Is reform in or out of the budget?

By Yasmin Noone

The federal government is planning to announce and fund at least two key elements of the Productivity Commission’s (PC) recommended aged care reform package in its upcoming 2012/13 budget, according to an article published in today’s mainstream media.

The Daily Telegraph article has generated much talk among sector professionals and aged care reform advocates – some of whom are celebrating the news and others who are questioning whether the leaked information is in-fact, reliable.

The tabloid newspaper, written for a general audience, claimed that the government is planning to announce “millions of extra dollars” worth of funding to expand the number of community care packages available and introduce a “new era of user-pays”.

A user-pays system, the article said, “will only require those with substantial assets to pay for their aged care accommodation – either through a bond or through regular payments”.

The paper also said that “Prime Minister Julia Gillard – who nominated aged care as one of her top reform priorities – has been forced to act after concerns from the aged care sector over major shortfalls in services”.

CEO of Catholic Health Australia (CHA), Martin Laverty, said the leaked information should come as no surprise to the sector. Governments often reveal budget information to the media before the May-announcement in order to measure and preempt public reactions.

“No one should be surprised that the government is preparing for the budget announcement,” Mr Laverty said. 

“No one should be surprised that these [two reform measures the government is due to include in the budget] are elements of reform that the  PC has recommended, that the National Aged Care Alliance has backed, and that organisations like CHA have been calling for since 2008…

“With the government now testing the reaction to these proposals through national newspapers today, we say, ‘Government, be brave and get on with expanding the number of community care places, ensure that all Australians have an entitlement to receive aged care when they need it, but more importantly, in proceeding with reform to make the sector sustainable’.”

Leading spokesperson for the National Aged Care Alliance (NACA) and CEO of COTA Australia, Ian Yates, questioned the accuracy of the budget claims discussed in the article, as the source of the information/leak was not attributed.

“I don’t regard the information as reliable,” Mr Yates said.

“Our understanding is that aged care is still in the mix but there is no decision that it is in or out [of the budget].”

AAA put the claims made in the Telegraph article to the government. A spokeswoman for the Minister of Mental Health and Ageing, Mark Butler, replied with a general statement which did not specifically deny or confirm the leaked information.

“Aged care is a priority for this term of the Gillard Government,” a spokeswoman for Minister Butler said.

“This is why we asked the Productivity Commission to inquire into the aged care sector last year.

“The Productivity Commission has produced a thoughtful and detailed analysis of the sector accompanied by a wide range of recommendations.

“We are considering our response to the report.”

The spokesperson said the statement was the same as the statement provided to the Telegraph journalist yesterday, after enquiries on the matter were made.

Mr Yates however has conceded that NACA would warmly greet early news of reform if its validity could be confirmed.

“If it is true, we welcome it in the budget but we are also emphasising that the PC proposals come as a package,” Mr Yates said.

“You can’t fix aged care just by increasing user charges, even for people who are well off. You’ve actually got to reform the system as the system is broken.”

The newspaper also said that, despite the two expected announcements on aged care reform, the government would defer some aged care spending until 2013 because it is determined to deliver a budget surplus.

Mr Yates responded by saying that the sector and Opposition’s support for aged care reform is contingent on the government not “cherry picking” and implementing PC reforms that it likes. 

The government must instead adopt and implement meaningful reform to create a new aged care system which guarantees consumer choice and control.

“The fact is that the sector is behind an integrated package of reform,” he said. “The government knows that because it has consulted the sector and has the same answer from everyone.”

Mr Laverty also warned against the implementation of some, not all, of the PC’s reforms and called upon both the government and Opposition to support an entire aged care reform package.

“What we’d say to the opposition is that it’s been 230 days since the PC released its report,” Mr Laverty said. 

“Tony Abbott, where is your response to the PC report?

“We don’t expect the opposition to side with the government. What we hope is that Tony Abbott will side with the PC and commit to implementing the PC’s recommendations.”

“We are holding the government and opposition to account over the course of a few weeks. It’s been 230 days since the Productivity Commission’s final report was tabled and there is no need for another day to pass for the government to respond.

“The government knows what consumer groups like COTA, what union groups like the Australian Nursing Federation and what provider groups like CHA are looking for in aged care reform.

“The government can announce what it likes when it likes – it is not bound by any rules as to when it makes announcements about its policy intentions.

“We needn’t wait another day for the government to respond to the PC response in detail. We are not asking the government to start spending money to day. We are just asking the government to outline the timetable which details how it intends to implement reform.”