Proposed Hospital for Paeroa.

Hauraki Plains Gazette, Volume XXXIII, Issue 4389, 13 March 1922, Page 1

Proposed Hospital for Paeroa.

Erection of Institution Piomised. An Unfortunate Legal Difficulty. Blocking the District’s Progress.

The following is a report of matters in connection with the proposed maternity hospital and casualty ward at; Paeroa. The gist of the subject is contained in a leading article in today’s issue, which may serve as an introduction to what follows hereunder. HOSPITAL BOARD’S RESOLUTION. The following resolution, moved by His Worship the Mayor (Mr P. B. Brenan) and seconded by Mr W. C. Kennedy, was unanimously carried at Wednesday’s meeting of the Thames Hospital Board : “ That the Board will proceed with the. erection of the maternity and casualty hospital in Paeroa, when the monies and l,ands promised by Paeroa organisations are paid over and vested in the Board.. The Board are prepared to purchase the land owned by the hospital trustees at the original cost price, on the understanding that the purchase monies are handed back.to the Board immediately as a donation. The trustees and others concerned must understand that it will be necessary for the trustees to find ways and means to comply with their deed of trust and that the finances if the Board are not in a position at the present time to proceed immediately with the erection of the proposed hospital, but the Board will use its best endeavous to have the hospital erected in Paeroa as soon as their finances will permit hnd the Minister’s consent has been obtained. The matter of the purchase of the land to be left to the Paeroa trustees.” —Carried. TRUSTEES’ POSITION. The following letter from Mr E W. Porritt (solicitor for. the Paeroa trustees), to the Mayor of Paeroa sets out the position of the trustees: — “ In reply to yours of the 14th inst, The Trust Deed provides for handing ove.” the property end funds to an established institution in the district but not to a proposed one. It appears therefore that the trustees of the local fund cannot legally transfer their assets to the Thames Hospital and Charitable Aid Board until that board establishes the proposed Maternity and Emergency Hospital. “The trustees are desirous of facilitating the erection of the proposed hospital, and do not want to place any obstacle in the way of one being erected as early as possible, as they realise the present and "growing need of it, but they, of course, must act

legally. “The trustees have power to sell any of their lands, so what I suggest is that the Board purchase from the trustees the sections owned by the trustees, at the original purchase price, so that the price can be restored to the fund, and when the hospital is erected, or has reached such a stage as to be an assured fact, then the trustees pay over the money ('including the price of the sections) in terms of the trust deed, which would be without conditions, and so enable the Board to obtain the Government subsidy thereon, and out of such moneys and subsidy recoup itself for the purchase of the sections and outlay on the erection, of the buildings. “Of course, you understand the trustees’ fund is for general hospital purposes, and not for maternity only, hence the necessity of there being an emergency ward, as previously mentioned during the visit of the Inspec-i tor-Gener,al of Hospitals. “If the Board agrees to this suggestion I.will get a meeting of the trustees to. give effect to it, and also to get an undertaking to pay oven in due course all funds in hand, so that the Board can work ahead without delay, on the assurance that the money will be forthcoming when required. In order to facilitate the matter of the transfer of the sections. it. is probable that the trustees would not ask for payment of the purchase price in cash, but would accept an acknowledgement from the Board that it owes the amount, the acknowledgement being subsequently handed back to the Board as a cash donation to carry a subsidy, but on this point the Board had perhaps better consult its solicitors as to its power to so bind itself, as subsequently the amount would have tb so through the Board’s books as purchase money paid and then shown on the other side, as cash donation received. Personally, I see no objection to it, as the entries would oe supported with vouchers for audit purposes. I have not consulted the trustees on this, but dp not anticipate any objection from them, as they all want to see the hospital erected. “The trustees are prepared to a. once facilitate the Crown sections reserved for" a hospital site being vested by the Crown in the Board, at the same time that the municipal reserve sections are vested in the Board. My suggestion for the Board to purchase applies only to the freehold sections owned by the trustees. . . “Briefly, the position is as follows : The trustees want the hospital, .and are willing . to give their land and moneys ,tp get it, but on account of the obstacles in the way they cannot

take a short cut to reach their destination, but must go round by the legal road, although it takes a little longer time.” HOSPITAL BOARD’S VIEW. The above-quoted letter w,as submitted to the Thames, Hospital Board; and the legal opinion of the Board’s advisers is as follows: “We have had the opportunity of perusing the declaration of trust which Mr Porritt sent us. We agree with Mr Porritt that strictly speaking the trustees would not be justified in paying the money over to your Board. “They could, however,, apply to the Supreme Court for permission to pay the money to you. When it is pointed out to the Court that this will bring in a substantial subsidy, we have no doubt that the. Court W'H sanction it. The Court would, 'however, require to be satisfied that you would undertake the building of a hospital in Paeroa without delay. The trust deed provides for the erection of a general hospital, and unless you would be prepared to erect th'is the Court would probably not sanction the payment of the money to you. “Unless application is made to the Court for permission, we have to advise that the trustees cannot pay the trust money to your Board.” THE MAYOR’S COMMENTS. The subject, was reported upon by the Mayor at Thursday night’s meetnig of the PaerdK Borough Council. Mr Brenan said he had endeavoured to get the Hospital Board to advisethe trustees, to buy M r Cassrels’ land tor the hospital site, but this effort was defeated. It was unfortunate that there were so many legal difficulties in the way. The trustees required the Board to erect the hospital, and then the trustees would hand over the money, according to their, constitutional rules. But the Health Department would never agree to this course. The land and the money would have to be handed over first. The Board passed a resolution that it would proceed with the erection of a maternity hospital and casualtyward at Paeroa as soon as the money and land was handed over, and the finances of the Board would permit them to take the work in-, hand. It would be necessary to apply to the Supreme Court to make such an alteration in-the trust deed as would enable the trustees 'to hand over land and money before the building was erected.

The Mayor .added that, he had done his best, and could do no more. The Hospital Board could not legally depart. from its present attitude.. The Board was governed by the Minister for Health. Cr. Marshall moved that the Mayor interview the trustees and ask them to remedy the legal difficulty in the way of handing over the money to the Thames Hospital Board. —Carried[We understand that the above resolution has already been conveyed to Mr Porritt, and that! no difficulty is anticipated in securing the necessary alteration to the trust deed. — Ed. ‘‘Gazette.”]