HOSPITAL LEVIES

New Zealand Times, Volume LIII, Issue 12422, 16 April 1926, Page 7

HOSPITAL LEVIES

DRASTIC APPLICATION OF THE PRUNING KNIFE "CITY CALL £3OOO LESJj r HUH VALLEY AUTHORITIES TO MEET INCREASED DEMANDS Owing to the readjustment of capital values in the Wellington Hospital Board's area, the hospital levy on Wellington City Council for the ensuing year is over £3OOO less than for the past year. Makara County. Eastbourne Borough, and Johnsonville Town Board will each rejoice in a reduced levy, but Upper and Lower Hutt Boroughs, Hutt County, and Petone Borough have each to meet an increased levy, although the increase is not very heavy. The total for the year 1926-27 is £49,306, against £51,290 for the past year, a reduction of practically £2OOO.

The expenditure for the year ended March 31st last was £262,902, of which £243,752 was for the hospital, £14,000 for social welfare, and £5150 for head office. The total receipts were £156,564, leaving £106,338 to be met by levies and subsidy. The Government subsidy was £57,031, and the amount produced by the levies £49,306. The estimated expenditure for the current year is £141,349, and the receipts £35,665, leaving £49,306 10s Id to be raised by levies on local authorities,'and the remainder, £57,031 9s lid, produced by Government subsidy. CAPITAL VALUES The levies were made upon the capital values at March 31st last as follow, the figures for the preceding year being also given:—

THE LEVIES The levies are as follow, the figures in parentheses being for the past year: Wellington City (£41,687 l2s lOd) £38,683 18a 2d. Hutt County (£3046. 8s lOd) £3394 6s sd. Makara County (£1237 13s 7d) £lll4 5s lid. Lower Hutt Borough (£2155 4s 2d) £2533 11s 3d. Petone Borough (£1961 11s 3d) £2195 8s 7d. Eastbourne Borough (£587 10s lid) £551 4s Bd. Johnsonville Town Board (£265 18s lid) £247 4s 6d. Upper Hutt Borough- (£348 1b 2d) £586 10s 7d. Totals, (£51,290 Is 8d) £49,306 10s Id EXPLAINING THE FIGURES In proposing the adoption of the estimates and the procedure necessary to improve the levies, etc., the chairman, Mr C. M. Luke, said the board had reached an epoch in the history of the hospital. The new buildings would make provision for accommodation long wanted in various branches of hospital work. The new building, with the new laundry, machinery, kitenen and storerqpm would involve considerable expense, but the present arrangements had long been inadequate Although the calls upon local bodies were less this year, that would not hold good in the next few years, for there would have to be an increase in the levies to meet interest chargee on loans just being floated, the largest of which was £IOO,OOO at 6 per cent, negotiated with the Public Trustee. There had been some difference of opinion as to the amount of the sinking fund, but he did not think it a handicap that posterity should be called upon to pay a small proportion of the permanent work which was being done now, and which would probably exist for hundreds of years. With regard to further sums which would be required for furnishing and machinery, etc., some £20,000 ta £25.000, which would he in the nature of wasting assets, some members felt that this provision should be made out of the capital account rather than loan money. There was also the aspect of future developments. The board would have to consider the question of a maternity hospital, which had only been delayed because of the board’s having commitments at the present time. The question of a suitable building would have to be considered, utilising the present St. Helens Hospital for other purposes in connection with "hospital work. It might also be necessary to spend a large sum for the development of modern science in surgery. Analysing the receipts and expenditure of the past year and comparing them with the estimates, the chairman continued that maintenance for the past year exceeded the estimates by £5474, the receipts being £4665 in excess of the estimates, leaving a deficiency for the year amounting to £BO9.

The balance of the capital levy account amounted to £7846 14s Id, no expenditure having been incurred during the year in connection with the proposed Hutt Valley Maternity Hospital (£2000); additional shelters Ewart Hospital ('£1000'); additional laundry machinery (£1030), and several other items. He Hospital Board’e debentures of the two loans of £50,000 each, maturing in December, 1933, and March, 1935, respectively, at 5£ per cent., placed on the market, £20,000 had been unallotted. In order to finance the large building contract now progressing and the proposed alterations at the old match factory property to provide for a new kitchen, laundry, and powerhouse blocks, it had been fouud necessary to raise on account a further sum of £150,000. Negotiations were being entered into with the PubHo Trustee for a loan of £IOO,OOO, repayable in 20 years, at interest bearing 6 per cent, per .annum, with sinking fund of 1 per cent, per annum. PATIENTS AND FEES The amount collected during the year for in-patients amounted to £19,643, an improvement of £2367 over the previous year; outpatients' and other fees amounted to £4175 against £3BOI. During the yeaf there were 674 inpatients tinder treatment, daily average of patients being 474. |

The previous year there were 5816 under treatment with a daily average of 428, an increase of 10.74 occupied beds per diem. The number of outpatients has increased from 13,724 cases with 84,333 attendances to .15,955 cases with 93.254 attendances. In regard to the estimates for 1926-27 the gross ordinary expenditure had increased from £129*890 to £141,349. The increase of £11,459 was to provide for an extra cost for the full salaries and wages of the Bacteriological Department (£.3460); contribution to the National Provident Fund for superannuation (£3300); additions to the nursing staff, and general in- | creases in the cost of each department. The estimated capital expenditure exclusi-ve of loans for the incoming year amounted to £8736, less assets, £BOB2, leaving a nett estimated expenditure of £654. INCREASED VALUES , The capital values on the rateable property of the local contributory authorities had increased from £39,346,432 to £42,134,486, an increase of £2,788,054. The apportionment of levy this year was £1983 11s 7d less than, last year. Owing to the readjustment of the capital values Wellington City Council’s contribution was £3003 14s 103 less than last year, Makara County Council £123 7s Bd, Eastbourne Borough Council £36 6s 3d, and Johnsonville Town Board £lB 14s sd, whilst Hutt County, Lower Hutt Borough, Petone Borough and the Upper Hutt Borough Councils showed increases from £l3B to £370. Every effort had been made and was being made to curtail expenditure without imperilling the efficiency of the servici of the institution.

DRASTIC PRUNING Mr W. J. Appleton said no doubt the City Council would be pleased to know that the levy upon them would be £3OOO. It looked as if the prun-ing-knife had been applied pretty thoroughly in preparing the estimates, perhaps too drastically, so placing them on the lean side. In reference to patients* fees, although there had been a percentage increase in the number of patients the amount collected was in greater proportion than before. He thought they had now reached the stage where they had overhauled recoverable outstanding “fees and the board could not look for increased receipts in future as had been the case last year. It should not be overlooked, that since the war period Wellington Hospital had been starved in the way of buildings, and when they looked what had been done at other hospitals, they realised how far Wellington was behind in this respect. The laundry was a disgrace to a city like Wellington, as was the kitchen block, while tne engineer had ajso been working under great difficulties, which would be removed with the new powerhouse. In spite of all that an English doctor, who recently went through Wellington Hospital, said that in regard to equipment, from a medical point of view, Wellington was second to none m any part of the world. Even at Home they could hardly get their hospitals better equipped than was Wellington, and that should be a source of satisfaction to the board and the public. Mr F. Castle said his objection was the departure from the policy of the board in arranging the loan on a one per cent, sinking fund. He was glad to know the burden would Fall less heavily on the local authorities, ami while tho levies were less the annual general cost had increase. ’The £IOO,OOO loan with one per cent, sinking fund would cost £70,000 more than the 20 year loan with 3 per cent, sinking fund. Each generation had to meet its requirements, and he submitted that the proposal would penalise the future too heavily. The 20 years* loan policy was laid down by the hospital commission in 1921, since when only one loan had been issued for a longer period. He would vote against the motion to show his disapproval, as he thought it should have been frankly'Stated that a change in policy was in view. The motion was then put and carried, only Mr Castle voting against. MONEY WILL BE CHEAPER Mr Luke reviewed the circumstances in which tho board endeavoured to secure the loan, and said that to spread the loan of £IOO,OOO with three per cent, sinking fund over 20 years would press too heavily on the people. Otherwise they could hardly erect such buildings and make those provisions which were so pressing in the interests of tho community. Tho Rev Van Staveren urged that to pay 9 per cent.—6 per cent, interest and three per cent, sinking fund—would press unduly heavily on the people. Mr Vino agreed that posterity should pay something toward the cost of such buildings as they were erecting whirl) in 50 years would still he comparatively now. Mr IV. J. Appleton said he did consider that tho loan for 20 years at si* per rent, was too high, and lie wanted to get it for 10 years as in that time he thought they would be able to refloat th* loan at a much cheaper rate*. Even in twelve months’ time money would bo much cheaper than now. for it was getting cheaper the world over. He referred to the Government loan which was obtained at 5$ por emit., which made H impossible for the hoard t<* get the money it wanted at tho rate sought to be obtained. The necessary machinery resolutions wore then carried to enable the motion adopting the estimates to he put. into operation.

■ 1925-26. 1926-27. Wellington City 31,980,059 33,057,030 Hutt County ... 2,337,034 2,900,590 Makara County Lower Hutt 949,468 952,213 Borough 1,653,336 2,165,035 Petone Borough rne 1,504,783 1,876,085 Borough JohnGonville T. 450,728 471,055 Board 204,017 211,265 Upper Hutt Borough 267,007 501,213 £39,346,432 £42,134,486