Local Bodies Groan

Sun (Auckland), Volume II, Issue 380, 14 June 1928, Page 11

Local Bodies Groan

HOSPITAL-LEVY BURDEN

Suggestions for Relief

VOICING their protest against the increasing demands made upon them for hospital purposes, representatives of 32 local bodies in the Auckland Hospital district met in conference at the One Tree Hill lioad Board office last evening. Resolutions suggesting the easing of the burden on local bodies were passed.

The conference, which was held at sugg estion o£ the ° no Tree HiU , Board, was presided over by Mr. pobbie, chairman of the board. The chairman, in his opening ad- ■ quoted figures which illustrated °he rapid growth of the demands made local bodies for hospital finances, ■ the year 1924-25, the valuation of •hi hospital district was £65,253,768. mean population was 210,000, and total local body levies £59,816, which worked out at 5s B}d per head f mean population. E;ich succeeding Jearthe burden per head had increased •Jpldly, and fur the year 1928-29 the amount of levy a. head on the mean population was 9s 11 id. The valuaof the hospital district was £91.623,627. and tlio mean population ,jo QOO. The total local body levies £114,529. Thus the population had grown by 9.5 per cent., and the total levies by 91 per cent. CAUSES OF INCREASE Mr. Dobbie went on to say that the principal causes of the increase were loan charges and outdoor relief. Before 1921 the loan indebtedness of the hospital amounted to £ 85,090, which was raised in 1911-13, the terms being (or 36 to 40 years. From 1921 to 1928 a further £285.000 was borrowed, £35,000 running for 21 years, and the balanco of £250,000 being repayable

in 10 years. In the 10-year loan, the sinking fund amounted to 7.95 per cent., which was practically £20,000 a year.

Speaking of outdoor relief, he said that the cost in 1924-25 was £21,312, but * n 1927-28, it had grown to £33,632, an increase of 58 per cent. Approximately 70 per cent, of the outdoor relief was due to unemployment. Another cause of the increased levy was the non-payment of fees by patients. Apparently only 37 per cent, of the fees charged were ever collected. After this information had been placed before th© meeting several resolutions to the Government suggesting means of relief, were passed. Tho first of these was:—“Outdoor relief expenditure being now largely caused by unemployment, it should be a charge on the consolidated fund, as this problem is a national, not a local one." Mr. A. J. Entrican (deputy-Mayor of Auckland) said that the Government was resolved to make th© local bodies bear part of the burden of unemployment. He did, however, think it unfair that people who had been in th© town a short time should become charges on the city. He felt that the districts from which they camo should be held responsible. Another speaker suggested that the people, while employed, should pay into an insurance fund to support themselves in bad ti mes. The next resolution was:—“Sinking funds to extinguish loans for permanent buildings should be covered by sinking funds not exceeding one per cent.” Speaking to this, Mr. Entrican said that a sinking fund charge of eight per cent, on a £250,000 loan for ten years was absurd. The other resolutions carried were: (a) “The incidence of taxation for hospital purposes is somewhat -unfair, in that local-body levies are raised on capital value tax alone, many other forms of wealth escaping.” (b) “That the Auckland Hospital Board be requested to adopt a more strlgept method of collecting patients’ fees. It is common knowledge that many patients who are able to pay plead poverty and escape. In cases where such conduct is suspected, the patient ought to be sued so that the magistrate may assess the fee.”

At the end of the meeting the -chairman said that the conference had not met to criticise the hospital board, but on the other hand Wished to help the board as much as possible.