HOSPITAL FINANCE

New Zealand Times, Volume LIII, Issue 12357, 29 January 1926, Page 12

HOSPITAL FINANCE

IMPROVEMENT LOAN OBJECTION BY CITY COUNCIL DISCUSSION BY BOARD L The proposal of the Wellington Hospital Board to borrow the sum of £IOO,OOO for the purpose of converting the recentlv purchased factory of Bryant May, Bell and Company into kitchens. laundry, and power-house has been held up as the result of the City Council withholding its consent to the raising of the money for the purposes specified and at the rate of interest proposed. It must be pointed out that the Citv Council whilst it can temporarily withhold consent, has not the final decision in this matter, as a continued refnsal to sanction the loan would result in the question being referred to the Minister for Health, whose decision would be final.

At yesterday's meeting of the Hospital Board the following letter from the City Council was read:— “On August 19th, 1924, you intimated that the board had decided to purchase Bryant, May, Bell and Company’s property adjoining the hospital. By notice dated December 2nd, 1925, you were given particulars of the capital expenditure. lam directed by the Wellington City Council to inform you that it objects to any expenditure in this direction by your hoard. The council is satisfied that no benefit to the community will be achieved by the proposed purchase,- and therefore has to oppose the scheme. Apart from the fact that the oouncil is not satis-, fied that the proposal will result in economy, it has to record its distinct objection to a public body borrowing money at 6 per cent.” To this communication the secretary, of the board replied:— • “I have by direction to point out that the purchase of Bryant, May, Bell, and Company’s property, Riddiford street, was effected during 1924-25, and was included in the estimates for the year as notified in the board’s letter to your council dated August 19th, 1924. The amount of £34,000 mentioned in our notice dated December 2nd, 1925, is required for the alteration of’ this property in order to make provision for new kitchen, laundry, and power-house block, the approval of which has been obtained from the Hon. the ‘Minister for Health.” COUNCIL. ASLEEP Mr C. H.-Chapman said that the City Council must have been very much i asleep over the whole matter. The question of the loan had been brought before them in 1924, eighteen months ago, and the council only woke up now after everything had been settled; and the building partly paid for, to object to the project. What struck him as remarkable was that the City Council should object to the Hospital Board borrowing. Apparently the City Council Was now going in for a policy of living within income. He would like to point out that he himself had had experience of the City Council, and he was sure that the Hospital Board paid equal or- more attention to financial considerations when borrowing money than did the coqnoil. It seemed presumption on the part of the City Council to object to what the Hospital Board did in this respect. The Rev. Van Staveren asked if the council had not previously given its approval to the loan?

CONSENT BY SILENCE The chairman (Mr C. M. Luke) stated that when certain members of the board had waited on the council recently it had been found that no reply had been eent by the city council to the bqard’s communication of August 1, 1924. The hoard had taken the position that silence gave consent and had- gone ahead with the work. He would like to point out that this had happened before the present Mayor had taken office, so that Mr Norwood was in no wav respot sible. On the invitation of the board, the Mayor and a number of the city councillors had visited the hospital during the week, and had seer the laundry, and other offires. As the result of that visit he did not think that there would be any further difficulty. He was glad, he proceeded, to hear what Mr Chapman had said regarding the care taken on the board in considering matters of finance. The hoard had considered the .question from every angle, and he resented the attitude taken up by the city council. WIDER KNOWLEDGE DESIRABLE Mr W. Appleton said that it would bo a good thing in future to invite the members of contributing bodies to P ? y . at i£ ast a yearly visit to the hospital. They would then gain an idea of tne fine work that was being done, and the often inadequate facilities provided. _Mr F. Oastle objected strongly to the action of the city council. It implied that the hospital board knew nothing about business. If the city c bbnciJ could not advance any better Objection to the proposed expenditure than the one given, then they should remain silent They said they objected to the board paying 6 per eent. they had borrowed as much as possible at 5} per cent., and what else were they to do. . Had they the same facilities as the city council they tt’outd no doubt be able to borrow at Of per cent., although even the coun--i w»s not finding it easy to get money at that rate. The matter was held over.