HOSPITAL LEVY INCREASED

Southland Times, Issue 23826, 25 May 1939, Page 4

HOSPITAL LEVY INCREASED

Rise Of 35 Per Cent. In Estimates

PROPOSAL TO MEET CAPITAL COSTS

FINANCING BY LOAN SUGGESTED

Advice that an important programme for capital expenditure for the present financial year might be financed by loan, but that urgent work should be financed by rating levy has been received by the Southland Hospital Board from the Health Department. As a result of this advice the board may be able to reduce its rating levy for the year below the very high figure which was adopted tentatively. Because of the uncertainty of the position of hospital benefits under Part 111 of the Social Security Act, the board was unable to include in its estimates for the year any contributions which might be received from the Social Security Fund. The board was faced with a very substantial increase in maintenance costs for the year. Also included in the estimates was a programme for capital expenditure totalling £34,404 and if all the requirements of the board outside State subsidy were to be met from rates it appeared that the total levy on local bodies in the district would show an increase of 35 per cent, on last year. While advising local bodies that the hospital levy would probably be greatly increased, the board could not inform them what the levy would be. This has caused some inconvenience to local bodies in preparing their rating estimates for the year as they have been unable to arrange for a definite hospital rate. As a result of the latest advice received by the board from the Health Department it is hoped that it will be possible to fix definitely the hospital rate within a short time ARRANGEMENT FOR LOAN The secretary of the board (Mr T. Pryde) stated yesterday that he was communicating with the department to arrange for a loan for the board’s capital expenditure requirements this year. The department had advised him that to avoid delays caused by formalities in raising a loan urgent works should be financed by rate .levy. It would probably be necessary, therefore, to include a certain amount of capital expenditure in the rate levy, but it might be possible to finance the greater portion by loan.

The board’s estimate for maintenance for the present year is £36,759 compared with £29,937 last year, an increase of 23 per cent. For the capital cost of £34,404, £7914 is in hand, leaving £26,940 to be divided equally between the Department of Health and the contributing local bodies. The local bodies’ share for capital expenditure is £13,245, which is 48 per cent, higher than the levy last year. In the original estimates the total levy is fixed at £50,004 compared with £36,787 last year, an increase of 35 per cent. . MAINTENANCE COSTS “The increase in maintenance costs is due mainly to shorter hours and higher wages for the staff together withan increased number of patients requiring attention,” said Mr Pryde. The works included in the programme for capital expenditure were all urgent and could not reasonably be postponed. Among them were a new children’s ward and alterations to the women’s ward at the Gore Hospital, estimated to cost £B5OO, additions to the tuberculosis pavilion at Kew costing £3OOO, a laundry block at Riverton costing £2200, extensions to the laundry and boiler house at Kew costing several thousands of pounds, a medical superintendent’s residence at Kew costing £2500, and the board’s share of extensions at Waipiata Sanatorium amounting to £1245.. In the present estimates the rate levy for maintenance is .338 d in the £l, which is very slightly below the total levy of ,342 d last year. Last year’s levy included .064 d for capital expenditure. The total proposed levy this year was originally ,460 d. This was an increase from about l-3d last year.

SOUTHLAND COUNTY RATES

SUBSTANTIAL INCREASE EXPECTED “For the year just closed,” said the chairman (Cr G. W. Whittingham) in his annual report to the Southland County Council yesterday, “the amount of hospital board rates struck was £19,511 and the amount paid to the Southland Hospital Board was £17,824. The council understands from statements which have been made by the Hospital Board that for this year there is every probability that the Hospital Board rates will show a fairly substantial increase.

“The charge on country ratepayers for the hospital board rate is too heavy, the amount required for hospital board purposes being approximately 42.7 per cent, of the amount required by the county for roading purposes. It would appear that the time is opportune for the Government to deal with the matter of hospital board taxation and extend some relief to the farming community.” CHANGE IN SYSTEM URGED SHARING OF BURDEN OF EXPENDITURE (United Press Association) WELLINGTON, May 24. The Wellington Ratepayers’ Association is sponsoring a petition to the Government, to be signed by ratepayers and citizens, urging that the whole basis of hospital administration should be reconsidered so that the burden of hospital expenditure may be more equitably shared.

Protests against the continued increases in hospital levies on county councils were also expressed at the annual meetings of Hutt and ’ Makara County Councils today.