DOUBLING OF DEFICIT

Poverty Bay Herald, Volume LXV, Issue 19584, 16 March 1938, Page 13

DOUBLING OF DEFICIT

FINANCES OF HOSPITAL HIGHER WAGES BILE INCREASE IN STAFF (Per Press Association.) AUCKLAND, last night. A request that the Auckland Hospital Board should make every endeavour to so prepare its estimates that il would achieve a balanced budget, was received from the Health Department at a meeting of the board. The Director-General of Health, Dr. M. H. Watt, acknowledged receiving the board’s financial statement for the nine months ended December 31, showing a net deficiency of £23,740.

“It is noted,” said Dr. Watt, “that the board lias experienced appreciable deficits in its finances regularly for many years past, owing mainly, it appears, to the fact that insufficient provision has been made each year for institutional maintenance.”

The chairman, the Rev. W. C. Wood, said he wished to assure the public that the board was not in the habit of building up deficits. It was correct that the board had deficiencies, but it had attempted to steady the ship, and in these three years it had succeeded. In the year ended March, 193 C, the deficiency was £IO,OOO, and for the following year it was £12,000. This year it would amount to about £25,000. It was to be noted, however, that there had been a change of Government. In the last year the board had to meet shorter working hours. and higher costs and wages. The staff had been increased from 780 to 1280 and wages had jumped from £99,000 to £183,000. The board had little or no control over these matters or the general rise in prices, and these had been responsible for the position.