E Tū Union – Mischievous Or Misinformed?

Scoop

05-05-2025

Press Release – Aged Care Association
Aged care is a complex environment, but at its core, the financial relationship is between Health New Zealand and the individual New Zealander who needs care.
The E tū union is either being deliberately mischievous or is seriously misinformed about how aged residential care works in New Zealand, says Aged Care Association Chief Executive Hon. Tracey Martin.
The Post published a story last week based on a report titled Transparency and Corporate Tax Reforms to Improve the Efficiency of Aged Residential Care Funding, which has not been made public.
'To level public accusations based on an unreleased document, one that neither the targeted provider nor the public can scrutinise, is not only duplicitous but unethical.' says Ms Martin.
It is disappointing that E tū has chosen to spend time and money on what appears to be a flawed report, in an attempt to bully a particular provider into ceasing a change consultation process with their staff.
Without access to the full report, the Association can only respond to the comments attributed to the report's authors and the union.
The claim that aged care providers may not be using government money appropriately is either a complete misunderstanding of how aged residential care is funded or a deliberate manipulation of the facts to push an alternative agenda.
Aged care is a complex environment, but at its core, the financial relationship is between Health New Zealand and the individual New Zealander who needs care.
Providers meet rigorous standards to be eligible to deliver aged residential care services to New Zealanders who are funded directly by the Crown.
The Aged Care Association had hoped for a more constructive relationship with E tū for the benefit of their members and ours, based on shared recognition that the funding model for the provision of aged care to senior New Zealanders is fundamentally broken and must be addressed with urgency.
The time and resource spent on this report would have been better directed toward advocating for an independent, cross-party taskforce (including union representation), to design a fit-for-purpose aged care funding model that delivers greater transparency for all, including everyday taxpayers.
Notes:
Funding for aged residential care is allocated as follows:
– Aged care providers are certified by government agency HealthCert as meeting criteria to deliver specific levels of care – e.g. Rest Home, Hospital, Dementia, or Psychogeriatric care.
– Certification does not entitle providers to any guaranteed funding. It simply confirms that they meet the required standards to deliver care, such as the required staff and facilities.
– Providers are subject to regular audits (both scheduled and unannounced) by independent auditors approved by HealthCert.
– Many of the standards audited relate directly to staffing levels, and the sector overwhelmingly respects and adheres to the voluntary safe staffing levels agreed with Government.
When a New Zealand senior is assessed by a NASC (Needs Assessment and Service Coordination) team as needing residential care, the Ministry of Social Development reviews their financial situation. If they qualify for support:
– They must first contribute their own income (e.g. superannuation or assets).
– The Government then tops up the difference between what they can afford and a capped amount that can be charged by any residential care provider for the provision of that care, with the capped amount set by the Director-General of Health.
– The individual and their whānau choose the care provider they wish to deliver that care to them.
– All financial agreements around the provision of care are between the government and the New Zealander needing care. None of our members receive a bulk grant from government or have a direct financial contract with government.