Ahead of Kiama Council reconsidering its decision to begin the process of selling its Blue Haven assets and operations (in private at an extraordinary meeting on 23 May), Mayor Neil Reilly has answered criticism that the community hasn’t been consulted about the sale.

“This is the first step in a very long and complicated process,” he says.

“This is just the start of the journey which will involve the community.

“What I want to do is involve all of the communities that have a stake in this – the staff, the residents, the unions, the relatives – and take them on this journey.

“There will be community engagement, multiple valuations, consultations with residents, unions and staff, and plenty of time for input.

“We will release as much information as we are legally comfortable with.”

At the end of the process, which will take six to twelve months, it will be up to the councillors to vote to execute the sale. A public hearing will be necessary to reclassify the land for sale.

Mayor Reilly regrets false and inaccurate information is circulating, given the public is not aware of the detail of the financial situation Council is facing (Council statement on the forensic audit review).

“We developed a Strategic Improvement Plan that suggested the way out of this was to liquidate assets, and in the case of Blue Haven we had options to lease, sell or keep.

“We have explored the lease option and that road is a dead end, leaving us with the sell/keep option.

“Information from our banker [TCorp] is that they are very concerned at the state of our liquidity and they would like some absolute surety. We have the same message from the Office of Local Government.

“When we passed the motion we did it not only with a view to improving our cashflow, but also satisfying those government instrumentalities that were indicating genuine concern.

“By that I mean contemplating an administrator and possible sale of those assets where the people would have no input whatsoever.

“Because of this, we thought it was best to put a motion in that started the process that would satisfy the Office, the Auditor, TCorp and the Minister.”

Mayor Reilly believes there is no other option but to consider a sale.

“To keep it means to keep losing money to the point that it would compromise our services to the community as a Council, and that has been pointed out to us by the Office of Local Government.

“If we do not take this first step towards the sale, those government instrumentalities will be very nervous.”

The rescission motion was lodged because of concerns by Councillors Renkema-Lang, Rice and Keast about lack of community consultation and transparency, and the amount of detail provided (Blue Haven sale to be considered again).

The unions involved, and former mayors Brian Petschler and Sandra McCarthy are amongst many who have contacted The Bugle echoing these concerns (Unions call on councillors to press pause on sale of Blue Haven; Former mayor opposes Blue Haven sell-off).

Mayor Reilly understands that this is an emotional issue for the community.

“I have a great personal investment in Blue Haven both through my work at Council and my personal life.

“At this stage, if we are to keep Blue Haven something has to give. We just can’t afford it.”

The reality of that will be revealed in the draft budget and operational plans for 2022/3, which are also to be discussed during the public part of the meeting on 23 May.

Blue Haven appointment

Joe Gaudiosi has been appointed as Blue Haven’s interim Chief Operating Officer.

Council’s CEO Jane Stroud says Mr Gaudiosi’s extensive executive experience in the aged care sector would provide Blue Haven with the critical operational leadership needed to meet the challenges facing the industry.

“Joe has more than 20 years’ experience in CEO and CFO roles with Uniting Care, IRT and Multicultural Aged Care Illawarra.”

A local, Mr Gaudiosi attained his commerce degree at UOW before starting his career with Deloittes. He is a chartered accountants, a member of Australian Institute of Company Directors and a mentor for the Regional Development Illawarra Leadership Program.