HOSPITAL DISTRICTS.

Taranaki Herald, Volume LV, Issue 14510, 13 November 1909, Page 3

HOSPITAL DISTRICTS.

NEW POLICY PROPOSED.

DECREASED EXPENDITURE-

INCREASED SUBSIDY.

(By Our Parliamentary Reporter.) . WELLINGTON, Nov. 12. "If a district is careful and economical in its administration it gets an increase in tho rate of subsidy from the Government." This, according to the Hon. G. Fowlds, is the guiding principle of the new schedule of The Hospitals and Charitable Aid Institutions Bill, prepared for the consideration of members at a later stage. The new proposals are contained in a series of schedules, and the Minister was asked by your correspondent for his explanation. "As I explained to the House in introducing the Bill," he said, "there are very wide diffci-ejugsjn^lju; rates- levied in the several hospital and charitable aid districts, coming -down as low as Ss 4d on a property valued at £1000, and going up to several pounds on a property oi similar value. There are only a very few lhat pay over £1, but there is a considerable number that pay from 8s 4d to 15s and 18s, and in some cases you get that big difference in the rate on adjoining 'properties which are accidentally situated in different hospital districts. That very often occurs because one district makes no provision for its old people. Take the Wellington and Palmerston North districts as a case" in point ; there is no olu men's horn» in the Palmerston North district but there is one in the Wellington district, and what I have been striving after is to contrive some method of; sub} sidy contribution that would relieve the burden on the poorer and most heavily' taxed districts.

"There are," continued Mr. Fowlds, "two different methods proposed. The first varies the subsidy in proportion ss the rateable value of the district decreases per bead of the population, and the subsidy also increases in proportion as the amount levied, in the district increases. The second alternative m the schedule is worked on a different basis, but to my mind meets the difficulty better, although it does not raise the subsidy correspondingly with the increase of the rate levied in the district. In the first schedule the -rate levied is to rise faster than the rate at which the subsidy increases, and that is the only limitation that is put upon extravagant administration in the districts.

"In the third schedule we reduce the rate of subsidy as the expenditure per head of the population rises in the district, because the increased rate of expenditure is some indication of extravagant administration. The position under the third schedule is that the district with the lowest ratable value per head of the population and the lowest rate of levy per head of the population, gets' the highest subsidy, and the subsidy decreases as the ratable value per head of the population increases, and the subsidy decreases as the rate of the levy per head of the population increases. • "We have," he went on to say, "worked out very carefully the effects / of each of these proposals in the different districts. ,and we find that it very . neariy confirms our own estimate of what would be required from the different districts. The scheme does not involve any alteration in the hospital districts, but it minimises the enl of further subdivision of districts, because a wealthy district cutting off from a j poor district would bring about a reduction of the subsidy to its own district. "The idea involved in the proposals," added Mr. Fowlds, "is that if a district is careful and economical in its administration, it will get an increased subsidy. If a district is poor, as shown by the ratable value per head of population, the subsidy is increased accordingly. This, of course, means that the subsidy payable on the rates collected on the whole dominion will not be reduced, but it varies the apportionment according to the needs and deserts of the various districts. These proposals are. now before the Select Committee appointed to consider them."