The lies Liberals tell on the subject of aged care

The Australian, 7 February 2019:

Aged Care Minister Ken Wyatt was handed a departmental briefing report showing the “winners and losers” from the Coalition’s $2 billion savings drive in the aged-care sector shortly after Scott Morrison announced a royal commission and denied funding cuts.

Documents obtained by The Australian under Freedom of Information laws show the proportion of “losers” almost tripled to 53 per cent following the budget savings revealed in late 2015.

In the three-year period to 2018, aged-care services that had been classified as “winners” almost halved to 47 per cent, according to the brief sent to Mr Wyatt.

A series of “hot issue briefs, question time briefs and general briefs” sent to Mr Wyatt last year acknowledged the budget hit to the Aged Care Funding Instrument — which is the basic taxpayer care subsidy paid to all nursing homes — together with “increasing cost pressures will be putting pressure on the sector”.

Mr Wyatt was also made aware of reports of “cut backs to staffing”. At a press conference announcing the royal commission into aged care in September, the Prime Minister was questioned about two cuts to the ACFI in the 2015 mid-year economic update and the 2016 budget but denied any had been made.

“No, no, the Labor Party said that. I don’t accept that,” he said. Two days later, a question time brief prepared for Mr Wyatt offered advice on what to say if asked about funding cuts to ACFI.

The ministerial brief also contains a breakdown of funding changes by domain, revealing that average annual taxpayer subsidies per resident increased by just $400 between 2016-17 and 2017-18 despite the growing frailty and complexity of Australians as they enter residential aged care older than ever before.

For the first time, funding for the two areas that provide extra boosts for nursing home residents with significant behavioural problems and complex healthcare requirements went backwards by $300 a person.

The peak body for aged-care providers, ahead of the April 2 budget, has urged the Coalition to include an additional payment of almost $700 million each year.

“This estimate reflects a range of factors, including the value of foregone indexation (through ACFI),” Leading Age Services Australia (LASA) says in its pre-budget submission, seen by The Australian. “This is approximately a 5.2 per cent increase in residential care funding in 2019-20, noting that this is difficult to calculate as forward estimates for residential and home care are no longer separately reported.” LASA said it considered the money to be a “down payment” and a notably larger funding boost might be needed following the findings of the royal ­commission.” The commission, which is due to release its interim report in Oct­ober and the final version by the end of April 2020, has already highlighted the widespread industry practice of “doping” nursing home residents, which doctors, nurses and consumer groups attribute to overworked staff. [my yellow highlighting]

Less than 15 weeks out from a federal election and the Morrison Government continues to pile on the debt

According to the Australian Office of Financial Management as of 1 February 2019 the Australian Government’s gross public debt stood at est. $540.82 billion – up from $277.34 billion on 30 September 2013.

So in the space of 5 years and 4 months the Abbott-Turnbull-Morrison Government increased the nation’s gross public debt by est. $263.48 billion. 

That represents a rough average of over $4 billion borrowed from domestic and foreign sources for each month the Liberal-Nationals Coalition has been in office.

On Monday 4 February 2019 the Morrison Government will borrow another $400 million (not to be repaid till 2028) and on Wednesday 6 February another $900 million (not to be repaid till 2030) - $1.3 billion over three days.

Heaven only knows how much more debt Morrison & Co will pile on before the May 2019 federal election.

According to Stephen Koukoulas voters can add that additional $1.3 billion to this 28-year debt repayment schedule for just 29 per cent of the total public debt Abbott, Turnbull and Morrison racked up to date:

$19.0 billion - Nov 2029

$12.0 billion - May 2030

$13.9 billion - Apr 2033

$6.95 billion - Jun 2035

$12.0 billion - Apr 2037

$8.0 billion - Jun 2039

$3.6 billion - May 2041

$13.0 billion - Mar 2047

How old will you, your children or grandchildren be before this debt is paid off?

Another thing for NSW voters to remember as they cast their ballot in the 2019 state and federal elections

The Shenhua Group appear to have first approached the NSW O'Farrell Liberal-Nationals Coalition Government in 2011-2012 concerning its plans to mine for coal on the Liverpool Plains, a significant NSW foodbowl. 

This particular state government was the subject of not one but two investigations by the NSW Independent Commission Against Corruption (ICAC) - Operations Spicer (2014) and Credo (2014). 

After he was found to have misled the independent commission Premier O'Farrell resigned as Premier in April 2014 and as Liberal MP for Ku-ring-gai in March 2015. Similarly the then NSW Minister for Resources and Energy, Minister for the Central Coast, Special Minister of State and Liberal MP for Terrigal Chris Hartcher resigned as government minister in December 2013 after he was named in ICAC hearings and left the parliament in March 2015.

On 28 January 2015 the NSW Minister for Planning and Liberal MP for Goulburn Pru Goward granted development consent for a subsidiary of the Chinese state-owned Shenhua Group, Shenhua Watermark Coal Pty Ltd, to create and operate an open cut mine on the Liverpool Plains. 

On 4 July 2015 then Australian Minister for the Environment and Liberal MP for Flinders Greg Hunt ticked off on the Abbott Government's environmental approval for Shenhua Watermark Coal to proceed with its mining operation.

Glaringly obvious environmental risks associated with large-scale mining in the region and vocal local community opposition had led to a downsizing of the potential mine site, for which the  NSW Berejiklian Liberal-Nationals Coalition Government paid the Shenhua Group $262 million in compensation.

ABC News, 31 July 2015, projected new mine boundaries

However, in July 2018 the Berejiklian Government renewed Shenhua’s mining exploration licence.

Given that on the successive watches of the O'Farrell, Baird and Berejiklian governments instances of mismanagement and/or corrupt conduct in relation to water sustainability, mining leases and the environment have been reported one would think that an abundance of caution would be exercised.

Instead we now learn that that Shenhua Watermark Coal has been allowed to vary development consent conditions for the open cut mine on the edge of the flood plain and, it is looking increasingly like pro coal, former mining industry lawyer, current Australian Minister for the Environment and Liberal MP for Durack, Melissa Price, will wave through these variations on behalf of the Morrison Liberal-Nationals Coalition Government. 

Thereby placing even more pressure on the already stressed surface and underground water resources of the state.

The Liverpool Plains are said to be a significant groundwater source in the New South Wales section of the Murray-Darling Basin.

Lock The Gate Alliance, 8 January 2019:

The NSW Government has allowed mining company Shenhua to alter its development approval for the controversial Watermark open cut coal mine in the Liverpool Plains, near Gunnedah, which will enable work on site to begin without key management plans being approved.

Despite the NSW deal, Shenhua is still not able to commence work under the Federal environmental approval until two important management plans, including the crucial Water Management Plan, have been approved by the Federal Government.

Now local farmers are afraid that the Federal Environment Minister, Melissa Price, may be about to follow the NSW Government lead and vary the approval to allow Shenhua to start pre-construction for their mine without the management plans that were promised.

Liverpool Plains farmer John Hamparsum said, “We’re disgusted that the NSW Government has capitulated to Shenhua yet again, and amended the development consent to let them start pre-construction work without the crucial Water Management Plan in place.

"They have repeatedly stated that the best science would apply to this mine before any work was done, and now they’ve thrown that out the window.

"We’re calling on the Federal Environment Minister, Melissa Price, and New England MP, Barnaby Joyce to now step up and promise that not a sod will be turned on this mine until the full Water Management Plan has been developed and reviewed by independent scientists.

"This mine represents a massive threat to our water resources and our capacity to feed Australia, and if the National Party has any respect for agriculture they need to act now and deliver on their promise that the best science will be applied.

"We won’t accept creeping development of this mine and weakening of the conditions that were put in place to protect our precious groundwater," he said.

Lock the Gate Alliance spokesperson Georgina Woods said, "It’s been four years since the NSW and Federal Governments approved Shenhua’s Watermark coal mine on the Liverpool Plains and there are still no management plans in place.

"Instead of upholding the conditions of Shenhua’s approval, the NSW Government has watered them down so that Shenhua can start work without these crucial plans in place.

"The community has a long memory and will not accept Governments changing the rules to the benefit of foreign-owned mining giants over local farmers," she said.

The former Federal Environment Minister, Greg Hunt, made a strong commitment that a Water Management Plan for the project would not be approved unless the Independent Expert Scientific Committee was satisfied with it.

The amended NSW approval can be accessed here.

A legal perspective on the issues surrounding water management by Dr Emma Carmody, Senior Policy and Law Reform Solicitor, EDO NSW and Legal Advisor, Secretariat of the Ramsar Convention on Wetlands, is included in the December 2018 issue of Law Society Journal,  Managing our scarce water resources: recent developments in the Murray-Darling Basin.