Mrs BRONWYN BISHOP (Minister for Aged Care) (6:44 PM) —I have a couple of things to say about the last speaker's comments. First, I was very pleased to meet with providers in Gosford fairly recently and to get some very positive information for them. I do think they felt that their concerns were certainly being listened to.

With regard to some of the points that were raised by the last speaker, I would like to make the point that in 1998 when the Auditor-General did a review of aged care he found that the previous Labor government had left a deficit of 10,000 places. He found that this was systemic, that it had occurred over a number of years and that, in order for the situation to be remedied, there was a need to inject an additional 10,100 places, in addition to providing for growth in numbers. I have followed the Auditor-General's report, and in the time that I have been minister I have issued 32,000 places, counting the 9,500 places for the year 2001.

With regard to beds, the Auditor-General also found that, in order for those to come on stream, it takes something between two and 2½ years for infrastructure to be made ready for the beds to go into but that it is necessary to release the beds so that the providers can then build the infrastructure knowing that their funding is guaranteed. The problem was that through the 1990s the Labor Party failed to release the beds, thus failing to get the process of building infrastructure to begin. We are having to deal with this as it was inherited. We can fix it prospectively but not retrospectively. Releasing those new beds means that the places are guaranteed, and they will bring them on as quickly as they can.

With regard to the Central Coast, that area does need attention paid to it. The initial announcement was about how many beds were being released, and it showed that that was just over 9,500 for the year. With the allocation that will be advertised very shortly, the coming advertisements will show which areas are to be targeted. So that you understand the way in which the department recommends to me which areas should be the targeted areas, I will explain the process. Each state has a committee called an ACPAC, which is an aged care planning advisory committee. Each of those committees meets and considers the ABS figures, with five-year projections. Each committee considers the special needs groups, which are listed under the legislation. Each committee considers special issues and special pleadings that may come to them. Each committee then makes a recommendation to the department which then makes a recommendation to me.

I would very much expect the Central Coast to be on that list, because the figures clearly show that it falls behind the ratio we strive for of having 100 places per population of 1,000 people aged 70 and above. That ratio was set by the Labor Party, but they never met it. Indeed, from 1986, they ran it down. We have actually allocated enough places to meet that benchmark, but they are now having to come on stream. As soon as the infrastructure is built and a bed is ready, the money flows automatically. That is why I say that, once the beds are released, they are guaranteed. That is the job we have had fixing up the legacy that was left to us, and we are doing it. As I said, the Auditor-General found that the legacy was that the previous Labor government had failed to issue 10,100 places.