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Catholic Health suggests Commonwealth bonds can build aged care homes

Catholic Health Australia CEO Francis Sullivan has said that the pressing capital requirements for construction and rebuilding of Australia's nursing homes and hostels are reason enough for the Commonwealth to remain in the bond market.

He was responding to the Federal Treasurer's challenge to the finance industry to convince him that the Commonwealth bond market should be kept alive.

Under the Commonwealth's building and quality standards, all nursing homes and hostels will need to pass stringent building and safety requirements between now and 2008. The government's own report estimated the capital funding requirement for the aged care homes for the period up to 2008 as $8 billion.

"Many of these homes will struggle to acquire capital and do not have prosperous communities where people are able to sell their homes to pay for the building upgrades," he said. "Presently the Commonwealth has a widely recognised inadequate capital funding program to assist in rebuilding and construction in general."

"The Commonwealth's involvement with the bond market is an ideal mechanism to foster investment in aged care construction and take the pressure off people having to sell the family home."

"This would particularly apply to regions of socio-economic disadvantage and in communities where the majority of people needing aged care homes have little but their house to rely on."

Catholic Health Australia

Catholic Health Australia
Costello to review bond holdings (AAP)
Accreditation program forces aged care closures (ABC TV Lateline, 23/10/02)

4 Nov 2002