Published 5 October 2010
The Government placed 2 subsidiaries of IHC NZ, Idea Services Ltd & Timata Hou Ltd, into statutory management today.
Commerce Minister Simon Power said the companies approached the Securities Commission asking to be placed into statutory management in light of uncertainty as to their continued ability to provide services arising from Employment Court rulings last year. Those rulings concerned the application of minimum-wage legislation to carers engaged in sleepover duties.
The Employment Court ruled last year that the companies had to pay an hourly rate ($12.50/hour) for sleepover time, but they’d been paying only a $34/night shift allowance. The IHC’s appeal to the Appeal Court will be heard on Thursday 28 October.
Mr Power said: "I am advised that IHC, as the parent organisation, is not affected and there is no suggestion of fraudulent or reckless conduct.
"Rather, statutory management is simply intended to preserve the provision of services by the companies pending the resolution of the litigation & subsequent negotiations."
The Ministries of Health & Social Development fund the companies to perform a range of services for disabled people & their families. They are registered charities.
The Government appointed former ANZ National Bank Ltd chief executive & director Sir John Anderson as statutory manager of the companies. It has also appointed a committee to advise the statutory manager – the chief executive of IHC & the 2 companies, Ralph Jones; IHC national president & Idea Services director Donald Thompson; and IHC national vice-president & Idea Services director Shelley Payne.
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Attribution: Ministerial release, story written by Bob Dey for the Bob Dey Property Report.