RISING HOSPITAL RATES

Chronicle (Levin), 13 July 1946, Page 4

RISING HOSPITAL RATES

VEXED QUESTION UNDER FIRE COUNTY'S DISCUSSION The enormous increase in hospital rating and the reply made by the Prime Minister Mr. Fraser) to a recent depu- ■ tation on the subject "from the *New Zealand Muhicipal and Counties' Associations was the subject of considerable discussion at the monthly meeting of the Hprpwhenua County Council yesterday. The deputation to the Prime Minister from the Counties' Association and Municipal Association in regard to the present system of hospital rating had been unsuccessful, stated a letter from the Counties' Association read at the meeting." The Prime Minister had told the deputation bluntly, the letter continued, that the incidence of hospital rating had to be discussed by the House before any announcement of Government policy could be made concerning the report of the Parliamentary Committee, and that the present year's levies should be struck, because nothing could affect the position for the current rating year. The letter advised that the association's executive was to meet on July 18, when the position wo.uld be fully reviewed. Commenting, the chairman, Mr. G. A. Monk, said that he had little to say about thjs deputation, as he had not been a member of it and had not heard what, the Prime Minister had said. However, he understood that the Prime Minister was of the opinion that if hospital rating was removed from the land, the owners would capitalise the land. "In the past ten or fifteen years it is ourselves who- have been decapitalised," added Mr. Monk. Mr. Fraser's. attitude to decapitalising was that it was one of the hazards of owning land. The position in regard to the growth of hospital rating was a disastrous one, continued Mr. Monk. In the Waikato the hospital rate in some cases had gone up 75 per cent. There was doubt among ratepayers to-day as to where the whole thing was going. The hospital building programme was not yet finished, and with further building costs would rise. When the Social Security Act was passed it had placed "the responsibility for paying hospital fees on the Social Security Fund, said Mr. Monk, instead of the former system of collection of hospital fees. Many more people had been attracted into hospital by the prospect of free treatment. The housing was so bad that people had to go to hospital if they were ill. If there was a fee to pay, it would probably have a deterrent effect on people entering hospital. The fact was, however, that costs had gone up. The financial position of the people was so much better. He wondered whether the amount lor a bed in hospital to-day was paid fully by the Social Security Fund, and if that amount could be collected in fees. The rates were going up very fast. However, no further statement from the Government could be expected. Cr. A. J. Gimblett said that farmers were very restless over the position. He was most disappointed in the remarks of the Prime Minister, when he had accused the deputation of resorting to mob rule. He wondered if the Prime Minister used the same

language to other iess toierant sections of the population. Cr. J. D. Aitchison said that if the results of the deliberations of the Government were not satisfactory, he hoped the counties and boroughs would fight them with all the power they could bring to bear. The Palmerston North Hospital Board passed on to tlie council a letter from the Waikato ! Hospital Board in regard to the rating. The letter said that the Waikato Board's estimates for 1946-47 showed an increase in the Capital and Maintenance Levy of 87.4 ner cent, as compared with the previous year; while the levy on the contributing local authorities showed an increase of 73.1 per cent. The Waikato Board objected to the present system of rating, and agreed that the question of relief be pursued, but it had a duty to perfonn to the public in providing adequate hospital facilities, and therefore had no option but to adopt the estimates. This was received.