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Legislative Assembly for the ACT: 1996 Week 2 Hansard (28 February) . . Page.. 411 ..

MRS CARNELL (continuing):

The other issue that was really important in this sale was that, under the current Federal Labor Government, when State nursing homes or State-run nursing homes are sold to the private sector, although it is the Federal Government that funds nursing homes in this country, there is a differential between the amount of money paid to the States and that paid to the private sector. The private sector is actually paid more money per patient to run a nursing home than the public sector is. The Federal Labor Government, in their wisdom, has determined that, when there is a sale of a State-run nursing home or a Territory-run nursing home to a private entity, they will not up the amount of money paid per patient. The amount of money that they give to the private sector as a return on investment figure is not passed over. Therefore, the new operators will be funded basically at the same level as the ACT Government was funded at. Remember that when the ACT Government was funded at this sort of level we managed to lose substantial amounts of money - $600,000-plus a year in many cases.

This entity, Johnson Village Services, has come in, has paid the ACT Government money up front, has undertaken to spend $700,000 on upgrading the facilities and has undertaken that within the first, I think, three months - but it might be six months - they will actually achieve 31 out of the 31 Commonwealth quality outcome standards. They are things that we actually cared about in the sale of this nursing home, unlike those opposite. We should take into account that currently Jindalee, I think, complies with two or three of the 31 quality outcome standards set by the Commonwealth.

There are three issues. Firstly, the ACT Government was losing $600,000 a year on this entity. Secondly, we got money up front from Johnsons. Thirdly, we got an undertaking that they would meet 31 of the 31 quality outcome standards; and we got an undertaking that they would spend $700,000 on upgrading the facility. I believe that we got a vibrant new entity into the ACT that will ensure that we have quality care, which, I suspect, was the reason that COTA supported this sale.

MS McRAE: Mr Speaker, my question related to a very specific difference which Mrs Carnell, in all her quite eloquent lecture to me, did not cover. Why have you short-changed the Territory? Why are you continually crying poor? In Victoria, they sell them for $12,000 to $14,000 per bed. The buildings are even more run-down and, in many cases, the private sector has to provide the building. Whichever way it adds up, you have given us a very raw deal, and you continually cry poor.

MRS CARNELL: I thought I had explained quite well why there was a very big difference between when a nursing home bed was sold from a State-run facility to a privately-run facility in the ACT and when a private nursing home bed changed hands. I thought I had made that quite clear. I also thought I had made it quite clear that Johnson Village Services have bought a nursing home losing $600,000 a year and in desperate need of upgrade. The Commonwealth is not willing to fund Johnson Village Services for a return on their investment. It is that simple.

Ms McRae: It is not the point.

MRS CARNELL: It is exactly the point.

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