Fed: Other aged care sell-offs may follow - Labor

AAP General News (Australia)
02-11-2004
Fed: Other aged care sell-offs may follow - Labor

CANBERRA, Feb 11 AAP - The Salvation Army's sell-off of most of its aged care homes
was a worrying sign that other non-profit organisations might be forced to do the same,
Labor warned today.

Opposition aged care spokeswoman Annette Ellis said the Salvation Army's decision was
not surprising because the aged care sector had been under stress for some time.

The Salvation Army has confirmed it will sell 15 of its 19 aged care centres and retirement
villages around Australia.

Seven of the centres are in Victoria, and in total 2,390 beds are to be sold.

"It's really a very strong sign of the pressure that the aged care sector itself finds
itself today," Ms Ellis told reporters.

"It's also a sign that if a not-for-profit organisation operating aged care systems,
like the Salvation Army, find this pressure so much that they are closing their facilities,
that we can imagine the pressure felt for other not-for-profit organisations as well.

"My fear, of course, is that this may not be the only organisation forced to take this
sort of decision."

Ms Ellis said government had to bear a great deal of the responsibility for the situation
and urged the release of the Hogan report into aged care services.

"The Hogan review - $7.2 million worth of taxpayers' money - was supposedly commissioned
to find out what exactly is wrong in the pricing and financial viability of the aged care
sector, she said.

"That Hogan review has been, I understand, given to government but it remains secret."

She said issues facing the sector included bonds, indexation, ongoing recurrent funding,
capital funding and remuneration for staff.

"Today's sign, when the Salvation Army decides to do this sort of thing, is a very
clear indication that what we've been saying, and what the sector has been saying, about
the sector facing crisis, is absolutely true.

"The question is, if they're finding it so difficult, and I think, in their statement
... you will see that the Salvation Army themselves are saying that the ongoing capital
and other requirements are too much for them to consider, so I wonder who will buy them."

AAP dep/sb/it/de

KEYWORD: AGED SALVOS LABOR

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