John Williams (NSW, National Party) Share this | Link to this | Hansard source

I move:

That the Senate take note of the answer given by the Special Minister of State (Senator Ludwig) to a question without notice asked by Senator Williams today relating to residential aged care.

I am very serious when I raise these issues about caring for our elderly. Surely, one of the greatest obligations we must have in this nation is to look after those who have worked so hard and have given us so much. I find it concerning that, no matter where I travel in the state of New South Wales, the message is clear from all those in aged care. In July I was out at St Annes at Broken Hill. It is a wonderful facility, but it is under pressure. It simply cannot make enough money to increase the size of the facility to meet the demand for aged care in that area.

I am fortunate to live in Northern New South Wales at a place called Inverell. Just south of Inverell is the small community of Bundarra, in which there is the Grace Munro aged-care facility. Unless the minister can come up with more money in the next few weeks, that facility will close. When it was full, with 10 or 11 beds, and being run by McLean Retirement Village, a provider from Inverell, McLean could not make a profit. Over recent months they have reduced their number of beds to seven. The provider has been losing an enormous amount of money each year so it has had to make the commercial decision to close that facility in this small community.

I want to raise this point: it is a sad day when we are shutting down our aged-care facilities, especially in small communities. To give a typical example, the male member of an elderly couple may get to the stage where he needs nursing care but find, when he needs to go into the local nursing home, there is none. So he might be shipped off to some other nursing home that is 50, 80 or 100 kilometres away and placed in higher care nursing there. His wife would then have to travel the 80 or 100 kilometres to visit him. It is very sad to see that this does happen when aged-care facilities close down. To me it is outrageous that, when one of a couple who have been together for decades—married for 40 or 50 years—has to go into an aged-care facility, the spouse staying at home may have to travel so far to visit their loved one.

It angers me to see that the Labor government proposes to spend some $60 billion on stimulus packages but there is not one cent for aged-care facilities. Whose obligation is it to look after the elderly? We have seen the money going into the pink batts and $14.7 billion or more being borrowed and put into state schools, which are a state responsibility, yet how much is going into aged-care facilities, which are a federal responsibility? The answer is: virtually nothing. Now we have got facilities closing.

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

Shouldn’t we be funding schools?

John Williams (NSW, National Party) Share this | Link to this | Hansard source

Those opposite can protest as much as they like but the fact is this—and I will quote some figures from Catholic Health published under the heading ‘Outdated law keeps aged-care from growing with ageing population’:

New nursing home accommodation costs $40.32 per bed per day over 25 years to build and fit out, a new analysis has revealed, compared with a legislated cap on the per-bed payment of just $26.88 per day. The $13.44 shortfall between the cap and the true cost of accommodation is preventing the aged care industry from building desperately-needed new nursing home places.

That is happening in many areas, while in other areas the very facilities that I am talking about are threatened with closure because the providers cannot maintain those facilities because of the loss of money.

I would like to point out that the indexation of the Conditional Adjustment Payment subsidy has been cut. It remains at 8.75 per cent until 2011-12. Interestingly, aged-care providers are screaming that they are struggling to survive and 98 operators went out of business in 2007-08. They are closing down. And what are we going to do to look after the elderly? This is a situation that is serious as can be. We have facilities that are going broke and we have providers handing their licences in, and yet we have the government spending some $60 billion on stimulus packages and putting $14.7 billion into state schools. What is going into the aged-care facilities, which are a responsibility of the federal government? Not one cent. I find it outrageous. This is a problem that is not going to go away easily. We are going to have to address it. I urge the government to address the problem.

Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Here we go again—rewriting history. For 12 years those opposite had ample opportunity, how many reports and how much money was there? Let me recall: there was the Hogan report in 2004. What was that? It was a waste of $7.2 million when it was put in the bottom drawer. But, like Senator Barnett, those on the opposite side want to come into this chamber and rewrite history. The Rudd Labor government has been in government for less than two years. Surely those opposite cannot believe that the Australian people are that gullible that they are going to swallow the rewriting of history and lay the blame totally at the feet of the Rudd Labor government. Are there problems in aged care? Yes, there are. We have acknowledged that. I chaired a meeting which made 31 recommendations to make changes. But if those opposite seriously believe that things can be turned around after 12 years of neglect then they are deluding themselves.

Those opposite are very good at rewriting history. We have heard from Senator Barnett, who all of a sudden has found a passion and a heart for aged care. In terms of the criticism he is levelling at the government, from 2002 until they lost government, how many times did he speak about aged care? Three times. It was not under our watch when there were nursing homes in Victoria bathing their residents in kerosene. Did we hear any of those opposite get up and speak about aged care at that time? No, we did not. In six years, how many ministers for ageing were there in the former government? Eight of them. One failed after the other.

There are some on the other side who, I believe, have a genuine interest in aged care, and those people have made contributions during our hearings. Privately, even those people are prepared to acknowledge that their own government failed. Senator Williams is only new to this chamber and it is obvious why he lead the charge today—because I cannot say anything about his performance in the former government. But I do know this: when history is rewritten time and time again by those opposite they will be seen by the Australian public for what they are.

A former Liberal state health minister, the Hon. Frank Madill, came before our hearing in Launceston. He has an interest in those who are residents in the nursing home of which he is a board member and he acknowledged that these issues are not the fault—I repeat, not the fault—of the Rudd Labor government. The issues that are confronting the industry and the aged-care sector are ones that have been building up over a long period of time. We are not about accepting all the blame for this, but we are going to work to fix the aged-care sector. Those opposite are now being very critical, but I want to acknowledge those in the sector for their tireless work with the very important people that they care for—that is, older Australians.

I am not going to stand here and allow those opposite to rewrite history. I will continue to speak up for aged care. I will continue to listen not only to the sector, which I have been doing, but to older Australians. I know about this firsthand because my mother is in high care and in the twilight time of her life. I know of the work that is being done by those in the aged-care industry and I know the difficulties that families face when trying to assess which home is going to look after the needs of their older family members. We acknowledge all of that, but to say that we have not injected any funds is disingenuous at the very least. Forty-four billion dollars has been committed by this government over the next four years. We have done countless things for older Australians in the very short time that we have been in government. To try to rewrite history is very unfair and unjust to the industry and does nothing for the credibility of those opposite.

Judith Adams (WA, Liberal Party) Share this | Link to this | Hansard source

Senator Polley, I am not going to rewrite history. This week in Perth, Aged and Community Services Australia held its national conference. Guess how many people were there? This is what aged care is all about, and these people really do care. This is about the present and the future. One thousand and thirty people attended the conference. Amongst those attending were CEOs, providers, board members, clinical managers, banks, industry support people, consultants, the Department of Health and Ageing and community members. Aged care is in crisis. At the end of this conference a rally of hundreds of aged-care industry leaders marched around the Perth CBD. Rallies like this are a firsthand reflection of an industry in crisis.

Stephen Parry (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Was Senator Polley there?

Judith Adams (WA, Liberal Party) Share this | Link to this | Hansard source

No, she was here—and I was here, unfortunately. The message to the minister is that they are fed up with her and her office. The minister is not making any satisfactory progress. They are very disappointed that the minister did not accept the invitation to attend the national conference. Instead she sent a video, which unfortunately was very poorly received and almost booed. There is a crisis in the aged-care industry, and consumer groups have now agreed to work together and to be more vocal and aggressive. Industry are going to take the fight to the streets and right up to the government. They are completely disgusted that no stimulus money was spent on aged care. Stimulus money should have been spent on aged-care construction projects, not school halls.

As senators are aware, the Australian population is ageing. Within five years there will be more older people than children. Over the past two decades the number of elderly people in Australia increased by 158 per cent, compared with total population growth of about 29 per cent during the same period. When trying to answer the questions of Senator Williams, Minister Ludwig really did not know how many places had been sent back, but I can give the details from Western Australia. Of the 1,208 places made available in Western Australia this year, just 536 places, less than half, have been sought. Of those 536, only 519 places have been allocated. This is just 43 per cent of the bed places offered in Western Australia in the 2008 round. The Bethany group in Western Australia last October handed back licences for 110 beds. Each of these beds would have cost approximately $180,000 to create, plus $65,000 to run. However, the funding available was a one-off $109,000 and $41,000 per year to maintain.

This just cannot keep going on. You are blaming the previous government, but you have been in government nearly two years, so it is time the minister started to do something. We just cannot keep going the way we are going. A wide, dysfunctional gap is appearing between waiting lists and bed licences. Licences are being issued but many either are not being taken up or else are being handed back because the providers are unable to fund the construction capital needed to expand their facilities to house the new beds. The waiting lists are getting longer whilst bed licences are being turned down. Quite simply, as the demand for aged-care services is rapidly increasing, the number of facilities being built is rapidly decreasing. I am talking about the present and future, not what has passed, and I give it right back to you: take up the challenge and do something about it.

Carol Brown (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

I understand why Senator Adams wants to talk about the present and future. The government is all about the present and the future and taking action on these important issues. Senator Adams would be well aware of the Finance and Public Administration Committee hearing into the aged-care sector. As she has taken an interest in this area for a long time, she would be aware of the evidence that was given to the inquiry by a number of people. When we were talking about aged care a few days ago I mentioned one of those people, the Hon. Dr Frank Madill, former Liberal member of the House of Assembly and, I think, health minister, who gave evidence to the committee in Launceston.

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

A Liberal.

Carol Brown (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

A Liberal, yes. Dr Madill said:

This is not the fault of the current administration. This has not happened because there has been a change of government in Canberra at all. This is something that has been built up ...

Dr Madill was not the only person to give that evidence to the inquiry to this effect. It really does amaze me that those opposite have the gall to come into this place and throw mud at the government over aged care. Those opposite—

Guy Barnett (Tasmania, Liberal Party) Share this | Link to this | Hansard source

After two years.

Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

You had 12 years to wreck it.

Alan Ferguson (SA, Deputy-President) Share this | Link to this | Hansard source

Order! Senator Polley and Senator Barnett, Senator Carol Brown has the call and she should be heard in silence.

Carol Brown (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

I understand that those opposite are a bit touchy about their record, and they should be. It is not good. It was pretty bad. I will give a little narrative of what it was like for the aged-care sector under the Howard government. In the 12 years of the Howard government, aged-care services were neglected. They did not address workforce and bed shortages. They presided over scandals involving bed licences and incidents of poor standards of care. Aged-care bed shortages worsened and waiting times for care lengthened under John Howard. We had fewer beds per capita than we had in 1996. In addition, they had a huge turnover of ministers for ageing, who mismanaged the portfolio. It was a revolving door.

Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Eight in four years. It was a poison chalice!

Carol Brown (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Thank you, Senator Polley. I will now talk about the aged-care bed shortages. Under the Howard government, there was a national aged-care bed shortage. In 1996, there were 92 beds for every 1,000 aged 70 years and over. Under John Howard, in June 2007, there were only 86.6 beds for every 1,000 people aged 70 years and over. In June 2007, there was a shortfall of more than 2,000 beds in Australia.

The Labor Party has responded to the challenges in the aged-care sector. Here are some of the things that we have done. The Rudd government has committed $293.2 million to provide up to 2,000 transition-care beds and up to 2,500 aged-care beds. So far we have delivered 499 operational places. In addition, we have set up $300 million in zero real interest loans for aged-care providers to construct and extend residential aged-care beds in areas of need. Of this, $150 million has already been allocated and is expected to produce 1,455 additional places in areas of need.

I would like to touch on the shortage of high-care beds under the coalition. In the 12 long years of the Howard government, they continued to fail frail older Australians needing high-level aged care. An Australian Institute of Health and Welfare report showed that, in June 2006, 69 per cent of residents required high care. The Howard government’s bed allocation system did not reflect the needs of increasingly frail older Australians. Since the Rudd Labor government has— (Time expired)

Guy Barnett (Tasmania, Liberal Party) Share this | Link to this | Hansard source

I stand this afternoon to take note of the answers or lack of answers, non-answers, from Minister Joe Ludwig and specifically to talk about the aged-care crisis that we have in this country. I specifically reject the outrageous and salacious accusations from Senator Polley and Senator Carol Brown in their attempts to defame me and my efforts to support aged care since I came to parliament in 2002. Senator Polley made an adjournment speech in which she attacked me and attempted to denigrate my efforts and vigorous attempts to support the aged-care industry. It was a disgrace. It was done in the middle of the night, in the quietness of the Senate and now I have an opportunity to respond. I will respond and I reject every one of those accusations outright. They are all to be condemned.

Honourable Senators:

Honourable senators interjecting—

Alan Ferguson (SA, Deputy-President) Share this | Link to this | Hansard source

Order! Senator Barnett has the call and I ask that he be heard in silence.

Guy Barnett (Tasmania, Liberal Party) Share this | Link to this | Hansard source

I appreciate that and hope that they will come to order and listen as I respond. I reject those outrageous allegations entirely. On the Howard government record, I say yes, perhaps it was not perfect, but, with respect to the efforts to support aged care, they were on the record. For the 11½ years from 1996, they improved. What has happened in the last two years? This is why I say to the Labor Party, particularly in Tasmania and Western Australia: they are doing it tough. There is an aged-care crisis and the Labor senators and members in Tasmania are not listening. The problem with Senator Polley is that she has been embarrassed by a letter to the editor in her own newspaper, the Examiner, from Mr Dick James, the president of the Australian Independent Retirees. He made certain comments about aged care being in crisis and called Senator Polley to account. She was no doubt embarrassed by that letter because she knows that she has to stand up for aged care. That letter is on the public record in the local Examiner newspaper.

She accuses me of being silent with respect to aged care. What rubbish! She accuses me of doing nothing about aged care since 2002. She knows full well that I was a board member of St Ann’s for over eight years, and I have a heart for aged care and for elderly Tasmanians and elderly Australians. I will not take those allegations; I reject them outright. I stand in this place saying I am a proud supporter of the aged-care sector, as are those coalition members on this side of the chamber and as are those in the former Howard government. Yes, we were not perfect—we did not get everything right—but at least we got it so much better than what is happening at the moment. We know for sure that there is a crisis in aged care at the moment.

How many licences have been taken up? Today the minister was unable to answer those questions. How many licences have been given back? That question was asked today. These are fundamental and very basic concerns for the aged care sector, and the minister could not answer them. The minister said, ‘No, I can’t answer it; I’ll take it on notice.’ He should know exactly. We will be watching carefully with respect to his response to that because the proof of the pudding is in the eating. That is the evidence, and the evidence says that the aged care industry is in crisis. That is what it is saying. Senator Judith Adams and Senator Williams have made this point very clear and I wanted to make it clear.

Those allegations by Senator Polley about me being silent or doing nothing on aged care are absolute rubbish. She is responding to this letter in the Examiner and is clearly very embarrassed. Of the 131 new residential aged-care places made available to Tasmania in the 2008-09 ACA round, only 89 were taken up—a shortfall of 42. There is the evidence for Tassie. We know Western Australia is equally hurting, as are other states and territories around the country. The Rudd government simply do not get it, and that is why I asked, ‘Are you listening?’ What they have had is a number of reviews. They have had review after review. They have the Productivity Commission review; they have the National Health and Hospitals Reform Commission review.

And then they talk about Dr Frank Madill, the chairman of the Presbyterian Homes for the Aged. He presented me with the petition to present in this parliament to say how concerned they are with the funding for aged care. Why would they ask me? Why wouldn’t they ask their local member, the Labor member for Bass? Why wouldn’t they ask her? Because they are too embarrassed. So they came to me, and I presented it. Those opposite should support that petition and support the aged-care sector, and they know full well that they should support it. (Time expired)

Alan Ferguson (SA, Deputy-President) Share this | Link to this | Hansard source

Order! The time for the debate has expired.

Question agreed to.