AUCKLAND HOSPITAL.

New Zealand Herald, Volume LXVIII, Issue 20888, 2 June 1931, Page 10

AUCKLAND HOSPITAL.

GRAVE FINANCIAL CRISIS.

DEADLOCK OVER ESTIMATES. DEMAND FOR FURTHER CUT. INSISTENCE OF DEPARTMENT. "Jf the board is forced to accept the .estimate desired by the Department of Health the only way its obligations can be met is by refusing to admit patients either at the hospital or the infirmary," said the chairman of the Auckland Hospital Board, Mr. W. "Wallace, in commenting last evening on the deadlock existing between the department and the board regarding the year's estimates. "Such a course is unthinkable and the board is doing its utmost to make the department realise tho position,".Mr. Wallace added. "A request to meet the board in conference on the question has been sent this evening to the DirectorGeneral of Health, Dr. T. 11. Watts. I am prepared to call a special meeting of the board to meet Dr. Walts and I consider such a meeting highly necessary." Mr. Wallace went on to say that the situation was reaching a critical stage. In spite of a personal visit to Wellington he had not been successful in obtaining satisfaction from the department in respect to the estimates it was asking the board to accept. Until the department passed the estimates, Mr. Wallace said, the board could not fix its levy on the contributing local authorities. The board was now extremely short of funds with which carry on its work and it was imperative that a decision should be reached by the department. "It is absurd to think that the board can balance its growing expenditure with the estimates submitted by the department," Mr. Wallace added. "If the board is forced down to the figure insisted upon it will have to be made ciear that the amount is not the board's own and that all responsibility for I Vie position which must arise rests with tin; department. Briefly, the department wants the board to agree to estimates amounting to £44,000 less than those last year and it must be apparent to everyono that the demands on the board's resources arc increasing rapidly." If the department persisted in its attitude there was the possibility of an increase in the levy on public authorities. The board had not consented to the department's request, for a reduction of 10 per cent, in salaries and it had pointed out that such an action would not succeed in bringing the board's responsibilities into agreement with the heavilyrediieed grant. The department was still urging a reduction. Mr. Wallace pointed out that the suggested estimates meant a reduction of 20 pel- cent, in the finances of the board, while the official reduction in wages in New Zealand was 10 per cent. The board originally had provided for an expenditure of £222,550, but on the representations of the department the amount had been reduced to £185,415. The department now sought to establish the maintenance expenditure at £178,767.