REFUSAL TO CUT WAGES

Taranaki Daily News, 19 June 1931, Page 6

REFUSAL TO CUT WAGES

BOARD THREATENS TO RESIGN “MINISTER USURPS FUNCTIONS” HOSPITAL ESTIMATES REJECTED. GREYMOUTH BOARD STANDS FIRM By Telegraph.—Press Association. Greymouth, Last Night. Thfe Grey Hospital Board recently decided to effect economies in view of the reduction in the Government subflidv but not to reduce staff (salaries 10‘per cent. The Health Department, however, refused to sanction the estimates unless tile board also cut wages and salaries. The board members then decided unanimously that they would rather resign than cbmply with tile department’s direction. ~ At to-night’s meeting a letter was received from the Health Minister, Mr. A. J. Stallworthy, stating the Government had decided ratepayers should share in the reduction to be made in the board’s expenditure and that the levy on local authorities should be limited. Therefore, exercising his powers under the Hospitals Act, the Minister requited the board to amend this year s estimates by reducing those for maintenance by £lOlO and by reducing levies to £8331.

The board, however, in accordance with its previous stand, passed unanimously the following resolution: — “That as tho requisition of the Minister of Health to amend the estimates is solely a mandate that tho board reduce salaries and wages, the Minister bo advised ’that as the board declines to reduce salaries and wages it is not prepared to amend its estimates, and if the payment of the subsidy in consequence of such refusal is withheld each member hereby undertakes to hand to the secretary of the board his or her resignation.” The chairman,’ Mr. J. W. Hannan, pointed out tjidt the cost here per occupied bed, including all salaries and charges, was no higher than at the hospitals Which the Minister qubtod as having reduced salaries. , As probationers formed 40 per cent, of the whole hospital staff at Greymouth, the chairman said, the rate of pay of the trained staff of the hospital must be a lower average than at other hospitals montioneffi Fof tho departiiient to determi no the lety was an usurpation of the board’s! functions.