October Council Meeting: Hunter Warbirds and Gummun Place Hostel

30 October 2024

At the October Ordinary Meeting, Council resolved to explore management options for Gummun Place Hostel to ensure the facility’s continued service to the community. Council also resolved to call for broad Expressions of Interest (EOIs) for the Hunter Warbirds facility, inviting proposals for managing the facility, running Warbirds Over Scone events, potential commercial airport services, and alternative uses. These decisions align with Council’s commitment to financial responsibility and enhancing service delivery across the Shire.

Gummun Place Hostel

In response to the increasingly challenging regulatory landscape, Council has resolved the following: 

That Council:

1. adopt Option 1 as amended in the report being;

a) in light of the changed circumstances and inadequate government funding and increasingly complex regulatory framework, Council call for expressions of interest (EOI) from approved aged care providers to take on either the management, lease or purchase of Gummun Place Hostel; and,

2. retain confidentiality of this matter for a period of 48hrs to allow consultation with stakeholders.

Council recognises that the hostel operates under significant financial strain, partly due to rising compliance standards that place pressure on regional facilities without sufficient federal support. Gummun Place Hostel exists to meet a critical need, one that is often overlooked by federal funding and resources allocated to larger, metropolitan areas.

Mayor Maurice Collison shared his thoughts on the challenges facing Gummun Place: “The truth is, councils shouldn’t have to be in the aged care business—but we’re here because the need in our community is real, and it’s not being met by the industry and we’re not getting the necessary federal support we need. Only today, announcements confirmed that Singleton’s Mercy Nursing Home will close in 2025. We don’t want the same outcome for Gummun Place which is why we’re trying to find solutions before it’s too late. This issue is being felt right across regional areas. Our residents deserve the same high standards of care as those in the city, but increasing regulatory compliance being imposed on the aged care sector is making it harder for smaller regional facilities to keep up. Exploring options with experienced providers is our best chance to make sure Gummun Place continues serving Merriwa well into the future.”

In summary, the main driving factors for Council’s decision are as follows:

Over the past five (5) years, Council has faced significant challenges with the operation of Gummun Place Hostel including significant operating losses of approximately $2 million due to rising costs and inadequate government funding. It would be prudent of Council to formally seek expressions of interest (EOI) on the open market as there may be interest from larger operators, including not for profit organisations, to take on the service.    Aged care is becoming more and more specialised. Council has access to limited expertise in this field and the small size of Gummun Place Hostel limits the long-term viability of the service as a stand-alone service. Difficulties attracting and retaining qualified and skilled staff, particularly registered nurses.

We want to assure the community that this does not mean any immediate changes to the service we provide to our residents or the operations of Gummun Place Hostel. We will be continuing to provide the highest quality of care while we undertake this process. 

Hunter Warbirds 

In relation to Hunter Warbirds aviation facility, Council has resolved the following: 

That Council:

1. adopt Option 3 as amended in the report being:

i. Council call for broad EOIs from all interested parties with the opportunity to explore all market options including any or all of the following:

a) EOI for the Warbirds facility;   b) EOI for the Warbirds over Scone; c) an EOI that allows other commercial users to provide airport services from this location; and d) proposals for any other alternative uses.

ii. engage external specialised national commercial property consultants to undertake the process; and

2. retain confidentiality of this matter for a period of 48hrs to allow consultation with stakeholders.  

This EOI process enables Council to explore options for expanding the facility’s potential while optimising operational costs. During this time, Council remains committed to maintaining consistent staffing and services at Hunter Warbirds as it considers all proposals.

Mayor Maurice Collison noted, “Hunter Warbirds has demonstrated strong growth and significant community interest, despite difficult economic conditions. By seeking qualified operators, we hope to build on this success and create new opportunities for the facility, all while aligning with Council’s sustainability goals.”

The EOI process will be facilitated by an independent consultant, allowing Council to thoroughly assess proposals before finalising any lease arrangements. Existing amenities, including the Visitor Information Centre, the café lease, and Council’s Airport Reporting Officer office, will remain part of the facility’s operations.

Council’s approach reflects a commitment to sustainable service delivery and a pragmatic response to the financial pressures both Gummun Place Hostel and Hunter Warbirds face under Council’s current operation. By exploring partnerships and alternative management options, Council aims to secure the future of both facilities for the community.