The NSW government issued a separate media release around the Greiner Report and its 17 recommendations.
It made these points:
“The government is committed to NSW leading the nation in safeguarding the rights of retirement village residents in being tough on those who take advantage of our seniors”.
In her report under “Training and conduct of village managers” Greiner indicated she wanted penalties for poor conduct:
“Greater certainty around the expected standard of conduct and care is sought by many residents”.
“The role of a village manager is complex and there is scope for more tailored training to occur and for expected conduct to be set out in a Code of Conduct or some other form of documentation”.
“A negative licensing scheme may work well with a Code of Conduct and an enhanced public register”.
(Under negative licensing, businesses do not need to demonstrate they meet preconditions before entering the industry. If, however, a business breaches industry standards, it can be barred from continuing to operate).
The Report presented 17 recommendations which Minister Kean stated in an ABC TV news interview on Sunday night he will accept.
“The government will make reforms” that will aim to:
- increased transparency in the sector by reviewing and developing disclosure documents and mechanisms for consumers – including a full review of all documentation
- provide increased consumer certainty around key costs and charges – Kean on TV said his Department will develop a list relating to maintenance and capital charges identifying who is responsible for each
- enhance accountability of operators and the sector to improve village living – “the government will consider new measures to keep residents informed of key Village information and hold operators accountable in demonstrating appropriate conduct”
- improve the effectiveness of dispute resolution processes and outcomes – including options for intermediary dispute resolution models
- strengthening Fair Trading’s oversight of the sector – including a comprehensive review of existing powers and penalties under the Act to strengthen and enforce compliance within the sector
What we do know at this early stage is that the Minister will introduce:
- the government’s own Code of Conduct which every operator will have to comply and there will be penalties for failures
- instead of introducing an ombudsman the government is creating a new role called an ‘ambassador’ – to perform the role of an advocate on behalf of residents, and report back on key issues
- compulsory buyback’s of vacant units by operators within a period yet to be determined
- compulsory disclosure of contract terms on a web portal and a calculator
- very early disclosure of contract terms with new customers
- periodic review of contract terms with residents and their families throughout their duration in the village
- formal dispute resolution processes
- an intermediate mediation step for disputes before reaching the tribunal
- a comprehensive review of all regulations and documentation
What is not said in any of the documents but is clearly apparent is that trust and confidence in operators is missing. The ‘system favours big business’ is the sentiment.
“Many current residents expressed the sentiment that the retirement villages’ legislation is not fit for purpose to protect residents, because it is imbalanced and favours the operator”.
“Multiple resident advocacy organisations suggested that amendments to the Act were not enough, and recommended that the Act be re-written”. (p. 106)
It is worth pointing out that Ms Greiner’s report includes one village case study: The Landings at North Turramurra, which happens to be in Matt Kean’s electorate.
The village is owned by the private operator Sakkara who has been in a constant state of dispute with its resident committee since the village was built around 2005.
The report details that the residents have been to the Tribunal (NCAT) 20 times in the last five years over budget disputes and non-compliance by the operator with tribunal orders. The village operated for three years without an approved budget. On one matter alone the residents funded legal fees of $120,000.
Historically and currently there is no mechanism to enforce industry standards.
The frustration of some of The Landings’ residents has been so great that in 2013 they launched the Seniors Political Party with the objective of obtaining an Upper House seat, simply to get the attention of politicians. Unsurprisingly they have been regularly featured in the media, in particular ‘A Current Affair’.
Having been closely involved in their journey over the past 10 years my judgement is their complaints have been justified.
I suspect Matt Kean agrees. And now the sector will need to comply with his increased regulations.