Introduction
A strong, vibrant and innovative not-for-profit sector is essential to the social inclusion agenda and to a healthy Australian democracy.
ACOSS has a long and proud history of advocating for those who are socially excluded. It shines a light on disadvantage and on the gap between those who are prospering in our society and the smaller but significant group of those who are not.
I am honoured to be here today at the ACOSS National Conference to begin a conversation about a renewed relationship between the Australian Government and the not-for-profit sector.
As the Parliamentary Secretary for Social Inclusion and the Voluntary Sector I am pleased to announce that the Government is moving forward on its election promise to consult on a National Compact between Government and the non-profit sector.
Tomorrow the acting Prime Minister, Julia Gillard, is looking forward to talking with you more particularly about the government’s emerging and ambitious social inclusion agenda.
Not-for-profit organisations are important to improving social inclusion
The sector comprises of around 700,000 non-profit organisations, 180,000 bodies corporate, 100,000 incorporated associations, 10,000 companies limited by guarantee and 3,500 cooperatives.
According to some of the most recent ABS data available, non-profit organisations employ 604,000 people, which is almost 7% of the workforce.
The sector also engages 5.2 million volunteers, representing 34% of the adult population.
It is a phenomenal force.
The government is critically interested in the not-for-profit sector because it is critically committed to bringing about social inclusion.
Your organisations are in the frontline of that agenda.
Few organisations are better placed than yours to foster solutions to exclusion, promote the value of inclusion and empower communities. The sector is already at the forefront of changing lives and tackling disadvantage.
Not only does the not-for-profit sector deliver services at the pointy end, it has a very important role to play in strengthening and connecting local communities.
But improvements are needed. The Government must improve its approach
It is essential that we restore independence and the right to advocate to the not-for-profit sector as you have an important contribution to make to civil society.
Why? There are at least two good reasons.
Because this government believes a strong and independent not-for-profit sector is important. This government wants to hear what independent organisations have to say. It is keen to hear the views of those organisations who know more than it does about the situation on the ground and about what interventions are working and which are not in improving circumstances for disadvantaged Australians.
Not-for-profit organisations play an important role in identifying gaps or policy shortfalls and drawing these to the attention of governments.
Gag clauses
Responding to the criticism that organisations funded by government did not feel able to speak their own mind, we promised in the election to remove the so-called ‘gag’ clauses from contracts with not-for-profits and the government has moved quickly to undo the force of these clauses.
Minister Macklin is leading this work and has begun the process by removing ‘early warning’ clauses from contracts to give peak not-for-profit organisations greater independence and a better voice to represent their sector
Red tape and uncoordinated government funding
The government also knows that it needs to cut the red tape and layers of imposed bureaucratic reporting that can drown and distress even the largest and most sophisticated organisations, making it difficult for them to achieve their aims.
This can be particularly poignant in remote indigenous communities where community leaders who are often struggling with intense disadvantage, lose important time and energy to fulfil reporting requirements of multiple government agencies.
For example, in a year 2000 report of a Western Desert community of 500 people, it was found that elders needed to attend 100 meetings per year as part of the accountability processes for the 40-odd government agencies which funded the operation of their not-for-profit organisation.
In another example, the South Australian Social Inclusion Unit thought it was asking a simple question when it sought to find out how much government funding – Commonwealth, State and Local - was going into a particular region, and to do what. In the end a local NGO which was a recipient of a myriad of grants was best able to draw this picture as the respective agencies could not.
Ensuring Not-for-profits are best able to deliver
But it is a two way street. Just as governments need to continually improve, we see room for continual improvement of the not-for-profit sector’s delivery of government services.
The quality and effectiveness of these services is something government relies upon as an important means to improve social inclusion for the most disadvantaged Australians.
Disadvantaged Australians and their communities also critically rely on these services.
The government also needs to be able to assure the Australian public that there is transparency, accountability, efficiency and value for money in the services being delivered.
We want our relationship to not only be based on contractual arrangements, but to be partners in meeting our social inclusion agenda outcomes. This means building a relationship and dialogue that promotes active learning, feedback and accurate reporting.
In pursuing a National Compact with not-for-profit organisations, the government is concerned about supporting the vitality and health of the sector. But to be honest, this is a secondary driver.
The primary goal is linked to our social inclusion agenda and is about ensuring that governments and not-for-profit organisations are focused on achieving outcomes for disadvantaged Australians.
While some formal ‘rules of engagement’ should serve to strengthen the relationship between sectors, its core outcome must be to improve services and outcomes for the people who use the services that government purchases. This must be paramount as we go forward.
The next step in rebuilding trust and a new relationship with the not-for-profit sector is government’s commitment to begin consultation on a National Compact with the sector.
A National Compact can also help in bringing us together to share in this important work, and go forward with shared values.
It will also provide a framework to manage the relationship between sectors, as we shape priorities as part of the National Reform Agenda.
Lessons learned & guiding principles to developing a National Compact
In recent years, governments here in Australia and overseas have sought to define and formalise relationships with the not-for-profit sector.
There is much to learn from these examples. It is not my task or role today to outline what the National Compact will include. It is my task to ensure that the lessons that are learned from implementing other compacts are applied as we go forward. I would like to touch on some of what I see these principles should be.
Three areas of principles for a National Compact
The first of these goes to shared values and to re-build the good relationship between the government and the not-for-profit sector.
- As such, the process around developing the National Compact should model a respectful, working in partnership approach;
- Secondly, experience shows it is important to agree to a set of joint goals, with better outcomes for people using non-for-profit services at its heart; and
- Thirdly, it seems equally important to agree on an approach and timetable for addressing issues and concerns so the National Compact can be a driver for positive change.
General points
We all have a responsibility to provide input into the process. I want to ensure all parts of the sector are given the opportunity to do this.
And of course there will need to be discussions with states and territories about these issues.
The Australian not-for-profit sector is both diverse and large. This diversity must be reflected in the National Compact while recognising that all parts of the sector deserve consistent treatment by government agencies.
I understand that ACOSS has expressed an interest in a two-stage process to develop a Compact which recognises the issues for community service providers. I will talk further with ACOSS and the Non-Profit Roundtable to explore options.
The National Compact should build a framework for continual improvement in the relationship.
It must recognise that funding is only one part of the relationship between government and the not-for-profit sector.
It must include a commitment that government will actively work with the not-for-profit sector in the planning of policy and programs and in their development and evaluation. Principles of coordination, collaboration and flexibility should be paramount.
In addition, it must also recognise the critical role played by the sector in connecting people to their communities, strengthing communities from within. This must also include valuing and accrediting volunteers and building a culture of community participation and volunteerism.
The role of the broader not-for-profit sector - such as environment, arts, heritage and sporting organisations - to build a more engaged and inclusive society, should also be recognised.
An appropriate and workable timetable to achieve the National Compact is important, while also recognising a broader review of the sector’s regulatory and governance arrangements, will take time.
Let’s build on realistic and appropriate outcomes. What do you consider these to be, and what are the benchmarks we can use to move forward?
These principles will form the basis of our discussions as we go forward in developing the National Compact.
I welcome your ongoing feedback and discussion about what other features and topics the National Compact should cover.
We also understand that the not-for-profit sector is facing a range of challenges which are directly impacting on the sector’s ability to grow, diversify and adapt. The consultations on the development of the National Compact will bring to light many of these challenges.
Some of these challenges include: attracting and retaining skilled staff, the reliance on part-time employees, capacity building and infrastructure limits, and building alliances and networks of services and volunteers.
Public policy approaches which have led to the increased use of competitive tendering, contractual arrangements and purchaser-provider relationships often mean that voluntary management committees and boards need new skills to manage increasingly complex relationships with Government.
We are focussed on making a difference for the people we are looking to empower and whose lives must be improved – and we will be taking tough decisions about how we fund support services for them.
In short, if the results aren’t there, then we will try something else.
Improved governance in the not-for-profit sector will be assisted by our spending effort on gaining a better understanding of the sector itself, and its contribution to Australia’s society and economy.
The not-for-profit sector is a significant economy – measuring the contribution of the third sector to the Australian economy is high on the government’s agenda. To do this we will be looking at new tools to understand the productive input of the sector.
In coming months we will be talking further with the sector and State and Territory Governments about some of these challenges and how we can resolve these issues as part of our commitment to constructive Commonwealth/State relations.
Social Inclusion and next steps
Having restored advocacy as a key role of the sector, and as we work towards a National Compact, there are some significant ways that the sector can start to work for the social inclusion agenda:
Firstly
– by helping to change the attitudes and perceptions that often underpin exclusion – those doing the excluding, as well as those experiencing it;
Secondly
– by opening up public space around social inclusion – by fostering discussion and policy development within the sector that creates an enabling environment – building trust between those organisations that have been competitively tendering against each other, in the interest of finding common ground;
Thirdly
, by promoting innovation – the sector is best placed to identify and experiment with new approaches, serve as a clearing house for promising ideas, and vehicles for diffusing innovations, and;
Fourthly
– by serving as a bridge among organisations and communities – reaching across social or economic divides in the interests of resolving apparent conflicts and forging new alliances.
Conclusion
I am excited by the prospect of working with the sector to develop a National Compact. To help ensure that the process will be the best it can be, I have asked ACOSS to assist the government by organising consultations with its members and to provide venues and logistical support to enable this to take place around the country. I expect to be attending most, if not all, of these consultations.
Consultations are likely to begin in mid-to-late-June, and continue until mid-August. I am looking to report back to government in early September, and will take the opportunity to also work with the forthcoming Australian Social Inclusion Board in developing my thinking.
I look forward to continued discussion with you on all aspects of policy, and wish you all the very best for your Conference.
Thank you.