Last week the disability community was rocked by the news that South Australian disability employment provider Bedford would enter administration, leaving hundreds of people with disability without a job.
But over the weekend, news broke that the South Australian government would throw the organisation a lifeline, with a $15 million support package announced.
“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 government said in a statement.
“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 South Australian government also put certain conditions on its support, to encourage Bedford to stabilise its business:
- Implementing a change of executive leadership, with McGrathNicol appointed as Restructuring Advisers to Bedford, reporting directly to the Board;
- Appointing Bruce Carter 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.
Federal Disability Minister Mark Butler said Bedford is “a South Australian icon” and welcomed the lifeline from the state government “to protect the livelihoods of hundreds of South Australians living with a disability”.
“The depth of the financial crisis that Bedford has found itself in is deeply worrying.
Bedford, as a registered NDIS provider, has and continues to receive substantial Commonwealth funding,” he said.
“Following the State Government’s intervention, the Commonwealth Government will continue discussions with Bedford and McGrathNicol as they make the long term arrangements needed to secure this important organisation and most importantly the ongoing employment of hundreds of South Australians living with a disability.”