Broadcaster eyes rest home buyout

Mangere residents are angry that the Manukau DHB has decided to close Pacificare Rest Home and Hospital. Photo / The Aucklander

Broadcaster Willie Jackson's urban authority wants to negotiate with Guardian Trust to buy a troubled rest home tagged for closure at the end of the month.

Mr Jackson is the chief executive of the Manukau Urban Maori Authority, an organisation which has wide ranging advocacy and business interests. Guardian Trust is mortgagee in possession of Pacificare Rest Home and Hospital.

Mangere residents are angry that the Manukau District Health Board has decided to close the home on January 31.

The DHB has said it was a difficult decision which had to be made because of safety issues and continued poor performance over many years.

Yesterday, Mr Jackson and representatives from the DHB and the trust met to thrash out the issue.

"They [the DHB] said if we're interested in taking over the contracts, which we are, we think there should be a local provider, then we should buy the business.

"We need to negotiate with Guardian Trust, and we've commenced those negotiations."

Mr Jackson would not say what price the authority would be willing to pay, but it had sufficient reserves after selling off radio frequency to Mediaworks for an undisclosed sum last year.

Pacificare was an asset as it was run with Pacific values and largely served that community.

Asked if he was concerned about potential liabilities, including more than $1 million in unpaid taxes associated with the rest home's management, Mr Jackson said that issue would be canvassed during the due diligence process.

He described yesterday's meeting as constructive and said he hoped both groups would visit the residents to further explain the decision.

DHB service integration manager Sam Cliffe said a meeting with residents was something she agreed with in principle.

However, that would not happen immediately because the negotiations complicated what message she'd be able to give.

In the meantime, the DHB would continue as if the negotiations were not a factor.

"At the moment the contract terminates on January 31," she said.

"We're unable to fund residents whether they'll be there or not. We're still actively seeking appropriate accommodation for the residents."

A spokeswoman for Guardian Trust said the authority had been invited to a follow-up meeting. The Herald understands that could be held tomorrow.