[Note: originally published 17 March, updated 20 March regarding Cllr Croxford's motion. Further updated 21 March after being informed of an amended motion.]

A report on whether Council should divest itself of its aged care operations, commissioned by the United Services Union (USU), has looked at the impact of the decision on Blue Haven residents, employees and Kiama ratepayers and community members.

Compiled by Associate Professor Martin O’Brien, Director of the Centre for Human and Social Capital Research and Director of the MBA Program at the University of Wollongong, the report relies heavily on findings from the Royal Commission into Aged Care Quality and Safety rather than Blue Haven’s particular financial situation.

“In our view, it just appears there isn’t a will by this Council to do the work that needs to be done in terms of keeping Blue Haven, and this report emphasises the reasons why it should,” says CSU organiser, Rudi Oppitz.

“No business case has been put forward on the basis that if we were to keep it, these are the things that we would need to do to keep it operating successfully.

“If there was a business case that put forward that side, then the community and the residents and the union would have something to look at so they could say, right now we get it. Now we see that this is impossible or that there are challenges, but they aren’t insurmountable.”

The report backs up the unions' strong opposition to the sale of Blue Haven

In his view, the analysis released at the March Extraordinary Meeting on the Keep, Partnership or Sell options isn’t enough as only a synopsis of the report was made public.

“Should we as advocates for our members and aged care sit back and accept what is laid out in front of us if it isn’t complete? Council hasn’t demonstrated any transparency from the day they came up with the idea.

“The need for commercial-in-confidence [keeping information confidential for commercial reasons] goes out the window when looking at the magnitude of the decision.”

Mr Oppitz is disappointed Council hasn’t been using the State Election to lobby for extra funding, such as that promised to another electorate for its aged care operations.

For residents, the commissioned report concludes that “divesting Blue Haven from being a government-run facility to for-profit or not-for-profit is likely to result in a wide range of poor outcomes for residents”, based on sector wide studies on quality and costs rising under new ownership.

It notes that transferring employees from Local Government to Federal awards may result in lower wages.

Protesting outside the September 2022 Council Meeting: the Secretary of the South Coast Labour Council Arthus Rorris with union organisers Stuart Geddes and Rudi Oppitz

Stressing the long tradition of community support and goodwill for Blue Haven, the report says, “The financial losses associated with aged care facilities at Bonaira are currently typical for the sector”.

It questions whether now is the right time for sell given the downturn in the real estate market, and that it is probably public comments from council may have “hindered the process” by talking down its value.

In response to the eight page report, Mayor Neil Reilly says, “Blue Haven Bonaira is operating at a significant loss and has been for the past three years, as our financial report show. The USU report does not address how the Council or Blue Haven could continue to operate if this were to continue.

"Our solution, to divest of Blue Haven Bonaira (subject to the reclassification of the land), means the facility and its services remain in Kiama, its staff continue to be employed and Kiama Council will be well on the way to restoring its financial sustainability and ensuring an equitable distribution of Council funds and services to all in our community.”

Mayor Reilly talking with protesters wanting to save Blue Haven outside the May 2022 Meeting

He points out that the Royal Commission established a new Aged Care Act and regulatory regime.

“Today, all operators must meet the exact same standards of care, whether they are councils, profit or not for-profit.

“Clearly, any operator who takes ownership of Blue Haven will be one whose standard of care is rigorously monitored by the Commonwealth to be as good, if not better than, what Council can provide.”

The Mayor also notes that a 15 per cent wage increase for aged care workers under the Federal Award in June will effectively ‘close the gap’ between the local/state government award rates of pay and aged care worker pay rates under the Federal Award.

In a related development, the Business Papers for the 21 March Meeting of Council show that Councillor Mark Croxford has put a motion to Council "refuse any future meetings with the following United Services Union (USU) officials, Aaron Vann, Rudi Oppitz and Stuart Geddes, and that the aforementioned be banned from accessing any Kiama Municipal Building, property or assets for the remainder of the current Council term."

This follows them meeting with staff earlier in March where, the Business Papers say, "The behaviour included bullying, belittling, and insulting council staff, calling the CEO a 'liar,' and describing the COO as ‘incompetent'."

A complaint has been made to the union's head office, and Council stresses its willingness to continue working with the union.

Update: The Bugle has just become aware that after obtaining further legal advice the CEO has since recommended that Cllr Croxford's motion not be put or seconded as it is unlawful.

"The implementation of the resolution as it is currently worded will be unlawful, as it would contravene both the industrial relations act and the fair work act," says Ms Stroud.

We apologise for not reading the supplementary agenda earlier. The Business Papers originally said the motion was lawful.

Further update: Cllr Croxford has amended his motion in a way which he says is lawful. Based on the same purpose and background, it still calls for future meetings with the officials to be refused, but takes out reference to banning the officials from accessing Council building, property or assets. It also asks for a written apology.