HOSPITAL SUBSIDIES.

Taranaki Daily News, 8 November 1920, Page 5

HOSPITAL SUBSIDIES.

PRESENT SYSTEM DROPPED. COMMISSION TO REPORT. (By Wire.—Parliamentary Reporter.) Wellington, Last Night. The Minister for Health (Mr. Parr), speaking on the Hospital Amendment Bill, said that since 1009 the Hospital Boards had been working under a system of subsidy that had proved inequitable and unfair. The system provided, in effeot, that the higher the rates paid by the people of a district the lower the subsidy paid by the Government. The district that did most for itself was penalised, while 'the district that did not collect much in rates got a large subsidy.

The Minister said the Department had tried to devise a new and improved scale of subsidies, but had found that the preparation of a suitable schedule was exceedingly difficult, owing to varying local conditions, and tlie need for giving some special consideration to poor and sparsely populated districts. He had considered four schemes and had embodied the best one in the Bill, but this .schedule, while an improvement of the present system, was not perfect, and lie had welcomed a suggestion made by the Public Health Committee of the House that the question should be referred to a commission of inquiry during the recess. The schedule -and- its accompanying clauses accordingly had been cut out of the Bill.

He would prepare legislation for nest session after he had received the report of the commission. He hoped that in the meantime some assistance might be given to the more necessitous .boards to tide them over the intervening period. He realised that all the boards were facing serious difficulties, particularly in making up leeway due to the war, and that some of them found it difficult to carry on at all. The Bill was proposing to relieve the situation to some extent by granting the boards power to borrow money under proper conditions.