Shayne Neumann (Blair, Australian Labor Party, Shadow Minister for Indigenous Affairs) Share this | Hansard source

I rise to speak on the Aged Care and Other Legislation Amendment Bill 2014, to which I will seek to make amendment at the end of this speech, and the Health and Other Services (Compensation) Care Charges (Amendment) Bill 2014. In relation to the latter bill I want to state Labor's support for what is a common-sense amendment. Together these bills overcome the impediment to recovering past care costs for home care provided to a care recipient who received a compensation payment. This simply brings home care into line with existing arrangements in residential care, and Labor will not stand in the way of common-sense amendments such as these. Likewise the amendments to the Healthcare Identifiers Act. We will support the implementation from 1 January 2015 of stage 2 of the aged-care gateway known as the My Aged Care website. That amendment will allow for the collection, use and disclosure of relevant data for use on My Aged Care.

The gateway is a key component of Labor's Living Longer Living Better aged-care reform package, which we brought in in the last parliament. Living Longer Living Better ensured the aged-care system was fit for the 21st century—a century which will be defined by an ageing population. Living Longer Living Better ensures aged care remains sustainable as more and more Australians require that care. The gateway ensures older Australians will have access to up-to-date information, greater choice and more flexibility as we transition to consumer directed care.

The Aged Care and Other Legislation Amendment Bill is part of a budget measure. Those opposite made it clear before the election that they had no intention of honouring Labor's commitment to developing and giving fair reimbursement to aged-care workers—workers in the aged-care sector who are amongst the lowest-paid workers in the country. This bill reflects decisions made and removes reference to the aged-care workforce supplement from the list of supplements provided by the subsidy principles. The amendments which I will move address the impact of those and other changes which threaten to undermine the viability of Labor's reforms—reforms which once had bipartisan support, reforms which were supported widely by the aged-care sector, consumer groups and the general community.

The Abbott government has made unnecessary cuts to aged care in spite of the fact that Labor had done the heavy lifting in ensuring the sustainability of the system through the long-term implication and implementation of Living Longer Living Better. The Abbott government made unnecessary cuts which were never mentioned to the sector, to consumer groups or to the community prior to the last election. The Abbott government did this in spite of its assurance that it would be a government of no excuses and no surprises. While the Liberals and the Nationals flagged their disdain for the workforce supplement prior to the election, what they failed to do was come up with any ideas, any solutions or any alternatives to the workforce crisis facing the country which will only exacerbate into the future.

The aged care workforce in this country is under tremendous pressure. Aged care is becoming more and more complex as we deal with the intricacies of dementia and other age-related chronic diseases and issues. The workforce supplement was introduced by the former federal Labor government to assist and address some of the issues in aged care, particularly the low pay, the limited professional development and the limited career advancement opportunities for those who worked in the sector. The workforce supplement gave additional funds to the sector to enable the sector to invest in their workers and improve its profitability.

The 2010 Intergenerational report outlined that the nation would see a 300 per cent increase in workers needed to care for an ageing population by the middle of the 21st century. The Abbott government has no plans in relation to addressing that challenge, but they did act with speed and a certain dexterity to remove the workforce supplement upon coming to power. This is in contrast to the slow and apathetic way it has handled dementia care. Within 18 days of coming to power, the Liberal-National Party government opposite had its minister axe the workforce supplement—18 days it took. The supplement had only been in operation for 86 days. It was a $1.2 billion provision and they got rid of it by legislative instrument. They could not prevent $100 million being claimed by the aged care sector.

We sought in the Senate to disallow this instrument in December last year. However, on 10 December 2013—and this is really important and relevant to the bill—the Abbott government suspended standing orders to push through an allowance motion which prevented any payments of the workforce supplement for aged care workers. It took just 32 minutes to rip $1.1 billion away from some of the lowest paid workers in the country. More than that, they gagged debate, preventing Labor members on this side of the chamber from telling the stories of their constituents. The minister himself did not have the courage to come into the chamber and left it to an assistant minister who does not even have responsibility for the area to move the necessary motion in the House. That is what happened on 10 December last year in relation to the workforce supplement, the subject of the legislation before the chamber.

That was the week that the Abbott government had abandoned Holden workers. It was the week they ripped away money that was provided by the former federal Labor government for child care workers. A one, two, three punch to the head of the lowest paid workers in the country, some of them. It was a mean spirited hat-trick that ended that week by abandoning aged care workers in the country. In the lead-up to Christmas 2013 we saw the Abbott government acting like the Christmas Grinch, giving Australian workers no hope, no support and no future in three sectors.

There has never been a worse time to abandon the aged care sector or aged care workers. For the first time in our nation's history we have more people turning pension age each year than turning working age. This has placed enormous stress on the system. The current government needs to outline its plans to ensure a well-equipped, appropriately reimbursed workforce. But to date it has not done so. Unfortunately, the Abbott government prefers to play politics than addressing the serious issues in relation to the aged care sector. One of the things the government could have done but did not was ensure that the repurposed aged care workforce supplement of $1.1 billion was used strategically. Instead, all they did was simply top up subsidies with no conditionality nor any expectation that those funds could be used for workers in their wages, in their conditions or their professional career development. I understand and appreciate that about 70 per cent of aged care expenses to the sector are salaries. But with no conditionality there is nothing to ensure that that money is available and will go towards the challenge of making sure the lowest paid workers in the country get the necessary wages and conditions they deserve.

The Australian Nursing and Midwifery Federation reported that nurses working in aged care are generally paid less than those working in hospitals. In fact, for a registered nurse level I there is a difference on average of almost $210 per week or 17 per cent nationally. The aged care workforce is one of the largest service industries in the nation, employing over 250,000 people and catering to the needs of over one million older Australians. It accounts for one per cent of GDP in terms of Commonwealth funding alone. It is an industry that will continue to grow. It will grow faster than the mining sector, faster than the resource sector, faster than manufacturing, faster than tourism.

As shadow minister I hear from constituents across the country on a whole range of issues in relation to aged care. One of the biggest issues raised constantly is staffing. But not one of those people opposite have talked about this issue. I have been to many, many aged care facilities across the country, from the APY lands in northern South Australia to the suburbs of Adelaide, to my home state of Queensland—all over the place—and I have seen the most wonderful, dedicated, compassionate and caring people. Many people have told me this: they do it because they love the people; the don't do it because of the money. They treated like a vocation or the missionary calling. But it should not have to be that. It is unfair to penalise our aged care workers because of their loving commitment to serving and caring for vulnerable Australians.

I trust the minister has taken the time to speak to the Council of the Ageing, Alzheimer's Australia or Palliative Care Australia. They are not trade unions. They do not represent nor do they purport to represent workers; they represent also often the oldest and most vulnerable Australians. They will tell the minister, as they have told me—and they will tell any member of this chamber—the importance of the development of a suitable workforce. Liberal and National party members will try to tell us, of course, that the market will sort it all out. It reminds me of the words of The Castle's Darryl Kerrigan—'Tell 'em they're dreaming'—because it will not happen. We need action at a federal government level. We took action when we were in government, and those opposite need to. They need to do it, but they will not. They think the market will solve the problems.

The sector has been hit with a horror budget. It has undergone major changes, particularly in the way that the care is financed. Understandably there is some angst in relation to residential and home care funding because the changes took place for many in the sector from 1 July this year. But from 1 July 2015 there will be major changes to home care. As I mentioned before, while these changes have caused some angst and concern and worry, they have not been surprised. Since 2012 the sector has had to deal with the challenges of Living Longer Living Better. The process of reform when we were in government involved extensive consultation and collaboration with some of the peak bodies I mentioned before—

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