HOSPITAL RATING.

Manawatu Herald, Volume L, Issue 3931, 16 April 1929, Page 2

HOSPITAL RATING.

County Councils have been urging the Minister of Health to adopt a new basis of hospital rating. The Minister has made no promises, beyond the promise of ciareful consideration and a desire to discover a more perfect basis of rating. He is doubtless aware, says 'the Wellington Post, that there is a side to this question which the counties deputation did not emphasise. The counties are complaining because the rate is pressing heavily upon them; but the boroughs have also that ground of complaint. They have had it for many years. The counties suggest that to make the levy more equitable it should be half on capital value and half on population. But this is not such a simple solution as it appears at first sight. It is not a question of transferring half the hospital burden to the population basis. Half of it is no'w upon a basis which, if it is not population,’ is certainly not capital value. The Government provides approximately half of hospital cost, and Government revenue is obtained from income tax and Customs duhies to a much greater degree than from land. It follows, therefore, that if the basis proposed by the counties were adopted for the local levy about one-fourth o:f the hospital revenue (disregarding fees) would he obtained on the capital basis. The counties argue that they pay disproportionately for the services rendered; but it must not be overlooked that, if they were under ,the necessity of providing their own (hospital facilities independently, it would cost them much more than it does while they share with the boroughs. The ex-Minister of Health 'wisely proposed that boroughs and counties should submit a joint scheme. They have not yet done so, but the counties are still trying to pass the burden to the boroughs. It is improbable that Such one-sided consideration will lead to the production of ian acceptable scheme.