Darren Chester (Gippsland, National Party) Share this | Link to this | Hansard source

I rise to raise concerns with the government’s failure to adequately plan and provide funding for our ageing population. I refer specifically to the decision this week for a 1.7 per cent rise in care subsidies for the current financial year. As I am sure all MPs are aware, the provision of aged-care services and supporting older people in their homes and our communities are issues of grave concern in our wider community, particularly in regional areas. The decision to increase the subsidies by a sum which is less than the rate of inflation has caused a great deal of angst in my community already. For a sense of perspective, in the Gippsland area, between 2006 and 2026, Gippsland’s population aged over 65 is projected to increase from 41,100 to 85,300. By 2026, 27.9 per cent of the population is projected to be 65 years and over.

The service providers are regularly raising their concerns with me and I get the opportunity to visit many facilities in my electorate to meet with the staff and the volunteer boards. I want to make special mention of the volunteer board members in our not-for-profit sector who do a remarkable job in our community. In May 2009, the CEO of Latrobe Community Health Service, Ben Leigh, brought to my attention a review of the aged-care sector undertaken by consultant Grant Thornton, which I have spoken about before in the House. Mr Thornton’s report raised significant concerns in the aged-care sector, including rising interest rates; escalating pressure for care staff; increasing demand for high-care services, which generally generate a lower return compared to low-care services; the growing cost of buildings; and operating modern aged-care facilities to achieve regulation standards. None of these things have diminished in the days since I have spoken about the aged-care sector.

Sale Elderly Citizens Village is another facility in my electorate which has raised significant concerns with me. Just today I received an email from the deputy chairperson of the village, Alan Wyatt, who noted the government’s increase of 1.7 per cent and went on to point out that:

Given that CPI is running at 2.9%, one would wonder how any government could see fit to provide such a paltry sum, when clearly Aged Care is in need of substantial increased funding to even remain viable, much less provide for future growth.

Our staff at the village will receive a pay increase of 3% on the same day as we receive this 1.7% funding increase. With material costs increasing at an alarming rate, it is evident that the road ahead for organisations such as ours, is fraught with danger and shows little evidence of providing the wherewithal to maintain and increase the facilities we provide.

Given the growing waiting lists at villages such as ours, one must be concerned at how our aged are going to be provided for.

My comments are not meant to be a case of blaming the current government. I recognise that these are long-term trends. But as a nation we need to battle with this very large problem of providing for our older communities and giving our older residents the dignity of a quality retirement and the opportunity to either remain in their homes and be well supported or move into the aged-care sector and also be well supported and well looked after in their later years.