HOSPITAL BOARD LEVIES

Otago Witness, Issue 3195, 9 June 1915, Page 6

HOSPITAL BOARD LEVIES

CITY COUNCIL PROTESTS. During the discussion of the Finance Committee s report at the meeting of the City Council on the 2nd reference tv as made to the extra levy being made by the Otago Hospital and Charitable Aid Board on local bodies for the purpose of erecting a new Nurses’ Homo. Cr Small road the following clause in the report:—‘‘The committee has received from the Otago Hospital and Charitable Aid Board the statutory statements showing the estimates of the board for the coming year, together with the proposed apportionment of the estimated expenditure amongst the contributory local authorities. The estimated expenditure shows an advance of £16,826 as compared with the estimated expenditure made by the board tor the year ending Mifrch, 1915. The estimates include £cCOO on capital expenditure. The effect of this increase in the estimated expenditure is that the levy on the Dunedin City Council is proposed to be increased from £6706 in 1914-15 to £9452 in 1915-16, or an advance of £2746. This is slightly more than the product of a rate of lil in the pound on the total rateable valuation of the city, and brings the proposed demand by the board up to tiro equivalent of a. rate of 3.9 d on our rateable valuation.”

Continuing, Cr Small said that the e£tra expenditure of the board for this year would amount to £16,826, made up as follows;—Extra expenditure on the Hospital, £4585; Nurses’ Home, £15,257; excess on other items, £424; —making a total of £20.266. There was, however, a saving of . £3440 on tiiis sum, provision being made th s year for a reduction of the board’s overdraft and the finishing of certain works. This left £16,826 to be expended by the board for the year. The board proposed to raise the amount in the following • manner : By increased revenue from the Hospital, £1544 ; by utilising a balance at the credit of the building account, £2901 4s 8cl; by increasing the levies on local bodies, £6573 12s Cr]; by increased Government subsidy, £6426 7s 3d. These items amounted to £17,535 5s 7d. From this sum there had to be deducted £709 5s 7d, representing a decrease in revenue on certain items. Cr Small said the committee had assumed that the works which wore being carried out by the board were necessary and judicious, and this they did not complain of. What they did complain of, however, was that the whole of this large expenditure was being included in one year’s levy. What they suggested was that it should have been spread over a period of at least 10 years, lie moved —“.That this council views with considerable alarm the rapidly-growing expenditure of the Otago Hospital, and Charitable Aid Beard, as disclosed by the estimates submitted by the board for the year ending March 31. 1915, in which the estimated expenditure is set down as £65,654, as against £48,808 for the previous year, and desires to enter a most emphatic protest against the method of finance adopted by the board in providing in a yearly levy so largo a sum as £3OOO for capital expenditure. In the opinion of this council the board should avail itself of its statutory powers to so arrange its finances that such items of expenditure on capital account, assuming the same to bo imperative at tho present juncture, would bo spread over a number of years, and thus lighten the burden of ratepayers.”

Cr Hancock seconded the motion. Cr Sinclair said that the council should protest against the high-handed manner in which the board had gone about getting the extra money it required. No doubt it was necessary, but the board had statutory power to raise money by debentures or mortgage, and should have exercised that power. Instead of doing so, it said to the council; “ Pay us your share of this increased expenditure.” The council should protest most strongly against the action of the bear'd'.

Cr Wilson said ho thought that the time had come when the Hospital rate should be made a special rate, instead of the money coming out of the council’s overdraft. Cr Black protested -against the whole system of working of the board, and said that it was time a halt was called. It was a pitv that the members had not all beenwiped out at the recent elections and a start made with a now lot. Cr Taverner said that until local bodies had the power to nominate representatives on the board there was little hope of redress. Ho considered that the council should take some definite form of action in connection with the protest. The motion was carried unanimously.