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Wairarapa Times-Age, 3 June 1942, Page 4

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OF HOSPITAL TAXATION POSSIBLE DURING WAR PERIOD. PRIME MINISTER’S REPLY TO DEPUTATION. (By Telegraph—Press Association.) WELLINGTON, This Day. Replying to a deputation from the Wellington City Council which interviewed him yesterday on the subject of hospital rating, the Prime Minister (Mr Fraser) said the question of whether a greater contribution from the Social Security Fund could be made to assist in meeting increased costs would be looked into. The Budget for the year had been made up, and whether it would be possible to do anything this year he did not know. However, the matter would be considered and also any special impact of the war on the hospital system. Mr Fraser added that he would like to say quite definitely that on no occasion was it intended, nor had it been suggested, that the Social Security Fund should bear the whole of the hospital expenditure. As to the main question of a revision of the system of hospital taxation, Mr Fraser said he could hold out no hope of any adjustment during the war period. It was impossible for the national finances to bear an additional strain at the present time. If it was decided at any time that the hospital charges should be borne by the national finances, then it would follow that hospitals would be nationalised and local control would be more in semblance than in fact, because there would be no constituency except the national constitunecy as far as expenditure of money was concerned. There. might be local committees, but certainly there would not be hospital boards maintained as they were at present. Mr Fraser said he was -not putting up a case for nationalisation, because he was a strong believei’ in local control. The outstanding point and determining factor would be whether the health of the people would be better served by a national form of hospital organisation. There was a great deal that could be said for it, but also a whole lote that could be said against it. His'mind was not made up on that point. If the people wanted it, then it was a matter any Government would have to take into consideration, but he could not go to the Government in the midst of the war and advocate that the State should take over the whole load of the hospital charges.