Mr Fell had said, the tdtal cost of all works would be- in tlie neighbourhood of £IOO,OOO, and he was ltot far out. But was the present site worth £IOO.OOO expenditure ? He did not ithhilk so. Tlie site was mot worthy of half that expenditure. But if it was a que-Hion of going on or losing the Hospital altogether he would say co on. The Board should ascertain if' the offer of the: Mnifeter would remain open . The chairman said the Minister had treated the Board splendidly. The offer now made was the Minister's own, and he deserved, the thanks of the Nelson* people for it. ;Mr MarmahoirV said the Board would have gone on if the tenders had been anywhere near the estimate. He did not think 'the Board wae- justified in spending the sum that would now be needed. *

Mr Fell said if the Board conldt get a better; site it .should do eo. The present «ite he agreed wa'* not a worthy one. The Board should tell the .Minister that the Board? was prepared to go to th.e .expenditure on a new site.

Mr Win agreed HJhflt tho «* JW J*s., ■ a good one, but if there was & roafc ot Ling the money they should retain. ifc Members generally expressed hearty, appreciation, of the Alinister's new offc£ Mtec further discussion at was solved' that a deputatmn proceed, to Wellington, to interview, the Mii«i, to consist of the chairman, Messrs Fell, and Manoy.

[UUcLL UULUC-J >V\JH1VA w •Present. Proposed £.- £. Wn.imea Comity' '_ 1986 3704 "Neltecm Cit-v Ooti/noil. 1053 1963 C'ou'nty 135 253 Takaka County 267 498 Murchisoii. iComity 304 ' 568 Motueka Borough, 124 231 Richmond Borough 130 • 243