HOSPITAL FINANCES.

New Zealand Herald, Volume LXVIII, Issue 20893, 8 June 1931, Page 10

HOSPITAL FINANCES.

DEADLOCK IN AUCKLAND.

MAINTENANCE ESTIMATE.

AMENDMENT DEMANDED,

Official notice lias been sent to the Auckland Hospital Board by the Minister of Health, the Hon. A. J. Stall- ' worthy, that it must, amend its maintenance estimate for the coming year in i.ccordanco with the limit of the Govern--nent subsidy available. This action lias been taken under the mthority of Section 46 of the Hospitals md Charitable Institutions Act, 1926, ivhich provides that every hospital hoard iliall make an estimate of its expenditure ind receipts for each financial year, and 1 tho Minister may, if he thinks it necessary so to do, require the board to amend tho estimate." Tho samo section also provide!? that if any board fails to amend its estimate in accordance with tho requirements of the Minister it shall not be paid any subsidy while such default continues. There is a difference of about £6400 between the estimate submitted by tho Auckland Hospital Board and the figure stipulated by tho Health Department. It lias been stated by tho chairman of the board, Mr. W. Wallace, that it is impossiblo for tho board to reduce its estimato further. and Salaries Out Suggested. Tho Director-General of Health and officers of the department havo reported that wavs exist by which the board could economise more, and they have pointed out that, while there is a difference between the board's estimato and the department's figure of only £6400, if the board applied a 10 per cent, cut to all salaries, and wages it would represent a further saving of about £6OOO, It is maintained by tho department that practically tho wholo difference is represented in the failure of tho board to apply a general 10 per cent. cut. It is understood that tho board has about 750 employees and that tho recent salary and wages cut of from 6 to 10 per cent, on a graduated scale applied to only 150 employees, leaving those of 600 employees, whose salaries and wages represented by far tho larger proportion of tho total, untouched. Consequently, it is maintained, instead of saving about £BOOO which would result by applying a general 10 per cent, cut, thero has been a saving of only about £2OOO, leaving a deficiency of about £6OOO, a sum which would almost approximate the total disparity. Board Working on Overdraft. In view of this fact, it is stated, the Minister of Health has been forced to exercise his power undor tho Hospitals and Charitable Institutions Act to "require the board to amend tho estimate," particularly in view of the fact that it is held that considerable economies could still be effected. It was stated by Mr. Wallace on Friday that the board was simply working on overdraft, as until the estimates were approved it could not fix its levy on the contributing local bodies. The amount of the board's overdraft is limited to £50,000. It is understood that tho DirectorGeneral of Health, Dr. T. 11. Watts, has replied to the board's invitation to meet it in conference that, as the question had already been fully discussed, no more could be achieved by such a conference.