Labour to change law for retirement village residents if elected

Labour will change the law to ensure retirement village residents get their money back within three months of departure, if elected.

Seniors spokesperson Ingrid Leary accepted a Consumer NZ petition signed by 40,000 people on Tuesday, supporting her Members Bill requiring villages to pay back residents' money within three months.

But leader Chris Hipkins, speaking to the around 100 people gathered at the petition handover, said Labour would change the law if it was to form a government after the election.

He said if the members bill could be passed before the election, it would be, but gave an assurance he would pass it after the election if it wasn't.

"I know how hard you have fought for this, and I also know how difficult it can be when someone is vacating a retirement village unit, and we don't need to make that any harder, we should be aiming to make it easier."

The government was making changes in the Retirement Villages Amendment Bill that would see residents and their families paid interest after six months of leaving a unit and would have to be fully repaid after 12 months.

National President of the Retirement Village Residents Association Brian Peat said 12 months was "completely unfair."

He said the "big 6" retirement villages, such as the Rymans, the Summersets, the Arvidas, "those guys have always paid back in six months anyway."

Peat said the government was now saying they could take even more time, "it's just not acceptable."

On Labour's proposal, Peat said it was "pleasing" to see a major party commit to the shorter time frame, and that it would apply to every existing resident in villages now.

"They're the two things that we've always advocated for, and this is what we would like to see in the review of the Act."

Some of those gathered at the petition handover told RNZ the shorter time frame would mean families were able to pay funeral fees because they'd have their money straight away. It would also mean families that "are being crucified in the current financial system" would have money available to them.

"That money is ours, and we want it for either if we're moving into care, we need that money to pay for our care, and if we are dying, please God, then our families need that money. It is our money. It does not belong to the owners of retirement villages."

Another person told RNZ it was a "vote-getter."

Another said Labour's announcement was "excellent," and that they were surprised most political parties didn't attend, given only Labour and the Greens were present.

"It's the logical, fair, and correct thing to do."

Seniors Minister Casey Costello acknowledged the matter of "fairness", but said people needed to consider "unintended consequences."

She said not-for-profits and smaller providers were being considered too, not just the big corporates, as well as retrospective legislation impacting current contracts.

Costello said three months was "very problematic", especially for the smaller aged care providers.

"You've got to be very careful about what that impact will be in terms of the provision of housing for older people."

Executive director of the Retirement Villages Association, Michelle Palmer, said she understood why people want faster repayments, and no one wanted to see families facing unnecessary delays.

"There are some isolated cases where wait times have been too long, and that's unacceptable. The culprit usually isn't the village operator - it's the real estate market.

"The reality is the average repayment time is around seven to eight months, so most people do receive payment in a reasonable timeframe."

She said that's how the system worked, units needed to be cleared of possessions, refurbished, marketed and sold, then settlement would often depend on the next resident selling their own home.

"We support the broader reform programme and agree there is room to improve the exit process introducing a 12-month repayment guarantee."

She said where families face genuine hardship, "for example funeral costs or a move into specialised care," the Association supported a practical process that allowed early access to a portion of funds.