HOSPITAL RATING

Waikato Times, Volume 129, Issue 21525, 13 September 1941, Page 8

HOSPITAL RATING

UNEQUAL BURDEN MOVE BY CITY COUNCIL PERSONAL INCOME BASIS WELLINGTON. Friday After further discussion on hospital taxation and its incidence, the Wellington City Council, which had already urged that hospital taxation should be placed upon a national basis, resolved that a committee should go into a detailed investigation and that consideration should be given the preparation of a bill to amend hospital taxation legislation. A motion that a committee of three should be set up to consider the impact of hospital expenditure on the finances of the city and to recommend an equitable system of providing revenue for hospital purposes was moved by Mr C. M. Bowden. The amounts demanded by the Hospital Board, he said, had increased from £76,743 in 1937-38 to £108,284 for the current year, and in 1939-40 were at a peak of £116,493. This year the hospital rate represented over one-sixth of the total paid, and ranged from £1 10s for a small residential property in one of the outer suburbs to £634 a year for a large city property. The present system threw the burden on property owners only, whereas the benefits were available to all. Ratepayers paid through the rates, paid social security charges cn any rents received, and as general taxpayers they paid their share of the Government subsidy. Reference to Municipal Association Mr Bowden suggested that after the committee had reported the matter could be referred to the Municipal Association for multi-lateral action in the presentation of such a logical case that the Government could not refuse to establish a fair and equitable system. Hospital rating should be based on income, not upon property values, ;said the Deputy-Mayor, Mr M. F. 1 Luckie. Some of the wealthiest men in Wellington paid almost nothing toward hospital upkeep, for they lived in £SOOO homes on £4OO suburban sections. Thousands of young men and women paid virtually nothing in rates, but used hospital services fully. Taxation for an entirely personal service should be based upon income. Mr J. D. Sievwright moved that the City Solicitor should be instructed to prepare a bill for the purpose of repealing the present Act and amendments permitting hospital boards to make demands which constituted double taxation for the services provided for by the universal taxation under the Social Security Act. The Mayor, Mr T. C. A. Hislop, said Mr Bowden’s motion proposed an investigation, and he would suggest to Mr Sievwright that nothing should be done about a bill until the committee had reported. Mr Sievwright agreed.