Page 10 - Melbourne Observer - Wednesday, June 20, 2018
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Special Report
Public rejects Bishop’s plans for Kellock Lodge
● Alexandra Shire Hall was packed on Friday for a meeting which voted to reject Bishop Parkes’s plans to merge Kellock Lodge with St John’s Village
EDITORIAL COMMENT
Church risks alienating Murrindindi community ■ The Anglican Church - and its Wangaratta-based Bishop John Parkes - appear likely to put a permanent stain on their standing in Alexandra and the northeast, if they persist in trying to force through a merger of the local Kellock Lodge with another of its aged care facilities, 151 kilometres away at Wangaratta. Bishop Parkes did not attend the public town meeting in Alexandra on Friday. But 378 concerned local people did attend. They voted unanimously (with one dissenting vote) to reject any moves to shift control of Kellock Lodge to a new company based at Wangaratta, controlled by the Bishop and his colleagues. Kellock Lodge is an aged care facility that was built by the people of Alexandra and district in the 1980s. Local people gifted the land. Local people donated the funds to build it. Local people have worked in the op shop that has given $2 million over the years to Kellock Lodge. Local volunteers - including Rotary and Lions have given thousands of hours over the decades to make Kellock Lodge a success. Kellock Lodge has about $6 million in the kitty. Bishop Parkes has been in charge of the troubled St John's Village at Wangaratta where 10 elderly people died last year after an influenza outbreak. Accreditation inspectors pointed to a number of areas where St John's failed standards. Under Bishop Parkes's leadership, St John's Village has had serious financial troubles, according to opponents of the merger. The critics say there is a financial black-hole of up to $40 million at Wangaratta. The Bishop disputes this. He says he is prepared to guide any member of the community through an analysis of the accounts. The Local Paper does not hold the Bishop's promise in high regard; he has failed to return our phone call
from more than a week ago. Speaker after speaker at the public meeting repeated the message that the Anglican Church had not put a single cent into Kellock Lodge during its stewardship of the facility. The property and facility was put in the name of the church because locals thought it would be in safe hands. The meeting was told that Bishop Parkes had tried to sell St John's Village on two recent occasions: first to Benetas, then to MECWA. Both sales fell over. The merger opponents believe that Kellock Lodge would soon be sold, if the merger was allowed to proceed. The locals say Kellock Lodge could bring a price of up to $15 million. The Bishop's handling of the matter, in this newspaper's opinion, has been woeful. He and some directors issued a public statement earlier this week, without the prior knowledge of Kellock Lodge's chairman, John Sharwood OAM. Churches were once built on etiquette, and due process as cornerstones. This seems quite extraordinary manners. So we have a Bishop who doesn't return calls, did not attend the public meeting, and - to date - has ignored an entire town's wishes regarding the future of its own aged care facility. The Bishop has the power to dismiss the Kellock Lodge board. The Anglican Archibishop of Melbourne, Philip Freier, did not want to intervene in the matter, the meeting was told. Speakers at the meeting were highly critical of the Bishop, Archbishop and the Church. In the era where churches wonder why they have lost standing, attendances and power, it is easy to conclude that they may have lost their way. Their focus on money is desperately sad. Lord, have mercy. - Ash Long, Editor
● Craig Lloyd, Murrindindi Shire CEO, was Chairman for Friday’s public meeting at Alexandra Shire Hall ■ The Alexandra public sent a clear Murrindindi Shire Chief Execumessage to the Anglican Church on tive Officer Craig Lloyd, as ChairFriday - ‘hands off Kellock Lodge’. man of the meeting, read a stateAbout 380 people attended a pub- ment from the Bishop. The statement is reproduced in lic meeting at Alexandra Shire Hall, and voted to communicate to Angli- full in this week’s Local Paper. can Bishop John Parkes: A copy of the statement was also ■ “That this public meeting of the forwarded late Friday to this newsAlexandra community rejects any paper by public relations consultant, moves to shift the control and man- Ingrid Svendsen of Grounded agement of Kellock Lodge and its Communications, on behalf of the assets out of Alexandra into a new Wangaratta Anglican Diocese. company based at Wangaratta. Kellock Lodge Director Mike ■ “That this public meeting requests Manning criticised Anglican Archthe Kellock Board to investigate bishop Philip Freier for not becomwhether any avenues exist for the ing involved. transfer of land to an appropriate Barney Zwartz, Communications Adviser for the Anglican Diocommunity based entity.” The public meeting was called cese of Melbourne, said: “"The Anafter Bishop Parkes and some of the glicanArchbishop of Melbourne, Dr Kellock Lodge directors foreshad- Philip Freier, has offered to bring owed a merger with the Anglican the parties together if they were Church’s St John’s Village at agreed to invite his involvement, but has no role in the governance or deWangaratta. Bishop Parkes did not attend cision-making about the future of Friday’s public meeting. Kellock Lodge."
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The Local Paper - Wednesday, June 27, 2018 - Page 11
Special Report: 2
● Some of the speakers at Friday’s public meeting. From left: Maurie Pawsey, Larry Fallon, Mike Manning, John Sharwood and Bill Rollason.
Clear message to Church officials ■ The public meeting on Friday attended by about 380 people showed “Alexandra in strength”, said former Kellock Lodge chairman Maurie Pawsey. Mr Pawsey said current Kellock Lodge Board members had been under an embargo, and had been unable to speak in public about the merger with St John’s Village, proposed by Bishop John Parkes. He said Bishop Parkes had had three attempts to merge the Alexandra and Wangaratta aged care facilities. The Board was divided on the issue. Currently voting for the merger were five of the eight members of the Board: Bishop Parkes, churchman Graeme Brown, pharmacist Ian Davis, Ann Hunter and Heather McLaren. “We do not know what the Bishop’s next move might be,” Mr Pawsey said. Mr Pawsey said that a merger could not occur legally without a ‘due process’ analysis being undertaken. The Bishop seemed to have a timing imperative of the merger taking place by June 30, so that combined financials could be reported for this accounting year, he said. Mr Pawsey said there was a legal question of whether the Kellock Lodge asset could be “given away”. There were questions in commercial law, questions about potential conflicts of interest, and the matter under Corporations Law of personal liability of Directors. Mr Pawsey said that the published financial statements of St John’s Village, Wangaratta, showed $40 million of liabilities, not all due immediately.
● It was ‘standing room only’ at the Alexandra Shire Hall for Friday’s public meeting about the future of Kellock Lodge. Mr Pawsey said the statements showed that St John’s Village Wangaratta had $3 million in cash. ■ If the Anglican Diocese forces He said their auditors had exa takeover of Kellock Lodge, then pressed caution over the past four sells the facility, a Federal Govyears over St John’s Village to trade ernment grant of $1.2 million ■ A meeting of the Kellock Lodge Board was atas a going concern. would have to be paid back, tempted on Saturday morning. “Who would want to merge with Maurie Pawsey told the public an entity on the verge of insolThree members – Rod Sloan John Sharwood meeting on Friday. vency?” Mr Pawsey asked. and Mike Manning – were present, so a quorum There were great advantages of of six was not achieved. Kellock Lodge having a board with There were apologies from the Bishop (in his local members. ■ Internet platforms such as letter from Friday) and verbal apologies from Mr Pawsey said the Bishop had Facebook have been alight with Heather McLaren and Ann Hunter. There were no written to the Opportunity Shop comments about Kellock Lodge. apologies from Ian Davis or Graeme Brown. (which has raised close to $2 million One Alexandra woman A Kellock Lodge source said that four Board over 34 years) to ask if it would supsummed up her feelings about the members did not attend the public meeting on port Kellock Lodge under a new Anglican Diocese of Wangaratta Friday: Bishop John Parkes, Graeme Brown, management structure. and their Bishop: Heather McLaren and Ian Davis. “In every aspect it seems they ● Continued on Page 13 need us more than we need them.”
Lack of quorum for Saturday Board meeting
Cash refund
Social media
Major donors ■ Alexandra businessman Larry Fallon told how sawmiller Doug Gould donated $250,000 towards Kellock Lodge in its early days. John Sharwood said the thenShire of Alexandra contributed $150,000 to the original appeal.
Little support
● Part of the 380-strong crowd at the public meeting held on Friday at the Alexandra Shire Hall.
■ The Anglican Church’s Wangaratta Diocese had given “very little support” to Kellock Lodge, is Chairman John Sharwood told Friday’s meeting. Maurie Pawsey was more direct about the contribution from the church. “Absolutely nothing. Not a single cent.”
Page 12 - The Local Paper - Wednesday, June 27, 2018
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Special Report: 3
Bishop John Parkes has his say ■ Bishop John Parkes, of the Anglican Diocese of Wangaratta, did not attend the public meeting at Alexandra on Friday (June 22). Murrindindi Shire Council Chief Executive Officer, Craig Lloyd, in his role as meeting Chairman, read the Bishop’s letter. (Written copies were also circulated to those present at the meetng.) “My apologies that I am not able to join you this morning to represent the Trustees,” Bishop Parkes wrote. “Unfortunately, this meeting coincides with Synod 2018. This is one of the most important events on the Diocese’s annual calendar, involving all local parishes, and something that I need to be part of as Bishop. “The Trustees of the Anglican Diocese of Wangaratta (the Approved Provider for Kellock Lodge under the aged care legislation) hope that this written statement provides additional information that goes some way to addressing your concerns. “This public meeting underlines how loved and valued Kellock Lodge is as a community institution. “It is because of this, and because the Trustees want to ensure a sustainable future for Kellock Lodge, that we have in recent months undertaken a searching examination of the home’s governance, management, finances and operations. “In doing this, we are motivated only by strengthening the capacity of Kellock Lodge to provide high quality and contemporary care for seniors and frail elderly into the future.
Why Have The Trustees Acted? “Enhancing the health, wellbeing and lifestyle of the residents of Kellock Lodge has always been, and will always be, the primary focus of the Trustees and myself, as it should be for all directors who govern Kellock Lodge now and in the future. “While Kellock Lodge is a wonderful institution with a proud history, you will be aware that in recent years it has faced increasing and serious challenges. “Recently these include being found non-compliant with seven critical expected outcomes under the Federal Government’s aged care quality framework. “These were not minor things – they included: • clinical care; • medication management; • nutrition and hydration; • specialised nursing care needs; • mobility and dexterity; • continuous improvement; and • information systems. “The aged care clinical consultants engaged by the Trustees to support Kellock Lodge continue to work with staff to embed the changes made to date in these critical areas and also address other areas of improvement identified by the consultants. Work on improving the delivery of care is ongoing. “These and other governance, leadership and management issues were serious enough to compel the Trustees, as the approved provider, to seek a range of expert advice about better meeting the needs of the elderly who rely on Kellock Lodge for care.
What Is Being Recommended? “One of the key recommenda-
● Bishop John Parkes. Photo courtesy: Border Mail tions of the governance and tinue. I would personally encourage organisational review that we com- Mr Larry Fallon to nominate for any missioned was the creation of a new new board. Mr Fallon and his famgovernance structure for both of the ily, like the Kellocks and many famiDiocese’s aged care homes; a new lies of Alexandra and surrounds, the professional board with specialist local Council, Commonwealth Govaged care and health care expertise ernment and community groups to oversee both homes. have given generously to establish “The Trustees support this rec- and support Kellock Lodge. ommendation because we believe “Along with a future focus, such that with strengthened governance a powerful link to the heritage of and operational resources, Kellock Kellock Lodge as part of the proLodge and St John’s Village will be posed new board could only be posiwell placed to meet the challenges tive. of providing quality care in an in- What Is The Situation creasingly complex and competitive With St John’s aged care industry. Village’s Financial “The Trustees have commended this recommendation to members of Position? the two incorporated associations, “I would like to directly address Kellock Lodge Alexandra Inc and what I know is an important concern St John’s Village Inc, who must ap- for many of you. prove the formation of a single legal “You will have heard strident entity and governance structure. claims that St John’s Village is fi“The members will consider the nancially troubled and that these prorecommendation to form a single in- posed governance reforms are in fact corporated association and single about seizing Kellock Lodge’s asboard of directors to govern the two sets. homes in coming weeks. “This is not true. I am very sorry “But it is important to emphasise that some reporting on this issue has what would not change under a new caused unfounded worry in the comboard structure: munity. • The Trustees of the Anglican Dio“I am deeply concerned at the secese of Wangaratta would remain lective quoting of the St John’s Vilthe approved provider under the lage financial statements by some aged care legislation. individuals and how St John’s • The security of tenure, bonds and Village’s financial position has been fees of aged care residents and in- misrepresented. dependent living unit owners would “I have offered to go through the not change, as their agreements accounts of St John’s Village with would remain. any member of the community who • Staff entitlements and employ- has a concern. ment conditions would remain un“It is very difficult, if not imposchanged under the existing staff En- sible, to explain the intricacies of an terprise Agreement. aged care organisation’s balance • The capacity for community in- sheet in a forum such as this but I volvement would not change. The will try. need for the work of our valued vol“The simple explanation begins unteers and supporters would con- with why aged care organisations
have significant liabilities on their balance sheets. This is because of refundable accommodation deposits. “Residents or their families pay an aged care home a refundable accommodation deposit (what you may know as bonds). “The home holds this on behalf of the resident. The refundable accommodation deposit is repaid when a resident departs care. “Refundable accommodation deposits appear on an organisation’s balance sheet as a liability. “Accountants classify liabilities as either current (falling due in the next 12 months, and therefore appearing as a negative in that year’s annual results) or non-current (due later than 12 months). “Most aged care organisations split refundable accommodation deposits between current and noncurrent liabilities, reflecting the fact that only a portion of residents will leave care in the following year and require their deposit returned. “When it’s done this way it means that in the annual accounts, only some, not all, of the bonds appear as a liability for that year. “St John’s Village has classified all of its bonds as current liabilities, hence the large liability figure for the current year. “It is important to note that if Kellock Lodge did its accounts the same way as St John’s Village its accounts would show liabilities exceeding assets, in other words it would appear insolvent which is clearly not the case. “The accounts more than demonstrate St John’s Village’s underlying sound position. “The auditors do note the accounting treatment of refundable accommodation deposits but were happy to verify St John’s Village as a going concern “Every year aged care organisations must lodge their financial statements with the Commonwealth Department of Health and Australian Charities and Not for Profits Commission. “These regulators have not raised any concerns in relation to St John’s Village’s finances.
“I repeat the public assurance that I have already given that the Trustees do not want or need to take the assets of Kellock Lodge for the benefit of St John’s Village. “The Trustees do believe that action must be taken to ensure both homes are delivering high quality and contemporary clinical care, that both homes have a new business and service model for the future and that both homes are able to thrive in the increasingly complex and competitive aged care industry.
The Coming Weeks and the Future
“It is important that community discussion about Kellock Lodge does not only focus on the financials. “Our core business, our reason for being, is caring for the seniors and frail elderly of our community and it is only right that care received is of a high quality and delivered in line with our values. “It saddens me deeply to say that recent events at Kellock Lodge show that this has not always been the case. “Our staff have worked tirelessly to effect change at the operational level with our aged care consultants. “The aged care consultants engaged by the Trustees will continue to work with Kellock Lodge for several months to embed change in the seven Outcomes previously unmet and in others areas identified by the consultants. “There remain areas for improvement in care delivery. “The Trustees strongly encourage anyone who has a concern about the finances or any other aspect of this proposal to make contact. “Over the coming weeks I will be meeting with Murrindindi Shire Council, business leaders and others in the community to answer their questions. “The Trustees strongly believe that this proposal is in the long-term best interests of Kellock Lodge’s residents and staff. “We hope that once people have had an opportunity to learn more that they will feel optimism, not fear, for current and future residents, their partners, carers and families and the future of Kellock Lodge.”
● St John’s Anglican Church, Alexandra.
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The Local Paper - Wednesday, June 28, 2017 - Page 13
Special Report: 4
● Eildon ALP candidate Sally Brennan with Danny Hogan at the meeting.
● Shire CEO Craig Lloyd, Mayor Cr Charlie Bisset and Maurie Pawsey.
Public has its say on Kellock Lodge ● Continued from Page 11 ■ Mr Pawsey suggested that the Bishop was trying to rush through the merger prior to June 30 this year, so that combined financial reports could give a better picture for St John’s Village, Wangaratta. “Can we stop this at the deathknock?” he asked. “The only way to stop him is to embarrass. Send a message to the Bishop, tell him what you think,” Mr Pawsey urged the public. ★ Prominent Alexandra businessman Larry Fallon addressed Friday’s public meeting. He said he was nervous - and angry. “(Kellock Lodge) was a jewel for our town - and still is,” he said. He spoke of the late Gerry Walsh, and his own history of involvement with Kellock Lodge over the decades. Mr Fallon spoke of the initial fund-raising of $750,000 to build individual living units, and the generosity of Alexandra people in backing that appeal. “That is the guts of what we’re here about today. “It will go to Wangaratta, it will get dissolved. They’ll sell it, don’t worry.” Mr Fallon had applied to again become a Board member of Kellock Lodge but his appointment as a voting member had been delayed by the Bishop because of a technicality with the paperwork. Mr Fallon said that when the six accreditation problems first surfaced, his response was that they be addressed straight away. Mr Fallon said that a proposal had been presented to the Bishop for the Alexandra to buy back the facility. The Bishop said he would look at the proposal, but no-one had heard back from the churchman.
SOURCES OF FUNDING OVER THE YEARS FOR KELLOCK LODGE ● The capital cost of establishing Kellock Lodge, to 2014, had been around $14 million. Those funds had been generated as follows: Shire Council ................................. $150,000 Federal Government .................... $2,079,000 Public appeals (three) ................. $1,177,000 Local organisations (Op Shop, Rotary, etc.) ............... $500,000 Kellock Lodge management (while maintaining bonds) .... $10,303,000 Mr Fallon said he had consulted a Queen’s Counsel, who replied that the Bishop had considerable power. “I want us to purchase back Kellock Lodge back ourselves and run it ourselves,” Mr Fallon said. ★ Michael Manning said the first that many people were aware of the Bishop’s plans to merge Kellock Lodge with St John’s Village, Wangaratta, was when a letter was read at the Sunday service at St John’s Anglican Church, Alexandra. Bishop Parkes wanted to establish a new entity into which the assets and control of both Alexandra and Wangaratta centres would be put. It was not the view supported by all Kellock Lodge Board members. Mr Manning said that the Bishop was a barrister, not an accountant. “There is a material uncertainly.” St John’s Village had current liabilities of $10 million, and $6.4
million in the bank, Mr Manning said. This comprised $7 million in pay-outs in the current year, and a further $3 million in individual units bonds. He described this financial position as “the thin edge”. Mr Manning warned that the financial figures at St John’s Village were a “red flag” to any merger. He said consultants had been paid $3 million by the Anglican Diocese, yet a sale of the St John’s Village had failed. Potential buyers had been Benetas and MECWA Care. He said the Kellock Lodge situation should be about “love and care”. Mr Manning said that under the leadership of the Bishop, St John’s Village Wangaratta had a “serious management failure” where 12 of the 44 ‘outcomes’ had failed the accreditation process. “It is an absolute disgrace .... it is his organisation. “Yes, he is going to sell it.” The money from any sale of
● Cr Margaret Rae with Deputy Mayor Cr Sandice McAulay at the meeting.
Kellock Lodge would go straight into Diocese coffers, Mr Manning said. He said that in Tasmania, church assets had been sold to fund settlements in cases of abuse by priests. “The Church is going to sell to cover their own backsides.” Mr Manning said that the Bishop’s plan to merge Kellock Lodge with the centre at Wangaratta was without impact studies for staff, residents or the Alexandra community. “The heart and soul is being ripped out of it.” ★ Kellock Lodge Chairman John Sharwood said the facility should remain local. Kellock Lodge is a fantastic facility, of which all were “greatly proud”. There had been “wonderful” help over the years from organisations including the Op Shop, Rotary and Lions. Kellock Lodge had the community behind it. The Shire Council was behind the local facility. The matter was now at the “crossroads”, he said. “Unless we can change their thinking, we are going to be in deep trouble,” Mr Sharwood said. ★ Members of the public - Bob Scott of Alexandra, John Scott of Taggerty, Jim Kinniborough and Chris Peterson - raised questions at the meeting. ★ Former Kellock Lodge Board member Bill Rollason said there was a “wonderful opportunity” for the people of Alexandra to send a message to the Bishop that they would not be bullied. The two motions were put. Both votes were unanimous of the 380 people present (with the exception of one vote).
Local funds
■ The Opportunity Shop has provided regular monthly recurrent funding to Kellock Lodge, with a probable total of an additional $1.3 million over 30 years. There has been no funding from the Anglican Diocese, either capital or recurrent.
Media links
■ Opponents of any Kellock Lodge merger have used contact with major media to further their case. The Wangaratta Chronicle has published ongoing reports about the health and financial problems at St John’s Village. The opponents have sent briefing documents to ABC 774 moring presenter John Faine.
Email campaign
■ Opponents of the Kellock Lodge-St John’s Village merger plan have suggested that the general public communicate with: Archbishop’s Office ■ archbishopsoffice@ melbourneanglican.org.au Phone: 9653 4204 Bishop’s Office ■ bishop@wangarattaanglican. org.au Phone: 5721 3484 Rector, St John’s, Alex. ■ sjanglican@virtual.net.au Cindy McLeish, MLA ■ cindy.mcleish@parliament. vic.gov.au Cathy McGowan, MHR ■ cathy.mcgowan.mp@aph. gov.au
● Part of the crowd that assembled at the Alexandra Shire Hall.