MUST CUT WAGES

Wanganui Chronicle, Volume 74, Issue 143, 19 June 1931, Page 8

MUST CUT WAGES

DEPARTMENT’S ORDER GREY HOSPITAL BOARD MEMBERS AGREE TO RESIGN [ Per Press Association. J GREYMOUTH, June 18. The Grey Hospital Board recently decided to effect economies in view of the reduction in Government subsidy, but not to reduce the staff salaries 10 per cent. The Health Department, however, refused to sanction the estimates unless the board also cut wages and salaries. The board then decided unanimously that they would rather resign than comply with the Department’s direction. At to-night’s meeting a letter from the Health Minister, the Hon. A. J. Stallworthy, stated that tho Government decided that the ratepayers should share in the reduction to be made in the board’s expenditure and that the levy on the local authorities be limited. Therefore, exercising powers under Section 46 (3) of the Hospitals Act, the Minister required that the board amend this year’s estimates by reducing those for maintenance by £lOlO, and by reducing levies to £8331. The board, however, in accordance with its previous stand, passed unanimously the following resolution: “That as the requisition of the Minister of Health to amend the estimates is solely a mandate that the board reduce salaries and wages, the Minister be advised that as the board declines to reduce salaries and wages it is not prepared to amend its estimates, and if the payment of the subsidy in consequence of such refusal is withheld each board member hereby undertakes to hand to tho secretary of the board his or her resignation. ’ ’ The chairman, Mr J. W. Hannan, pointed out that the cost per occupied bed, including all salaries and charges, was here no higher than hospitals which the Minister quoted as having reduced salaries; also that as probationers here formed 40 per cent, of the whole hos pital staff, the rate of pay of the train ed staffs of the Grey Hospital must, be on a lower average than at the other hospitals mentioned. For the Depart ment to determine the levy was usurpation of the board’s functions.