HOSPITAL RATING

Timaru Herald, Volume CXLIX, Issue 21958, 9 May 1941, Page 4

HOSPITAL RATING

“The Only Equitable System ” Levy On Salaries And Wages (P.A.) MASTERTON, May 8. “The statement reported at New Plymouth by the Hon. A. H. Nordmeyer that we should be able to evolve a more equitable system of rating where the upkeep of hospitals would be a national and not a local cost will receive a warm welcome from all ratepayers in New Zealand,” said Mr T. Jordan, president of the Municipal Association. “The municipal and counties’ associations have for some years been striving to evolve such a scheme,” continued Mr Jordan, “and we are definitely convinced that the only equitable system of rating for hospital expenditure is by a levy on wages and salaries. This principle has been adopted in part under the Social Security Act. Under that Act hospital expenditure to the extent of 6/- a day a patient is raised by a tax on wages and salaries. When the BUI was before a committee of the House over which Mr Nordmeyer presided I stated on behalf of our Association that we believed this was the only equitable method of raising the money, and the Minister of Finance readily agreed, but to my question why was it not being completely carried out he replied that it could not all be done at once. “Since then a combined deputation from the two associations waited upon the then Minister of Health (Mr Fraser) and again emphasised the present injustice and put forward the remedy now suggested. The official reply was that the Government was not prepared to give effect to it, but no reasons were given at that time. An additional charge of slightly more than Id in the £ in the social security levy would have taken the load off the ratepayers. Subsidy System "Mr Nordmeyer’s statement will encourage us to go on with our war efforts. It may be of interest to the public to know that the Government subsidy to the hospital boards is based on an extraordinarily complicated method of computation, under which the amount paid to the boards varies from 14/- in the £ In some districts to 26/- in others. This should be borne in mind when comparisons are being made between the financial position of the boards in various districts.

"On the question of national or local cost of hospitals It will also be of interest to the public to know that the Government war expenses fund has not yet undertaken the total responsibility for the sick and wounded soldiers in hospitals. We have urged the injustice of this, but so far the Government is paying in the official language, something further than the 6/- a day a patient out of the Social Security Fund. In my district this ‘something’ is 5/- a day, where the secretarymanager of the hospital board states that the amount should be 14/- a day if the full cost is to be met. The remaining 9/- a day a soldier Is at present a charge on the ratepayers. This is obviously unjust.”