ECONOMY AXE

Wanganui Chronicle, Volume 74, Issue 110, 12 May 1931, Page 8

ECONOMY AXE

HOSPITAL ESTIMATES WARNING FROM BOARD LETTER TO PRIME MINISTER The Wellington Hospital Board has sent the following letter to tho Prune Minister and the Minister of Health concerning tho ectimates and levies and subsidy for 1931-32, as passed by the board at its meeting held this week:— “At the request of the Director General of Health, tho Wellington Hospital Board has cut down its net estimated expenditure to £129,789, this being £14,834 less than tho amount provided in the first estimates submitted, which, in the opinion of my board, was a reasonable amount to provide under existing conditions. “Tho revised estimates now submitted will result in a 20 per cent, reduction in the Government subsidy and a 20 per cent, reduction in the levies, as compared with last year’s provision. “In submitting these estimates, my board desires to point out that the reduced amount will in all, probability seriously jeopardise the Efficiency of tho board’s services, and unduly limit the amount of money available for the proper maintenance of wards and buildings. It may seriously imperil the welfare of the sick and injured, seriously limit the amount available foi charitable aid, relief of unemployed distress, and the demands for maternity assistance. “The Director-General has asked the board not to budget so as to finance by way of overdraft, and also not to reduce so as to seriously impair efficiency, but owing to the drastic ana arbitary cut below last year’s expenditure, it would seem impossible to avoid both of these conditions. - “It is contended that the general economic position is rapidly increasing the demands for both hospital and charitable aid in Wellington, owing to the drift of single and married unemployed and their dependants to this centre, and that these demands will be so urgent and numerous that the funds available will be exhausted before the financial year ends.

“Under these my board feels compelled to advise and warn you that in the event of the present demands for treatment and relief being continued at tho present rate, or increased by epidemics, increased unemployment or other causes, it will be necessary to ask you to make special grants, or else arrange for finance by way of overdraft.

“Of course the board will do its utmost to live within its income, and has budgeted for increased receipts from patients, which income now shows signs of decreasing; but in view of tho fact that people are being tola that no one will bo allowed to starve, and that hospital boards will meet the situation, the Wellington Hospital Board takes this opportunity of placing the real position before you, so that you may clearly realise the gravity of the situation from the board’s point of view, and take what steps you can to meet a very probable shortage in our finances tor the current year.

“A copy of this letter is also being sent to the local contributory bodies for their information.”