Queensland-based disability service provider FSG Australia, which has hundreds of clients on the Northern Rivers, told staff on Friday that the company is going into voluntary administration on June 30.
As Echonetdaily reported in March, the company flagged problems its annual report, saying that it recorded a $5.2 million loss of revenue last financial year, representing 7.6 per cent of gross income.
FSG describes itself as a ‘for-purpose community organisation offering a wide range of innovative services in the fields of disability, mental health, aged care, family and children’s services’.
It diversified beyond disability services, presumably in an effort to raise additional revenue, into a diverse range of social enterprise initiatives including: cafe, retail and co-working spaces; FSG Travel; a plant nursery; FSG Green Shop; packaging and selling environmentally friendly cleaning products; and The Rock Indoor Climbing Gym.
A spokesperson for the company told Echonetdaily that while administrators will not be appointed until June 30, arrangements were already in train with ‘a very large provider’ with a view to that organisation taking over ‘some of FSG’s clients’.
Echonetdaily understands this arrangement will include the company’s client’s on the Northern Rivers.
FSG CEO Vicki Batten, said in a statement, ‘FSG – like many organisations in our sector – has had to make large investment decisions to prepare for the NDIS, and despite our best efforts it has become clear that we cannot continue to deliver our high quality of support to our customers.
‘With this announcement, our priority now is to ensure our customers can transition to a new service provider with minimal disruption.
In addition, we will also provide support to our dedicated staff as they seek opportunities with other service providers.
Insurance call
Richmond MP Justine Elliot (Labor) confirmed wrote to social services minister Dan Tehan on Friday to request the government ensure staff and customers are no worse off as a result of the collapse.
‘No one should fall through the cracks and we need the National Disability Insurance Agency here, on the ground today, to ensure continuity of service to all those affected,’ she wrote.
‘I call on the Turnbull Government to provide guarantees to affected participants and provide extra resources on the ground to support participants and workers face-to-face,’ Ms Elliot added.
NDIS supported
Ms Batten said it was ‘an incredibly difficult time for everyone involved in FSG Australia – staff and customers alike. Amongst this turmoil, however, I would like to reaffirm our support for the NDIS in Australia. While FSG Australia will no longer be a part of this important social change, we wholeheartedly support it and know many Australians, including FSG’s customers, will benefit enormously from its introduction.’
This is typical of grubby profit takers operating human services. They hide behind the corporate veil. Take their directors fees and let all the rest beg for their fair share. Same thing happening on the Pacific Highway upgrade. Shame on government. Shorten wouldn’t be any different. He too is married to limited liability and neo liberalism.
We need to know how much FSG owners/directors have sucked out of the Federal Government income stream for their own benefit. Think we’ll ever find out??? Won’t happen without a Senate Enquiry or Royal Commission.
How can we have lower taxes and sustain our free medical system. Care for our disadvantaged. House our homeless???
Malcolm and Bill don’t really care as long as they can play their political games and sustain their own standard of living. Sad but true. Every man for himself!
Agreed.
How pathetic Vicki Batten! You pay staff below award for some shifts and you still have fsg go bust.
Joe, may I ask if you have had anything to do with the agency FSG? I suspect not, because for those of us who work in the field , this agency has been committed to providing exceptional service. It is , I suspect, due to their commitment to high quality ,one on one care and their desire to pay their employees an ethical rate, that they are having these massive financial problems. With all respect Joe I think you need to got spend a day with FSG employees and apologise , or, “just pull your head in”!
FSG came up before the Royal Commission re abuse of kids in care. Locally, they took over the already over-extended BDCSA and moved duties to the Gold Coast. I left them because service was terrible. They have wasted good staff. I’m not surprised by their demise.
FSG paid $225 per shift for sleepovers (including 8 hours worked), seven days a week. Way below award! How is that “ethical” Lou?
Totally agree with you Joe Monks, the large organizations tend to look after the executives at the top and the clients are at the bottom of the food chain, they are not flexible enough. I decided to go with a small service Qld Support Services & Solutions as they are more accessible, flexible and you take control of your rosters, recruiting, pay rates and Timesheets for staff. Any clients who wants a service that listens I’d recommend they contact QSSS http://www.qsss.com.au