In 2010, Grey Power, working with others, released a special report into the state of the aged care sector. “What does the future hold for New Zealanders?” it asked, and concluded: “It is time for a revolution in how we provide age care services to the elderly.”
Grey Power emphasised the need to empower people in residential care, and address cuts to services, reliance on over medication, dismal hospital level care, overcrowding, low wages and short staffing plus a lack of any true regulation.
In August this year, 16 years on, Health NZ has a new report from the Aged Care Ministerial Advisory Group. The title: “A Place to Grow Old. Securing the future of aged care. “
Radio NZ (Aug 17) summed it up as ‘sounding the alarm’ saying the aged care system ‘is at a turning point’ and ‘major systemic reform must start now.’
The underlying ‘problem? Funding and a growing demographic – that’s us! In 2024/25 residential and in-home care cost $2.5 billion government spending and another $1.26 billion coming from those receiving care.
The 186-page report was welcomed by the Aged Care Association, the body which represents the listed corporations, private equity companies and for-profit operators who own and operate our residential and some home care services.
But surely, asking those already tax-funded current operators what needs to change was a bit like asking the oil companies how to stop climate change?
On page 113, the report talks about ‘contributions’ and the need to ‘rebalance’ costs.
While the authors say healthcare should remain ‘primarily government funded’ they also argue this is for ‘a portion of people’s healthcare costs’ and that further means testing is necessary. Ultimately, that means more user pays with a clear signal that those needing home care could be charged.
Although the terms of reference call for ‘specific funding model components and mechanisms for sustainable aged care services, shared costs and changes to contracting arrangements,’ there is no real mention of the absence of safe staffing regulations.
There is no analysis of the current practice of charges for extras and no consideration of the reliance on overseas workers or the impact of last year’s cancelling of carers pay equity claims. The authors say decisions on wages, remuneration and pay equity were outside the scope to the report. But the brief also references the need for a ‘sustainable supply of beds.’ What good are new beds without staff?
Aged care services were once delivered by local hospitals, churches and community groups. But no longer. That may be the problem. Tragically, questioning the ‘for profit’ delivery model has not happened with the current authors.
In 2016 Grey Power called for a “revolution” in how care is provided. We are still waiting and the queue for care is getting longer.
Alastair Duncan,
Wellington.



