NEW HOSPITAL

Southland Times, Issue 21650, 11 March 1932, Page 7

NEW HOSPITAL

FINANCIAL ARRANGEMENTS. APPLICATION TO LOANS BOARD. Although the erection of the new general hospital at Kew was not discussed by the Southland Hospital Board’at its meeting yesterday afternoon the matter was under consideration at the meeting of the executive committee in the morning. As the outcome of this discussion the following clause appeared in the report of the executive committee which was adopted by the board: — ‘The secretary reported having received letters from the Director-General of Health, the Minister of Finance, the Loans Board and Mr E. R. Wilson, architect, regarding the erection of the new hospital at Kew, and as the department’s consent to the work being proceeded with was deferred until the board had made satisfactory arrangements with the Local Bodies’ Loans Board regarding the raising of the balance of the money required to cover the estimated cost, it was decided that in the meantime the secretary make application to the Loans Board for authority to borrow in two years’ time the sum of £30,900 to complete the work in terms of the architect’s

estimate, and report.” In a brief explanation of the clause made at the request of a Times representative after the meeting the secretary (Mr T. Pryde) said that following- the communications which he had received from the Direc-tor-General of Health and the Minister of Finance he'had unofficially to the Loans Board asking if an application to raise £30,000 by debenture loan at the end of two years would be likely to be approved by the board. The Loans Board had replied non -committally and had drawn attention to the. forms and regulations that had to be complied with before a loan was sanctioned.

“The Hospital Board has now authorized me,” said Mr Pryde, “to make formal application to the Loans Board to raise £30,000 by debentures at the expiration of two years. We have more than £103,000 in hand and it is estimated that if building is commenced this will earn another £7OO or £BOO before it. is used up. 'Die balance required to construct the complete hospital, approximately £30,000 will not be needed until two years after operations commence. Should the Loans Board approve of our application and the Minister of Health give his final approval to the plans, the way will be clear for the board to go ahead with the scheme and call for tenders.”