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Care Sector Welcomes Labour’s Commitment

14 September 2005

Aged Residential Care Sector Welcomes Labour’s Commitment To Increased Funding

Healthcare Providers NZ welcomed Finance Minister Michael Cullen’s commitment today to significantly increasing funding for aged residential care.

“We agree with Dr Cullen that there is much to be done in this sector and we welcome Dr Cullen’s commitment as Finance Minister to address the situation”.

“We are also pleased that Dr Cullen and the Labour party, after 5 years in government, have finally recognized the inadequacy of not having an automatic inflation adjustment for aged residential care funding”.

“Aged care providers hope that Dr Cullen, as Finance Minister, ensures that all funding allocated to the sector is directly passed on to providers in improved prices”.

“Currently we have a situation where the Government says they have increased funding by $71 million. However, to date providers have not received a cent of this money – and if DHBNZ is to be believed, they won’t receive much at all“.

“DHBNZ have told us the $71 million contains no new money and that they have been given no direction to pass it on to providers. To date, they have refused to table an offer in the annual contract negotiations with provider representatives that continue tomorrow”.

“It is clear that Labour has picked up on important issues in the aged residential care sector. There are many details to work through. but today’s commitments by Dr Cullen show Labour is willing to provide leadership and address the present crisis in aged residential care”, said Martin Taylor.

ENDS

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