TIMARU HOSPITAL

Timaru Herald, Volume CXLVII, Issue 21508, 22 November 1939, Page 6

TIMARU HOSPITAL

New Building Programme Medical And Kitchen Blocks Sanction Sought For £60,000 Loan Since the introduction of the Social Security scheme accommodation at the Timaru Public Hospital has been fully taxed, and although it had been thought that the new three-storey surgical block, which was recently opened, would meet requirements for some time to come, the South Canterbury Hospital Board has already found it necessary to expedite its building programme to provide urgently required accommodation for the patients. At the monthly meeting of the Board yesterday, it was decided to apply to the Local Government Loans Board for permission to borrow £60,000 for the purpose of building a two-storey medical block, complete with furniture, at an estimated cost of £39,500, and a kitchen blo.k estimated to cost £14,000.

Messrs Turnbull and Rule, the Board’s architects, forwarded the completed plans of the proposed new kitchen block and maids’ quarters, and the preliminary sketch plans of the proposed new two-storey medical block. This block had been planned to embody all the necessary services for the hospital up to 250 beds. Their estimate for the building, completely equipped, including Aga cooking stoves and refrigerating machinery and cool stores, was £14,000. Medical Block The preliminary sketches planned for 26 beds on the ground floor, including a self-contained isolation unit. On the south side of the corridor there would be a casualty receiving unit and an ante-natal clinic. The first floor was planned for 24 beds, and, in addition, there would be a complete laboratory unit. They had also provided for a large basement similar to that in the new surgical block. Although the basement added considerably to the cost, much valuable space would thereby be provided for massage and other departments, workshops and storerooms. The architects’ estimate for the building, completely equipped, was £36,000, and the basement would account for £6OOO of that amount. These estimates, however, did not include furniture or furnishings. With the Board’s permission the architects proposed to send the plans and specifications of the kitchen block, and the sketches of the medical block to the Health Department this week for their consideration, and then in about a fortnight’s time to visit Wellington to discuss the plans in detail with the Department. By this means much valuable time would be saved. Board’s Loan Finance In an analysis of the Board’s loan finance, the secretary, Mr H. G. Naylor, said that to date the total expenditure from the £85,000 loan sanctioned amounted to £80.035/11/2. The total value of debentures disposed of was £82,200. leaving £2BOO still to be sold. The operations on the loan account for current building might be summarised as follows: Balance from Nurses’ Home Loan Sanction £543/t/1, loan sanction £85,000. total £85.543/5/1, less expenditure £80,035/11/2, balance of sanction £5507/13/11, balance at credit of loan account £2707/13/11, unsold debentures £2BOO, balance of cash available £5507 13/11. Mr Naylor explained that the balances on the various current contracts, including architects’ fees, were approximately £4462. and other commitments amounted to £9BO. leaving an estimated balance on the loan account of £65.

Mr Naylor continued that in connection with the kitchen and new twostorey medical block, the estimated cost, including furnishings and equipment, was kitchen block £14.000. twostorey medical block (complete) £39,500, architects’ fees £2500. total £53,000. From past experience he thought it advisable to apply for a loan sanction of £60,000. which would leave a margin for any contingency which might arise, but would not commit the Foard to actually expend the whole of the sanction. After outlining the necessary procedure in regard to the application to the Local Government Loans Board for sanction to borrow. Mr Naylor mentioned that the annual cost for 20 years of a loan of £56.000 would be approximately £4060. and of a lean of £60.000. £4350. There appeared to be no market for a long term security, and probably the best course would be the issue of debentures on a basis similar to that adopted for the Board’s last loan. If the Board favoured that method he suggested that the del>entures be issued for terms of from four years up to 10 years with the provision of a 20year sinking fund. Their experience during the past few months, concluded Mr Naylor, had shown that there was not much money available for investments in local body securities, and before any tender was accepted for either building it would be necessary to ensure that the Board had a reasonable prospect of arranging finance. Space At a Premium The chairman (Mr E. Macdonald), who remarked that the tax on the present accommodation was shown by the fact that the medical superintendent. Dr. J. C. McKenzie, had been obliged to decline to admit five patients as space was at a premium at present, gave notice that at the next meeting of the Board he would move “That the Board make application to the Local Government Loans Board for sanction to borrow £60.000 fcr the purpose of building at Timaru Hospital a new kitchen block and twostoreyed hospital block and equipping and furnishing same.” The Board agreed that interest must be paid at the rate of 41 per cent., or such lesser or greater sum as was allowed by law. and that the term of the loan be for a period of 10 years with provision for repayment by annual instalments based on a 20year sinking fund, the portion of the loan unpaid at the end of 10 years to be redeemed by renewal, the secretary to be authorised to take all necessary steps to give effect to this decision