A JOINT STATEMENT

Bay of Plenty Beacon, Volume 76, Issue 7, 26 May 1944, Page 8

A JOINT STATEMENT

HOSPITAL TAXATION INJUSTICE OF LEVY , ■ The following statement by the anti-hospital rate candidates who are seeking office to the Whakatane Hospital Board has been submitted for publication by arrangement:— "We the undersigned take this opportunity of setting out our views with regard to hospital taxation as it obtains on the present and un-fair-basis, in the hope that electors will sec the. injustice of, the existing incidence of levy and vote accordingly for its abolishment. We contend that existing hospital taxation which enables compulsory measures to be applied to ratepayers who represent only a section of the people who benefit by the hospital: services rendered, is wrong in principle and conception, and definitely inequitable and unjust in its application. The position has become more, aggravated and confused since the passing of the Social Security legislation. We do not desire to criticise this legislation, but submit as a statement of fact, that since the Social Security Act provides free hospital facilities for everyone, and replaced the system whereby fees were receivable from patients, then it became increasingly obvious that the Government should make good the revenue lost to Hospital Boards by its actions. It seems manifestly unjust that ratepayers should be singled out and compelled to eontribute by special hospital rates to the' levies under the Hospital and Charitable Institutions Act. The method of application of hospital levies is surely wrong. Hospital levies are assessed on capital values- The rural settler who has perhaps spent long years of weary struggle with possibly blood, sweat and tears, in making his property produce a competence for himself and family during his lifetime, finds that the reward of his industry is expressed in increased hospital leA'ies because hospital rates are compulsorily assessed on. the value of the land, plus the work and monej r he has put into it. The town ratepayer is likewise penalised, because of the fact that lie has scraped together through perhaps years of careful saving's sufficient to build a home for himself and family. Another aspect of the injustice of applying hospital rating on capital value is the problem of collecting rates from Maori .owned and occupied lands.

In Opotiki County the native population is greater by over 500 persons than the European population, and this is reflected by the native increased use of hospital facilities and the naturally increased cost of hospital upkeep, which cost under existing conditions has to be largely born bj r the European ratepayer. Is it any wonder therefore that ratepayers have become, restive in shouldering this unbalanced and unequal load.

No blame can be laid at the door of Hospital Boards. Their function is to provide reasonable .humanitarian facilities for the sick and suffering, and the method by which the cost of this service, shall be borne is defined within the framework of the Hospital and Charitable Institutions Act.

Generally speaking the system of financing hospital expenditure is as follows: The Government through the. Minister of Health provides half of all approved capital cgsts, and subsidies maintenance costs in a proportion ranging from 1-l.s to 2Gs in the pound, according to the sum of the levy made on local bodies ; that is to say, that if a hospital board makes a heavy monetary demand on local bodies in any one year, the Health Department increases its subsidy proportionately on a scale predetermined by the Government. Since the inception' of the Social Security legislation and free hospital treatment the Health Department has evolved a patch-work system whereby it -contributes 9s per patient per day towards hospital maintenance costs.

The complete system of government .subsidies as applied to the loeal hospital board AvorUs out approximately u,s follows: The Health Department provides as subsidy one pound for each pound expended for capital purposes, KJs ,'id for each 'pound of maintenance expenditure, •mil in addition pays <)s per day per patient-towards the cost of the patient's treatment.

Until recently hospital boards were elected by county ratepayers and borough electors Avhich comprised both ratepayers and adult residents. The ratepayer board members have predominated until now, consequently hospital administration costs have been reasonably scrutinised. Since the passing of the Local JClections and Polls Amendment Act flt is possible for persons untouched i>y the hospital leA'ies to become .hospital board members, and it is aiot without precedent, that such persons often exhibit 'spendomania' in regard to monies provided by other people. We are persuaded that the existing system of hospital leA'ies

and local body rating for hospital purposes should be scrapped and re- 1 placed by a scheme of taxation based on income, salaries and wages of all earners. Every earner would then contribute equitably toAvards a humanitarian social service available to all. It may be argued that the Government might then assume, complete control of all hospital administrative services. Well, even so, at present the GoA'ernment, through the Health Department holds a pistol to the. head of hospital boards, and woe betide any board that refuses to see eye to eye Avith the Health Department.

Assuming that the Health Department did undertake hospital control, local advi.sorj r boards would be required av it.li limited powers, and hospital boards at present arc pretty much 'in the same position. We have heard some ungenerous critics declare that if the, present Government Administration assumes full control of hospital services it Avill just be another step towards complete Socialism. Well, maybe. We care not by what name it is knoivn, socialism or any other ism, proA riding the unjust, inequitable and inexorable burden is lifted from the much harassed ratepayers and spread fairly over the Avhole benefiting community, then the administration responsible deserves the gratitude of all right-thinking persons. Party politics should not be. permitted to intrude to the detriment of national humanitarian social legislation, and when the perspective of legislators rises above party politics, national good will surely follow. Signed Hubert Clyde McCready Jack Mullins Alexander Fraser McGougan Robert William Dunning John Allan Mitchell Frederick James Burt John Porter Caulfield P.B.A.