Kiama Council is unlikely to consider the rescission motion on the sale of Blue Haven at its meeting tomorrow night (17 June), with an extraordinary meeting expected to be held next week for this purpose (Blue Haven sale to be considered again).

Opposition to the sale is continuing to emerge, with Arthur Rorris, Secretary of the South Coast Labor Council; the State Member for Gilmore, Fiona Phillips; and the State Member for Shellharbour, Anna Watson lending their support to local union members calling for the matter to be reconsidered.

Emeritus Mayor Brian Petschler has also expressed his concern, as have many others who have contacted The Bugle.

This show of solidarity from Labor members and unions is at odds with the two ALP councillors, Imogen Draisma and Stuart Larkins, voting in favour of the sale.

“It certainly sounds to us like that legal advice councillors were given was quite heavy handed and had to be taken seriously,” said Mr Rorris.

“With hindsight, we are asking councillors to now elevate the rights of the people who elected them over and above what they may or may not have been told was their primary interest and role.

“Following discussion with some of the councillors, they are now looking at this in a bit of a different light when they consider the fact that they are not even talking about a sale for six or 12 months and a Federal election within a week could change the ball game in aged care.

“It doesn’t sound like a prudent approach to me to limit options when you aren’t forced to.

“We see it as a bit of an own goal. I can’t speak for the councillors as they will make their own decisions, but I think they get the message that there is an expectation from the people of this region that at the very least there should be consultation.

“That didn’t happen, which was a mistake. Councillors have the opportunity to rectify it.”

Stuart Geddes, Industrial Officer with the United Services Union, said the 200 or so workers (almost half of Council’s workforce) were given no warning a decision to sell Blue Haven was going to be considered.

“We have been engaged in fortnightly discussions with Council about their financial situation, but at no point did they say we are looking to go to a confidential council meeting where we are looking to sell off Blue Haven.

“The issue that we have is that they went into a confidential meeting based around the confidential reports and the next thing you know they are selling it off. The first thing I knew about it was reading it on The Bugle App at 9pm. That gives you an idea of the level of consultation.

“Needless to say we were miffed, our members were scared and we we're getting panicked phone calls.”

The sale would include both Blue Haven sites and its other aged care operations

Fiona Phillips said, “I am deeply disappointed about what is happening here. Significant taxpayer dollars have gone into this facility. I am deeply concerned for residents and workers here.

“Under an Albanese Labor Government, we will put the care back into aged care, including a greater emphasis on accountability and transparency. We don’t know what has unfolded here.”

Anna Watson said that Blue Haven serves the whole region, “It is a very trusted and respected organisation, and we need to keep it in public hands.”

Former Mayor and General Manager of Kiama Council, Brian Petchler, says he was dismayed by the news of the sell-off.

“I could not believe that such a major move could be made in a confidential meeting, without the community being made aware of that likely decision.

“The community must be involved in any discussion of disposal of these assets, and a full disclosure of the reports on which the proposals are based needs to be made. What plans have been made for public input into these decisions?

“It is pleasing that three councillors have lodged a rescission motion and it is hoped that the review of this matter will be made in a full public meeting, with all the facts and options being placed before the public for comment before the matter is finally resolved.

“It was particularly concerning that the reported reasoning of the three councillors moving the rescission motion seems to be based on the lack of other options being placed before Council along with the proposed sale. Were alternative proposals presented? If not, why not?”

He went on to say, “It is understood that significant improvements in Commonwealth funding are likely to significantly reduce any Blue Haven annual deficit within the next funding period. Should a short-term problem lead only to a panicked fire sale?

“It is imperative that full public disclosure be made to ensure a clear understanding of all pertinent issues. Council must place all facts before the community and must give due weight to the community’s wishes before proceeding. Anything less would be a betrayal of public confidence in Council’s policy of transparency and inclusiveness.”

While the motion that approved the sale provides for conditions to be included that would protect the workers’ conditions and the quality of care, Mr Rorris says case law shows that isn’t possible to do effectively under transmission of business principles.

“What happens after you sell it? You either get someone who will run it as is, and if that is the case, why sell it? Of you will get someone who starts stripping off assets, sacking workers, reducing pay rates, reducing quality, selling land and other assets.

“The individual parts will sell for more than the whole. And that is the problem. These assets belong to the people of Kiama.”

The Bugle spoke to a lawyer who said that such a covenant in the sale would be difficult to draft, and almost impossible to determine or enforce breaches.

“Instead of going through a normal due process of engaging with the broader community, without discussing it with the staff, without considering the implications, this council in the dark of night, in a confidential meeting, made the decision to sell of this service,” said Mr Geddes.

“At the bare minimum, we would urge the councillors to support that rescission motion, engage with their broader community, engage with their trade unions, engage with the staff so that secure jobs are maintained and the residents that moved in here are able to have their homes protected.”

Mr Geddes has been astounded to hear since the decision that some NDIS providers were informed three weeks earlier that Council were going to sell the operation.