PM recommits to reform
Minutes after the PC’s final report was tabled, Prime Minister Julia Gillard and and the Minister for Mental Health and Ageing, Mark Butler, addressed the media.
Above: Prime Minister, Julia Gillard joined Minister for mental health and Ageing Mark Butler to release the PC report at a press conference in Parliament House yesterday
By Yasmin Noone
The eyes of the nation are now upon the aged care sector.
Not only has the long-awaited Productivity Commission (PC) Caring for Older Australians final report been made public but the Prime Minister has reaffirmed that she will begin to reform the sector this term of office.
PM Julia Gillard stood along side the man of the moment – Minister for Mental Health and Ageing, Mark Butler– during a joint press conference at Parliament House today, a few minutes after the PC report was tabled.
Together, they officially launched the document and, before the glare of the country’s media, emphasised the importance of aged care reform, done right and done soon.
“There will be a number of people in the aged care sector who will say, ‘There’s been past [aged care reports put on the shelves] so what’s going to be different this time?’” PM Gillard said.
“We are determined to start the reform agenda in this period of government and…to do it the right way and that’s the consultative way.”
As of tomorrow, Minister Butler begin a process of community and stakeholder consultation to determine what the public thinks of the recommendations, as the government seeks to develop a response.
The government will also engage with industry stakeholders through their peak bodies, the National Aged Care Alliance and the Ageing Consultative Committee.
“We, as a government, asked for this report,” the PM said. “I said that we did want to make a start on aged care reform in this period of government and now, we genuinely believe the right thing to do is to [put] this issue to the Australian community…to have a review, analysis and discussion of these recommendations.”
When the PM was asked by a member of the press about which PC recommendations were supported by the government and when reform would begin, she strongly refused to answer.
“We are not going to rule things in or out arising from this report.
“I know it would be simplistic to rule things in or out…in my view, that would be letting the community down at this critical point in our ageing population.
“We need to have a conversation [about aged care reform]. We owe it to our parents to treat this report respectfully and work through the complex issues it raises and find solutions.”
Minister Butler, however, did specify one point in the final report upon which it disagreed with the PC – the fiscal impact modelling of their proposed recommendations in the first three years.
“I think in the overview they say that there would be significant sums saved in the Commonwealth budget in those first three years,” said Minister Butler.
The Minister stated that the government opposed the assumptions upon which the PC made that statement, as he believed it was wrong.
For example, he said, the final report assumes that a new user contribution system would start on 1 July next year, even though the PC itself says that at the earliest that should start in the third year.
“Also, it assumes that there would be no grandparenting arrangements for existing residents or recipients of aged care, even though in its recommendations it says that there should be.
“The report contains no modelling for workforce initiatives, which are a significant part of the report, no allowance for things like implementation costs and such likes.
“So, our initial look at that through the Department of Finance indicates that those savings the PC says are available in the first few years are not there. As the Prime Minister has said, this is not being approached by the Government as a savings exercise. There are structural increases built in in the aged care budget that simply reflect the ageing of the population.
“So, it’s important for us to be clear that we don’t agree with those savings outlined in the PC’s overview.”
An aged care system based on principles
During the press conference, the PM also swore that, in the aged care system of the future, the government “won’t be leaving anyone behind”, the system will provide more options for older Australians and it will be “financially sustainable as well as fair”.
“I believe the system has to have sustainability in it,” she said. “The relevant [guiding principle upon which reform will be based] is one that ensures there is financially sustainability for those being cared for as well as for others in society.
“That is the aim. Aged care is one of those complex areas of public policy where there is no one way of realising that aim. Part of the [upcoming] conversation will be about achieving that aim.”
In a joint statement from Minister Butler and the Treasury, the government thanked the PC for their final report and stated that the “recommendations in the report will be considered as part of the government’s broader ageing agenda”.
“The government is determined to begin to make the necessary reforms to our aged care system in this term of government as part of a broader ageing agenda.
“With older Australians leading longer, healthier and more prosperous lives than ever before, it’s essential that government looks carefully at how to provide the best possible care and support for older Australians.
“There is huge potential to provide older Australians with greater choice and control over their lives than has been afforded by the system in the past. We are also focused on ensuring older Australians are provided the ability to age with dignity and security.
“The release of the Commission’s report will form an important part of the national conversation about how to promote opportunities for healthy and positive ageing.”
Further information on the inquiry can be found on the PC’s website at www.pc.gov.au or by contacting the Commission on (02) 6240 3223.
