Earthquake Loan Bombshell

Hawke's Bay Herald-Tribune, Issue 150, 13 July 1937, Page 4

Earthquake Loan Bombshell

HOSPITAL PROBLEM Eoard Proposes to Budget fof a Deficit T00 LATE P0R A LEVY A requdst for payments of principal and interest on the rebabilitatxon !oan of £17,000 and the earthquake-repair loan of £66,850 was discussed by mefnbera of the Hawke's1 Bay Hospital Board at the monthly meeting in Napier yesterday. Oir the basis of £2,000 for the rehabilitation loan, ihe Treasury requires the pttyment of £200 on r capital and £70' in. interest, and upon £40,000 taken up of the larger loan a* payment of £573 on principal *Und £1,245 in interest is requifed. As the bdard has already made its -levy for the year, and the cOntributing local bodies have alrCady struck their rates, it was decided to apply to the Minister of Health to proceed with the programme budgeted for and thus complete the year with a deficit. The ehairman, • Mr C. Lassen, explaine'd that during the recent visit to Hastings of the Minister of Railways, the Hon. D. G. Sullivan, he had taken the opportunity, as representing the board, to place the. position before the Minister and ask bim to interc'ede with the Treasury on the board'S behalf. The Minister had replied that he realised that the demand was entirely unexpected and that it was not now possible to ask the contributing local bodies to meet it witb their rates. He had undertaken to plac'e the position before the authorities in the right quarters.Opportunity, Mr Lassen reported, had also been taken to place before the Minister of Health, the Hofi. P. Fraser, the board's case regarding the repayment of the loans.' At that meeting the Minister, while not committing himself to a definite statement, had said that the question was not of immediate conse quenCe and that the board would be given plenty of time to prepare for sueh repayment when the , oceasion arose. The meeting had been held about a year ago. "I suggest that on account of tbe shor't notice, although some of us wero expecting such a bombshell as this, We should ask the department for perxnission to go ahead with oUf budgeting," said Mr C. O. Morse. "Btxdgeting for a deficit is not a matter to be taken very seriousiy; Governments do it and other local bodies have done it, aiid in this instance we can claim justlficatloii for carrying out our budgeting. "Hospitals have a claim exceeding that of any other local bodies, for their work is caring for the poor and needy and the sick," he added. "1 would move that we ask the department to allow us to budget as arrauged.'i To this motion Mr Morse added a proposal that the chaifman's action itt appro&ehing the Minister should be approved. Tho motion was earried.