TOMAREE Lodge will close by 2018 because of a state government plan to privatise disability services in NSW following the introduction of the National Disability Insurance Scheme (NDIS).
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Earlier this month Michael Coutts-Trotter, director general of the Department of Family and Community Services, sent a staff-wide email confirming the NSW government would "progressively transition funding and the delivery of specialist services to the new disability system under the NDIS".
"Only non-government agencies, and possibly the Commonwealth, will provide [disability] services - and not our department," he wrote.
"By mid-2018, the NDIS will be responsible for directly funding people with disability and disability supports will be provided by non-government organisations."
A spokeswoman for the NSW Minister for Disability Services, John Ajaka, confirmed the move, saying the transfer of government-run disability services to non-government organisations was "fundamental" to "facilitating choice" during the transition to the NDIS.
"This transfer was part of the NSW Government's agreement with the Commonwealth, which resulted in the NDIS agreement, and is overwhelmingly the preference of consumers of these services," the spokeswoman said.
The lodge is a disabled-care state government hospital that cares for between 40 to 60 patients.
Paul James, the Hunter regional organiser for the Public Service Association, said the lodge, as well as disabled group homes in Nelson Bay and Salt Ash and a respite centre at Raymond Terrace, were all at risk of closure.
Mr James said the plan would mean less job security for disability workers, and a possible exodus from the industry.
"Our fear is that with any form of privatisation that you look at, you start to see value-driven services," he said.
"The NDIS is driven to individual client needs, which is great. However, for staffing it will encourage agencies to have more part-time and casual staff.
"There will be substantial wage difference in awards [and] I certainly believe if people aren't being remunerated appropriately in one industry they'll take their skills elsewhere."
The Disability Services spokeswoman said $500,000 committed to a group home in Shoal Bay in this year's budget would still go ahead.
