A not insignificant breakthrough has been achieved in the journey toward a fully-funded National Disability Insurance Scheme. The Gillard Government and New South Wales have reached an agreement on joint funding of the full NDIS, due by 2018-19. The deal brings the full scheme closer to fruition. However, there are still challenges which will need to be overcome before people with a disability can say with absolute certainty that the National Disability Insurance Scheme is going to happen.
Under the agreement the federal government has agreed to fund 51.4% of the cost of the scheme to NSW, with the state government set to fund the remaining 48.6%. Under the deal, in dollar terms, both the state and federal government will contribute over $3 billion to the scheme, with the commonwealth providing $3.319 billion and New South Wales $3.133 billion.
From financial year 2018-19, the major disability reform, under the Commonwealth-NSW agreement, would see 120,000 disabled people in the state have their needs met by the NDIS.
To have the biggest state by population being the first of the states and territories to sign up to the full disability scheme is a sizable coup. What the deal means is that 120,000 of the over 400,000 set to be covered by the full disability insurance scheme now have their future assured, at least on paper.
The announcement does not assure that the NDIS will go ahead, but it does provide a level of hope that has not yet been experienced by people with a disability, their carers, families and advocates.
There are another 5 states and two territories which will need to sign onto the scheme for the national project to go ahead.
The NSW deal could provide a catalyst for other states getting onboard with the disability reform, either when they meet with the Prime Minister at the Council of Australian Governments meeting tomorrow, or at some stage in the future after tomorrow’s COAG.
Today Queensland Premier Campbell Newman appeared to have changed his political tune about the reform, saying that he and his government are “very interested” in a deal like the one Barry O’Farrell and Julia Gillard reached today and that it is “very attractive”. He did however say that at this stage his government did not have the funds for the implementation of the policy.
Western Australia are at present looking at their own trial of a similar scheme to the NDIS, but they too could change their tune tomorrow when the Premiers and Chief Ministers meet at the COAG table.
And Victoria, a state closely aligned with New South Wales in terms of political allegiances could easily agree to follow the lead of the O’Farrell Government when the Council of Australian Governments meets.
It would appear likely that the state Labor Governments which have signed up to the trial will be prepared to sign on the dotted line, providing their formal support for a fully established National Disability Insurance Scheme.
An argument raised today, as it inevitably is when there are major reforms announced, is just how believable and enduring the agreement between the Australian Government and NSW will be.
It is true that the agreement lacks detail at this stage and that it might fall victim to politics. Six years is a long time away and governments, state and federal may fall in the meantime.
The agreement however is a commitment from the O’Farrell Government of New South Wales, that it can and will find over $3 billion dollars to fund a fully operational NDIS. Some of that will come from the approximately $17,000 per person that is spent at present by the biggest Australian state. The rest, the NSW Government has today agreed, will be found elsewhere in the state budget.
Even less of a worry is the prospect of a change of government at the state level.
In the event of a Labor administration taking power in New South Wales by fiscal year 2018-19, it would be unlikely that you would see them walk away from the O’Farrell commitment to help fund disability services. Indeed, it would be a politically stupid government that would choose to walk away from a commitment set to benefit so many people.
The prospect of more states agreeing to deals like the one between New South Wales and the ALP Government too might actually help the deal endure.
It is true that the commonwealth government will likely be a different one in 2018-19 and that in itself could provide problems even though the NDIS is the subject of bipartisanship.
Whichever side of politics is in power during the year 2018-19 will need to act on the NDIS and by then will well and truly be in a position to do so.
The next move or set of moves may come tomorrow, or some time in the near future.
The pressure from the disability lobby must remain strong. There are still five states and two territories which need to commit funds and the advocacy work cannot cease, even after the scheme is operational.
The latest Council of Australian Governments meeting has gone off with a bit of a hitch. The National Disability Insurance Scheme launch sites were front and centre of the COAG agenda today with the states and territories coming together to try and win a launch site, well in most cases at least.
At the meeting today in Canberra a total of three launch sites were announced by the Prime Minister Julia Gillard. South Australia, the Australian Capital Territory and Tasmania managed to reach agreement with the Gillard Government to co-fund trials in their respective states and territories.
But alas, a fourth and final trial location could not be found. The states and territories who will be hosting launch sites are all Labor administrations. Those loudest in their criticism of the government over the project, from a positive interest in at least trying to find an outcome, to in Queensland’s case, not having an interest at all in contributing funds until at least 2014-15 are all Liberal state Premiers.
Western Australia a Liberal state, under Premier Colin Barnett will at least be trying out their own version of the scheme, ‘My Way’ which the federal government will have a look at to see how their experiment at a state-based scheme goes. But really, all states should just get with the same program, but points for trying.
New South Wales and Victoria, on the face of it, seem part of the way there. NSW Premier Barry O’Farrell announced that his state had $570 million for the trial, a not insignificant amount, over half of the commonwealth allocation in the May budget which put aside $1 billion for the four initial locations for the disability scheme.
Together with Victoria, the two states with conservative Premiers put together a joint bid. Their proposal was to cater for 15,000 people with a disability with the New South Wales part of the two-state agreement to be put in place in the Hunter region.
But again money was the killer here. The Prime Minister wanted NSW Premier O’Farrell to contribute a further $70 million for the trial and the Victorian Premier, Ted Baillieu an extra $40 million for their states to be able to have one of the four initial NDIS service areas.
The first point is that the money that NSW were willing to bring to the table was an extremely generous sum for a scheme which the Productivity Commission recommended should be fully funded by the feds.
Second, surely each of the three parties in the negotiations for the joint bid had the ability to make up the $100 million funding shortfall between them, whether that be either of the two states or the Gillard Government, or all three sharing the extra burden.
As far as Queensland goes, with relatively new state Premier Campbell Newman at the helm, the whole situation is far from encouraging. The Queensland Premier, Mr Newman came to the meeting of Australian governments proposing to spend not a single cent on a proposal for a launch site. Interestingly though, Mr Newman brought a proposal to COAG today for a launch site to be held in the town of Gympie, north of Brisbane.
But that of course was never ever going to translate into the northern state being granted the right by the commonwealth to enjoy the benefits of being one of the first four places in the country to see how the eventually national scheme will operate.
The overall point is that all Liberal states were playing politics. It (the funding job) could have been done. Surely too, the federal government, in the knowledge that in twelve months time they will likely not be in power and not having to stump up further funds for the essential disability policy. were also playing political games.
What was interesting today and in the lead-up to the crucial Council of Australian Governments meeting was that the Northern Territory Government, under Chief Minister Paul Henderson, a Labor administration appeared relatively absent from the debate and discussion. The motive likely the upcoming election in the Northern Territory.
So where to now for the National Disability Insurance Scheme?
While the federal government should have followed the Productivity Commission recommendation to fully fund the scheme it is clear that it will never happen that way.
But it is clear that the NDIS just has to happen. People with a disability have waited far too long for a serious attempt at a framework meeting their basic but diverse needs in a converted national approach.
Like it or lump it, the states have to alter their stance on the project to a standpoint where they are willing to contribute more whilst still pushing for the commonwealth to fund the vast majority of the costly policy.
With a likely Liberal Government at the federal level next year, it is important that their in principle support, which appears to be wavering quite strongly, is converted into real support for following the already embarked upon implementation process.
Lobby groups, the state and current federal government will need to continue to put the pressure on the current federal Opposition to make their uncertain bipartisan support a reality. Nobody wants to see an incoming Abbott Government in power suddenly baulk when faced with needing to implement a policy that the Liberal Premiers have all had varying degrees of difficulty acknowledging is important.
But again, at the same time, the current administration at the federal level must take their share of the blame for what is a very worrying juncture in the NDIS debate.
All states and the federal government need to work together more and be more willing to compromise. They all have the means to contribute something. People with a disability cannot afford to miss out with another failed policy.