Policy Context for the Third Sector: Future Directions - TDSA Conference: 'NFPs Survive or Perish

Policy Context for the Third Sector: Future Directions

Christopher StoneJuly2013

13 April 2023 Centre for Policy Development 2

CPD – Public Sector Research Programhttp://cpd.org.au


What is Big Society?

• Manifesto of UK PM David Cameron, based on ideas of think tank director Phillip Blond

• More with less?

http://www.brisbanetimes.com.au/action/externalEmbeddedPlayer?id=d-24di3


Big Society in Australia?

“securing our future depends more on strong citizens than on big government”

“you can’t have stronger communities without a stronger economy to sustain them and you can’t have a stronger economy without stronger, more profitable businesses”

“community controlled public schools and public hospitals”


Transferable lessons?

• There are difference between Australia and the UK:–Federal system–% government spending–Government debt


Comparison: Outsourcing employment servicesAustralia• Full introduction 1998• Systemic problems:

– Outcome measure focus

– Tight margins– Perverse outcomes– Fraudulent reporting– Failing the vulnerable– Local organisations

disadvantage

UK• Full introduction 2011• Systemic problems:

– Outcome measure focus

– Tight margins– Perverse outcomes– Fraudulent reporting– Failing the vulnerable– Local organisations

disadvantage


An update: The Work Programme• 7/10 charities may have to pull out• Almost half said contracts "at risk of

failure"• Almost half dipped into their financial

reserves

(NCVO ‘The Work Programme: Perceptions and experiences of the voluntary sector’)


Public sector cuts in the UK

Public sector spendingWelfare

Legal aidCommunities

departmentNew public housing

Higher educationLocal government

PoliceAverage government

agencyLocal government staff

Public sector employees

£81 billion£7 billion£350 million66%60%40%27%20%19%10-20%240,000 (2011)


Public Service job cuts in AustraliaFede

ralNSW

QldSAVicTas

4,20015,00014,0005,1004,2002,000


An update: UK public services cuts 2010-12Social housing

developmentReligious and

community servicesCommunity

developmentCentral and other health

servicesFamily and children

social services

-52.1%-35.1%-25.8%-25.6%-14.7%


An update: Qld public services cuts• Housing, social welfare and other community

services • Dept of Communities, Child Safety and Disability

Services• Child safety and social inclusion services• Alcohol reform programs• Financial crisis emergency relief• Community Development Program• Neighbourhood Centre, Youth at Risk and Youth

Support programs• Department of Health grants to NGOs


The future? Community sector impactsIn the UK:• £5 billion funding cut to sector

(2012-2014)• 2,000 charities affected by £110

million cut in 2011• Community sector employment fell

by 70,000 (9%)• Impacts on NFP working conditions• Silencing or diminishing of NFP’s

advocacy role• Large NFP ‘crowding out’ smaller

ones


An update: UK community sector impactsRecent survey of charities involved in

commissioning• Bidding process unfair to charities• Over 90% faced more risk under new

commissioning process• Only 41% had good relationship with

corporate lead provider– (80% when the lead provider was a

charity)• Only 50% believed payment-by-

results contracts would improve outcomes for service recipients.


The future? Corporate scandals• Southern Cross aged care: £600

million profit before collapsed leaving 30,000 people at risk

• A4e: fraud inquiry, targets not met, chair paid £8 million

• G4S: promised 12,000 Olympic security guards, provided 7,000, army called in


An update: More scandals

• Serco:–Pathology: significant drop in

quality–False performance data on after-

hours GPs (252 times)–Bins uncollected for weeks

• G4S:–Failures on re-housing of refugees–And increased racism and

disruption to families


The future? Local service cuts

Local libraries in UK:• Over 100 closed• 600 (20%) under threat of closure or

transfer to community• Legal challenge over ability of

untrained volunteers to run• Cuts to hours, services and staff in

remaining


Neat, plausible, and wrong

• Alternatives to Big Society? Or salvageable elements?

• Getting beyond rules of thumb


The need for sector diversity• Have different strengths• Do different jobs• Provide different broader advantages


Different strengths

• Productivity Commission ‘Public and Private Hospitals’


Different jobs

• Christopher Stone, ‘Valuing skills: Why Vocational Training Matters’

TAFE dominated industry training

% market share

Mining 97.8

Information Media and Telecommunications

94.3

Electricity, Gas, Water and Waste Services

83.0

Construction 78.1

Private college dominated training

% market share

Wholesale Trade 77.0

Retail Trade 74.4


Different broader advantages• Example: Tim Roxburgh,

‘Public works need public sector skills: The lost lessons of the BER program’

• Example: ABC Childcare receivership


The Question of: ‘Who does what?’• No one-size-fits-all solution• Sectors have different advantages in

different circumstances• Need to go beyond sectors

News & Politics

Policy Context for the Third Sector: Future Directions - TDSA Conference: 'NFPs Survive or Perish