HOSPITAL SUBSIDIES.

Hauraki Plains Gazette, Volume XXXII, Issue 4324, 30 September 1921, Page 2

HOSPITAL SUBSIDIES.

NEW SYSTEM DEMANDED! BIG HAMILTON CONFERENCE. The inequitable system on whicu the Health Department bases its subsidies to Hospital Boards has long been a source of dissatisfaction to and'complaint by the Waikato Hospital Board, which body recently circulated different boards in the Dominion with a view to getting the system altered. The propsal met with good response, but the Department, while recognising that the present system is a wrong one, proposes to adopt another, which, while better, does not give the necessary satisfaction, At Hamilton, last week, a conference of representatives of local bodies in the Waikato Hospital Bpard district, which by the way js the largest in New Zealand, was held to discuss the matter, and was very largely attended, amongst those present. being: Messrs C. Johnstone (chairman), Raglan County Council • S. Reid, Waipa County Council ; J. P. Bailey,. Waikato County Council; F. - Potts, Waitomo County Council; and Otorahanga Town Board; C. J. W. Barton,., Hamilton County Council; F. W. Walters, Piakb' Couftly Council; H. Lewis, Matamata County Council; R. Boddy, Awakino County Council! A. Blackman, Te Kuiti Borough Council ; H. M. Margin Rotorua Borough Counci.li; S. Lewis, Cambridge Borough Council; S. Ju Fortescue, Wharepapa Road Board and two other boards ; F. J. Marshall, Morrinsville Borough Council; F. Harris, Huntly Town Board ; J.Price, Matamata Town Board ; p. Worsford and T. Fry, Mahgaorenga Road Board. ECONOMICALLY UNSOUND.

Mr Johnstone explained the very unfair position in which some hospital boards were placed through the differential subsidy system which at present existed, and pointed out that the Franklin County, which bounded on the Waikato County, received a much higher ospital subsidy for no apparent reason than Waikato did. The subsidy was based on the amount of the levy, and if' the Waikato board was extravagant the levies on the local bodies would be increased and the rate of subsidy would be correspondingly increased by the Government The whole system was economically unsound and went to encourage indolent methods. The Waikato Board was well ahead so far as collecting its fees went, but should i,t be careless or neglectful in this respect the local bodies would be called upon to pay more. The Hdspita.li Commission had quoted the case of Patea as an argument for continuing the present- system, but Patea was only a small place and could not he viewed on the same basis with a great district like Waikato. The speaker considered, unless the Government was prepared to pay a flat subsidy, that the Board would be justified in refusing to raise any. more money for hospital extensions and other necessary work. Mr j. P. Bailey said that in a boosted district such as Waikato, with a big valuation, the hospital levy was based upon thejnflated -values,, while in Auckland it was upon a valuation years old. The Health Department was assuming the role of the Government, and was dictating to the people of the country, what rates they should pay. It was time the people took a firm stand and demanded a flat iate, which was the one equitable system. The Department had overstepped Its duties altogether and should be put back in its place. .Mr Walters said it might be possible that Auckland had a large number of poor patients who were unable to pay, and this probably had influenced the Government. Mr Bailey said he saw no earthly reason why Waikato, .which was the fifth largest hospital in New Zealand, should- be placed on the lowest subsidy. Mr Johnstone said Mr Bailey had hit the nail on the head when he said 'the subsidy was based on the valuation. / MAORI POPULATTON. ; Mr Potts said Waitomp had been twice valued in eight years, and Auckland had not been valued for about ten years. In the Waikato hospital district there were over 8000 Maoris—the largest in any hospital district in New Zealand, while there were large areas of native lands. The* Board did not collect 5 per cent, of the native fees.

Mr Stewart Reid said that Waipa paid £l3OO three year,s ago in hospital levies, and while the‘district was not one whit wealthier at present than it was at that time, its hospital contribution was now £3200. The system of rating was fallacious, for valuations were not a true indication of wealth. There was a great deal of charitable aid distributed in the Waika,to. If the people were taxed any more they would revolt against it, as they would be unable to bear the strain.

Mr J. Price considered there should be 'a flat rate hospital flee throughout the whole of the c.ountry, and that the Government should give a flat rate subsidy.

Mr S. Lewis agreed with the chairman and Mr Bailey. He thought any specially poor district could be assisted by a special, grant. At present the boroughs had the population, but the counties had the lan£ values and the former did not pay in the same proportion as the county residents were compelled to.

Mr Walters believed it would be quite right for the Government to give a higher subsidy to a big : city where there was a larger proportion of poor. people. Mr M. H. Lewis said that Mr Anderson (chairman of the Matamata County Council) was unable to be present, bu.t he was fully ,in accord with, the views of the cha/rman of the meeting.

Mr Boddy considered the m.ost equitable method ?of subsidy was the flat rate, with special grants in needy cases. f

The Rotorua county representative mentioned that Ijis county had a large area of native land, and tbg

rates were uncollectable. - He supported the flat rate, with special grants in special cases. M>- Fortesque, representing! three road boards, supported the flat rate. Mr Barton said the Hamilton borough was in sympathy with ,the flat rate. The present scheme doubtless helped the exchequer, but the burden was being put by degrees on to the occupier, and the time would come when they would get no subsidy at all if they did not kick, Mr Johnstone: They are gradually weaning us. .‘Mr Barton added .that there was little use in going to departmentalofficers. They must go to the legislature. With regard £o Auckland., there were large areas of farming land in the Auckland Hospital district, and why should the residents of the Franklin electorate, occupying the same kind of land and right alongside us, enjoy these special benefits ? What reason was there for it ?

Mr Blackmore.(Te Kuiti) considered the whole system of rating should be revised; as a big injustice was being done at the present time. SMALL RATE, HIGH SUBSIDY. Mi - W. I. Conradi (secretary of the Waikato Hospital Board), in answer to a question, said the present system dated back ip 1904, and under the schedule the factors taken, into consideration. were population, valuation, maintenance “levy, and the capital rateable value. If! the district struck a small rate iji got a high subsidy. The reason the subsidy had been lowered to Waikato was because the valuation in certain portions of the district had gone up, and the higher these soared the rate per head of population increased and the subsidy decreased. The present system .was supposed to be based on the £ for £ system. During the first year under that system Waikato received £1 Is 3d subsidy, but .the amount had now gradually dropped until it was pnly 12s 3d for maintenance. Auckland to-day only received about 16s 3d. In the meantime .the Government had been robbing the hospital boards of- New Zealand of about £15(1,000 a year, and there was little chance, fie thought,, of getting the Department to amend the system. To help small cpunties with low valuations and the larger towns the Department had now thought P.ut another scheme, as they recognised that the present system was bad. Under the new scheme the Government would treat the Dominion as if it were one big board, paying £ for £, and using the figures of each district’s capital rateable value and ,the amount required for maintenance in each district as a basis. Then the whole of the capital rateable value of the whole Dominion and the whole of the boards would be used in the ratio of the capital value and maintenance of each, in arriving at the amount payable .to each. Waikato under this scheme would obtain nearly the minimum subsidy, but not quite. It had been suggested by the Commission that l-20th of .the amount required should be taken from the total and allocated to the four big hospitals, so that under this system the country districts would commence' to suffer proportionately right av<ay. After that the total valuation and maintenance would be divided up pro rata, and the maintenance levy and valuation of each district, and distributed pro rata. The speaker held tha.t if East Taupo ar-d Rotorua county and town, which had a rateable value and were of no use to the hospital, were cut out ofl the Waikato district it would be to the-interests of the Board. ’The Waikato board’s area was the largest in .the Dominion. Under the proposed new system the four centres would get l-20th‘ more than the other districts, and would then, share pro rata with the other districts. The whole Dominion was practically being treated as one board but the system would be spoiled by taking off l-20th to commence with, as proposed

THE RESOLUTION.

Mr Johnstone moved, “That, this meeting of delegates representing the whole of the local bpdies in the Waikato Hospital district, ask .the Government to adop£ the flat rate system of subsidy on maintenance levy.” The motion was seconded by Mr F. J. Marshall, Mayor of Morrinsville, and was . carried unanimously. A deputation, consisting of Messrs J. P. Bailey, S. Rieid, C. Johnstone, and R. Boddy, was appointed to wait on the Minister, while it was also decided to circularise every member of both Houses on the matter. "The question of native rates was later mentioned by the chairman, who said it had been suggested in some quarters that this rate should be "cut out” altogether. He did not think so, however. He considered it should be paid by the Government, otherwise the ratepayers of the district in which large areas of native land existed would have to pay the native rates. In the Raglan county there was native land valued at £248,465,, which should produce £175 in rates, but didnot.

The suggestion met .with general approval, and a resolution calling upon the Government to pay the native hospital maintenance levy out of the Consolidated Fund, the same to be a- charge bn the land, was carried unanimously.—Times.