Fed: Salvo's sell off not due to lack of confidence- Abbott

AAP General News (Australia)
02-12-2004
Fed: Salvo's sell off not due to lack of confidence- Abbott

(EDS: updates on number of homes, and that sale is NOT Australia wide)

SYDNEY, Feb 12 AAP - A move by the Salvation Army to sell off its aged care centres
did not reflect a lack of confidence in the sector, federal Health Minister Tony Abbott
said today.

The Salvation Army will sell 15 of its 45 or so Australian aged care centres and retirement
villages.

They are among 19 in the Army's Southern Territory, which also includes Darwin.

Industry experts say it reflects the general crisis in the aged care sector and warned
the move could result in a loss of aged care beds.

But the Salvation Army attributed the sale to operating costs and future capital requirements.

Mr Abbott said the sell-off was a matter for the Salvation Army and he did not expect
any of the institutions would close.

"That's a matter for the Salvos and my understanding is that they have decided that
it fits better with their mission to move out of this particular area of activity and
into other things," Mr Abbott told the Nine network.

"It's a question of the Salvos deciding what is their core business.

"It certainly isn't a vote of no confidence in the aged care system and none of the
institutions will be closing and any transfer of the licences will take place in accordance
with the ordinary processes, with the ordinary safeguards."

The Salvation Army will sell a total of 2,390 beds.

AAP sal/cjh/jlw

KEYWORD: AGED SALVOS ABBOTT

2004 AAP Information Services Pty Limited (AAP) or its Licensors.