5. JUDY TURNER (Deputy Leader—United Future) Link to this
to the Minister of Health
How has he responded to claims by the New Zealand Nurses Organisation that new funding to the aged-care sector, even if entirely spent on remuneration, will amount to a wage increase for caregivers of only 51c an hour on top of the present average rate of $10.85?
Hon DAMIEN O'CONNOR (Acting Minister of Health) Link to this
Budget 2006 provided $126 million over 4 years, on top of a single-year boost of $39 million, for the aged-care sector to cover inflation and demographic pressures.
In light of the impending crisis in aged care, which will in the not too distant future be contributed to by many members of this House, will the Minister be actively encouraging district health boards to pass all their additional funding on to sector providers; if not, why not?
Hon DAMIEN O'CONNOR Link to this
This Government has increased the money spent in this area by 45 percent since 1999. The money is paid to the district health boards, and we hope that they will pass this on to providers, but ultimately the issue of wage rates is between the providers, the employers, and the unions themselves.
Barbara StewartIs the Minister aware that district health boards are now trying to bundle in with the current A21 review of age-related residential care funding, the ongoing A23 claim, which arose from the successful New Zealand Nurses Organisation’s claim in respect of the multi-employer collective agreement, which the district health boards have refused to discuss with industry groups for over a year; and will that type of blackmail be the basis for passing this Budget money on to the sector?
Hon DAMIEN O'CONNOR Link to this
We are very aware of the pressures in this area. That is why we have increased the funding. We would not expect any district health boards to use blackmail techniques, and we would expect them to negotiate in good faith with the providers in this area.
Sue BradfordWhy is the Government refusing to proceed with regulations to cover minimum staffing levels for aged residential care when the sector is clearly in crisis and when outcome-focused certification and contractual regimes simply will not guarantee minimum standards?
Hon DAMIEN O'CONNOR Link to this
We have put in place measures to ensure that there are quality assurances in the area of aged care. We have moved, in fact, on some providers that have not met those standards, and we will continue to do that. We do not believe there is a crisis, but we do accept there are pressures in this area.
Does the Minister have any estimate of the increase in the number of aged-care workers required to meet sector demand by 2020; and how does he expect to meet that requirement in light of the present wage-related workforce crisis?
Hon DAMIEN O'CONNOR Link to this
As with everywhere and with every part of the economy, there is an ageing workforce. We are aware of the increasing pressures in this area, and we trust that, collectively, we will be able to work through these matters and make sure we have enough people to do the jobs when needed.
Jo GoodhewCan the Minister confirm that he has seen the nurses union’s statement on aged-care funding headlined: “Budget leaves aged care out in the cold”; and has he discussed the importance of caucus unity with Maryan Street, after her speech to a union rally outside Parliament yesterday, where she indicated that the funding is inadequate by saying that more needed to be done to increase wages?
Hon DAMIEN O'CONNOR Link to this
There is no contradiction there, at all. Ultimately, wage rates are to be negotiated between the providers and the workers themselves. We have put $126 million into this area in this Budget—that is not ignoring the aged-care sector.
Can the Minister explain why Maryan Street, in the speech she made to the nurses yesterday, reassured nurses by reminding them of the fact that under Labour the minimum wage had gone up several times; and does he think it is acceptable that caregivers in this sector are paid the minimum wage?
Hon DAMIEN O'CONNOR Link to this
That member who spoke yesterday is part of a caring Government. We have moved to increase the minimum wage, and to protect workers in every industry. Again, we would like to reiterate the fact that we would love to see wages go up in every area, and we are working to ensure that that happens.
Does the Minister feel quite comfortable with the fact that an ever-increasing amount of these extra dollars for the sector is going into private, profit-taking providers, and does the Government ever give consideration to the fact that a better use of Government money might be to take some of that sector back into the public domain?
Hon DAMIEN O'CONNOR Link to this
I think there will be, for the most part, private providers in this area, but I do notice that they have been announcing increasing profits and that they are continuing to participate in the market. That would indicate that there are healthy providers, and an opportunity, perhaps, for wages to go up.