5
expected to follow."
The present despatch now
discloses the extent of the increased cost to
Government of this increased efficiency.
The budget for 1939 which was prepared
in accordance with the agreement reported in (1)
on this file shows an estimated income of $427,100
(including a Government grant of $121,000) and an
estimated expenditure of $827,741, viz., $786,895
for medical work and $40,846 for charitable work
and certain administration expenses. The increase
in expenditure of $229,773 as compared with 1938
is stated to be due partly to the continued increase
in the work which the hospitals are called upon to
undertake and partly to the higher standard of
maintenance and supervision which the newly
constituted medical committee has aimed at
establishing. The estimate also includes $80,000
on special expenditure necessitated by the
determination to secure greater efficiency from the
medical point of view.
At first the hospital Directors would
only accept the budget if the Government would
undertake to make up the deficit; but since this
was expected to amount to $400,641 the Governor quite
rightly found it impossible to give such an under-
taking, particularly since the assurance of virtually
unlimited support must have meant a relaxation in
their efforts to secure public subscriptions. But
as it is recognised that there must be a substantial
further increase in Government assistance if the
improvements are to be maintained, the Governor has
put forward instead the following proposals:
1)