A Strong Voice - Unitingcare NFP Forum Brisbane - 04/03/2013

04 March 2013

Thank you, Lin, for that introduction. Its great to be here this morning, and Id like to thank UnitingCare for inviting me to speak here today.
Ive had the benefit of a great working relationship with UnitingCare as Finance Minister with Lin in particular. Weve worked closely together on the SACS pay equity case, and now on not-for-profit reform.
One of the strengths of UnitingCare and something Ive found throughout the sector is a real willingness to work with government to achieve the big reforms. Reforms that deliver for those most in need in our community.
Today, I want to discuss the Gillard Governments approach to the not-for-profit sector, and how we can continue to work together to ensure the best possible outcomes for the community.
Because while we do not agree on everything, there is a natural affinity between the not-for-profit sector and the progressive side of politics.
We hold close the belief in a fair go and a just society, and we share an understanding of the relationship between the characteristics of the community and the experience of the individual; that a community that marginalises is not strong, and that equality demands opportunity.
These values underpin my respect and the Governments regard for the work you do.
Today, I want to outline our plan to support the independence of the not-for-profit sector, to reduce red tape and to encourage stronger collaboration.
For the most vulnerable in our community and the most at risk, you provide the safety net that lifts people up. For many in Australia, when everything seems to go wrong, it is organisations such as yours that are there to help. Your work is vital to a cohesive society.
And while some may hold the view that government whether it be Commonwealth, State or Local should be the sole provider of community services, I do not believe this view to be correct.
It fails to recognise the unique nature and valuable position of the not-for-profit sector in modern Australia. It also overestimates the abilities of government and government agencies to tackle what are often the most intractable of issues.
This is not to say that governments dont have a vital role to play they do. We do.
But sometimes knowing the limitations of government can, perhaps paradoxically, make us more effective.
When it comes to delivering community services, proximity is vital to success.
The first perspective of government is necessarily top down. This is particularly true for the Commonwealth, where problems are usually addressed through a national lens. But this policy bias can equally apply to state and local governments.
In contrast, the not-for-profit sector precisely because it is from the community, for the community instinctively understands on a far more personal level what the community needs.
Engagement and delivery from the bottom up means that the sector is able to provide the type of services and care that can only come with on-the-ground access and knowledge.
The not-for-profit sector exhibits the best in our community. It reflects our highest ambitions of compassion and care. Whether dealing with the hardest moments of crisis, or providing opportunities and support for people to get ahead, the not-for-profit sector is a key influence in the lives of so many Australians.
The not-for-profit sector has established the bonds of trust that are vital to the delivery of community services. This trust facilitates service delivery. And it is this trust that means at-risk and vulnerable Australians receive the help they need.
This reservoir of trust is endogenous to the sector and intrinsic to its value. A value that is greater than the sum of its parts. And, as Im sure you would all be aware, the full contribution of the not-for-profit sector to our community goes well beyond your budget.
This Labor Government recognises the value of the not-for-profit sector and I personally have the deepest respect for the work your organisations do.
We know that it is only through collaboration that we can overcome the most pressing of social problems. And we see you as partners in social progress.
Because it requires a genuine partnership to see an inclusive society one that extends the hand of help rather than turning its back.
Together, we work towards this goal.
But our approach to the not-for-profit sector is greater than the work we do together.
The sector also needs to be independent and needs to be free to advocate for change. To contest and to debate.
The suggestion that governments any government can respond to community issues without the independent advocacy of the sector those closest to the community is both unrealistic and arrogant.
Equally so is the assumption that government and government agencies have all the answers.
To shy away from a constructive debate narrows the perspective; it ignores insight and innovation.
And it fails to safeguard a space in our national debate for those most marginalised.
We recognise the not-for-profit sector as partners, and in so doing we recognise your right to have your own voice. An unfettered voice. A voice that may disagree with us. A strong voice to advocate in the best interests of those who you represent.
The actions of the Newman Government to silence your sector with gag clauses are nothing short of draconian.
In the context of deep cuts to the services that Queenslanders rely on, the move to insert gag clauses into State Government contracts is compounding.
First, the Newman Government cuts funding to those without a voice, and then silences those who speak on their behalf.
And it will be the disadvantaged families of Queensland who will suffer.
Gag clauses are a well-worn tactic of conservative governments.
The Howard Government introduced gag clauses when they were in power federally and, if an Abbott Government were to be elected come September, the prospect of gag clauses across both levels of government would be likely.
The voice of a whole sector would be silenced, and the community would be poorer for it.
Thats why we are safeguarding the right of the not-for-profit sector to advocate in the interests of the community, and I can announce today that we will introduce the Not-for-Profit Sector Freedom to Advocate Bill during the next sitting of Parliament.
This Bill embodies a belief in freedom of speech. It is predicated on the principle that advocacy from the not-for-profit sector is important and should not be restricted.
It will protect the voice of your sector, banning gag clauses from all Commonwealth contracts.
It recognises and supports the independence of the not-for-profit sector and declares that your advocacy cannot be impinged upon by the Commonwealth.
This Bill legislates what has been this Governments policy since 2008.
When we came into office, we removed all gag clauses the Howard Government had imposed and, to my knowledge, no Commonwealth contracts containing gag clauses currently exist.
Now, we are legislating to prevent any future government from taking this approach, and we are calling on all State Premiers and Territory Chief Ministers to do the same.
Today, the Prime Minister will write to all First Ministers, calling on them to match our commitment and to introduce similar legislative protections.
Because while this is a national issue, you are all aware of the local impacts.
We have seen them right here in Queensland.
Depriving organisations such as yours of their voice will weaken our communities and put more people at risk.
We also understand that there is more that can be done to improve the relationship between the not-for-profit sector and government.
I am proud of the reforms we have achieved so far.
The SACS pay equity case was a landmark wages decision that corrected a long standing inequality for a number of staff in this sector.
Following on the work of the former Labor Queensland Government, we funded our share of those wages increases nationally to make sure that pay reflected work, and we locked that funding in legislation to give those workers primarily women security and certainty.
Minister Butler has also established the National Compact a declaration of the shared vision of the government and sector to improve wellbeing in our community, and, under the leadership of Assistant Treasurer Bradbury, the Government has established the Australian Charities and Not-for-Profits Commission the ACNC.
For the first time there is an independent national regulator for charities.
Australias not-for-profit sector is unique, diverse and growing and it deserves its own independent regulator.
The ACNC will strengthen the sector through supporting public trust and confidence and cutting red tape.
This suite of reforms is significant and has reshaped the way in which the Commonwealth government interacts with the not-for-profit sector.
Today, I also want to step through two reform areas in my own portfolio that will have a positive impact on the sector reducing red tape and improving collaboration.
Central to these reforms are the revised Commonwealth Grant Guidelines which I am officially launching here today.
These Guidelines will improve our interaction with the not-for-profit sector and reduce unnecessary red tape for your organisations.
Cutting red tape is more than a three word slogan although it is often bandied about in that way by some. Rather, it takes perseverance and recognition that reform takes effort, and that change is often incremental.
But in the end, the equation is simple. Every dollar you spend on administration is a dollar not spent on services.
For yourselves, I have no doubt that youd be keen to spend less time on process and compliance. And, for Government, more funding spent on service delivery will see improved services and better outcomes.
Ultimately, red tape reduction is about cultural change as well as regulatory reform.
In these revisions, we are doing both.
The revised Guidelines require that agency staff must not seek information from grant applicants and grant recipients that is already collected elsewhere in government and is available to agency staff. In particular, agency staff must not request information provided to the ACNC by organisations regulated by that body.
Essentially, what this means is less duplication and less time spent providing the same information over and over again to Commonwealth government bodies.
These changes support the report once, use often system which the ACNC is implementing through the electronic Charity Passport.
Also, when determining what acquittal or reporting requirements are required, agency staff must have regard to information collected by regulators, such as by the ACNC. So, for example, if an entity provides an annual audited financial statement, then a financial acquittal should not be required, unless the granting activity is higher risk.
UnitingCare were strong advocates of these changes and I thank them for working alongside government to achieve these reforms.
Also, you would all be familiar with the work and cost required to fill out grant templates.
The updated Guidelines encourage the use of longer-term grant agreements, rather than requiring multiple shorter-term grant agreements; removing cost and red tape.
We have also developed a low-risk grant agreement template, designed to ease the associated administrative and legal costs organisations face when entering into grant arrangements with government. The template aims to reduce the burden of reporting and acquittals for grants recipients by establishing thresholds for low-risk grants.
My department the Department of Finance and Deregulation is currently working with selected Commonwealth agencies to pilot the template something Im very happy that UnitingCare have been assisting with and we expect that a final version of the template for broader use will be released later this year.
The revised Commonwealth Grant Guidelines also encourage collaborative relationships between government and the sector.
This includes engaging with the sector when planning and designing programs.
Grant processes shouldnt be a fait accompli. Rather, they should be the outcome of a consultative process, and an ongoing relationship between government and the sector.
Early input and collaboration in setting the outcomes and objectives of programs will mean that purposes are aligned and that all parties are working towards a common objective.
Longer term contracts similarly promote a longer term perspective in assessing programs. Rather than focussing on month-to-month activities, longer term contracting allows the focus to be shifted to outcomes.
Of course, crucial to the success of these reforms is the attitudes and approach of the public sector.
The best guidelines and frameworks can only have limited effect without the full commitment of those implementing them.
That is why today Id like to set out four key areas for ongoing focus areas of improvements which can have real benefits.
First, the development of fair and just funding agreements; agreements that have input from the sector and which encourage genuine collaboration and ongoing cooperation between all parties.
I also encourage the public sector to recognise and respect the independence of the sector.
The Freedom to Advocate Bill that I have announced today is proof of this Governments firm and resolute commitment to this principle, and something we expect the public sector to follow in all their interactions with the sector.
Third, I hope that there will be an ongoing commitment to consultation; that government agencies will establish mechanisms that encourage ongoing engagement and feedback.
And finally, the public sector can learn from the not-for-profit sector, and this learning should be embedded into policy development and program management.
Because it is through a continual process of learning that we will see the best public policy responses implemented.
I believe that a strong not-for-profit sector is a fundamental good in our society.
The sector and the organisations you represent are vital to how we operate as a society.
That is why we are working to improve the way our government works with your sector, ensuring more funding is going into services than on process.
And it is why we are acting to protect your voice.
Because Australias national debate can never be the preserve only of those with power and influence.
The loudest voices should never be permitted to drown out the voices of those with the least, nor of those who stand with them.
Those who jump quickly to defend freedom of speech when it suits them should show some consistency.
Because if freedom of speech underpins our modern democracy, then it should be respected.
For the not-for-profit sector, just as it is elsewhere.
ENDS