THE State Government has confirmed it will offload three of its nursing homes in the Hunter to cut costs.

Aged-care homes in Wallsend, Muswellbrook and Gloucester are in line with eight others across the state to be transferred to the non-government sector.

The transfers and sale of any surplus land were confirmed in last week's mini-budget.

Newcastle Trades Hall Council secretary Gary Kennedy said the council did not support privatisation in any form and it was doubtful the private sector could run aged care any better.

"If they can do it cheaper, they have to be cutting costs somewhere," Mr Kennedy said.

One of the homes proposed for transfer is housed in the old Wallsend Hospital.

The hospital was opened in the 1890s using funds raised from mineworkers' levies and subscriptions, on land donated by the Newcastle-Wallsend Mining Company.

Run as a community hospital until the mid-1960s, it maintained strong links with the mining community.

It was the subject of angry community protests in 1991 when the Greiner government closed it. Other health services also use the site.

Thirteen state-owned nursing homes have already been transferred to the non-government sector.

A spokeswoman for Health Minister John Della Bosca said care of the residents in the homes to be transferred would not be compromised.

The Government would seek expressions of interest for organisations to acquire the aged-care places.

"While the timing of this process hasn't been determined, decisions will be made on a facility-by-facility basis and in consultation with the views of the community," she said.

She said any other services on the same site as one of the aged-care homes would continue to operate.

Source: Newcastle Herald - Lisa Barritt-Eyles