MANY OBJECTIONS

Hauraki Plains Gazette, Volume 53, Issue 32407, 15 March 1944, Page 5

MANY OBJECTIONS

HOSPITAL BOARD LOAN REBUILDING AT THAMES local body protests MATTER DEFERRED FOR MONTH Objections from five local bodies, three branches of the New Zealand Farmers’ Union and a ratepayers’ association to the Thames Hospital Board’s proposal to raise a loan of £50,000 for hospital reconstruction at Thames were received at Tuesday’s meeting of the board. Objections were received from the boroughs of Thames and Waihi, the counties of Thames, Coromandel and Ohinemuri, the Waihi, Matatoki and Mangatarata branches of the New Zealand Farmers’ Union and from the Waihi and Waihi West Ratepayers’ Association. The only local bodies in the hospital board area which did not object were the Hauraki Plains County Council and the Paeroa Borough Council. After lengthy discussion the board decided to defer the matter for one month to enable the objecting bodies to place their cases before the Minister of Health. The Commissioner for the Borough • of Thames 'Mr A. L. Burke, wrote as under: — “At the outset we admit that there is abundant evidence that there is a serious shortage of accommodation both for patients and staff and that the remedying of this shortage is a matter of urgency. It would appear therefore that your board in seeking authority to raise a loan or loans, is taking the only course open to it as it is obviously impossible to carry out works of this magnitude out of its ordinary revenues. Thames’ Financial Position “At the same time, the effect of such a policy on the contributing local authorities cannot be ignored. The financial position in which Thames Borough found itself some years ago is well known. It is also a matter of common knowledge that, what brought about such a state of affairs was over-borrowing. The borough and harbour loans were converted in 'ID4O into one conversion loan of £290,800 and the annual charges on this loan total £12, 000. “The borough is faced in the immediate future with the construction of a new water scheme, the annual charges on which will be in the vicinity of £2OOO. The amount of rates levied annually in the borough is £lB,OOO and it will be seen therefore if we add £l'soo for hospital levy to the £12,000 for loan charges and the £2ooo' for the water scheme,there is very little margin for the maintenance of the essential services of the borough. “ Very careful consideration has been given to this question by the Mayor and members of the Thames Borough Advisory Committee together with the writer and we are agreed that if the financial stability of the borough is to be retained, the contribution from the Thames Borough Council must be fixed or pegged at an amount not exceeding £l5OO per annum. “This conclusion has been reached not with a desire to evade responsibilities but purely on the grounds of capacity to pay. I will be obliged therefore if you will submit our view to the loans board when sending on your application- to borrow the sum •of £50,000. Thames County Objection The objection from the Thames County Council read as under:— “My council has given the proposal to raise the £50,000 loan very serious consideration and has instructed me to reply that it is obliged to object to the raising of the proposed loan, if iby the raising thereof, means the increasing of the already too-high contribution from this council for hospital purposes. “As the members of your board are aware, the loan indebtedness of this county calls for payment of a large sum to meet interest and sinking funds, aggravated by the fact that the rating areas have been lessened by the taking over of lands by the State Forest and Crown Lands Departments. There is also a fairly extensive acreage in the hands of the natives. “Under above circumstances my council has no alternative but object to your board applying for permission to raise the £50,000 loan.” The town clerk of the Waihi Borough Council wrote as under: — “ I am directed by my council to

object to the loan as it is of opinion that full information should be "made available as to the total cost of the proposed alterations and additions to the hospital and the additional amount that will be required from constituent 'bodies by way of levy to meet such expenditure. I 1 urther, the council considers that the present hospital levy is high and any further increase to build up funds for hospital extensions and alterations and to provide interest and sinking funds on the proposed loan would be unduly burdensome to the ratepayers of Waihi.” Time Not Opportune The clerk of the Ohinemuri County Council wrote as follows: — “I have to acknowledge receipt of your letter of January 21 advising that it is the intention of your board to submit a resolution to its meeting on February 14 to apply to the Local (Government Loans Board for authority to borrow £50,000. This was communicated to my council at its meeting on February 9 and I was instructed to advise that this council objects to the proposal unless your board gives an undertaking to adhere to a policy in line with the following resolution : ‘ That in the opinion of ; this council the existing facilities should be made use of until such time as new buildings, furnishing and equipment can be provided at a considerably lower level than the present level of prices and we urge the hospital board in the meantime to proceed only with preliminary arrangements and such work as may be necessary in order to make possible the erection of the main building as soon as conditions are more favourable.’ ” t The clerk of the Coromandel County Council wrote as under: — “In accordance with the provision of the Act I have been instructed by my council to lodge an objection to the application intended to be made by the Thames Hospital Board for authority to borrow the sum of £50,000 as advertised and set out in your letter of January 21, 1944. Site Not Approved “That reasons for objection are set out hereunder: — “I.—Site: As intimated by resolution of the Coromandel County Council and conveyed to your board in October, 1943, is as follows: 'That this council expresses its opposition to’ the expenditure of money on the building of a new hospital on the present damp and depressing site, we are of opinion that the present site has a definite detrimental psy- • chological effect on any patient and suggest the securing of a reasonably central site where the best possible views and the maximum amount of sunshine be the main guiding factors.’ “2.— From information and reports received the £50,000 will not nearly cover the completion of the board’s rebuilding programme and until the whole cost is known the contributing authorities cannot have any idea what their ultimate liabilities will 'be and consequently cannot frame their own financial policies without a fear of overburdening same. “3.— This council is of the opinion that in view of the large total cost of the board’s proposals, the contributing authorities should be supplied with detailed estimates of the various parts of the works with a statement of the date the estimate was made ' and the person or persons responsible for the compilation of the same, to this local body’s- knowledge recent work carried out by the board has , shown in actual costs of 100 per cent, increase on the estimates. “4.—That as far as is known the suggested loan is for doing work to the Thames Hospital only whereas when a large loan scheme such as this is suggested this council considers that all the hospitals in the hospital ! district should be reported on as any major capital expenditure may be re- [ quired and for the purpose of deteri -mining whether a scheme of special- > isation with decentralisation should ; be adopted in conjunction with the , present hospital accommodation in > the whole of the Thames Hospital i Board district.” * High Building Costs The secretary of the Waihi branch 5 of the New Zealand Farmers’ Union 5 wrote as ’follows:— ' “This branch of the New Zealand ' Farmers’ Union as ratepayers protest against the application for the ’ proposed loan because of the present i high cost of building. Under stabilisation our costs are supposed to be T fixed and this loan means a substan--3 tial increase in our rates. We feel too, that the manpower position is too r acute.” Protests against the landholders be- - ing asked to carry the cost of the loan were received from the Manga- - tarata and Matatoki branches of the New Zealand Farmers’ Union. . The Waihi and Waihi West Rate-

payers’ Association write objecting to the loan stating that they did not agree with the policy of the -Department of Health as regards major capital expenditure. _ : " Mr A. -H. Sutton (Hauraki Plains) said it showed there was strong opposition against the spending of so much money. Mr J. W.. Danby (Thames) said he was still of the same opinion, as he was in the past. It was necessary to spend the money to provide accommodation for the sick of the area. He added that he was surprised at the attitude of some of the outside areas who were objecting to the expenditure of a sum of money in Thames. They had not opposed the spending of large sums of money m their own areas. Conference Suggested Continuing, Mr Danby suggested that the board invite the Minister of Health to meet the representatives of the contributing local bodies in conference in an endeavour to secure agreement on all sides. This- would show that the board was not just overriding the contributing local bodies but was willing to give their objections the fullest possible consideration.

Mr W. Madgwick said he considered such a conference would be a waste of time. He urged that the board carry on and let the Loans Board deal with the objections raised by the local bodies. Mr W. C. Kennedy after a lengthy address on the question of the most suitable site agreed with Mr Danby that a conference should be held with representatives of the contributing local bodies at which the Minister of Health could be asked to attend. If necessary he would support a suggestion that a Royal Commission be appointed to go into the whole question. Mr A; H. Sutton spoke in support of the suggested conference. He considered that the opposition was mainly against the incidence of taxation- and such a conference would- enable the public to place their views before the Minister.

Loan Should Go On Mr C. W. Parfitt urged that the board- proceed normally and send the loan proposal and the objections onto the loans board- for them to decide. The objection- was mainly against the incidence of taxation and not against the administration of the hospital board. This was the only course to follow. Mr J. J. Shallue (Ohinemuri), agreed with Mr Parfitt. He did not think the board should call such a conference as it might only create more ill feeling. The loan- proposal should go -forward-. Mr C. W. Winder (Thames County) asked that the loan be deferred for. one month. He explained that county councils were holding a conference in Hamilton on Thursday on the question of hospital rating and he considered the loan should be deferred until after the decisions- of that conference were known. Mi* A. G. Davis (Hauraki Plains County), opposed the suggestion that the board wait. He urged that the whole matter be placed before the loans board which would finally decide upon the whole matter. Mr J. Cornes (Waihi) agreed that the board should continue normally with its proceedure but he could see no harm in holding a conference at which the Minister of Health was present. Hospital Must Be improved The chairman, Mr P. E. Brenan, said considering the objections, he regretted the parochial tone in some of them. The time had now arrived when the principal hospital had to be improved and the board had decided to rebuild on the Thames. The objections were not against the hospital administration but mainly against the question of hospital taxation. The objectors therefore should approach the Government, asking for relief, but this was not the responsibility of the board. They had to carry on with their job as the present building was not capable of giving an adequate service to the sick people of the district. He was in no way opposed to the proposal that the contributing local bodies meet the Minister in conference in an endeavour to secure a change in the question of the hospital taxation. However, this was not the responsibility of the board which had ■merely the task of providing hospital accommodation for the sick of the district. Finally it was decided to delay the question for one month to enable contributing local authorities to place their objections before the Minister of Health.