3,000 jobs at risk without CAP commitment: Margaret May

The Shadow Minister for Ageing has called on the Commonwealth Government to make an ongoing commitment to the continuation of the Conditional Adjustment Payment (CAP) beyond June this year.

Margaret May said in a statement that aged care facilities would be forced to close putting up to 3,000 jobs at risk if the Government did not include the subsidy in its 2008 budget.

The 1.75 per cent index was introduced as a temporary measure by the Howard Government in 2004 and neither of the major parties was willing to give a concrete commitment to the CAP in the lead-up to last year’s federal election.

But as a result of a range of discussions with industry stakeholders and lobbyists since she took up the Ageing portfolio late last year, Ms May says it is vital that the CAP is extended.

 “The aged care industry simply cannot sustain a cut in funding,” she said in the statement.

“Already 40 per cent of residential aged care providers are operating in the red and all sectors of the industry are trending steeply downwards with the financial position of aged care entities deteriorating steeply.
 
“If indexation is not continued, the viability of Australia’s $7 billion aged care industry is under threat, aged care facilities will close, 3,000 jobs will be lost in the first year and millions of dollars will be lost to the sector.” 

The Shadow Minister also criticised the Government’s response to recent concerns that it would not continue the one-off carers’ and pensioners’ payments provided in last year’s federal budget.

Even with last week’s guarantee that the supplements would be included in this year’s budget, there concerns that pensioners are not receiving adequate support remain.

The Executive Director of COTA Over 50s, Dr Geoffrey Bird said in a statement this week that pensioners are still struggling to make ends meet.

“We have to make serious changes to the income support arrangements for older Australians,” said Dr Bird.

“Despite an improved superannuation system in recent years, the pension will still have to provide the bulk of older people’s income.”

“The situation for older women looks particularly bleak, as they have not had the same opportunities as men to build up super.”