Snowy Mtns NSW Council knocks back aged care loan
A council in the New South Wales Snowy Mountains has turned down a multi-million-dollar interest-free loan to upgrade an aged care facility, according to a report on ABC local radio.
The Federal Government offered a $4.3 million loan to the Snowy River Shire Council to increase the number of beds at the Berridale aged care hostel.
The facility has been earmarked for development, with the hostel requiring an additional 21 beds to meet short to medium term demand.
But Mayor John Cahill says while the loan offered zero-real interest, the council could simply not afford the repayments.
“The interest rate charged is the inflation rate,” he said.
“Now that’s been running at 4%, certainly lower now, so that would mean that the shire would be up for an annual repayment of some $600,000-odd a year or more.
“We’re currently subsidising the aged care facility in Berridale to the tune of possibly $200,000, so the shire just can’t afford the repayments.”
