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PM Promises To Address Funding Crisis

1 February 2005

PM Promises To Address Funding Crisis in Aged Care Sector

After a decade of neglect the aged care sector today welcomed the news that funding of the elderly has become a priority for the Labour led government.

The Prime Minister in her State Of The Nation Speech today said, “a top priority is to resolve the long term funding pressures in the elder care…”.

This statement comes at a time when the crisis has been most visible by the exit of many providers from the sector such as the Salvation Army and Presbyterian Support Northern. Additionally, the crisis was accepted by parliament last year when a select committee reported in December that they were, “concerned by evidence of chronic under-funding of the aged care and disability sectors”

“The reality is that funding for aged residential care facilities is critically low and getting worse. Providers have had to handle a 2% increase in wage costs due to the Holidays Act and will soon be facing large increases in costs due to the Nurses pay settlement.”, says Martin Taylor CEO of Residential Care New Zealand

“This statement by the Prime Minister gives us some hope that providers of age related care services will get some attention in this year’s budget. I hope that the working party established last year to look at the issues comes up with an answer in time otherwise the crisis will only deepen”, says Martin Taylor CEO of Residential Care New Zealand


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