Kiama council 'foolhardy'; to sell off Blue Haven, says union

Last year, council voted to sell off Bonaira - the aged care component of Blue Haven - while retaining the independent living units known as Terralong.

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At an extraordinary meeting - to be held at the Kiama Pavilion from 2.30pm - councillors will discuss the potential sale of the entire business.

Last week an open letter from council stated an independent business case had recommended the sale of Terralong as well.

Citing an unseen report commissioned by the USU - which represents the bulk of workers at Blue Haven - Mr Kelly said the sale would lead to a rise in costs to residents and a reduction in services.

"It is clear from this report that a private operator would move to increase revenue by increasing the costs for residents and downgrading the level of services and quality of care," Mr Kelly said.

"That's the difference between privately-owned aged care facilities which seek to return a dividend for investors and publicly-owned not-for-profit aged care."

He claimed council was placing its own "complex financial situation" over the needs of the community.

"At a time when the community is ageing, it is foolhardy for Kiama council to do anything that reduces the level of care available to older people in the Illawarra," he said.

There were also fears a sale would result in a fall in wages and reduced job security.

"And there is no guarantee that any sale of Blue Haven would solve Kiama council's financial problems," Mr Kelly said.

The report before council noted the buildings at Terralong were old and would need replacing, though there were no cash reserves to fund such a "significant investment".

The council's business case concluded that selling off Bonaira alone would not resolve council's "serious financial issues".

"Council's existing cashflow and liquidity position will simply not allow for a continued dual focused business involved in aged care and municipal services and difficult decisions are required for the organisation to have a sustainable future," the council papers stated.

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