that a surgical wing at the hospital will be closed.

Mr. Martin admitted yesterday that patient occupancy and revenues had declined.

But he said no decisions had been made on which areas would be cut.

King Edward VII Memorial Hospital's reduction in patients this year can be attributed to several factors, Mr. Martin said, including a lack of confidence in the hospital.

A declining population, improved efficiency in the patient discharge process, and people's reluctance to take time off to have elective surgery, were also given as reasons for the hospital's low occupancy.

Government's freeze on subsidy to the hospital this year has also forced the hospital to look at cuts.

"We are facing severe financial constraints and we're looking at budget cut possibilities,'' Mr. Martin said. "But no decisions have been made.

He also said he was not prepared to speculate on which wing will be closed, if any.

"No wing has been singled out,'' Mr. Martin said. "We're looking at all of the areas. We're trying to keep the cuts to a minimum and there are no proposals right now for the closing of a wing. There's no proposal of that magnitude on the table now.

"This is an ongoing process. It depends upon a variety of things, including approval of 1993/94 hospital rates and the amount of Government subsidy that is approved.'' The hospital's subsidy for 1993/94 will be $25.5 million, up from $24.5 million for the current year and $24 million in 1991/92.