Ian Gilfillan: Australian Democrats in the SA Parliament

	Extract from Hansard Legislative Council 28 November 2000

Ian Gilfillan Australian Democrats Member of the Legislative Council		Parliament Index 2000 Spring Sitting Index Browse by Subject Search all Democrats material About the SA Parliament Hansard on line

The Hon. IAN GILFILLAN: I seek leave to make an explanation before asking the Minister for Disability Services a question regarding consumer protection and retirement villages.

The Hon. IAN GILFILLAN: This is not the first time that I have had to ask the minister a question about retirement villages, following numerous grievances from residents over the past few years. These grievances relate to a minority- and I emphasise `minority'-of poorly run retirement villages where residents' rights are ignored, their money squandered or misappropriated and their long-term health put at risk. Their problems are then exacerbated by the current government, which fails to offer them adequate protection.

The minister will be interested to learn that a report entitled; `Consumer protection: What's that?', an assessment of consumer protection in retirement villages in South Australia, has confirmed that there are serious concerns with the lack of consumer protection for aged people in retirement villages. The report was prepared by Kathy Knowles from the South Australian Parliamentary Internship Scheme at the University of South Australia and is based on interviews conducted at different retirement villages involving residents and their families; information from the Office for the Ageing, Shelter SA and the Residential Tenancy Tribunal; and a review of current literature on the issue.

The report found that many of the misunderstandings and disputes that occur in villages are as a result of there being no clear contracts between the relevant parties. It also found that some residents failed to continue fighting disputes for fear of retribution. Further, it appears that the tribunal does not adequately enforce its orders, which can result in appeals in higher courts and financial stress for residents.

A series of recommendations in the report includes the licensing of all retirement villages, establishing a standard minimum contract, police checks on operators, and a strengthening of the tribunal's enforcement procedures. In light of this report, my questions are:

1. Will the minister set conditions and terms for all retirement villages and require that all such villages be licensed?

2. Will the minister develop a standard minimum contract for all villages that incorporates the definition of both the capital replacement and the sinking fund?

3. In her report, Ms Knowles indicates that the Office for the Ageing will appoint a part-time legal adviser to advise residents. Has this appointment been made? If not, when will it be made?

4. Will the responsibilities of this legal adviser extend to fulfilling the role of a legal advocate to guide residents through the contract process and advocate on their behalf should a problem arise?

5. Will the government act to ensure that the maintenance accounts of all retirement villages be audited regularly to ensure that they are not abused?

6. Will the minister require that all future village operators undergo a police and financial check before being allowed to establish or take over a retirement village?

7. Will the minister ensure that the enforcement procedures of the tribunal are strengthened so that the rights of residents are protected?

The Hon. R.D. LAWSON (Minister for Disability Services): I would be pleased if the honourable member would let me have the report prepared by the parliamentary intern to which he refers. I can assure the honourable member and residents in retirement villages that, contrary to the assertions of the honourable member, this government is interested in ensuring adequate consumer protection for all residents of retirement villages.

As the honourable member well knows, the Retirement Villages Act was extensively amended only a relatively short time ago, and earlier this year a process was put in place for the development of amendments to the regulations under that act. That process has been undertaken in consultation with the Retirement Villages Advisory Committee, and submissions have been obtained from a large number of persons and groups in this sector. As a result, a number of recommendations have been made to me.

Those recommendations are currently under consideration, and I can assure the honourable member that a prompt response will be provided. However, this is a complex matter and I think that the honourable member's questions presuppose that this is a simpler issue than it is. There is a vast diversity of retirement villages in South Australia, some of which were established as commercial businesses and others which are operated by local government and also charitable and not-for-profit organisations.

The arrangements between residents vary from village to village. This is not a case where the government, even if it wants to, can stipulate a standard contract which must apply to all these arrangements which are already in place, nor is it a case that an all-wise government can dictate to the parties what should be included in a form of contract. The act provides that certain information must be provided to persons before they enter into a contract for an interest in a retirement village. The act also contains minimum safeguards to ensure appropriate consumer protection whilst at the same time striking a fair balance between the interests of residents and those who seek to develop retirement villages.

In his numbered questions, the honourable member asks whether I, as minister, would set conditions and terms for all retirement villages. The answer to that is `No'. Would I require that all villages be licensed? To date, we do not have a system under which retirement villages are required to be licensed. No compelling case has been made for the introduction of additional red tape licence fees and the rest. There are appropriate mechanisms to ensure that unsatisfactory operators are excluded from the market but, at the moment, I am not convinced that a licensing scheme is warranted.

The honourable member has outlined a number of other questions. I think it is unnecessary that I use question time to answer those questions specifically, but I will bring back to the Council a more detailed response.

The Hon. R.D. LAWSON: By way of interjection, the honourable member asks me specifically about the appointment of a part-time legal adviser to advise residents. The Office for the Ageing provides assistance to persons who have concerns about retirement villages-and there are a number of them. As the honourable member says, there are very few retirement villages which do give rise to a number of problems, but is the government to provide part- time or full-time legal advice for retirement village operators as well as residents?

We provide assistance at the moment through the Office for the Ageing. It is not legal assistance, but it is assistance to direct people in the appropriate ways to approach the tribunal. Legal advice is obtained by the Office for the Ageing on a number of occasions through the Office of the Crown Solicitor on matters of general law. However, it is not seen as a function of the Office for the Ageing to provide individual legal advice to residents, and at this stage it is not intended to provide that advice. I do not believe that it is warranted. I doubt whether it would actually reduce the number of disputes; rather, I think it would be more likely to encourage them. I will examine closely the honourable member's numbered questions and bring back a more detailed response.