At the Australian National University's Social and Economic Policy Lecture today, Queensland Labor MP Craig Emerson outlines his vision for abandoning the "nanny state" approach to aged-care policy.

"If the major political parties emphasise government provisions of health and aged-care services over greater self-reliance, Australia is headed towards a fiscal train wreck," he says. He says forecasts that aged care will soon be one of the biggest drains on the public purse may "understate the size of the fiscal challenge" ahead.

And he predicts increased pressure on aged-care services caused by Australia's greying population will overwhelm the current aged-care regime.

Dr Emerson proposes raising caps on accommodation charges for wealthier residents, increasing extra-service places and using accommodation deposits for high-care places.

He also proposes the introduction of a means-tested voucher system -- previously floated by former federal aged care minister and now Education Minister Julie Bishop.

In October, Ms Bishop suggested relatives and friends could be paid by the Government to take care of the elderly in their own homes.

Personal care assistants would be paid under a national voucher scheme designed to give older people greater choice about how they are cared for.

"We should explore the option of consumer-directed care. For example, a spouse, relative or friend could be employed as a personal care assistant," she said at the time.

By Cath Hart

Article from www.theaustralian.news.com.au