• Health

    Disability provider’s finances ‘more dire than expected’

    AnyFans Posted on

    By Sophie Holder

    Copyright abc

    Disability provider's finances 'more dire than expected'

    The federal disability minister says his concerns about the financial state of the country’s second-largest employer of people with a disability have grown.

    According to its website, Bedford provides services to more than 1,500 people with a disability across South Australia. But the company aired concerns it would need to enter voluntary administration in July.

    The state government stepped in with a $15 million lifeline, in exchange for ownership of a supported accommodation in Adelaide’s inner South.

    While the disability provider avoided administration, advisory firm McGrathNicol was appointed to work with Bedford on a restructure.

    Federal Minister for Health, Ageing and Disability Mark Butler told ABC Radio Adelaide the extent of the financial struggles Bedford faced had become clearer since McGrathNichol stepped in to develop a recovery plan “if at all possible”.

    “We’re working at a federal level very closely with McGrathNicol to understand what that plan looks like, and what we could do to ensure that it is a success.”

    Mr Butler said he was “not blasé about the depths of the financial challenge”.

    It was a similar message that was echoed by South Australia’s Premier Peter Malinauskas.

    “McGrathNicol’s intervention … has ascertained that the financial position of Bedford was even more dire than what we expected, and that was starting from a pretty low base,” he said.

    “If it’s not, what’s critical is the federal government has had that time to be able to do the work to plan for any administration that might ensue, so that there’s actual continuity of services for the people that rely upon it.”

    Mr Malinauskas said that continuity of services was crucial, even if Bedford was not able to provide it.

    “What matters is that people are able to continue to go to work. If they end up going to work wearing another service provider’s T-shirt rather than Bedford, that’s fine by us,” he said.

    In a statement, a Bedford spokesperson said the organisation continues to work in collaboration with McGrathNicol.

    “Bedford remains firmly focused on developing a plan which provides stability, jobs and opportunities for people with disability in South Australia,” they said.

    “The process of this financial and structural review is still underway, and we are unable to provide comment on what the outcome will be.”

    You Might Also Like