HOSPITAL RATE IS A HEAVY BURDEN, COUNTIES DECLARE.

Star (Christchurch), Issue 18188, 22 June 1927, Page 5

HOSPITAL RATE IS A HEAVY BURDEN, COUNTIES DECLARE.

SUGGEST ALTERATION IN BASIS OF LEVY. (Special to the “Star.”) WELLINGTON, June 22. The question of hospital levies and Government contributions was reopened this morning, when a deputation, representing the New Zealand Counties’ Association and the New Zealand Farmers’ Union, waited on the Minister of Health, who promised to bring their suggestions before the Government. Mr A. E. Jull, president of the Counties’ Association, contended that too great a burden was being carried by the rural districts. He said that population as well as valuation should be considered in fixing levies. It must be conceded that some hospital boards, in extending their activities to branches of medical science, which were considered by many to be frills, required more money to carry on, yet these special facilities were available only to those within easy distance of the hospitals. On a population basis the difference between counties and boroughs was remarkable, approximately 40 per cent, of the population being in the counties and 60 in the boroughs. By a singular coincidence, 60 per cent, of the total valuation on which the levies were made was represented by the counties and only 40 per cent, by the boroughs. Thus the figures were reversed. Twofifths of the population was providing three-fifths of the contributions for hospital work in New Zealand. Half the levy should be based on population and the other half on valuation. Air Jull also suggested that counties containing tracts of native land, on which it was impossible to collect rates, should be given relief. A statutory declaration could be made setting forth the proportion of the county which paid no revenue, and that could be deducted from the total on which the assessment of hospital levies was made. Mr W. Morrison, vice-president of the Farmers’ Union, thought that the levy might be made on the basis of the capitalised income in urban areas, since the wealth of professional men with small land holdings contributed very little, whereas farmers had to pay on the valuation of the whole area occupied, though in some cases their equity might be only 5 per cent.

Mr Young said that the question of deviating from the present system had been under consideration on numerous occasions, and in 1923, when tested out in Parliament, was lost on a division. The Commissioner of Taxes favoured adhesion to the present system, and the Hospital Boards’ Association, representing 48 boards, only four of which were city boards, also favoured it. Before bringing the question before Cabinet he would have to hear the Hospital Boards’ Association’s side of the case. The association had the matter under consideration at the present time. Personally, he thought that the suggestion regarding native lands was reasonable, and would bring it under the notice of the Ministers concerned.