By ABC News
Copyright abc
Australia’s second-largest disability employment provider Bedford will be kept afloat by a federal government funding injection as it seeks a buyer for the embattled business.
Bedford avoided entering voluntary administration in July after it aired concerns about its financial position, prompting the South Australian government to provide a $15 million lifeline.
Advisory firm McGrathNicol was also appointed to help restructure the business.
Federal Minister for Health, Ageing and Disability Mark Butler confirmed on Friday the Commonwealth would provide $4.4 million in funding to “continue the employment of 1,500 or so South Australians” who are employed by Bedford while a sale takes place.
He told ABC Radio Adelaide a report prepared by the firm had made it clear “the only way Bedford has a future is a sale” and extra funding was needed to keep it operating.
“It just gives you a sense of the difficult financial position Bedford got itself into that it can’t operate while that sales process is going underway,” Mr Butler said.
Mr Butler also expressed his disappointment at the “very difficult position” the disability employment provider had found itself in.
“The more we’ve got across the detail of Bedford’s financial position, the worse it’s looked,” he said.
“But we have to make sure there are services in the future for the many, many hundreds of South Australians living with a disability who rely on it day in and day out.”
The announcement follows previous concerns voiced by both the state and federal governments in September about the depth of Bedford’s financial woes.
Mr Butler confirmed a sales process was already underway and would “happen over the course of this month” with potential purchasers already expressing interest.
“That’s what this funding does is allow Bedford to continue operating while the sales process is undertaken and the markets’ effectively tested,” he said.
“But we’re desperately hopeful there will be a buyer that recognises the quality of these services and is determined to give them a long-term future in South Australia.”
