1250 workers and clients with disability protected as Bedford sale process proceeds

The State and Federal Governments have protected the jobs of more than 1,250 supported workers and clients with disability at Bedford, as the nation’s second largest disability provider transitions to new ownership.

Bedford has appointed McGrathNicol as voluntary administrator, which will oversee the completion of a sale of Bedford.

Bedford has been conducting a sale process and The Disability Trust, a reputable not-for-profit disability service provider operating in several other states, has been identified as the preferred buyer.

Under The Disability Trust’s offer, all of Bedford’s 827 supported employees and 389 clients will be retained in employment or continue to be serviced, meeting a key requirement of both the State and Federal Governments.

With the support of both governments, Bedford has been working with McGrathNicol to progress a restructure and sale of the Bedford businesses, which had entered dire financial difficulty.

To ensure the sale can proceed, the Malinauskas Labor Government will provide a portion of Crown Land at Bedford’s Panorama site to The Disability Trust for no consideration, bringing total state government support for the Bedford transition to $21 million.

The Federal Government will provide an additional $13.2 million to support the sale and continued employment of people with a disability, bringing its total contribution to more than $17.6 million.

The South Australian Government appreciates National Australia Bank’s support of Bedford during this time, including its agreement to work with the administrator to deliver an outcome that supports Bedford and its employees.

Final details of sale are subject to creditor approval, but with this additional contribution from both levels of government, our expectation is that there will be long term continuity of services for Bedford, which has been in operation for 80 years.

Quotes

Attributable to Peter Malinauskas

When we saw the livelihoods of 1,250 people with disability at risk, we chose to act.

The loss of those jobs, and the effect that would have on Bedford workers and their families would have been unacceptable.

Now, through this carefully calibrated intervention and in partnership with the federal government, we have been able to arrive at a point where a sale is being progressed, and that the people with disability at Bedford can continue to work.

Importantly, this isn’t any buyer, but a high-quality, long standing and respected one, who will treat these workers with the dignity they deserve.

I want to thank the Federal Government, in particular Minister Butler, and the National Australia Bank for working collaboratively to get here.

Attributable to Nat Cook

Bedford is more than a workplace, more than a job, Bedford is a supportive community and circle of friendship for hundreds of people with intellectual disability.

This purchase marks a turning point - where uncertainty for these community members is replaced with stability.

We want every client to be reassured their support will not only continue but hopefully grow stronger.

We couldn’t stand back and watch. Stepping in was the only way to ensure a better outcome for the people and their families who rely on this support.

Attributable to the Disability Trust Chief Executive Officer Karenza Louis-Smith

Today is a moment of real significance for South Australia.

The proposed acquisition protects the programs and supports that mean the most to people – the places where they work, learn, connect and belong.

Our priority is, and will always remain, the people whose lives are shaped by these services.

Bedford has stood for inclusion for generations, and we are proud to help carry that forward.

When community, government and purpose-driven organisations unite, we create stability, we create opportunity – and we create a future where no one is left behind.