Senator NEAL —My question is directed to Senator Herron, the Minister representing the Minister for Health and Family Services. Is the minister aware of a decision by the West Australian Department of Health and Family Services approving the transfer of and a new provider number for 63 elderly Perth nursing home residents who, as a consequence, will now be charged up-front entry fees of up to $65,000 to move across the road when their run-down nursing home closes next year? Can the minister confirm that this approval is based on advice from the Commonwealth Department of Health and Family Services? Minister, will you guarantee that these fees will not be charged and honour your promise that no person already in a nursing home before 1 October will have to pay the new accommodation bond?

Senator HERRON —I was a little concerned for the health of the questioner—

Senator Carr —You're a surgeon. I'm sure you can fix that.

Senator HERRON —Not as a surgeon. I think it would need a physician. Then, again, I think it might have been a little bit of a rush to get here—a simple physiological cause. I take it that Senator Neal is referring to the Corrinya Nursing Home in Western Australia. I assume that. There has been a press report in relation to the Corrinya Nursing Home in Western Australia. Is that correct, Senator Neal? Are you asking about the Corrinya Nursing Home?

Senator Neal —It would be the Perth—just answer the question please.

Senator HERRON —I am aware of a situation in respect of the Corrinya Nursing Home and I assume it is the same one because Senator Neal referred to a 63-bed facility. But the principle is the same. The principle applies to other nursing homes in a similar position. The government has said that residents in care prior to 1 October will not have to pay a bond to keep the place they are in. It has always been the case, however, that if a resident moves to a new facility they can be asked to pay a bond if they can afford one. If they paid a bond in the previous facility any bond paid to the new facility would be capped at the amount they were refunded. There was no such protection, I might tell you, Madam President, under Labor's entry contribution scheme.

In the case of Corrinya the residents can choose to move to the new facility next year. The minister understands that most will choose to do so. The new nursing home will be state of the art. Millions of dollars are being spent by the provider to create high quality accommodation with single bed and two-bed en suites, and even a bed-sitter for families to stay in when they visit.

I understand that the home's director of nursing has been discussing this with existing residents and their families and that, not surprisingly, the new places are in high demand. It is the provider's intention to continue to care for all of the existing residents in the new building. They are discussing bonds and negotiating sensitively with families to achieve that objective.

Senator NEAL —Madam President, I ask a supplementary question. My question, Minister, which you failed to answer, was whether you will meet the promise given by this government that no-one in a nursing home before 1 October will be required to pay an accommodation bond. Will you stand by the promise made by this government in relation to these people?

Senator HERRON —I have answered that question but perhaps I can extend the answer further just to explain it fully. It depends on the means that the person who is going into a nursing home has. If they have assets over $22,500 they may be asked to pay an accommodation bond. We have assured people that that is the state of affairs—it was the same principle under Labor. They will not be forced to do anything. There is no force; it is a matter of negotiation between the provider of the care and the person going into the nursing home.