Carol Brown (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary for Families and Payments) Share this | Hansard source

I too rise to speak on the Senate Community Affairs References Committee's final report into the Department of Social Services community services tendering processes. This inquiry came about as a result of the government's savage $270 million of funding cuts to community services grants and the shambolic tender process that followed. The evidence to the committee was that the multiple concurrent tender processes, the unworkable timeframes and the poor engagement and communication with the community services sector only compounded the devastating impacts of the government's $270 million cut to funding for community services.

The committee heard evidence from individuals and organisations that have committed years and even decades to supporting some of the most at-risk and vulnerable individuals, families and communities in our country. One thing that was frequently noted by these individuals and organisations—and Senator Siewert touched on this in her contribution on this report—was the complete lack of respect the department and the government had shown throughout the tender process and in their dealings with the sector. Ms Susan Jane Helyar, Director of the ACT Council of Social Service, told the committee:

I just think we need to affirm to you that the ACT Council of Social Service and our members have described this as the worst tender process they have been part of. Members of ours have talked about never having been treated like this by any form of funder. I think it has been characterised by completely reckless disregard for the work that people do and the contribution that they seek to make.

She said 'reckless disregard'. I think those comments from the ACT Council of Social Service really tell the story of the funding cuts and the process that was undertaken. The funding cuts and the tender process made it blatantly clear that this government do not understand the critical importance of the community services sector. They simply do not recognise the importance of these organisations in building inclusive, strong and resilient communities and families.

While I encourage everyone in this place to read this report and the committee's interim report in full, I will take a few moments now to highlight a couple of the recommendations that the government needs to act upon immediately. The committee recommends that an urgent review be conducted of the critical services gaps that continue to exist, that this review be made public and that these gaps are met immediately to make sure that very vulnerable people get the support that they need. This cannot be achieved without completely reinstating the full $270 million in funding that the government has axed. By the government's own admission, the cuts and the tender process have created service gaps across the country. The government has made some attempts to address the gaps but I fear these decisions have been short-sighted and politically expedient. This is one of the reasons that an Auditor-General's review of the conduct of the tendering process has also been recommended. Critically, the report also makes recommendations about the need for five-year contracts and adequate indexation of funding to provide certainty and sustainability in the sector.

I would like to highlight the acknowledgement in the report that in some circumstances competitive tendering processes may not meet the needs of the community sector. As we have seen in this process, combined with the funding cuts and the short timelines, the competitive tender process stifled collaboration and innovation and crippled a number of organisations—in particular, small local organisations that do not necessarily have a national footprint but have incredible grassroots connections and community engagement. The funding cuts and the disastrous tender process have devastated vital community services for vulnerable communities and individuals. I only hope that this report can highlight important lessons for future processes because this simply cannot happen again. Our community service organisations and their staff and their incredible volunteer base deserve better. Vulnerable and at-risk individuals, families and communities simply cannot afford to continue to bear the brunt of the government's cuts any longer.

Like my colleagues, I would like to thank the secretariat on their work with this report, but I would also like to take a moment to read into Hansard comments from a witness about the fact that the tender process has resulted in the loss of smaller community based services and the diversity of service provision. Volunteering Victoria gave the example of a Queensland based service provider that won a tender over an established local provided to deliver services in Tasmania, my home state. They said:

One of the objectives of the new model was to provide ‘a foundation for integrated, community-led program delivery that understands and meets local needs’ … However, we were dismayed to hear that in Tasmania a Queensland-based service provider was successful in displacing an established VSO—

a volunteer service organisation—

with strong community connections. We understand this provider has plans to expand to other parts of the country, which is also a potential threat to future funding for other existing place-based VSOs. This outcome is at odds with the Government’s stated objective and fails to recognise the value of the knowledge and connections that existing service providers have built up over many years of serving their local communities.

There are many more examples in this report of the evidence that was given to the committee about how let down they felt. First of all we had the $270 million cuts; we had a shambolic tender process; we then had Minister Morrison saying, 'If there are any gaps come to me; write to me'. That announcement by Minister Morrison about members of parliament and organisations being able to go to him to identify service gaps was just a smokescreen. There was so much concern. There was so much concern in the community and in the community service sector about the impact of these cuts and the impact of the tender process that was being undertaken. That has been borne out by the fact that Minister Morrison had to put some more money in—not enough—and then had to make what I regard as politically expedient announcements to cover some of the gaps that his cuts left.

I would like to thank the secretariat for their work on this report. It is an excellent report. I would like to thank Senator Siewert for her work as chair on the committee. I would also like to thank the hardworking individuals and organisations who took the time to make submissions and give evidence to this inquiry. It is clear that the tender process failed these organisation and the people they support and represent. I commend the report to the Senate. I seek leave to continue my remarks later.

Leave granted; debate adjourned.