Government funds dry up for rest home extension

Press, 27 November 1986, Page 2

Government funds dry up for rest home extension

A planned $682,750 extension to a Blenheim rest home has stalled because the Government has run out of money after initially promising a $388,826 subsidy.

The executive director of Presbyterian Support Services in Christchurch, Mr Maurice McGregor, said his organisation planned to increase the number of beds at the Isabel Bursill Home from 26 to 33.

The organisation had spent $30,000 on architectural plans since August, 1985, when the Government had approved the need for the extension and its over-all concept, and promised to contribute $388,826, he said. The money was to have come from a Health Department capital subsidy for accommodation for the elderly. The organisation had expected to receive the subsidy after sending the plans to Wellington several months ago. Instead it was told that the subsidy had already been

fully allocated this year, Mr McGregor said.

In addition to the $30,000 spent on the plans, the organisation had started to arrange fund-raising in Blenheim for the $70,750 which was to be raised locally. Presbyterian Support Services had agreed to commit $223,174 from its own capital resources to the scheme, Mr McGregor said.

The matron of the Isabel Bursill Home had already moved to a separate residence. This required an additional staff position which could not be justified without the extension.

The Minister of Health, Dr Bassett, was believed to be reviewing this funding short-fall, but the situation had created uncertainties in what had been a traditional relationship between welfare agencies and the Government.

In this partnership the Government had contributed to building homes for the elderly, and the

agencies had met the running costs, Mr McGregor said.

“We are dependent on central funding from the Government to assist us,” he said.

“Once we are no longer in a partnership situation we have to charge more. It is going to take the fees out of the reach of those on ordinary means.”

The Government’s reason for its funding shortage was that it had commitments to other projects, but these should have been anticipated before it promised his organisation money, Mr McGregor said. A spokesman for Dr Bassett said yesterday that there had been an unprecedented demand this year for funds under the accommodation for the elderly capital subsidy.

Between the 1981-82 and the 1985-86 financial years, expenditure under the subsidy scheme was far lower than the amount estimated. In 1985-86, for example, $4 million had

been estimated, but only $2.9 million was spent. The demand this year was three times as high as last year. Part of the problem was that some groups whose schemes had been initially approved in past years, had not uplifted the subsidy. As a result of this year’s shortfall, schemes which had already begun building would receive the subsidy, but those still in planning stages were being reviewed individually. The spokesman had no details of the Isabel Bursill scheme itself. He said the Minister welcomed the great interest being shown by welfare groups in providing accommodation for the elderly and would be tightening up the allowable period between approval being granted and the money uplifted.

The amount allocated for the scheme in next year’s supplementary estimates had been increased, the spokesman said.