HIGHER HOSPITAL BENEFIT

Press, Volume LXXIX, Issue 23965, 4 June 1943, Page 6

HIGHER HOSPITAL BENEFIT

INCREASE TO 9/A DAY GREATER MAINTENANCE COSTS From Our Parliamentary Reporter WELLINGTON. June 3. An increase in the nospital benefit from 6s to 9s a day was announced by the Minister of Finance (the Hon. W. Nash) in the Financial Statement tonight. Social Security Fund expendi: ture was estimated at a total of £17,403,080, being £1,453,000 in excess of last year’s results. Thus the resources of both the Consolidated and the Social Security Funds would be sufficient to meet requirements with-, out increased taxation, Mr Nash said. Since the hospital benefit of 6s a day an occupied bed was granted, there had been a substantial increase in the cost of maintenance of patients. After analysing the position and considering various alternative proposals, a decision had been reached to increase the hospital benefit from 6s to 9s a day, Mr Nash' said. Reduction in Subsidies The cost to the Social Security Fund was estimated at £600,000 for this financial year, but there will automatically be a reduction in hospital subsidies from the Consolidated Fund of hall the amount payable to hospital boards. This had been adjusted by an increase in the amount transferred from the Consolidated Fund to the Social Security Fund. Part of the increased payment from the Social Security Fund would go to patients of private hospitals, and the net relief in hospital levies on local bodies would be about £250.000. Levies on local authorities for 1939-40 determined by hospital boards before the introduction of hospital benefits amounted to £1,094,000. For 1942-43 the amount was £1.318.000. an increase over the period of £224,000. The proposed increase to 9s a day should thus generally meet the increase since 1939-40. The contribution to revenue from the Consolidated Fund—namely £4,100.000 —represented an increase of £300,000 compared with last year, while the social security charge was estimated to return the same amount as last year; otherwise the increase in expenditure would be met from cash balances in the fund. Estimated Administration A summary of estimated Social Security Fund administration in 1943-44 is as follows; Expenditure.—Monetary benefits: Age, £8,100,000; widows, £965,000; orphans, £22,000; family, £920,000; invalids, £1,030,000; miners, £80,000; unemployment, £60,000; sickness, £420,000; universal superannuation, £820,000; emergency, £130,000; Maori War, £BO. Hospital, etc., benefits: Hospital, £2,067,000; medical, £1,030,000; maternity, £539.000; pharmaceutical, £536,000; supplementary, £160,000; administrative expenses, £524,000. Total expenditure, £17,403,080.Revenue.—Social security charge, £11,600,000; registration fee and miscellaneous, £575,000; transfer from Consolidaed Fund, £4,100,000; total revenue, £16,275,000. tinue to ' restrict such loan:; to the absolute mirtimum. Nevertheless, there are certain types of national development works which, if the essential needs of the community are to be met, must be continued and even increased within the limit of the men and materials available. There are two main classes of work coming within this category—housing, for which an expenditure programme approaching £4,000,000 is planned for the current year, and the -further development of hydro-electricity, fpr which loan provision slightly, in excess, of, £2,000.000 is being- made. “Housing and hydro-electric development are complementary and are important not only at present, but in the post-war era. The present shortage of electrical energy is well-known, and to meet requirements for the contemplated housing programme and also for the expansion of industries in the post-war period, it is essential that the construction of hydro-electric generating plants should be pushed forward as fast as possible. “In regard to housing, the Governernment is very perturbed about the present serious shortage, especially at Auckland and Wellington, and is anxious to facilitate as large a building programme as the available men and materials will permit. As fast as hospitals and other urgent defence works can be completed, _ available men and material will be diverted to housing construction work. Comprehensive and complete plans are being worked out to meet the further demand of demobilised servicemen for homes, and plans are under way for the speedy construction of houses of a high standard. . “Allowing for funds in hand, it is anticipated that a national development programme of £6,500,000 will require to be authorised for this year. This is £1,500,000 more than last year’s authorisation for the same purpose. This national development loan programme will be provided from departmental funds. Consolidated Fund “It is estimated that the Consolidated Fund revenue will be some £BOO,OOO less than that received last year owing principally to a prospective reduction in customs revenue. "While income tax has been shown at the same total as for last year, it is anticipated that any possible falling off under this heading will be offset by the additional receipts consequent upon a proposed ‘drive’ against defaulting taxpayers. “The following is a summary of the Consolidated Fund estimates:— REVENUE Taxation— £ Customs .. .. 6,600.000 Beer duty .. ~ 1,800,000 Sales tax .. .. 3,500,000 Highways .. .. 1,600,000 Stamp duties .. .. 1,700,000 Land tax .. .. 1,000,000 Income tax .. .. 19,100,000 Miscellaneous .. 200,000 35.500.000 Interest recoveries from trading activities, etc. .. 4,100,000 Other receipts - - 2,000.000 6,100,000 Total .. £41,600,000 EXPENDITURE Permanent appropriations (including transfer of £1,500,000 to War Expenses Account) .. 19,666,000 Annual votes .. - - 21,554,000 41.220.000 Supplementary estimates and contingencies .. 380,000 Total .. £41,600,000 “The expenditure provided for in the estimates shows a net increase of £3,014.000 as compared with the actual expenditure for last year. Increased debt charges alone account for £2,500,000 of this increase, practically all of which is in respect of war. and which is in fact a war cost which is bein.; met from the ordinary revenues of the State. "Other increases are £113,000 for education. £300,000 in the amount to be transferred to the Social Security Fund, and £1,108,000 for war pensions, these increases being offset to some extent by decreases in other items.’’ Social Security Fund expenditure, he said, was estimated at £17.403,080. or £1.453.000 more than-last year's, covering increases in family and pensioners’ benefits, and hospital benefits. The revenue under the fund would be £16,275.000. Thus the resources of both the Consolidated and the Social Security Fuads would meft requiremeots with-