Services for pensioners in nursing homes could be squeezed without the right compensation package under the emissions trading scheme, the head of Catholic Health Australia has warned.
Prime Minister Kevin Rudd gave an "absolute" guarantee last week that pensioners would not be worse off financially under his proposal, but Martin Laverty, head of CHA, told The Australian that aged care providers were concerned about rises in the price of food and electricity under the government's plans.
Mr Laverty says aged care would face an additional $10 million in costs under the government's emissions trading scheme in its first year alone.
"We've said the government needs to adjust all funding programs to hospitals and aged care services so that they're not out of pocket. If they are, there are service costs that mean pensioners are worse off."
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Fears standard of aged care in nursing homes will drop (The Australian)