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From the Mayor: The right reasons

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Mayor Neil Reilly

20 May 2022, 12:29 AM

From the Mayor: The right reasons

Council has made the momentous decision to sell our aged care business, Blue Haven.


We did not come to this lightly, indeed many councillors expressed their support or otherwise for the decision in very emotional terms. And yet, it is a decision made for the right reasons – to ensure Blue Haven’s future and to keep Council solvent and able to focus on providing services to everyone in our community.


Forty years ago, when Kiama Municipal Council first got into the business of aged care, it was also done for the right reasons. There was a lack of aged care provision in our region

and a strong community feel that the Council should step up.


The Council did step up, but we didn’t do it alone. There was much fundraising, goodwill and effort put in by so many.


This will never be forgotten.


As we have moved through the years, Blue Haven has been a source of pride and comfort to many in our community. Pride in what Blue Haven has meant for Kiama locals – to be able

to age in place in the municipality they love and call home. And comfort, because aged care is not some esoteric concept that is unlikely to touch many people’s lives.


It’s a stark reality that most of us will require the services offered by Blue Haven and other providers at some point, if we’re not using them already, either for ourselves or our loved ones.


I know many long-term locals will have fond memories of visiting and being part of Blue Haven over the years, either through school, as staff, as volunteers, or as a resident or visitor to the Residential Aged Care Facility or one of our 262 Independent Living Units, or as a recipient of our Home Care packages.


It is for all these reasons that the councillors, and myself, voted with heavy hearts on whether it was time for Council to sell Blue Haven.


The aged care sector has changed dramatically since the decision to build our new facility.


The reforms that came as a result of the Royal Commission, while very welcome, have added complexity, as have changing landscapes with the NDIS and other assistance packages. This, compounded by the global pandemic and vaccine mandates, have resulted in huge staff turnover, while the staff that remain are overworked and expensive agencies must be called in to fill the gaps. Things need to change.


It has become untenable for Kiama Council to continue to run Blue Haven in this environment. Local Governments fulfil many functions in our communities. Most of these functions cost money and, despite what some seem to believe, Council rates can not cover it all.


Blue Haven is operating at a deficit, and so is the Council. While we’re proud of Blue Haven’s wonderful new facility at Bonaira, we now need to repay our debts.


If Council is to continue providing all the other important services that a Local Government needs to, we must sell Blue Haven, and other assets as well, to balance the books. Kiama is the only remaining Local Council in NSW that is still providing aged care.


Every other Council in our state has moved out of this business. For the right reasons – we cannot split our focus or our finances to run both the Council and Blue Haven in today’s marketplace.


Thankfully, unlike 40 years ago, there are now many other aged care businesses operating in our region, which can be laser focused on the core business of providing excellent services to those in their care.


Blue Haven will not close down.


We are committed to ensuring that it continues to provide the world-class and much-needed services it does. However, I am convinced that a new owner, with aged care expertise, focus and capacity, will best serve Blue Haven right now.


The process will involve community engagement, multiple valuations, consultation with residents, unions, staff and plenty of time. We think six to 12 months.


Social media has been a vehicle for false and inaccurate information. This has upset some our most vulnerable residents, and some of our more robust ones as well.


We have been and will continue to be transparent. We’ll release as much of our Forensic Report as we’re legally allowed and as much information as we have now, and more as it comes to hand.


We are also embarking on an up-front campaign of talking to groups and individuals, and we have a created Blue Haven sale information page on our website. You can also call me and I’ll come around and speak to you personally.


The residents of Blue Haven are part of our community and will remain so. Our focus will be on them as we restore our finances and continue to provide the services our community expects.


We got into aged care more than 40 years ago for the right reasons. We are justifiably proud of what we have achieved.


We are now stepping back from Blue Haven, so that Kiama Council can continue to provide the entire range of services a Local Government must offer to us all equitably, now and into the future.


It’s the right thing to do, at the right time, for the right reasons