Disability employment provider Bedford is hoping the federal government will throw it a financial lifeline to avoid the company entering voluntary administration.
But Minister for Health, Ageing and Disability Mark Butler has warned the government does not usually put taxpayer money into a “failing organisation”.
In a statement on Thursday, Bedford said it would enter voluntary administration on Sunday, July 27 after an “exhaustive negotiation process with the state and federal governments, banking and commercial partners NAB”.
This morning on ABC Radio Adelaide, the organisation’s chair Janet Miller said Bedford still hoped to avoid closure, and blamed the NDIS for its current position.
“”We’re hoping that we don’t go into voluntary administration but if we do, what happens on Monday is out of our control, that would be up to the administrator,” she said.
“The model has evolved. It’s very difficult to make the NDIS model work, it’s not sustainable.”
Janet Miller says the NDIS model was partly to blame for the organisation’s financial situation. (Supplied: Bedford Group)
Ms Miller said the organisation believed its strategy was “still sound” and that it had “a good balance sheet”.
She said the state government had already put money on the table and that the federal government was still considering it.
“Our plea to stop us going into voluntary administration this week, we just need a commitment for that money to be available,” she said.
Disability support service Bedford has announced it will go into voluntary administration over the weekend. (ABC News: Olivia Mason)
But Mr Butler told ABC News Breakfast, while talks were continuing, he believed the organisation’s financial situation was dire.
“We have been talking to them. It’s not usual for the Federal Government to give money to an organisation that is failing financially before it goes into administration,” he said.
He reiterated those comments later on ABC Radio Adelaide.
“I’m not clear that there wouldn’t be the need for more money beyond the several weeks that that might give to them,” he said.
On Thursday, a federal government spokesperson said Bedford had received tens of millions of dollars in funding in the past 15 months alone.
“The Australian government has been supporting the South Australian government’s discussions with Bedford in recent weeks,” the spokesperson said.
Minister for Health, Aging and Disability Mark Butler says the government will continue discussions with Bedford. (ABC News: Ian Cutmore)
According to its website, Bedford is the second-largest employer of people with disabilities in the nation, and has 22 sites across Adelaide and regional South Australia.
The employment provider was established in April 1945 and has this year been celebrating its 80th anniversary.
Employee Kym told ABC Radio Adelaide he had worked with the organisation for 11 years.
“We were told that they’re going to have a meeting with the president on Sunday and everyone would be notified what would happen,” he said.
“[We] could be closing down if we don’t get the money to help us out.”
He said he felt “little bit sad” upon hearing the news but was trying to support his co-workers yesterday.
Mr Butler said he felt for the employees.
“I desperately want a future for Bedford,” he said.
“We understand very acutely the unique nature of this organisation, it’s not just some other business that’s got itself into difficulty.
Mr Butler described Bedford as a South Australian institution. (ABC News: Olivia Mason)
Premier Peter Malinauskas said his thoughts were primarily with the workers at Bedford, and the state government’s offer for funding was still in place.
“The question is the money that we do put on the table, does that best address those workers’ future through the administration process or staving off administration and seeing a rebound plan initiated under Bedford’s current economic arrangements,” he said.
“They are the deliberations that we’ve been working on frankly since May, June. We continue those discussions today.”
He said the state government’s financial support would be conditional, but would not provide details on those conditions.
“Not for one second do I think we should question the intent of the people that work there, including at the most senior levels of Bedford, the board, the CEO and the senior management, these are good people who want to do a good thing for the people they employed and the services they provide,” he said.