HOSPITAL RATING

Wairarapa Times-Age, 17 March 1939, Page 5

HOSPITAL RATING

DEPUTATION TO MINISTER BASIS OF (PRESENT SYSTEM WRONG. CAPACITY TO PAY NOT RECOGNISED. (By Telegraph.) (Special to “Times-Age.") WELLINGTON, This Day. A combined deputation representing the whole of the rating authorities of New Zealand waited on the Minister of Health, the Hon P. Fraser, in Wellington yesterday regarding hospital rating. Messrs C. J. Talbot, chairman of the Counties Association, J. Monk, chairman of the Horowhenua County Council, a member of the executive oi the Counties Association and a member of the Palmerston North Hospital Board, and Mr Collis, chairman of the Kairanga County Council put the case of the counties before the Minister. The counties asked that the whole basis of hospital rating should be reviewed as the result of the proposed social security legislation and that until the basis of hospital rating had been reviewed the Government should increase the hospital subsidy to 2-1. The Minister plainly indicated that as far as the question of subsidy was concerned there was very little prospect of giving any further subsidy at the present time. Speaking on behalf of the. Municipal Association, the President, Mr T. Jordan (Mayor of Masterton) said the present system was inequitable, being based upon property, irrespective of earning power, whereas it should.be based on the capacity to pay, as had been adopted by Parliament in the Social Security Act, under the provisions of which portion of the hospital expenditure was to be raised. The Municipal Association asked that the whole of the hospital expenditure should be levied in that manner. Mr Jordan pointed out that if the national .income was as stated by the Government in its original proposals. £8,500,000, then the additional amount required to meet the complete hospital expenditure (an amount of over £BOO,OOO was at present levied on local authorities) could be found by increasing the social security tax of Is by little more than Id.

Mr Fraser said that this might raise the question of the nationalisation of hospitals. The majority of the deputation were prepared to accept this in order that the injustice that now existed would be put right. It was pointed out to the Minister that hospital boards had very little power now, owing to the overriding consent of the Minister and his Department. Mr Fraser promised to place the representations before Cabinet for consideration and to give the deputation a written reply.