NEW OBSTETRIC HOSPITAL

Timaru Herald, Volume CXXXVII, Issue 19835, 26 June 1934, Page 8

NEW OBSTETRIC HOSPITAL

ERECTION AT COST OF £30,000

GOVERNMENT TO PROVIDE TWO-THIRDS

By Telegraph—Press Association DUNEDIN, June 25. Negotiations between the Otago Hospital Board and the Minister of Health in connection with the new obstetric hospital reached finality today. A statement was received from the Minister that he was prepared to reconsider the position on the basis of the Government finding the sum of £20,000 in all. including the Unemployment Board’s contribution, thus leaving the Hospital Board to finance the remainder in such a manner as it pleased. W. E. S. Knight (chairman of the Hospital Board) despatched the following telegram to Mr Young on Friday; “Please take it as absolutely final that the Board is not prepared to levy for capital purposes on the ratepayers for more than £2OOO for the obstetric hospital. I understand that the savings bank gift (£6000) is to be withdrawn on June 26 if arrangements are not previously completed." A reply from Mr Young came on Saturday, stating “I regret that I am unable to accept this as your final offer. I am prepared, however, to reconsider the position on the basis of the Government finding the sum of £20,000 in all, including the Unemployment Board’s contribution, thus leaving the Hospital Board to finance the remainder in such a manner as it pleases. I strongly recommend the acceptance of this offer.” The whole question was discussed at a special meeting of the Board this evening, and finally it was agreed to accept the Minister’s offer. The position now is that the hospital will be erected. The cost will be met as under:—

Government grant £ 20.000 Dunedin Savings Bank Gift .. 6,000 Sale of Bachelor Hospital (estimated) 1,500 Otago Hospital Board 2,500