Sunday, December 7, 2008

Operating standards unregulated

This industry’ standards are “unregulated” - how it treats its target market, the old and fail, is largely left to the operators. Food standards are not specified by legislated standards. Operators claim their villages are for ”independent living” but nevertheless accept tenancies from impaired clients.

Companies claim they do not offer “care” but there is obviously a “duty of care” inherent in their client base.

Not so song ago, The SCV Group boasted being the biggest national operator in the field, managing about 100 villages, coast to coast, on behalf of investor owners. SCV expanded rapidly in just two years from being a highly-regarded small operator with its own self-built stable of rental communities.

In a little over two years, SCV is now admitting it is on its financial knees.

In Kerry Shine’s city, Toowooomba, there are at least five of these rental residential communities, one managed by SCV, three owned and managed by the giant ING corporaton, and one by the Oxford Crest group.

It is beyond credibility that neither Premier Bligh or Attorney General Kerry Shine believe legislated standards are entirely unnecessary for this incapable industry.

Veteran Toowoomba Labor Party stalwart, the late Tom Baker, and Hugh Bingham, the writer of this article, together petitioned the Premier last Februry in a carefully reasoned and illustrated submission asking that she commission an independent inquiry into the operational and ethical standards of this industry.

Tom and myself were neighbours in one of the four communities SCV then managed in Toowoomba. Management of three of them have since been taken over by the ING corporation which owns them.

Anna Bligh flicked our petition to her Attorney-General who took several months to respond – but then rejected our submission in a tedious letter listing what he claimed were sufficiently effective existing regulation.

Rubbish. Now SCV follows its predecessor Village Life Ltd into a financial whirlpool

Readers should be reminded that the industry’s cashflow is enormous – rentals involved 85% of the Age Pension, plus the whole of applicable rental assistance, plus CPI increases twice a year.

Queensland needs a specialist Cabinet Minister for Care of the Aged, Why cannot Anna Bligh see the necessity?