The South Australian Government has intervened to prevent Bedford, the second largest employer for individuals with disabilities in Australia, from closing its sites across the state, including in Mount Gambier. Facing a financial crisis, Bedford management warned that without government assistance, the organization would enter voluntary administration on July 28, 2023, potentially impacting over 1,400 clients who depend on its services.
In a letter to employees, Bedford management expressed deep concern over their financial situation, stating, “As you might know, Bedford is going through a very difficult time being able to continue to pay for all the important things that we do.” The letter indicated that without immediate assistance, the organization would run out of funds, putting its future in jeopardy.
Bedford has been struggling financially since the implementation of the National Disability Insurance Scheme (NDIS), experiencing significant losses while attempting to provide essential services. The management noted a commitment to creating more jobs and opportunities for individuals with disabilities, which now hangs in the balance.
In response to the looming crisis, South Australian Premier Peter Malinauskas quickly sought discussions with Bedford and announced a $15 million support package. “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,” Malinauskas said. This assistance will take the form of a secured loan alongside the government purchasing the 39,090 square metre Balyana site in Clapham, located in Adelaide’s foothills.
The government has mandated immediate changes within Bedford’s leadership and requires the organization to appoint advisers and submit regular reports. “The State Government’s first priority is the care and support of the people who rely on Bedford,” Malinauskas stated. The intervention aims to provide Bedford with the necessary time to stabilize its operations or collaborate with the Federal Government to establish a sustainable support plan for its clients.
Despite the challenges, the Premier emphasized that the situation was not created by the state government but required urgent action to prevent a crisis that would leave many vulnerable individuals without employment and support. “That is not a situation that I as Premier am prepared to accept,” he noted.
Member for Mount Gambier Troy Bell expressed his shock over the potential administration, highlighting the distress it would cause for staff and clients at the local Bedford site. Bell emphasized the importance of the services Bedford provides to the community and took immediate action to contact the Premier and local management to assess the situation.
He asserted that the Mount Gambier site is currently operating sustainably, with partnerships established with local timber mills to produce goods sold at national retailers. “This is an important part of our community and I will do everything I can to make sure the Mount Gambier site remains operational,” Bell affirmed.
As Bedford navigates this critical juncture, the support from the South Australian Government represents a crucial opportunity for the organization to restructure and secure its future, ensuring continued service for its clients in need.
