THE removal of 38 residents from Tomaree Lodge, the Port's lone state-run disability care hospital for the past 28 years, has started.
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The residents, predominantly aged from 65 and suffering from intellectual and physical disabilities, will be rehoused into group homes accommodating up to six people as houses become available.
A Family and Community Services (FACS) spokesperson has confirmed that the NSW government was committed to the redevelopment of Tomaree Lodge by June 30, 2018.
"These large centres will be replaced with contemporary accommodation in the community designed to provide a home-like environment, with more privacy, flexibility in daily living and opportunities for increased participation in the community," the spokesperson said.
"FACS is committed to consulting with staff, their industrial representatives through an industrial relations working party, and local consultative meetings."
Minister for Disability Services John Ajaka last week announced that the government was seeking expressions of interest from non-government organisations to build and operate disability housing to replace Hunter lodges including Tomaree at a cost of $58 million.
Mr Ajaka said closing the institutions would help ensure people with disabilities have the opportunity to choose their place of residence, choose the people they live with, be closer to their families and integrate more with the community.
However, according to the sole surviving relative of one Tomaree Lodge resident, many of those living at the Shoal Bay facility are unable to communicate their wishes and do not have anyone speaking for them.
"It's a sad reality that many of these residents do not have a voice," said Judy Bourke, the sister-in-law of Angelman syndrome sufferer Marea Bourke.
"While the National Disability Insurance Scheme has many health benefits, there are a minority who will fall between the cracks, including my sister-in-law who has resided at Tomaree since 1988.
"She needs 24-hour specialist nursing care, and would not cope in a smaller property."
State MP Kate Washington has labelled the government's decision to release the plan to the business sector before being shared or discussed with residents' families or advocates as "disgraceful".
"The residents of these services are the most vulnerable people in our community, and we must ensure that what's being proposed is consistent with the NDIS principles of choice and control, not a 'one size fits all' accommodation with no safeguards," Ms Washington said.
"And there are still no answers as to how the health needs of these residents will be managed once they are rehoused."
The FACS spokesperson said there were 54 staff at Tomaree Lodge and FACS was finalising its approach for the workforce.
"Future plans for the site following relocation of residents are yet to be developed and FACS is unable to provide an estimated value of this property."
In 2012, Port Stephens mayor Bruce MacKenzie caused a huge outcry when he suggested the land be turned into a tourist development complete with casino.