HOSPITAL LEVIES

Evening Star, Issue 22453, 25 September 1936, Page 11

HOSPITAL LEVIES

BURDEN ON LOCAL BODIES RELIEF TO RATEPAYERS SOUGHT BOARD HEARS DEPUTATION With ’ the request that some 'relief be given in the matter of the burden carried by local" bodies contributing to the revenue of the' Otago" Hospital Board, a deputation representative of 16 county and borough councils concerned waited on the board at its meeting last night." After listening to an explanation of the duty of the board to the public, the deputation received the assurance that the matter would be placed before the Finance Committee, which would give it full consideration. Mr W. B. Hartstonge, who spoke first on behalf of the deputation, said that the bodies concerned-did not wish to criticise the board, but rather to seek its co-operation in giving relief to ratepayers. ■ While 'it was a fact that the proportion of rates paid to the board by the city was greater than that paid by the boroughs, he wished to state that the Taieri contributed no less than 33 per cent, of its total revenue to the funds of the board. Other counties contributed even greater proportions of their revenue, Waihemo’s being 65 per cent., or over_ half the total rates that were paid to it, These bodies were asking the board to do all in its power to. alleviate the rating im-, posed upon them. The Chairman (Mr J. W. Dove): Do you suggest that we are not doing that now? Mr Hartstonge "'replied that he did not suggest that. The board was doing a very laudable work jn maintaining its hospitals, but it should endeavour to keep down expenses. The deputation did not propose to tell the board how to run its own business, but it appealed to it to try to meet the position by endeavouring to keep down its expenditure, and consequently the levy on contributory bodies, to a minimum. He agreed that one of the worst difficulties of the board was capital expenditure, but the ‘bodies concerned wished to have the co-operation of the board rather than have to approach the Minister and force an inquiry. It was felt that the board would do all it possibly could to provide a service at reasonable cost. The contributing bodies did not wish the board to curtail its activities, > but it should, in common with the local bodies, take cognisance of the limitations »*of its finance. It appeared that the board was jn -the anomalous position of endeavodring to maintain a large, hospital on-a small rating area, and therefore the speaker again suggested that the expenditure should be kept down to a minimum. It was incumbent on the board to do this, as the rating area was far too small for the size of the hospital. The local bodies hoped that the board, as a reasonable body ! and realising the burden on the contributing authorities, would do all it possibly could to relieve that burden.

Speaking; on hehalf of the rural authorities, Mi; \V. F. Batchelor (Tua-

peka) said that in his county the increase in the hospita] levy this year was £864, making the hospital rate 43 per cent., of the total amount levied in rates by- that local authority for this year. During the past five years it had been most difficult to collect rates in rural districts, and when the hospital levy, which' must be paid to the board whether it was collected from the ratepayer or not, represented 33 1-3 per cent, to 65 per cent, of the total amount levied in rates, the board would readily understand why the contributory rural local authorities were protesting against the increased levy. While he realised that the board could not alter the incidence of hospital taxation, he would point out that for the year 1932-33 the Otago Hospital Jffiard*' -throughlhafjng the ; ',Tuapeka County -in its area, derived-, income totalling £7,780 13s while the expenditure on hospital maintenance and, charitable aid in the district was only £3,462 10s 3d, leaving a Surplus to the board of £4,318 3s 6d. In 1933-34 the income ,was £8,673 10s lOd and theexpenditure £3,228 8s 2d, a surplus of £5,445 2s Bd, while in 1934-35 the income was £B,BOI 19s lOd and the expenditure £3,362 17s 9d, a surplus of £5,439 2s Id. It might be argued that certain facilities were provided in Dunedin which benefited a few of the county’s ratepayers and for which they should pay their share. Admittedly this was the case, but certainly not to the extent of the figures which he had quoted. While the apportionment amongst local authorities continued on the present basis, it was the ratepayers of the rurai authorities , who were paying more than their just share in hospital rates. A comparative statement based oh capital valuation showed that the Otago Board was levying a higher rate than 38 other boards in the Dominion, and the deputation appealed for some relief. As the apportionment of the amount required in- rates was made on the capital value, then from the point of view of a contributory authority, capital value. was the only logical basis of comparison. • However, if a population basis was worthy of consideration it should be pointed-out that the amount paid in hospital rates per head of population amounted to 18s 5d in the Tuapeka County, while it was only 9s 7d in Dunedin City, i would point out, Mr Batchelor said, in conclusion, that because a person owned property with a high capital valuation, it did not necessarily denote ability to pay, and, in fact, that person night possess • very little equity in the property. It was farmers in this position who were finding difficulty in paying the high rates levied by the board, and it was on their behalf that he asked for consideration when the board was framing next year’s estimates, especially if the moneys derived from some rural areas and the disparity in the benefits accruing to them were taken into account. Mr A. F. Quelch pointed out that the main fact was that all the bodies represented in the deputation were concerned with the rates increasing. The city had not found fault, and it remained now to see what could be done for the boroughs and counties, but one of # tho factors causing the trouble was that the hospital had grown out of all proportion to the population. It was a difficult position, and every member of the board, he wds sure, would be willing to give the matter every consideration with a view to finding relief for ratepayers. Asked if he had any other suggestions to make, Mr Hartstonge replied that it was difficult for the contributory bodies to make such advances—they left the matter to the board. “ An excellent opportunity presents itself to me to make a political speech on the subject of the board’s rating,” said the Chairman, “ but it is not my intention to take advantage of it now. if in doing a' particular job, a local body finds it necessary to close down because of shortage of funds, it simply closes down, but a hospital board could never close down. Its doors must always be open to suffering humanity. It cannot cut its expenditure so Jong as the sick and suffering require attention.” The service the Otago Board gave was very much greater than that of the Waikato Board, which had been used by the deputation speakers to illustrate some of their points. The board could quite easily cut clown its expenditure in one respect at the expense of its association with the Otago Medical School, which meant such a lot to the whole province, not to Dunedin in particular. The board

was ever alive to increased capital expenditure, and always did its best to curtail that. The board was well aware of the situation as it affected the county ratepayers. He explained that it did not cost the counties and boroughs; anything extra to collect the hospital rates, which could not be made smaller than at the present time. However, the matter would be referred to the Finance Committee, which would give it every consideration. If anything could be done, it would be.

The deputation thanked the board for its hearing and then retired.