Health—Aged-care beds—Low-interest loans
365. Ms Sandra Brewer to the Minister for Aged Care and Seniors:
I refer to the government's promise to provide $100 million in low-interest loans to allow for the delivery of an estimated 500 additional aged-care beds, which are urgently needed.
(1) How many loans have been approved by the Department of Health?
(2) How much funding is allocated in this year's state budget for this initiative?
Ms Simone McGurk replied:
(1)–(2) I am very happy to talk about our initiatives in relation to stepping in because of the need we have identified with residential aged-care and home care packages. We have talked about the fact that WA, by many measures, does not get its fair share. WA has 11% of the national population, but if we talk about WA being a third of the land mass of Australia and the amount per head of population, depending on the level of care, we are underdone. In the last election, we announced $140 million. As the member said, that includes $100 million for a low-interest loan facility for not only residential aged-care beds but also, importantly, concessional beds. This is the area that is in demand now and will increasingly be in demand. In fact, we think that changes to the federal Aged Care Act will put additional pressure on those concessional beds. The providers are telling me that the per-day compensation they get from the federal government is underdone. That is why we identified concessional beds. The member can imagine them being the people who might end up in hospital because of the financial pressures that are on them. If they are sick and they cannot get alternative beds or they cannot pay for alternative care in the private system, they might end up in our hospital beds. So, yes, there is a $100 million facility. We are hoping to unlock some of that money through the midyear review.
What we have been doing since the election is going through and making sure that we have the legal capacity to lend that money. It is not something that Health has done before. It is innovative. What we have done is identified a new need in the system. Loaning money is not something that Health has done in the past, so we have made sure that we have the statutory capacity to do that. We are also consulting with the providers out there about what they need. For instance, it might not be new builds. It might be new builds, but it also might be refurbishments. It might be extending existing facilities. It might be bringing online beds that are not being used to their full capacity. We are hoping that we will be able to award tenders early next year. That is the current plan.
366. Ms Sandra Brewer to the Minister for Aged Care and Seniors:
I have a supplementary question. Is it not the case that there are zero dollars in this year's budget for the initiative, yet there is $217 million allocated for a racetrack at Burswood?
Ms Simone McGurk replied:
We understand that when we are loaning or allocating money, we need to do it properly. We made an election commitment. After the election, once we were elected—
Several members interjected.
The Speaker: Members of the opposition!
Ms Simone McGurk: Once we were elected, we needed to ensure that we had the right statutory framework around those loans. We are doing that, but it is important that we are consulting the aged-care providers to which we will be loaning the money. I mentioned the $140 million commitment. We have talked about $100 million for the low-interest loan facility, which the sector is very supportive of and pleased about. Members will have heard it make public comments about that. The other part of the component is, for instance, money towards Sister Kate's Children's Home, which Aboriginal stakeholders will be—
Ms Libby Mettam interjected.
The Speaker: Member for Vasse!
Ms Simone McGurk: Aboriginal stakeholders will be developing that with Hall & Prior. I had a visit out to Hall & Prior's Windsor facility recently, and it will be a fantastic facility. It is doing its development applications at the moment. That money will be released in due course when Hall & Prior needs it. That is how government works. You do the work to make sure that there is proper—
Mr Basil Zempilas interjected.
The Speaker: Leader of the Opposition!
Ms Libby Mettam interjected.
The Speaker: Member for Vasse!
Ms Simone McGurk: You do the work to make sure that wherever those loans or grants or money is going, it will be received properly, and I think that the aged-care providers will be well placed to put their tenders in—
Ms Sandra Brewer interjected.
The Speaker: Member for Cottesloe, you have asked the question. The minister is responding.
Ms Simone McGurk:—towards the end of this year, and for the tenders to be awarded early next year.
