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IHC joins disability sector wrangle

1 September 2008

IHC joins disability sector wrangle

Unless the Ministry of Health adequately funds disability providers, the sector will face a serious funding shortfall that puts its ability to provide services at risk. IHC supports comments by NZCare and NRID, which represents residential disability providers, that the sector is in crisis because of a funding shortfall. IHC chief executive Ralph Jones said that providers are trying to survive in the face of wage rise expectations, and rent, food and fuel cost increases.

For example, NZCare is facing wage claims for an average 23 percent pay increase, and a funding increase of just 1.5 percent from the Ministry of Health. "I have alerted the Ministry many times over the past five years that there is a looming wage crisis in the sector that requires its attention.

It is now coming to a head. "The sector would like to show we value our staff through the amount we pay them," says Ralph. "But we are constrained by the amount the Ministry gives us."

ENDS

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