Sharon Grierson (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Immigration and Citizenship. Will the minister please update the House on the progress of the investigation into settlement services in the Hunter region.

Chris Bowen (McMahon, Australian Labor Party, Minister for Immigration and Citizenship) Share this | Link to this | Hansard source

I thank the honourable member not only for her question but for her very proactive engagement in this issue. On 4 April this year the member for Newcastle telephoned me to express her concern about some issues around settlement services and housing for refugees in Newcastle. I told the honourable member that I would arrange an independent investigation and asked her to put those concerns to me in writing to enable that investigation.

I received the honourable member's letter the next day, and Ernst and Young were engaged to undertake the review on 12 April. I have received the findings of the investigation conducted by Ernst and Young, and I released them publicly a short time ago. They do not make for pretty reading. Ernst and Young's investigation identified that a number of humanitarian clients had been adversely affected by substandard service delivery by the service providers in the Newcastle region, a consortium led by Navitas English and including accommodation services provided by Resolve FM. The report identifies some instances of substandard housing, rental charges not necessarily related to market conditions, inappropriate charges for property damage and poor quality household goods, and identifies that there have been less than healthy relations between service providers and local community groups. I have instructed my department to undertake immediate action in response to the findings of the report and I am receiving regular updates. Certain claims have already been referred to the New South Wales Police.

The report also raises concerns regarding the department's management of its service providers in Newcastle and recommends a more active and involved approach to contract management to mitigate the risks of inadequate service delivery in the future. I have asked the department to audit all refugee housing across the country to ensure that the issues identified in Newcastle are not more widespread. I have also asked Professor David Richmond to conduct an independent review on the adequacy of the performance measures and framework as well as the department's contract management processes for the new settlement services contracts. In addition, I have asked the secretary of my department to consider whether any departmental staff were in breach of their obligations under the APS code of conduct as set out in section 13 of the Public Service Act.

The Ernst and Young report also makes observations about the financial management of some of the service providers. In light of those findings, a detailed forensic audit is to be undertaken of Resolve FM's financial management under the Hunter region contract. I have asked for this audit to take place urgently, and the department will take further action on any matters that arise out of that audit.

While the allegations relate to services provided under contracts entered into in 2005, this does not present any excuse for what has happened. The service providers, and the department in managing the service providers, must do better. I am confident, however, that the combination of the new Humanitarian Services Settlement program, which commenced in April this year—with Newcastle now being identified as a separate region, not as part of the Sydney region—and the other measures I have outlined will ensure that refugees who are settled in the Newcastle area receive appropriate support.

Australia does have a good record when it comes to settling refugees. This has been recognised by the United Nations High Commissioner for Refugees, Antonio Guterres. But we do need to do better in relation to the issues that have been identified in Newcastle. I thank again the member for Newcastle for bringing these issues to my attention and look forward to working with her and other members in the Newcastle region in implementing the report's recommendations.

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

Mr Speaker, I ask that further questions be placed on the Notice Paper.