Opinion: retirement village fee repayment bill lodged

I am concerned that despite the coalition agreements and promises, there has been no government progress to resolve the David and Goliath unfairness that retirement village residents experience regarding repayment of their fees.

This causes them real stress when they exit accommodation to move into a high level of care, or for their families when they exit the village.

The government first indicated there would be no law change until at least the next parliamentary term and even then it would take until 2029 for any change to take effect — meaning many current residents would not reap the benefits.

So last week, I lodged a bill into the famous parliamentary biscuit tin ballot, that would see retirement village operators required to repay capital sums within three months of someone exiting the village or moving between units or levels of care within a village.

The first 10% of the repayment would need to be repaid within five working days.

Associate Housing Minister Tama Potaka responded to my bill in the NZ Herald, saying he is working on laws that would potentially require or incentivise for payments that would now be introduced in to the House early next year.

Therefore, my bill was not necessary, he said.

But do not be fooled.

Note that he used the word "incentivise", which means he is leaving the door wide open to continuing with the status quo — but perhaps at market interest rates.

That still does not give the resident the right to choose whether to lend their money.

It means retirement villages still hold all the cards.

Of course, the operators do not want to lose their current guaranteed cheap credit line.

The assertion from the operators that small villages would go under has not been borne out in New South Wales, where a similar rule has been in place for 26 years and not a single operator has gone bust due to the requirement.

At present, some people can access their repayment money through hardship applications, but that would not be necessary if my Bill was passed. Instead, retirement village residents would get to be "incentivised" to lend their money with attractive interest rates.

But it would be their choice, not the operators’.

Minister of Seniors Casey Costello told the House in response to my questions that most fees were repaid at around nine months and she seemed to think that was OK. I have not met one village resident who agrees.

I have written to MPs across the House, including government MPs, urging them to support my bill.

In particular, there is an opportunity now for NZ First, a party which has traditionally branded itself as a champion for seniors, to add its weight to circumvent the ballot, get it on the Order Paper and see it passed into law this parliamentary term.

NZ First now has the opportunity to show the sincerity of their advocacy.

Watch this space.