MOUNTING OVERDRAFT

Sun (Auckland), Volume IV, Issue 1025, 16 July 1930, Page 13

MOUNTING OVERDRAFT

WHEN WILL BANK PUT “SCREW ON”? BOARD’S DILEMMA Still awaiting Governmen ap r > 1 of the current finaucial year's • - mates, and also authority for ext-n sion of its overdraft limit, zhu ■ land Hospital Board fears the will soon begin to “put the sere v no .** in the words of the chairm.»» V William Wallace. The seriousness of the siiuati u * impressed members yesterdaj the they decided to wire the Minister c»i Health asking for immediate stunt.tr ing of the extension of the overdra limit. The issue was raised follow ig circular from the Director-* eneral o' Health. Dr. T. H. A. Valintii e. a, peal ing to hospital boards to curie: can - tal expenditure during th « i.hv? financial year to the absolutr xJdi mum. and thus assist the Government in meeting the financial stringency It was desired that only really e-**«=*•.-tial works should be proceed wi n this year, the Director-General actled. and the intention was to p t > clairifor subsidies on levies for < tnl expenditure only so far as necessary to permit boards to proceed wi h approved works. A further indication ot the Government’s tightening up on expenditure was given by Dr. Valintine. who announced that payment of subsidies oi voluntary contributions and bequests, was generally suspended, except r* special cases approved by the Miniate of Finance. The current year’s estimates, which had been submitted to the Healtn Department in April, had not yet been approved. Mr. Wallace stated The overdraft limit of £ 40,000 had expire J and although an extension had been applied for. no reply had been received. If no authority was received, and the overdraft continued at the present rate, it wohld amount lo £65,116 on July 31. The hoard hr,also applied for its first quarter*? l subsidy of £30,305, but this had not been received. The secretary stated that even if the subsidy was received the board would still require an overdraft ltir of £50,000.