‘Shock decision’: Gilmore MP Fiona Phillips slams Kiama councillors over Blue Haven haste

Kiama Council could backflip on the decision to sell off the cash-bleeding Blue Haven aged care facility with two Labor councillors likely to be pivotal in deciding its future.

The fate of Kiama’s largest employer continues to be marred by uncertainty with the Blue Haven aged care facility set to be sold off by Kiama Council.

Kiama councillors voted to sell off the council-owned facility in a confidential extraordinary meeting last week following the tabling of a forensic audit report that highlighted immediate action required in order for the council to remain financially viable.

The council is projected to be $2.7 million in the red over the 2021/22 financial year with Blue Haven hanging around its neck.

A report delivered by Kiama Council CEO Jane Stroud revealed the Blue Haven Bonaira project ended up costing the council $106 million – $50 million more than it had planned.

The sale of Blue Haven, which is made up of 259 independent living units and a 134-bed aged care home, was proposed ‘for the purposes of sustaining the core role of the local government authority’.

However, the following day, Independent Councillor Karen Renkema-Lang lodged a rescission motion to halt the sale on the grounds the public were not aware of the nature of the deliberations as the agenda item was titled “forensic accounting assessment”.

An internal report revealed Blue Haven is burning a hole in Kiama Council's pockets. Picture: Kiama Council

Cr Renkema-Lang, who initially voted in favour of the sale, now wants the topic to be debated in an open council meeting.

She will have the support of Greens councillors Kathy Rice and Jodi Keast who both voted against the sale.

The rescission motion is expected to be debated and voted on in an extraordinary council meeting next Monday night.

“I have considered the rescission motion and I will seek to have it included as a confidential item in next week’s proposed extraordinary meeting,” Mayor Neil Reilly said.

“We will also be debating the draft Community Strategic Plan, the Development and Operational Plan and the Budget. The latter items will be debated in public.”

Union members joined Gilmore MP Fiona Phillips, state Shellharbour MP Anna Watson and head of the South Coast Labour Council, Arthur Rorris, in Kiama on Monday calling for the council to backflip on their decision.

“This is a shock decision just days out from a federal election that I am very disappointed about,” Mrs Phillips said.

“It wasn’t too long ago that I actually came to the opening here at Bonaira. Significant taxpayer dollars have gone into this facility, I am deeply concerned for residents and workers here.”

Gilmore MP Fiona Phillips has voiced her concern about the proposed sale of Blue Haven. Picture: Cathy Law

Crs Renkema-Lang, Rice and Keast need at least two more councillors to get on-board in order for their rescission to be successful on Monday.

The presence of Mrs Phillips and Ms Watson at the press conference hints Labor councillors Imogen Draisma and Stuart Larkins, who works part-time in Mrs Phillips office, could be reconsidering their stance.

“We are not immune from tough financial issues for local government in this state,” Mr Rorris said.

“We have seen moves towards amalgamations, we have seen moves towards privatisations and various other ways cash-strapped councils have been dealing with their day-to-day financial problems.

“What we are not used to is councils taking such a monumental decision affecting such a huge slice of their budget, of their operations and of their community with no notice, with no motions on notice.

“We call on the council to step back. We understand the seriousness of their financial issues. All we are seeking is they rescind the current resolution to enable the discussions that should have occurred in the beginning.

“We say that because of two things; one, they say they hope to wrap this up in six to 12 months in any event and the second thing is because there’s a federal election on the weekend, a federal election where aged care policy may change – that alone would be reason to step back from selling this off.”