INCREASED COSTS

Dominion, Volume 37, Issue 12, 9 October 1943, Page 6

INCREASED COSTS

Hospital Board’s Reason

For New Loan

The Makara County Council yesterday, under protest, agreed to the Wellington Hospital Board’s applying to the Loral Government Loans Board for a furthe loan of £40,000 to complete the 210-bed block at Wellington Hospital. The subject was introduced by the following letter from the secretary of the Wellington Hospital Board, Mr. J. ±>. A. C°“on January 30, 1942, my board wrote advising that public notice -of my boards intention to apply to the Local Government Loans Board for Permission to r a me a loan of approximately £160,000 for the purpose of erecting a block of 210 beds, with urological and tuberculosis outpatient provision, at Wellington Hospital, was to be inserted in the local Press. “The approval of the Local Loans Board was duly given to this proposal, and the block is now nearing completion. It is regretted, however, that because of continual increase in building costs, plus extras to the workmen by way ot sick pay, holiday pay. travelling expenses, etc., the original estimate of £160,000 will be insufficient to complete the block. In addition, the board decided to convert a portion of the basement into a preliminary training school for nurses, and this alteration is estimated to cost approximately £ll,OOO. The total estimated deficiency is now some £40,000, and it. will, therefore, be necessary for my board to make a further application to the Local Government Loans Board for permission to raise an additional loan or this amount. . “In view of the fact that the project has met with the approval of the Local Government Loans Board, the Department of Health, the Public Works Department, and the majority of the contributory local authorities, I shall be glad to‘have your council’s approval to my board’s application for. further finance to enable this block to be completed. “For the information of your council, I would advise that the necessity for this additional accommodation is becoming more apparent week by week as the demand for hospital accommodation becomes ever more acute. An early and favourable reply will be appreciated. The chairman, Mr. R. W. Bothamley. said that a jump of £40,000 because of increased, costs since 1942 appeared abnormal. “What chance have the people of building homes for themselves: ae asked. ~ , . , , Cr. E. Windley said they appreciated the fact that there has been an increase in costs; it was not the hospital boards fault that this had occurred. * I think we should advise the hospital board to go ahead with the work before costs further increase,” he said.