THE HOSPITAL ESTIMATES.

New Zealand Herald, Volume LXIX, Issue 21167, 27 April 1932, Page 10

THE HOSPITAL ESTIMATES.

The Hospital Board estimates as brought down cannot be taken as a reliable indication of the financial outlook for the current year. This position arises for several reasons, for most of which the board cannot be held responsible—though it will have nobody but itself to blame if one assumption it has made proves unfounded. To deal with that doubtful item first, the estimates as originally framed allowed as a liability the sum of £32,000 advanced by the Government during the past year to help in relieving the strain that outdoor relief, intensified by unemployment, placed on the board's funds. It was stated quite plainly that this was not a grant but an advance against subsidies payable this year. With that position accepted, estimates were drawn up requiring an expenditure on maintenance account greater by £54,500 than was actually incurred last year, and a levy on contributing local bodies of ,28d in the pound. The finance committee of the board eliminated that item of £32,000 from tho estimates, reducing the growth in expenditure to £22,090, and the levy to .25d. The assumption is that ihe Government will he persuaded to regard the money as a straight-out grant, but no reason is given for this optimistic view concerning a point on which the Government has shown no sign of yielding. This robs the whole estimates of reality. When, in addition, the Health Department has advised the board that no indication can be given of the amount that will be available for subsidies, that (he position regarding unemployment. relief, and salary and wage reductions has not yet been finalised and that the estimates submitted will be subject to revision in the light of decisions yet to be made, it could not be expected to budget with any certainty at this stage of the year. Thus, apart from its own action already discussed, it can give no assurance that its estimates have much real meaning. The responsibility is only in part with the board, but it is unfortunate that the estimates are so far from being a real indication of what may be expected during the current vear.