The Malinauskas Labor Government will provide a $15 million support package to give Bedford it's best chance of a future, protecting the livelihoods of hundreds of South Australians living with disability.
Without the State Government's intervention today, the 80-year-old Bedford institution will be placed into voluntary administration, with the business unlikely to survive. This would directly impact more than 1400 clients.
The State Government's support package will be provided in the form of a secured loan and see the Government purchase from Bedford the 39,090 square metre Balyana site at Clapham in the foothills in Adelaide's South-East.
The State Government is very concerned about the financial position Bedford finds itself in.
The Government has required immediate actions of the Bedford Board to stabilise the business and develop a realistic plan for Bedford to return to a stronger financial position.
These actions include:
- Implementing a change of executive leadership, with McGrathNicol appointed as Restructuring Advisers to Bedford, reporting directly to the Board;
- Appointing Mr Bruce Carter AO as the Government's independent observer to the Bedford Group Board;
- Using the loan and proceeds from the sale of Balyana to meet key liabilities;
- Take actions recommended by McGrathNicol to stabilise Bedford's business, including ceasing pursuing the current business strategy where it is contributing to Bedford's financial challenges;
- Under the advice of McGrathNicol, develop a credible financial and business plan for Bedford to return to long term financial sustainability; and
- Report regularly to the South Australian Government on Bedford's financial position.
The State Government's first priority is the care and support of the people who rely on Bedford.
This intervention provides time for Bedford to turn around its operations, or in the event it is unable to, to work with the Federal Government to develop a plan to support its clients.
Bedford is a registered NDIS provider.
Its services are funded and regulated by the Commonwealth Government from the Department of Social Services for employment, and the NDIS for other services.
As put by Peter Malinauskas
This support from the South Australian Government represents the best chance for Bedford to avoid a sudden and unplanned administration which would have left hundreds of South Australians living with disability without employment and support.
The problems at Beford are not of the South Australian Government's making.
But without our urgent intervention, hundreds of highly vulnerable South Australians would have their worlds turned upside down.
That is not a situation that I as Premier am prepared to accept.
When people are suffering, we act.
I want to be clear that success is not guaranteed. There will be difficult decisions ahead for Bedford, if it is to turn the business around.
We have worked carefully to protect the state's interests through the structure of this secured loan and via the purchase of Balyana, a valuable four-hectare site.
As put by Stephen Mullighan
The Government's support gives Bedford the best chance to avoid administration and continue providing its critical support services to South Australians.
We have structured our support to ensure that taxpayers gain a strategically important site in the metropolitan area while giving Bedford and McGrathNicol vital working capital to try and save the business.
As put by Nat Cook
Our key priority is to provide confidence to those who rely on Bedford's services now and into the future.
As put by Bedford Group Chairperson Janet Miller
Immense gratitude to the Premier and his team who have worked non-stop on this.
To our customers, supporters and to other organisations in the sector thank you from the bottom of my heart for the outpouring of support and your desire to stand with us. This speaks volumes about this sector.
And finally, to our clients, their families, carers, and the staff at Bedford I cannot truly know the distress that you have suffered over the last 48 hours and I am truly sorry for that.
I'm so relieved to be able to stand here and say we look forward to seeing you all at work on Monday morning.
