A shock decision by the community-owned Quirindi Care Services (QCS) to sell two of its major properties has senior residents worried the path will lead to community being stripped of control.
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However, QCS board chair Michael Lomax defended the decision to sell the Henry's hotel and Cunningham Court properties as a financial necessity.
While residents at QCS facilities have to pay for their accommodation, Mr Lomax said most of the time it was not paid in full as a residential accommodation deposit (RAD).
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"Those RADs become a liability to Quirindi Care Services. Those liabilities currently run for us at $5.1 million," he said.
He said neither of the properties were core assets, and neither had proven profitable.
"We have not been able to improve on 60 per cent occupancy," he said.
"Now anybody in the hotel services industry will tell you that that's not financially viable."
The core properties of QCS now are Allura, which has 66 beds, as well as two independent living unit sites, which together accommodate 18 people.
Quirindi Country Women's Association (CWA) secretary Colleen Wills said the sale undermined a legacy that was established when the Uniting Church donated the property, on the stipulation it would be used for aged care.
She said the sale violated standards of accountability and transparency that should exist for community-owned services, whether or not times were financially hard.
"There is no excuse for the board of directors not to be open and transparent with the community," she said.
With the level of support the service was getting, Mrs Wills said the sale came as a shock.
"At Christmas time we were told that they were in pretty good stead," she said.
"They'd got a lot of COVID funding.
"It was actually seven board members that made decision for the whole town.
"And that, to me, is a bit scary."
Mrs Wills said residents were now afraid the independent living spaces would be sold, or the entire business amalgamated by a larger player.
"Bigger is not always better," she said.
Meanwhile, Mr Lomax said they'd spoken directly to concerned residents before their members' meeting.
He said he felt the concerns they raised had been alleviated.
"We're moving forward to make sure we protect the assets where the aged and fragile in our community are residents," he said.
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Mark Kriedemann
I take a particular interest in industry, environment, science, and technology subjects. Besides studies in media, my tertiary education covers genetics, as well as International Relations. I therefore strive to draw links between these varying disciplines to give a comprehensive analysis of developments in industry, agriculture, and the associated politics.
I take a particular interest in industry, environment, science, and technology subjects. Besides studies in media, my tertiary education covers genetics, as well as International Relations. I therefore strive to draw links between these varying disciplines to give a comprehensive analysis of developments in industry, agriculture, and the associated politics.
