HOSPITAL LEVIES

Poverty Bay Herald, Volume LXVI, Issue 19886, 14 March 1939, Page 4

HOSPITAL LEVIES

POSITION IN WAIROA \

CONCERN IN COUNTRY

BIG INCREASE INDICATED

DEPUTATION TO MINISTER f

(Special to the Herald.) WAIROA, this day.

A promise that he would investigate with the Minister of Finance and the Minister of Health the increase in the hospital levies. in the Wairoa district, was made by the Hon. F. Langstone, Minister of Lands, to a deputation from the Wairoa County Council which waited on him and discussed with him the question of hospital rating.

The deputation brought under the Minister's notice the increase in the hospital levy in Wairoa with a request that an effort be made to re- . lieve the position. "I can see that a jump from £6OOO to £IO,OOO is a pretty big matter. I will discuss the position with the Minister of Health and the Minister ■of Finance' and> see if we.'can • measure up to 'this question; Of • hospital rating," stated the Minister. ' *

In presenting the County Council's case, the chairman, Mr. A. T. Carroll, stated that the council desired to bring to the notice of the Government the alarming increases in levies made by hospital boards on contributory local bodies, and the necessity for relieving ratepayers Of some of the increasing burden. Particularly was some relief desired by the'smaller districts.

Contributing Bodies

In the case of the Wairoa hospital district, there were only two contributory bodies, the Wairoa County Council and the Wairoa Borough. Council, the county contributing about six-sevenths of the levy and the borough one-seventh. In recent years the levy on the county had increased enormously, the following showing the movement of the levy> on it from 1933 to 1938:—1933, £2160; 1934, £2569; 1935, £3217; 1936, £3788; 1937, £4713; 1838, £6469. The 1938 levy represented an increase of over 200 per cent on the levy for the year 1933, and w.as equivalent to a rate of a half-penny in the pound on the capital value. For the coming financial year the Wairoa Hospital Board had informed the Wairoa County Council that its requirements from- the county for maintenance and capital levies wbuld approximate £IO,OOO, which would necessitate a rate levy of seven-eighths of a penny in the pound on rateable property. It was not likely that the increase would stop at that figure as the board had stated that a new hospital for the district was essential, continued Mr. Carroll. The burden would become excessive on such a small district and would lead to disaster to a large body of the ratepayers unless some relief could be afforded.

County Bates

The present county rates were threepence in the pound on the capital value, with a prospect of a> further rise of three-eights of a penny ift the pound during the coming year. The position was most acute for those farming second and third class land, which classes predominated in the Wairoa County. With the increasing rating burden, it would be impossible for them to work their properties and come out; on the right side of the ledger. f Should the hospital levies continue to grow at the present rate, the position shortly would be that the primary requirements of counties in regard to providing adequate road and bridge access to its ratepayers would be made subservient to the district's hospital requirements. All the hospital board had to do was to tell the contributory authorities it required a certain amount of money and the local fobdies had to find it whether good or bad rate collections were experienced, so that in a depression period the council might find itself witn . very little revenue for expenditure on maintenance and upkeep of roads.

With the advent of the social security scheme the council expected> to receive some relief on the burden of hospital levies, but on the figures of the levy for the .forthcoming year indicated by the Wairoa Hospital Board, this hope would not be realised. Relief, therefore, had to be looked for in some other direction. The county had been revalued this year and resulted in a reduction of the previous valuation made in 1931. Any further increase in rating would ; (end to further reduce the valuation.

Mr. Carroll suggested that a State lottery should be established to assist* in the financing of the hospitals, a suggestion that was greeted with a cry of "hear, hear."

"There has been a. lot of money going out of the country for lotteries," said Mr. Carroll. Mr. Langstone: Not now. Mr. Carroll: No, not now, but there has been.

"We find that hospital rating is creeping up to danger point," added Mr. Carroll. "There have been howls from all round the district."

Replying to the deputation, the Minister stated that he was sorry to hear that the increase in the hos* pital levy in Wairoa was going to b# so great. From £6OOO to £IO,OOO was a big jump. Under the social security scheme 6s would be allowed for every occupied bed, and this, with the usual contributions, it was hoped, would put hospital finances in a better position than ever before. He would discuss Wairoa's position with the Minister of Health, the Hon. P. Fraser, and the Minister of Finance, the Hon. W. Nash, and see what could be done.