HOSPITAL FINANCE

Wairarapa Times-Age, 30 August 1939, Page 5

HOSPITAL FINANCE

THE DEMAND FOR RATING RELIEF VIEWS OF ACTING-PREMIER. CENTRALISATION OPPOSED. (By Telegraph—Press Association.) WELLINGTON. This Day. As an indication that some substantial relief should bo given to local bodies through the subsidies to hospital boards, Mr A. E. dull (Opposition, Waipawa) moved in the House of Representatives yesterday an amendment that the £988.585 to be voted for hospitals be reduced by £lOOO. After a discussion lasting an hour and a half the amendment was lost by 36 votes to 22. The increased rates imposed on ratepayers because of higher hospital levies, said Mr .lull, was a subject of protest by town and country. Al its recent conference the Counties’ Association had expressed the opinion that pending an alteration in the system of hospital finance the subsidies payable Lo hospitals from the Consolidated Fund should be £2 to £1 instead of £1 for £1 as at present. The Acting-Premier (Mr P. Fraser) said he knew what the counties wanted, but he also knew they would not get it. He would not say that the system of hospital finance was perfect and that it should remain static for ever. He had to take a stand, however, for the public purse against those who wanted to increase subsidies from the Consolidated Fund (Opposition laughter). The Opposition had been talking about extravagant expenditure and now wanted to put nearly another £1,000,000 on to the Consolidated Fund. Hospital boards were endeavouring to catch up programmes they could not overtake in the years of the depression.

“The country will have to determine whether we have a national or local hospital system," said Mr Fraser. “Personally, I think it would be a retrograde step to have a national system. If finance is to be centralised control, 100, will have to be centralised. I think we should stop to think what the effect of such a proposal might be." Mr Broadfoot (Opposition Waitomo): “Don’t you think that should apply to transport?" Mr Fraser said he was only pointing out the dangers of centralisation of all controlling bodies. There was no doubt that , a scheme of hospital centralisation could be efficiently administered by the Health Department, but the country would suffer by the loss of local interest. In Wellington one found there were about 50 per cent too many patients for the hospital, and the same conditions applied elsewhere. It would be a disgrace if the position were not faced up to. He did not think there was an excess use of hospitals, but that would largely depend on the ethics of the medical profession. No matter what Government was in office, it would resist a proposal to draw the whole of the subsidies from the Consolidated Fund. Whatever the defects might be the New Zealand hospital system was the best rn the world.