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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.
Question Time Ahead of Time
Another parliamentary week is upon us after a one week break post budget week and it promises to provide fireworks from the very start with a statement from Craig Thomson, the embattled MP for the electorate of Dobell who stands accused in a report by Fair Work Australia of a list of alleged civil law breaches. Question Time as always will be a regular and theatrical feature which this week promises to be more of a saga than a short film, but still with plenty of comedy interspersed with the drama and political warring.
The Coalition will undoubtedly focus its week in Question Time on Craig Thomson, starting just a short time after his speech to the House of Representatives today which is set to provide his explanation for events that have landed him in hot water.
The Opposition will almost certainly seek a motion to suspend standing orders in relation to this matter today as they have done so previously and on such a day would be unlikely not to engage in the same political tactic.
For today at least, it seems that most, if not all questions from the Coalition to the Gillard Government will be about Craig Thomson and it seems very unlikely that the Opposition will seek to ask many, if any questions on the budget which was two weeks ago tomorrow.
If there are to be any questions on matters other than Craig Thomson and the HSU then it is likely it will be the carbon price through the prism of advertisements which have just started showing which promote the Household Assistance Package, read compensation for the carbon tax, which mention nothing about what the payment is for.
The ALP Government on the other hand are likely to focus on just that, the budget.
In particular, the government will focus on the education and other payments announced or amended in the fiscal statement by Treasurer Wayne Swan and quite possibly the NDIS which has been the focus of some uncertainty in the last two weeks.
Returning to surplus will also be a broader focus in Question Time from Dorothy Dixer’s particularly with the Treasurer stepping up to the despatch box as Acting Prime Minister while Julia Gillard is overseas talking all things Afghanistan.
It too is entirely likely that the carbon price will get a look-in from the government as payments of compensation start to flow ahead of the starting date of the scheme.
Deputy Speaker Anna Burke is back in the chair as acting Speaker for the second week and the Coalition will want to be on their best behaviour or they will find themselves in the tense environment today with depleted numbers when they will be wanting to make moves which require all the votes they can muster and then some.
The statement from Craig Thomson commences at about midday and shortly after that at 2pm we will have Question Time which promises to be even more amped up than we have experienced in recent times and that says a lot.
Budget 2012-13: The Purported State of Affairs
Finally that one night of the year where the government of the day outlines the broad priorities (and not so much priorities) to be focused on in the coming fiscal year has come and gone. It has been an extraordinary period leading up to and including the budget with leaks and announcements far outstripping those of previous years, probably down to the fact that the government, so badly suffering in the polls needs as much clear air and momentum as they can get, if only to simply keep treading water.
So what is the state of play with some of the projections on the state of the budget for 2012-13 and beyond?
Well, the Gillard Government, through Treasurer Wayne Swan announced this that after year after year of deficits the fiscal year ahead would see a surplus achieved of $1.5 billion according to their word anyway. Not only that, but according to projections, the next 3 budgets after that would also be in surplus, with the leftover funds growing year by year over that period.
The budget papers announced that over $33 billion would be cut from the budget to make way for the very slim $1.5 billion dollar surplus with defence spending a massive loser, being cut by approximately $5.5 billion
For all the fuss over the cuts and deferrals of spending announced in the fiscal statement, there was also a number of new announcements outlined in the papers, not least of which includes a $3.2 billion package for aged care and $1 billion over four years for the establishment of the National Disability Insurance Scheme, the latter a much talked about but until now lacking in detail initiative.
But alas the exercise tonight for the Gillard Government was more about political ends and achieving a budget surplus in an attempt to regain at least some political favour. Journalists tonight by and large certainly seemed more than willing to assist the Labor Party in their quest to be widely celebrated for the budget, with many consistently referring to the budget, which won’t see its final results until mid next year at the earliest, constantly referring to the budget actually being back in surplus when that is so far from certain.
Indeed, with a wafer thin surplus of only $1.5 billion and with still uncertain global conditions and the possibility of future domestic shocks, not to mention new and necessary spending requirements, the idea that the budget would even be in surplus when the time comes is at best incredibly iffy.
The budget has been and will be viewed as a win for many low and middle income earners, with the odd exception mixed in and a loss and letdown for business who had hoped for and expected much more from the government given the rhetoric.
The big sell begins now. The Government have certainly tried to buy back some votes, but it seems incredibly unlikely that the budget will be a game-changer when the players are not even listening anymore and have stopped participating in some cases.
Costings for Many Projects But Not the NDIS Until Tomorrow
Last week, to the excitement of many people with a disability and their parents and carers, the Prime Minister announced that in the budget to be delivered by Treasurer Wayne Swan tomorrow evening, the government would be allocating funds for a total of four “launch sites” to begin to deliver the Productivity Commission recommendation of a National Disability Insurance Scheme. In making this announcement, the Prime Minister Gillard has hastened delivery of the policy to a full year earlier than outlined by the Productivity Commission in its recommendations on the matter.
In announcing the intention to deliver this funding allocation in the budget, the Prime Minister told the Sydney rally that they and other Australians with a stake in the policy would have to wait until budget night for further details, including the most important part of the package, the funding itself required to deliver the promise to reach 10,000 Australians with a disability beginning in July next year.
This, in light of the other budget announcements made by the government should be raising eyebrows in query of why one particular group has to wait until the budget is delivered to find out just how much it might cost when other announcements made have had costs attributed to them.
There are various projects that the government has announced, both new spending and cuts where practically full detail has been outlined, compared with the NDIS which has been teasingly announced, but lacks in detail on both cost and locations.
What we do know is that the ALP Government have, for some weeks and months now been holding the NDIS up high as very important and often placing it, if by words only at this stage, at the centre of their policy agenda and political communication with the electorate.
This could have much to do with the fact that the initiative is set to help over 400,000 Australians and their families to deal with the astronomical costs associated with having a disability including equipment and often regular rehabilitation. That’s a lot of votes that a government so on the nose with the public could do well to attract even though it would appear to be just in order to “save the furniture”.
So perhaps announcing the exact details of costs for the project on budget night would be in order to create great fanfare? Put a positive spin on a budget which is supposed to be tough and replete with cuts and budget tricks?
The in-principle support of the states is not without question and that could have something to do with the lack of detail released which would include negotiating where to commence the scheme and whether the states would be stumping up funds for the trials beginning next year.
Whatever it is, people with a disability have waited long enough for policy that will assist them when they cannot help themselves and will allow many to be able to fully participate in the basic daily activities that most in our society take for granted.
In any case there is not much over 24 hours until the detail is announced and interested stakeholders will certainly be watching closely to see whether they might get to test the new framework in just over a years time.
Budget Announcements and Half Announcements are Outdoing Possible Leaks
It is a regular feature of Australian politics that in the days and weeks leading up to the delivery of the budget by the Treasurer of the day budget leaks and rumour generally abound from the Australian political centre that is Canberra. This year however, announcements of budget items seem to have outdone the whisperings about possible spending allocations and cuts that followers of politics are used to leading up to that Tuesday in May when the Treasurer steps up to the despatch box to inform the country of their governments fiscal priorities.
There has been, for some days now a rumour abounding in Canberra and fuelled by the heightened interest of politicians in ensuring it does not occur, that the Gillard Government is set to announce cuts to the foreign aid budget.
This follows a promise by Labor, under former Prime Minister, now humble backbencher, Kevin Rudd that the Labor Government he once led, would increase foreign aid spending to a total of 0.5% of Gross National Income (GNI) by financial year 2015-16.
The belief around Canberra and the aid sector seems to be that the government are set to scrap their commitment to head toward spending on foreign aid of 0.5% of GNI.
The rumour mill surrounding this has almost exploded from being overworked and it would appear, with the strength of the political backlash to the simple report of this possible move that there has to be a real element of truth in it, without any real details having been leaked on the matter. So this item, almost alone in specific and credible rumours will be one to keep an ear out for confirmation of or otherwise from 7:30pm next Tuesday, May 8th.
But for this one real virulent rumour there have been more confirmations of and half announcements of both cuts and new spending to be allocated in what the Labor Government hopes will be a budget that returns to surplus in 2012-13.
Aged care is set to be overhauled in the 2012-13 budget to be delivered by Treasurer Wayne Swan on Tuesday. Back in April it was announced that the government would commence, on the 1st of July 2012 a ten year plan costing $3.7 billion to transform the way aged care is delivered, allowing more people to seek care in their own homes and making the cost of aged care homes easier to bear for the most financially vulnerable.
The Australian Government, via Prime Minister Julia Gillard on Monday at the NDIS rally in Sydney half announced that there would be an allocation of funds toward starting the National Disability Insurance Scheme a year earlier, commencing at 4 different launch sites from July next year.
But it was only a partial announcement from the PM, albeit a very welcome development for Australian’s with a serious and permanent disability and their families and carers. Prime Minister Gillard announced that next year these 4 launch sites would assist an initial 10,000 Australians with a disability and double the next year to provide help to another 10,000 people.
What this announcement lacked was detail, including most importantly, the estimated cost of the program rollout, but also what parts of Australia would be given the opportunity to be covered by the Medicare-like framework. The PM said we must wait until the budget for the details, a real tease, if not a hope building one in this important area of government policy.
In a budget where the expectations were for savage spending cuts, a new spending initiative is a very interesting element in the budgetary discussion which is ramping up five days from its announcement.
Today too, the government have announced $214 million toward the planning of 12 new submarines to replace the Collins Class fleet which had their troubles, particularly in the initial stages of development and operation.
Again though, for these not insignificant spending allocations, the Labor Party have also flagged ahead of May 8, areas where they will seek to slash or defer public spending.
The government today also announced in the area of defence spending that there will be both cuts and the deferral of spending in the area of purchasing defence materiel.
It was announced today that the planned requisition of self-propelled artillery will be scrapped altogether and this alone would save the budget bottom line a total of $250 million dollars.
The trouble-plagued delivery of the F35 Joint Strike Fighter (JSF) will be delayed two years from the previously expected date of receipt, moving our acquisition of this defence capability into line with that of the US. In doing this $1.6 billion will be saved from the budget from this measure by itself.
In announcing the cuts to defence spending, both the Prime Minister and the Minister for Defence, Stephen Smith assured Australia that defence cuts would not impinge on or include cuts to spending related to our operations in Afghanistan and elsewhere overseas.
The leaks and rumour mill have been almost non-existent over the budget-planning period and look set to remain minimal with only three full working days left before the final announcement of spending priorities occurs in Canberra. This could be put down to the poll woes that have faced the government for a prolonged period of time, trying to get some messages out early to cloud what is supposed to be a difficult budget, according to the warnings repeatedly given, no matter how unbelievable.
Nevertheless it has been an interesting exercise to observe the seemingly comparative lack of rumours as we hurtle toward the 2012-13 budget.
Bounce, Bounce, Come On Bounce
The latest Newspoll continues to outline the grim and growing reality facing the Australian Labor Party, that barring a major fiasco tainting the Opposition, their hopes for winning the next election, due in 2013 are sinking further and further past the already toxic level it appears they have reached. The commentariat, including those that often are sympathetic toward an ALP Government seem to have roundly deserted praising and supporting the party in the press. This has been particularly the case since the events of the weekend when Craig Thomson and the Speaker of the House of Representatives, Peter Slipper, both facing allegations of wrongdoing, were encouraged to appear to ostracise themselves.
The primary vote for the Coalition in the latest Newspoll has hit over 50% of the votes on offer if the polls are to be believed to indicate and mirror electoral reality exactly, now sitting at 51%. The Labor primary vote in the Newspoll released overnight now sits on 27%, close to half that of the Abbott-led Coalition and well into the electoral “death zone”.
In two-party-preferred terms the results could barely get any worse for the Gillard Government, with the 2PP vote now being 59% for the Liberal and National Party Opposition compared to 41% for the government, a result in itself which barely sees the government outside the zone for electoral disaster on two-party terms.
Even in the measure where the Prime Minister could draw at least some form of optimism if not for the hopes of the party, but for her leadership as compared with that of Tony Abott for the Liberal Party provides less cause for optimism. In the preferred Prime Minister stakes, Prime Minister Gillard has dropped 3% to sit on 36% as opposed to Opposition Leader Tony Abbott who now sits on 41%, a 5 percentage point lead.
Surely the ALP will be saying internally to the polls to “bounce, bounce, come on bounce”, particularly after the budget is delivered on May 8th and after the announcement yesterday that the NDIS, which is projected to help over 400,000 families will commence a year earlier at 4 “launch sites” across Autralia, initially helping 10,000 Australians, but with a “tough budget” supposed to occur, that will likely not turn into a political reality.
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