HOSPITAL LEVY ISSUE

Waikato Independent, Volume XLIV, Issue 1190, 8 October 1945, Page 3

HOSPITAL LEVY ISSUE

MINISTER ACTS

MOVE TO ENFORCE PAYMENT IN MANGONUI

A decision to invoke Section 59 of the Hospital and Charitable Institutions Act, 1926, in order that the valuer-general may undertake the collection of hospital rates in Mangonui County has been made by the Minister of Health, Mr Nordmeyer, according to advice received by the Mangonui Hospital Board, from the Director-General of Health, Dr M. H. Watt.

This step is the outcome of the Mangonui County Council's refusal to strike a rate for hospital purposes for the year 1945-46, following a similar refusal for the previous year at the request of a section of ratepayers whose derating campaign was headed by district branches of the New Zealand Farmers' Union. Levies payable by the County Council to the Hospital Board for the current financial year total £8337. of which two instalments, each of ±'1667, were due in July and September. In the meantime the board now is authorised to operate on a bank overdraft of £12,000.

The implication of the Minister's action is that the hospital rate now is to be struck by the valuer-general direct upon the ratepayers. _ Those refusing to pay will be subject to legal proceedings to enforce payment and further refusal to meet judgment summons would give the valuer-gene-ral the right to act through a distress warrant upon farm property, stock and chattels.

It could be presumed that the cost to the ratepayers would be higher than the hospital rate alone, as the setting up of machinery to enforce payment might involve a substantial sum, commented the ' chairman of the Hospital Board, Mr J. W. Hoskin. The course of action taken by the Government authorities would depend upon the number of ratepayers who would meet the rate demand, but it appeared that a large number would pay if they were reasonable people. Mr Hoskin regretted that such a step had proved necessary, but it was imperative that the hospital finances be maintained. Even though the council's refusal last year had avoided hospital rate payment for one year, the cost to the county had been some £4500 in roading subsidies diverted by the Government for hospital maintenance purposes. Mr Hoskin added that the board desired to make the position clear to ratepayers, so they would know where they stood.

The Farmers' Union had anticipated for some time that action of this nature might occur, said the Kaitaia branch president, Mr C. B. Michie, who described the latest development as another step in Government policy to force the imposition of an'unjust tax upon the ratepaying section of the community. N, ow that the matter had been clarified the union would be considering a line of action to be taken, and would be in touch with the Auckland provincial executive and probably Dominion headquarters regarding future policy.