Luke Hartsuyker (Cowper, National Party) Share this | Hansard source

I welcome the Aged Care (Bond Security) Bill 2005 and cognate bills for providing a commonsense and effective solution to the issue of accommodation bond security that will bring increased peace of mind to many residents of aged care facilities and their families. It is important to note that there have been no reported cases of a bond balance not being refunded as a result of an insolvency or a bankruptcy. However, it is right that we should not rely on this state of affairs to continue and should instead provide further safeguards. In such an event, one can imagine the anxiety of those residents and their relatives faced with the prospect of finding a new home. One would not want it to be compounded by doubts about the safety of the accommodation bond, which might be crucial to their financial arrangements. Indeed, it would be a grave injustice if such bonds were to be subsumed in the assets of an insolvent company. This potential injustice would be compounded by the growth in the value of bonds, the average value having increased from some $26,000 in 1996-97 to $127,000 in 2004-05. The total value of bonds held in 2004-05 was some $4.3 billion.

Electorates like my electorate of Cowper are becoming increasingly the destination of retirees, many of whom will eventually need the benefit of some form of aged care. I shall come shortly to the very welcome measures that have been taken to help many of these retirees to live in a secure and caring environment or to stay in their homes with appropriate help. However, the fact remains that demand is growing and the government needs to do what it can to encourage providers to invest to meet the needs of that demand. The measures in these bills go some way towards achieving that end.

It is entirely right, as the Hogan review pointed out, that the government has an obligation to ensure that the funds invested in accommodation bonds are not exposed to risk. Hogan went on to recommend that a levy be raised from care providers to establish a guarantee fund held by the government. While this approach clearly provides the security required, it has the disadvantage of tying up funds that could be used to help meet that growing demand. That is why I welcome the commonsense approach proposed in these bills. The fact that the government will act as a guarantor of the bond balances in the first instance and will reimburse residents affected by a bankruptcy should provide residents with much-needed peace of mind. They need not fear that payments will be delayed while negotiations take place in connection with the bankruptcy. The fact that a levy will only be imposed when required will avoid the necessity of tying up providers’ capital, capital which could be put to better use in providing more facilities.

When money is held on behalf of others, particularly those members of our community who may be frail, it is essential that those holding the bonds should manage the funds safely, effectively and openly. I therefore welcome the strengthening of existing prudential measures which set standards with regard to liquidity, record keeping and disclosure. The Aged Care Amendment (2005 Measures No. 1) Bill 2005 will require more information about the way that these funds are being managed—hence more security—and lessen the risk of a provider becoming insolvent or bankrupt.

These measures affect a sizeable proportion of my constituents. In Cowper the percentage of people aged over 65 is double the New South Wales average. Such a statistic reflects the increasing number of people who are relocating from major metropolitan cities and from other regional areas, seeking a coastal lifestyle and retirement—a lifestyle in the most beautiful area of Australia. Of course, the sea change phenomenon is not something that has just happened over night. For years Australians have been migrating to coastal areas to enjoy their retirement. However, in regions such as my own electorate on the New South Wales North Coast the real difference over the past 10 to 15 years has been the volume of people who have been moving to the coast from the cities and western country areas.

This demographic migration has naturally lead to an increase in the demand for aged care services, as I noted earlier. This is where the coalition government sets itself apart from the members on the other side of the chamber. In 1996, when the coalition was elected to government, the recurrent aged care spending in my electorate was just $13.5 million per annum. When this government came to office, local aged care facilities were struggling to find beds to meet the demand for their services. There were no community aged care packages which provided elderly people with the choice of remaining in their own homes rather than going into a formal aged care facility. Similarly, there were no extended aged care at home places. Under 13 years of Labor, aged care was put on the backburner and many Australians struggled to access appropriate care in their retirement years.

This is an important point because the legislation which is before the House today is an extension of the coalition government’s commitment to providing peace of mind for older Australians. If you ask most older Australians what makes them comfortable, they will tell you that access to health care and their personal security are of paramount importance. These two factors are vital to retirees enjoying their senior years.

I will now turn to some of the achievements in aged care in my electorate as a result of the coalition government working closely together with the aged care sector. Since I was elected as local member in 2001, the Cowper electorate has enjoyed a very close association with two excellent aged care ministers: Minister Andrews and Minister Julie Bishop, who is at the table today. My constituents welcomed both ministers to the electorate during their tenure. The aged care providers appreciated the time made available by those ministers to meet with them and discuss their concerns.

The additional investment which the coalition has made in aged care is evident right across the region. For example, in Yamba we have seen the Caroona Hostel aged care facility expanded to cope with the increase in allocation of beds. A $1 million extension is currently under construction and plans are already under way for a further $5 million expansion after a further allocation of beds this year. In Maclean, the Mareeba Nursing Home is also planning extensions and the Clarence Valley Council is providing an unprecedented number of aged care services in the homes of local residents, funded by the federal government.

This expansion has been mirrored along the Coffs Coast where extensions have been completed at the Woolgoolga and District Retirement Village, at Bellingen’s Bellorana and at the Coffs Harbour Nursing Centre. We have also seen new facilities opened by the Churches of Christ at Coffs Haven, by the masons at the Coffs Harbour Masonic Village, plus the expansion of aged care services in the home, where Mid North Coast Community Care Options are doing a fine job.

In the Nambucca area the good news continues. On 22 December I was able to announce that, as a result of the allocation of 60 low-care places, the Uniting Church would construct a $6.5 million aged care facility in Nambucca Heads. This facility will provide some 70 new jobs in the Nambucca shire. Just under a month later the finishing touches were put on the Riverside Gardens Aged Care Centre, also in Nambucca Heads. This $5 million facility, which was the vision of Nambucca Valley Care, is in addition to the existing Riverside Gardens Retirement Village and hostel, which is one of the biggest employers in the town. I would like to recognise the commitment of Jan Foster, her staff and volunteers at Nambucca Valley Care who are very focused on providing the very best possible aged care services in the Nambucca shire.

A quick snapshot of the Cowper electorate highlights what aged care achievements are being delivered in areas of need in my electorate. However, I would like to note that the coalition recognises that there is a need for work to continue. As we know from the Intergenerational report, it is estimated that by 2042 the number of Australians aged over 65 will double. Many of these people aged over 65 are moving to coastal areas. I therefore welcome the coalition government’s commitment to continue the roll out of aged care beds. We have increased the target number of aged care places per thousand over the age of 70 from 100 to 108 by the end of 2008, and we are on track to meet that target. Since 1996 more than 68,600 new places have been allocated. Over the next three years the coalition has committed to allocate a further 26,600 new aged care places. This is in addition to the measures announced in the last budget providing some $321 million for sufferers of dementia and their carers and the tax-free payments of $1,000 and $600 for those receiving the carer payment and the carer allowance respectively.

There remain some areas in my own electorate where I believe more beds should be targeted. Without doubt the most important and most urgent area of need is in South West Rocks. South West Rocks has experienced huge growth over the last five to 10 years and many of the new residents moving to South West Rocks are retirees. Although the town’s aged care needs are accessed through neighbouring towns such as Kempsey, the demand for aged care services, both in the home and in aged care facilities, is obvious for the people of South West Rocks.

There is a new multimillion dollar facility planned for nearby Frederickton which borders my electorate and is in the electorate of the Deputy Prime Minister and member for Lyne, Mark Vaile. Whilst the Frederickton facility will service residents in both electorates, I believe it should not be used as a justification for withholding an allocation of aged care beds for a stand-alone facility at South West Rocks. South West Rocks is at least 30 minutes drive from the nearest existing aged care facility and approximately 20 minutes drive from Frederickton, which places a great strain on spouses when they wish to visit their partners who are residents in formal care. With little public transport available, many elderly residents are finding it difficult to visit their partners each day. With many of the partners having restricted drivers licences, it makes it a very difficult family situation when being unable to regularly visit your partner of many years in care some 20 or 30 minutes away. The latest round of aged care places increased the number of beds available in the Kempsey shire, but I believe within the shire it is essential that there is a greater focus on South West Rocks. I have welcomed the cooperation and support of the South West Rocks community, and I will continue to work with them to address the aged care needs within the town.

The coalition government is absolutely committed to providing quality aged care for senior Australians. It has been working very hard to address the 13 years of neglect which occurred under Labor. The Commonwealth is currently investing more than $50 million in aged care places in my electorate every year in recurrent funding. That is $50 million these days as opposed to $13.5 million just 10 years ago. The sector is now not only a deliverer of services but also a major driver of the economies in many smaller towns, further highlighting why this legislation is so important to the residents who live in rural and regional Australia and particularly along the North Coast of New South Wales. I commend the bills to the House.

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