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Queensland Seeking to Pay the Fare for the NDIS Bus
It appears, less than a week after the last Council of Australian Governments meeting, that Queensland has jumped firmly on the National Disability Insurance Scheme bandwagon. Queensland Premier Campbell Newman today announced a “timeline” for providing funding toward the NDIS. Premier Newman also confirmed that he has written to Prime Minister Julia Gillard with a formal bid for a funding split between his state and the federal government.
Mr Newman has written to the Prime Minister and is seeking a 50-50 funding split between Queensland and the commonwealth for funding of disability services under the national reform to the disability sector. The Premier flagged this offer last Friday while in attendance at the COAG meeting of first ministers.
Campbell Newman has however reiterated that his government will wait until the budget is in surplus. Therefore he has said that the decision to commit money to the disability insurance scheme will be delayed by two years.
A further element of the promises today from the Queensland Premier was a pledge to begin increasing funding of the disability sector from 2014, with plans to reach the national average spend on disability by 2018, the year that the NDIS will be fully operational. This will mean, in dollar terms, an increase of $868 million over the four-year period from the current levels, very low compared with other states, to $1.77 billion in the year that the NDIS is due to come into force.
The offer is similar to the deal reached between New South Wales and the Gillard Government, a which will see the national government contribute a little over 51% of the funds for the NDIS and the New South Wales Government over 48% of the shared contribution.
The offer of an even share from the Queensland Government will likely receive approval from Julia Gillard. However, this evening the ALP Government has responded to the offer from Queensland, saying the spending plan does not contain enough funds for the full implementation of the disability insurance scheme.
The Australian Capital Territory has also committed to the full rollout of the NDIS. Because of the size of the population in the territory, the ACT Government has been able to guarantee that, just a year after the launch site is established, approximately 5000 disabled Territorians will start being covered by the full national disability scheme. And by 2016-17, the scheme will be fully operational in the territory.
There is however one element of the NDIS rollout that the Newman Government has not committed to. From the start of the negotiations at COAG, the Liberal Government in Queensland has refused to commit to funding a NDIS launch site, a minor commitment which would have cost between $20 and $30 million dollars.
It is somewhat true that a launch site in Queensland is now redundant, with five already agreed to in other states and territories. Well, that is true at least in theory. Originally the Prime Minister had called for bids from four state and territory volunteers, but thanks to a somewhat joint effort from NSW and Victoria there are now five.
Queensland offering to establish a launch site however, would be an inexpensive symbol of their commitment to the future of the National Disability Insurance Scheme, above and beyond the political promise they made today. A launch site in Queensland would be priceless in terms of the information it would provide. Another launch site in Queensland would help ensure that the full implementation of the scheme is informed by the best, most robust data available.
The next move requires Queensland to come back with a higher offer.
A Response to an NDIS Opinion Piece
Today Prime Minister Julia Gillard introduced the legislation for the National Disability Insurance Scheme. This Medicare-like scheme is a very important reform, a long time coming for people with a disability, who have suffered under inadequate and differing support regimes from state-to-state. The NDIS will create a national framework under which the needs of those with a severe and permanent disability will be met.
The introduction of the legislation in the House of Representatives is just the first step. NDIS trial sites will be launched next year, but there is still a need to keep the pressure on, to ensure that the fully-fledged system will be realised.
Up until recently, most of the negative debate around the policy has been about the cost. It is significant, requiring approximately $15 billion a year from the first full year of implementation in financial year. That time comes at the end of this decade. But the scheme can and must be funded. There are numerous ways to ensure that it is fully funded.
This week, in an opinion piece in The Australian written by Doron Samuell from SR2 Healthy, relatively new arguments came to light.
In the first instance, Mr Samuell argued that, “lured by the promise of taxpayer dollars, it is inevitable that disability services will come to be dominated by large, corporate players in the post-NDIS world.”
Later in his op-ed, Doron Samuell provides an argument which says that this is already occurring. So really, what we will have is the status quo. It is hard to envisage that smaller providers could be crowded out even more than they already are.
For equipment, like wheelchairs and other mobility aids, disabled people will most likely choose to use bigger organisations that might have the capacity to carry a broader range of stock and therefore, more cost-competitive products.
For services, users will probably choose to use a mixture of smaller, community-based organisations and larger “corporatised” ones. This will, again, at least maintain the status quo. There is also a strong chance that smaller organisations able to adapt to client needs under the NDIS will be able to grow if they can prove they provide good services.
The idea of the insurance scheme, as it will apply to many applicants, is to give users, capable of decision-making, the choice to pursue services from providers that they perhaps already identify with.
Also on the question of choice, Samuell made what amount to some pretty offensive, not to mention inaccurate comments about the capacity of people to choose wisely under the disability scheme. He actually claimed that the disabled were “often unsophisticated” purchasers and asked “these consumers going to make the right decisions?”.
Well, of course those who have a capacity to make decisions for themselves are overwhelmingly going to make the right decisions according to their needs. People with a disability are no less rational than ‘able-bods’ and nobody else knows their personal requirements better than people with a disability themselves. No doctor, no healthcare professional, no bureaucrat understands disability better.
Mr Samuell also appears to have forgotten a provision in the bill, which allows for funds to be provided to a carer or directly to a service provider in the event that someone eligible for NDIS funds is unable to make or communicate decisions for themselves on their own care needs. The latter is a worry because, again, bureaucrats should not be making these kinds of decisions.
Samuell also states that “the NDIS will need to ensure that buying decisions are scrutinised, audited and reviewed”. The legislation actually provides for this.
Doron Samuell does go to the question of funding. He does this from the position that Medicare, the system that the National Disability Insurance Scheme is based on, is under-funded and has a bloated bureaucracy.
There is a danger that the NDIS will be under-funded. There is always that danger when government embark upon significant reforms, that costs might be under-estimated. But what is clear is that the claim about Medicare only coping “by progressively lowering the standard of care to maintain its universality”, will almost certainly not apply to the NDIS.
A bloated bureaucracy is of some concern. There will need to be a significant number of jobs created or filled across the states and territories to oversee the agency. However, the bigger concern should be too much centralisation of the increased bureaucracy.
Finally, Samuell’s contention about the NDIS not being based on insurance principles is neither here nor there. What is important is that this landmark reform provides adequate support for those it is targetted at.Getting bogged down in definitions is pointless.
The biggest concern should be making sure the introduction of the full scheme occurs in 2018-19.
An Open Letter to State and Federal Politicians Regarding the NDIS
Dear state and federal governments,
I do not believe that all of you, despite protestations to the contrary, are actually one hundred percent serious about pursuing the implementation of a National Disability Insurance Scheme. Furthermore, I am concerned that the bipartisanship at the federal level may well be in name only.
Labor: You announced, with great fanfare as a result of work precipitated largely by Bill Shorten as Parliamentary Secretary for Disabilities through the Productivity Commission, that a NDIS was needed. That report identified that the disability services sector is fragmented and under-funded. You pledged to work towards implementing such a scheme.
The Coalition: You announced swiftly, despite a perceived disposition towards opposing major reforms, that you wholeheartedly supported the idea to assist some of the most vulnerable Australians.
Since that wonderful day when you, our federal politicians gave a feeling of hope that many people with a disability and their carers have never experienced before, things have changed.
The future of the much-needed reform looks far less certain than it did this time last year and that worries me. I have no doubt it also worries many others with a connection to disability. We are used to disappointment and people with a disability are used to being largely left out of government calculations.
I acknowledge that the problem is not wholly because of you, the federal government. Blame for the uncertainty must also be laid squarely at the feet of some of our state governments. Yes, you did ignore, as governments generally do an important recommendation. This recommendation from the Productivity Commission said that you, the commonwealth should be the sole funding government of this important initiative.
To Tasmania, South Australia, the Australian Capital Territory and later New South Wales and Victoria: Thank to all of you for getting past the Gillard Government’s refusal to be the sole contributor to the National Disability Insurance Scheme. Your contribution is much appreciated, even yours NSW and Victoria. At least you were willing to remain at the negotiating table even if your government’s played it trickily for a while.
Queensland: Despite the dumping of the key recommendation from the report into the insurance scheme, you could have contributed a modest amount of funds toward a launch site.
You should have been able to get past that point and negotiate with the federal government from the viewpoint that they must be responsible still for the bulk of money contributed towards the establishment of a NDIS. We know and acknowledge that your revenue streams, as with all states, are limited. However, giving something was entirely possible.
To all the states: Please now operate on the assumption that the commonwealth government should provide the vast majority of the funds toward the NDIS. That includes you Queensland.
But back to you, the federal government: A half thanks for the $1 billion over 4 years in the May budget. You contributed something. But in the scheme of things it falls remarkably short of the mark. The meagre sum of $250 million a year for four years for a project that will cost over $13 billion in the first full year is a bit of a joke, especially considering how much more you like to waste in other areas.
To the federal Opposition: Thanks for what appeared, at least initially, to be earnest support for an essential new way of catering to the unmet needs of people with a disability.
Since that initial endorsement though, there have been mixed messages which make me and many others concerned that your professed interest in pursuing this in government might actually be a little on the fake side.
If this is a false assumption then please stop people like Joe Hockey from appearing to question the ability to fully fund the scheme years into the future. Please stop the Shadow Treasurer from referring to it in a negative light.
Contribution to the scheme will be more than possible by the time of implementation put forward by the Productivity Commission. Even the timetable of the ALP Government is within reason. It is only one year earlier.
Again to Labor: I hope you did not think that my concern over your actions, or lack thereof was limited to that already mentioned. It is not.
I am very concerned at your ability to appear to be doing something while actually doing little at all, other than mostly talking. You now say you will introduce legislation to establish aspects of the NDIS, including the transitional agency. That is great, but it is useless without money being funneled towards it.
You have said, or at least hinted over the past couple of days at more money being directed toward the policy, but only next year. If your hilariously small contribution in the May budget is anything to go by, then a contribution next year, keeping in mind the state of the budget and the fact that it is an election year, will either be inadequate or potentially peeled back upon change of government.
The disability community would appreciate it if all of you would address our concerns. Some of you are doing very well, some okay and one state, that’s you Queensland, doing terribly.
There are a lot of people now more cautious, some cynical and some even scared about the prospects of not having the NDIS going ahead. We need reassurance that our concerns are not based in reality. That can only be achieved through strong actions, not strong rhetoric.
Yours Sincerely,
A NDIS fan
Another Hurdle for the NDIS
It seems a bit odd speaking of yet more potential woes surrounding the National Disability Insurance Scheme on an otherwise very happy day for people with a disability around the world with the London 2012 Paralympics beginning. But unfortunately that has to be done. A new report has placed serious doubts on the price tag for a fully-funded NDIS . Therefore the future of the scheme is put into question even more before the launch sites in New South Wales, Victoria, Tasmania, South Australia and the Australian Capital Territory have commenced operation. This would no doubt be a scary prospect for those with severe and permanent disabilities around Australia, their carers and families.
A report by the Australian Government Actuary shows that the initial figures put out by the Productivity Commission in its report into the establishment of a National Disability Insurance Scheme could well be wrong to the tune of billions of dollars. The Commission said in its report that a fully-funded NDIS in the first year of operation would cost upwards of $13 billion. The report by the actuary however, shows that the eventual cost in the first full year of the Medicare-like policy would be closer to $22 billion, that’s almost $9 billion more than the Productivity Commission determined the cost to be in their report to the Gillard Government.
That’s a horrifying extra hurdle that needs to be overcome in providing much needed, essential and coordinated services to a cohort that is all too often overlooked when calling for extra funds just to be able to do simple things like getting out of bed of a morning and out of the house to engage in the community.
Such a scary proposition requires a rethink of how to proceed with funding such an important initiative. Previously, the state governments, barring a few exceptions, with different degrees of vigour, have asserted that the commonwealth must do as the Productivity Commission recommended in their recommendations. That advice was that the federal government, to avoid a COAG bunfight with the states, be the sole-funder of the insurance scheme.
Particularly the Liberal state governments, but also the Liberal and National Party Coalition in Canberra toed the Productivity Commission line from very early on, saying that the feds have to be the sole contributors to the NDIS. Back when the figure was nearly $14 billion dollars, this wasn’t such a silly thing to pursue the government on, given what the Productivity Commission thought possible. But it would still have been a difficult proposition given that the initial figure was not exactly small change.
Now two Liberal states agreed, after the conclusion of a Council of Australian Governments meeting, with much pressure applied by federal Labor, the press and lobby groups, to contribute some not insignificant funds in order to host launch sites in their jurisdictions.
The state and territory Labor Governments of South Australia, Tasmania and the ACT got onboard with the discussions from the very beginning, willing to put money toward such an important and necessary idea. They were rewarded at COAG, being named the hosts of the first three sites to see the National Disability Insurance Scheme in working order.
Then there was Queensland, the only state or territory, other than the Northern Territory, which was nearing an election and Western Australia, trialing a similar policy of their own, that wasn’t willing to stump up a single cent in order to be chosen to host another commencement location for the scheme.
Regardless of the recommendations, it could have easily been said back at the time of the COAG meeting of the Premiers, that the policy really needed agreement and an ability for all the states and territories and the commonwealth to work together on achieving this policy outcome.
Now, with the newly inflated figure being bandied about, it is absolutely essential that all the states and territories, in conjunction with the commonwealth government, are willing to put all the money needed toward a properly funded disability scheme.
All states and territories, as well as the national government must now work towards agreeing to put all of the money they currently contribute to disability services into the funding pool.
Then, the state Premiers and Chief Ministers along with the federal government must discuss and agree to contribute their fair share of the extra funds necessary to realise the benefits of an NDIS.
There is the possibility of instituting a levy to make up any short fall, but this should only be considered if both levels of government cannot agree to contribute all the funds necessary for the full operation of the proposed disability services framework.
It’s also politically risky for the incumbent government, with people generally not liking new taxes. But if all or at least a majority of states and territories can agree that a levy is a good way ahead, then that could go some way to ameliorating the concerns of the public in having to pay a new tax.
Particularly in light of the very contradictory statements coming from the federal Opposition over the NDIS, it is important that their suggestion of a multi-party committee to work together advancing the insurance scheme is instituted. This would give the Coalition no wriggle room to back away from a commitment to funding their part of the National Disability Insurance Scheme if, as many believe likely, they take the government benches in 2013.
Were such a joint committee to be established, it would also take the politics out of the equation which has infested debate over the scheme and ramped up in recent months. We all know who ‘owns’ this policy prescription, but it is so important that it should not be seen as something that the government and the opposition cannot work together on to achieve.
There are murky days, weeks, months and years ahead for the National Disability Insurance Scheme. The future of the not yet rolled out scheme looks tenuous. What we need now, more than ever, is for our politicians to shine, to rise above politics or the very worst fears of people with a disability, so often let down by government, will again be realised.
Question Time Ahead of Time
The first week back in the federal parliament has been and gone. The week started off with a bang with the expert panel on asylum seekers headed by former Australian Defence Force declaring that a variation of the Coalition’s former Pacific Solution, which is also the Coalition’s current policy, being deemed the best way forward in dealing with boat arrivals. This set the scene for the early part of last week being dominated by attacks on the government over the issue and was all about the Opposition scoring some political points on this difficult and complex issue.
After a couple of days of political posturing and games over asylum seekers, the debated returned to the main-game in politics since the August 2012 election, debate over the carbon tax and there it stayed.
It’s likely, with the asylum seeker issue now muted politically, that debate will stay with and over the carbon price introduced by the Gillard Government which commenced on July the 1st.
The Opposition will continue to try and paint price rises, in particular power prices, as in large part down to the price on carbon which has been in operation for a matter of weeks. The Tony Abbott led Coalition will also likely during the week direct their questioning to industry specific areas and to the Treasury modelling done in the lead-up to the beginning of the policy. It is also entirely within the realms of possibility, in fact alm0st certain, that as has been done time after time, the Opposition will ask the Prime Minister to apologise for breaking her pre-2010 election promise.
It is possible that the asylum seeker debate will result in at least some questions during Question Time this week with the Coalition indicating that they would have liked the government to go further and reinstate Temporary Protection Visas (TPV’s) and begin towing boats back to Indonesia.
The government will, after having spent today talking about the Gonski Review and school funding, likely spend the bulk of the hour and ten minutes of Question Time with backbenchers asking questions of the Prime Minister and Education Minister on education reform.
The ALP Government, through their usage of the Dorothy Dixer will probably, in some small part, continue to sell the message of carbon tax compensation that they have been trying to prosecute. This message appears to be cutting through to the public with a big swing in the perception of the carbon price in the community.
Another policy area that the Labor Party may choose to highlight is the National Disability Insurance Scheme progress, particularly in light of recent machinations involving New South Wales and Victoria.
The only uncertainty of the week is just how well behaved our MP’s and Senators will be in parliament this week. Will they be loud and bickering with each other more than usual? Or will they act with a little more restraint than in recent times? I
f last week is any indication then there will be some improvement in the level of childishness that has infected our parliament. The issues that will be at play this week are not exactly new so our parliamentarians will just be going through the motions, but as always there will be at least one or two who find themselves on the wrong end of Standing Order 94a.
Oh, and then there’s also that ever-present possibility of a motion to suspend standing orders that we’ve sadly become accustomed to as a regular function of Question Time during this 43rd parliament.
The Will They Or Won’t They NDIS Game Rears Its Head
After a short period of time where discussion of the National Disability Insurance Scheme was almost completely non existent in the political discussion engaged in by the federal government we’ve seen in recent weeks a return to the discourse of the very important initiative. This is because the Council of Australian Governments, that’s COAG for the politically inclined, commences tomorrow.
Funding has been a key area of dispute between the states and the commonwealth and this has been telegraphed in the media ever since negotiations over the funding and implementation of the scheme began. This is set to continue in earnest at COAG as is competition over which states or territories have the privilege of hosting one of the four launch sites announced by the Gillard Government as part of the May budget. This announcement came with $1 billion over four years in federal funding for the scheme.
The states of course are crying poor, particularly Queensland, where the new Premier has inherited a budget deficit from the former Bligh Government of $2.8 billion and a debt of $64 billion for 2011/12.
The South Australian Premier, Jay Weatherill, whose state has agreed to put $20 million toward the policy but has said today “we don’t have the budget capacity to go further at this time”.
In Queensland’s case, the Premier will go to COAG asking for a launch site to be held in Gympie, north of Brisbane, but without a commitment from his state to put any money toward the launch site.
Premier Campbell Newman supports the scheme in principle but wants the commonwealth government to fund it and he is right with the latter part of the following comment where Mr Newman today said “we’re prepared to support the program, we’re prepared to support a trial site in Gympie, but they (federal government) must fund it and that’s what the Productivity Commission said”.
It is indeed true that the Productivity Commission in its advice to the government on the implementation of the important NDIS said that the commonwealth should fund the scheme.
But the commonwealth itself is limited to what it has available to allocate to the implementation of the policy. They’ve allocated that $1 billion over 4 years, that’s $250 million a year for the first four years.
That’s not to say they couldn’t have done much more, they could have. Instead of plunging more money into areas of spending that have had or will likely not have highly positive outcomes they could have contributed more of the billions of dollars they did allocate during the budget on a policy initiative that will help people with a disability engage in community activities.
Policy to help people with a disability has been chronically overlooked by successive governments of both political colours at the local state and federal level since de-institutionalisation. So the government must be praised for at least bringing this onto the agenda and trying to get outcomes in the area even though they’ve not exactly followed the policy prescription from the experts.
But back to the state governments and their response. They all want it, but some are much more willing than others, for differing reasons, to stump up funds for the Medicare-like project.
Regardless of what the Productivity Commission said about which level of government should fund the scheme and despite the wrong policy response from the ALP Government, all states do have the capacity to at least contribute some existing funds used for disability support were their respective states to win the right to host a launch site. The money would be going into providing the same services to the people in the areas chosen for crying out loud. Surely even Queensland could spare $20 million or at least something, a few million dollars perhaps.
It does appear increasingly like the federal government, aware that this time next year they may well be close to or have already lost government, are trying to look like they’re doing something on the issue while actually achieving much less than they’re capable of.
It’s also less and less likely a future Coalition government, who’ve announced strong support for the NDIS, but then had MPs unleash rhetoric which makes you question the sincerity of the bipartisanship will be willing to take up the political challenge and implement the National Disability Insurance Scheme. If not that, it is reasonable to at least question the cohesion and level of agreement within the party over such a big funding initiative. This would have the ability to collapse further once in government.
The important thing to note is that all levels of government do have the capacity to deal with the implementation of such a scheme. If governments didn’t waste so many millions and billions it could be done in a heartbeat. But the political games are now on and the political will of both the Labor Government and the Opposition are being and will be tested. So to the collective will of the states must be put under the spotlight. That first test has started and will accelerate tomorrow.
The Disappearing Act That is the NDIS
The National Disability Insurance Scheme, NDIS for short that the Productivity Commission recommended in August last year was seen as the hero that could help people with a disability with the immense costs of living with an impairment. It promised to do this through meeting the costs of treatment and equipment and aligning the states and territories with the same level of assistance as fellow states. It was received well by both sides of politics at the federal level after being instigated by the Gillard Government through Bill Shorten, at the time the Parliamentary Secretary for Disabilities. Both sides of politics and the Greens committed to supporting the policy idea. Not only that, the states, all of them at least in principle agree and continue to agree with the policy, even if some of them believe that they simply do not have the cash to contribute to what could be a game-changer.
The idea then headed to the Council of Australian Governments (COAG) for discussion with the states who are needed on-board as service providers in the disability sector are currently under the purview of individual states rather than the commonwealth government.
It was just ahead of the debate commencing at COAG when the cracks started to appear in the bipartisanship and commonwealth-state agreement on the need to go forward with a the scheme. The federal Opposition committed to the NDIS, but only when the budget was back in “strong surplus” and not that long after, both before and at COAG the state consensus appeared headed for a small crevass, with in-principle support (read far from certain delivery) even starting to sound shaky.
Nonetheless, through all this time the ALP Government continued to hold up the NDIS as a must do and a great achievement of a Labor Government despite not even a trial or a strong agreement with the states to work toward a timeline or concrete progression on trials and implementation frameworks having been agreed to.
By then, the hopes of those with a disability and their carers and families had well and truly been raised, certainly too high for a policy that was and still is just a policy and at this stage a small step further to fruition.
At the NDIS rally the week before the budget and for a time before that, the Prime Minister and her government raised expectations even further, mentioning the insurance scheme at just about every opportunity, in just about every list of talking points for MP’s and ministers.
The highest level of hope was raised just 8 days from the budget at the Every Australian Counts rally in Sydney where the Prime Minister spoke, announcing that the NDIS would commence a year earlier with four launch sites providing services to 10,000 people with a severe and permanent disability, going to 20,000 the following financial year.
But the Prime Minister said we must wait until the budget for the digits on the funding allocation for the initial roll-out of the disability policy which we found out would be $1 billion over 4 years, $250 million per year for those awful at maths. This is not an insignificant amount of money, but in the scheme of things, a small allocation for the four year period which would need a significant further investment by the future commonwealth government who the Productivity Commission be the sole funder anyway.
Alas, since the budget the crickets have come out in force with the NDIS doing a vanishing act from the political discourse that any illusionist would be happy to achieve in their act. For a government which held up the scheme as a centre-point of their social and broader policy agenda, it has certainly fallen off the radar in a more comprehensive way than any plane that has disappeared in the Bermuda Triangle.
It could certainly be surmised that this amazing Copperfield like disappearing act is down to wrangling between the commonwealth and states over the policy which has spilled out into the public domain and certainly stymied the progress of what is an important, much-needed and well and truly overdue policy response to an issue that has lacked any major attention since de-institutionalisation.
If the National Disability Insurance Scheme really is as powerful and as certain to happen as we were made to believe up until just weeks ago when it was front and centre of the debate then it simply must return to the political discourse in as big a way as it was less than about a month ago.
This could certainly have been avoided by adopting the Productivity Commission recommendation on funding from the outset. The states though could still contribute existing funds allocated to service provision in areas covered by people the Medicare like scheme would capture and provide for.
The question that must now be asked would be, is this just an illusory disappearance from the political landscape of the NDIS or is this a case of a real disappearance without a trace? The cynic would say it leans toward the latter.
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