Rest home blames new pay legislation in decision to close its doors

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A New Plymouth rest home which opened 25 years ago has announced its closure.

Twenty-six workers have been left jobless and 10 residents homeless after a Taranaki rest home announced its closure - partly blaming the decision on new pay legislation.

Following two weeks of consultation, general manager Kim Poynter revealed on Wednesday Mission Rest Home in New Plymouth would be closing its rest home services.

The decision comes following last month's proposal to close the Pukaka St rest home, which opened 25 years ago, because of the impact of Pay Equity Legislation and occupancy levels.

"We fully support the job aged care workers do and the need for them to be paid fairly," Poynter said.

"Our staff deserve pay increases, but the reality is the funding received is not sufficient to make ends meet and we are not prepared to compromise our quality of care."

The legislation for pay and support workers came into force on July 1, 2017 and involved further pay rises over the next few years.

The charitable trust that operates the rest home announced the decision to both residents and staff on Tuesday.

There were still "about 10" residents at the home, which employed 26 workers.

Poynter said the decision was sad for all involved and was not an easy one to make.

The focus was now on supporting the residents and their families, as well as staff, through the next steps of the process, including helping residents find new homes, she said.

"Our heart goes out to the residents, their families and our staff who have been impacted by this decision.

"Many residents have already selected their new care providers, with several opting to move closer to their families."

The decision did not affect the villa or supported living on site and once vacated the building would be used for rental accommodation for independent seniors.

Poynter said an afternoon tea would be held at the rest home on June 19 to honour those who have been involved with Mission Rest Home over the years, including former staff and families.