MINISTER DEFIED

Nelson Evening Mail, Volume LXIV, 20 June 1931, Page 6

MINISTER DEFIED

REFUSAL TO REDUCE SALARIES . GREY HOSPITAL BOARD'S DECISION, - (By Telegraph—Press Association) GREYMOUTH, 18th June'; The Grey Hospital Board recently decided to effect economies in view, of the reduction in. Government Subsidy, but not to reduce staff salaries -by ten per cent. Tlie Health Department, however, refused to sanction the estimates unless the Board also cut wages and salaries. Tlie Board then decided unanimously that they would , ratheiF resign ■than.comply with the Department’s direction.

A letter from the Minister for Health i(the , Hon. A. J. Stallworthy), read at the, Board meeting to-night, stated that ’ the Government had decided that rate- - payors should share in the reductions to be made in- the Board’s expenditure,|, and I 'that the levy on local authorities should be limited. Therefore,- exercising the powers under Section 46 (3) of • the Hospitals Act, the Minister required the Board to amend this year’s esti- ’ mates by reducing those for maintenance by £lBlO and by reducing levies " to £8331. The Board, however, in accordance with its previous Stand, passed unanimously the following resolution: “That as the requisition of the Minister for Health to amend the, estimates is solely a mandate that the Board reduce salaries and .wages,;- the. Minister- 1 'be 1 advised' that, .asthe Board- declines to reduce salaries and wages, it. is not prepared to amend its estimates, and if the payment of the subsidy, in consequence of such refusal, is withheld, each Board member hereby undertakes, to hand- to the secretary of. the Board his or her resignation.” Tho chairman, Mr J. W. Hannan, pointed out that the cost per occupied be ! d, including all salaries and charges, was here jao higher than in hospitals which the. Minister had quoted as hay-, ing reduced salaries; also that as probationers here formed 40 per cent. . of the whole hospital staff, the'rate of pay of the trained staff at the Grey Hospital must be of lower average than at the' other hospitals mentioned. For tho Department to ■ determine tlie levy was a usurpation of the Board’s functions. ' •