HOSPITAL FUNDS

New Zealand Herald, Volume LXXVI, Issue 23320, 13 April 1939, Page 16

HOSPITAL FUNDS

VICTORIA'S PROBLEM LOTTERIES FROWNED UPON INCOME TAX TO BE HIGHER [from our own correspondent] MELBOURNE, April 7 Refusing to follow the lead of some States in instituting a State lottery as a means of raising funds for charities, the Premier of Victoria, Mr. A. A. Dunstfin, has decided to introduce legislation next session to provide for increased income tax for the maintenance of public hospitals and other charities.

All the Victorian public hospitals are dependent largely on free-will offerings for their support and particularly the proceeds from the annual "Hospital Sunday." Owing to the fluctuating nature of this adventitious aid it has long been urged that hospital finance should be placed on a sounder footing, and from time to time the adoption of the New Zealand system of hospital rates, levied through local bodies, has been advocated.

But opponents of that method have contended that its institution here would dry up the wells of public benevolence and they have preferred to rely rather on the present haphazard method, which combines Government grants, totalisator deductions and public donations. However, the increasing financial difficulties of many hospitals have caused the Ministry to take stock of the position. "If we do not do something this year," said Mr. Dunstan in announcing the proposal to increase income tax, "a number of hospitals will have to close their doors for it is impossible for them to carry on without an assured income. But there will still be plenty of scope for people who desire to assist hospitals voluntarily." In addition to the totalisator deductions, which amounted to £190,000 last year and are paid direct to the hospitals and charities fund, about £260,000 is paid each year from consolidated revenue for hospital maintenance. It is estimated that at least £IOO,OOO additional is required. The tax will probably be fixed at a rate that will return at iea"St £360,000 a year, thus relieving the consolidated revenue of all charges for hospital maintenance.