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Crisis in Elderly Funding

18 November 2004

Rest Home Collapse Signal To Labour Government of Crisis in Elderly Funding

The impending closure of Ashwood Valley Home near Dunedin is the direct result of under funding of the elderly care sector by this Labour led government.

"These closures are happening with increasing regularity and every time they do the Labour Cabinet should go down and explain to all the elderly residents why they have to move and why their care is not a priority for a left wing government", says Simon O'Dowd of Residential Care New Zealand.

This impending closure follows in the footsteps of the Andersons Bay Home and Hospital closure about three months ago, and the Mary Potter hospital in Christchurch closure two weeks ago.

The difficulties Anderson's Bay Home and Ashwood face are common to all providers within the sector and come at a time when the government is offering a 1% increase in funding despite inflation running at 3% which is in stark contrast to the $6 billion surplus the government is sitting on.


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