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To Tinker or Cut?

Just last week at the National Press Club came an announcement one of the first confirmed and specific funding cuts. Opposition Leader, Tony Abbott, in his address flagged that the Coalition will dump the Schoolkids Bonus, a policy change made by the Gillard Government. The upfront payment replaced a tax refund, which required the provision of receipts before the payment was made. To date, the government has made payments to more than 1.2 million families, totaling $588 million dollars.

This decision caused some debate, but, in as important a policy area as education, there can always be more attention focused on the impacts of political actions.

In announcing the decision, Tony Abbott remarked that the Schoolkids Bonus was, “a cash splash with borrowed money”. Is it really that simple? Or should we be looking a little more critically and thoughtfully? And in conclusion, was it right for the Coalition to make the decision to dump the payment altogether?

In politics, every single decision, often every phrase, even almost every word is subjected to the political spin cycle. And politicians love to engage in hyperbole, even if they do not know how to pronounce it. And not much is different here.

The change made by the Gillard Government, in that sense, is open to being called exactly what Tony Abbott referred to it as. The timing of the move and new mode of delivery for the payment are questionable, at least on appearance. It’s an election year and probably close to 9 out of 10 people would expect the government to lose at the September 14 poll – the opinion polls have been saying so and even the betting has the Coalition as stark favourites. So the payment of course could be painted in a way as an electoral bribe. It is also borrowed money.

But on closer inspection, the payment itself is actually of the utmost importance. It’s to be used for the education of Australian children – our nation’s future. The Coalition will have you believe that the payment will not be used for education purposes in all cases and they may be right in some cases. But that way of thinking is very illiberal for a supposed Liberal Party. Conservatives see human nature as flawed, and not liberals. Liberals have a largely positive view of human nature.

Scrapping the payment altogether, apart from being illiberal, is also a bad thing for education and equality. For ‘equality’, read equality of opportunity – that should be the main game in education policy as equality of outcomes is a completely unattainable and unreasonable aim in the area of education policy.

We should be ensuring that absolutely every child and young adult has access to an education. It must not be a one size fits all approach, but access to education tailored to meet the needs of those engaged in it must be without roadblocks. That includes assisting families with the cost of school-related supplies.

What the Coalition should have done, rather than deciding to scrap the payment altogether, was announce that they will seek to reinstate the old Education Tax Refund. But of course the budget is in a bit of a mess and they have instead planned to cut funding in an area of policy-making which should be quarantined from cuts in most circumstances.

The decision is not an electoral game-changer, but it’s not a good choice of policy.

None of the Political Players Are Blameless in the NDIS Political Game

The National Disability Insurance Scheme (NDIS) has been seen since the Productivity Commission recommended its establishment last year as the best hope that people with a disability have had for their unmet needs, needs that are almost impossible to reach for some, through no fault of their own. It was received with great fanfare by the Gillard Government, with Bill Shorten a key instigator in the Productivity Commission examination of such a policy move. The hope was raised further when the Coalition outlined bipartisan support for the very important initiative.

But alas, as swiftly as the idea of an NDIS has come around, so has the impression that the solid ground the idea was built upon, the unanimous support,  is now cracking beneath those who have a disability.

Th major political players in this are threefold. First there is the commonwealth government, then there is the Opposition and finally the state governments who at present provide many of the services that would be involved in the running of the future scheme and who have been a part of the political discussion of funding for the important new policy.

In the uncertainty that now clouds the future of a NDIS roll-out no single political player, be it state or federal government or the Opposition is without blame for what looks at the moment to be a shaky future for the not yet realised scheme.

From the outset, the Gillard Government ignored the Productivity Commission recommendation that the NDIS be fully funded by the federal government, the whole $13 or so billion dollars of it. This leaves it to the Council of Australian Governments to squabble behind closed doors and also apparently in public quite openly over just how much each state can or are willing to contribute to the implementation of the program.

The second major player, the states must also take their fair share of the blame for the growing concerns being raised over the future of an idea that has has not even began operating yet.

Even though the ALP Government should have stuck to the recommendation emanating from the Productivity Commission report regarding the commonwealth being the sole funder, the state governments are not, regardless of what they say, without the capability to contribute to the establishment and commencement of the scheme, particularly in combination with the $1 billion over 4 years that has been stumped up by the federal government, no matter how meagre that sum of money is.

The Labor Government sticking to the Productivity Commission timetable for the construction, implementation and operation of the insurance scheme would also help relax some of the long-term funding concerns which look to be playing their part in destabilising the entire process.

The state governments are surely able to funnel some of their funds allocated to delivery of services that would be covered under the scheme into the funding pool for the National Disability Insurance Scheme so that this essential project does not fall before it even has a chance at operation. That’s not asking any state to search for any extra funds that have been difficult to find for many state governments in recent years, it’s just asking for an amount of existing funds to head toward a new idea and only when the services will start being delivered in their respective states.

The other player that is crucial, particularly for the long-term success of the NDIS, the side of politics likely to be in government and needing to oversee the full introduction of the scheme is the Coalition.

Things started well when the Coalition were quick to signal bipartisan support for a long-needed but not yet delivered policy response to the immense and fragmented costs and services that people with a disability have had to endure. But from time to time support has appeared to go up and down like a yo-yo.

Just yesterday at the National Press Club, the Shadow Treasurer appeared to be backing away on behalf of the Coalition from guaranteeing the future funding of the National Disability Insurance Scheme despite assurances from others in the Opposition previously that the NDIS will continue to have bipartisan support. This statement casts some doubt on whether the Coalition are fully committed to contributing to the NDIS including from late next year when all indications are that they will be occupying the government benches.

It is understandable that the Coalition will be cash-strapped through a combination of factors, but they have indicated from the outset their bipartisan support for the NDIS and must make it a reality. There are no shortage of options for achieving the aim of a fully-funded NDIS, even if they cause minor short-term political pain, think a small levy and/or removing some of the wasteful garbage spending that the government simply needs to get out of doing.

The Opposition must continue to commit to the implementation and operation of the scheme which they were so swift to support. If it means returning to the original timetable to make it easier, then so be it, at least then there might be certainty over the future of a sorely needed policy.

What is clear is that all the players need to reach a compromise, make sacrifices and work together better, though with so many competing needs at the table this is already a very hard task, but people with a disability cannot miss out again.

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