774 ABC Melbourne Mornings with Jon Faine
FAINE:
The prospects of the governance of the National Disability Insurance Scheme being somewhat toyed around with. So far it’s enjoyed a rare and very welcome bipartisan support. Is that about to change? Some of the directors are due to have their terms either extended or they’re to be replaced and there’s some concern between the States and the Commonwealth according to the Financial Review today that there may be a bit of political playing with it. Senator Mitch Fifield is the Assistant Minister for Social Services, the NDIS is on his patch. Senator Fifield good morning to you.
FIFIELD:
Good morning, Jon.
FAINE:
Is the article correct when it says that there is talk of replacing or turning over some of the directors of the NDIS board?
FIFIELD:
Jon, the article makes two propositions which are completely incorrect. The first is that the Federal Government in some way wants to wind back, wind down or water down its commitment to the NDIS. That’s wrong. It’s rubbish. I’ve been given the job of delivering the NDIS and I’m going to deliver it in full. The second wrong contention in the article is that the Federal Government would like to turf some board members because we’re not happy with the advice that they’re giving. Again, completely wrong. There was a discussion at the last COAG Disability Reform Council meeting between Ministers, a Ministers only discussion, where we talked about the fact that all directors terms expire on the one date. On the 30th of June next year.
FAINE:
Which was a pretty, well a foreseeable problem.
FIFIELD:
Correct. And it was an avoidable problem. The previous government should have staggered the terms of directors. They didn’t do that and Jon, as you know the best practise corporate governance is that you have staggering of board positions…
FAINE:
Yeah, otherwise you lose all the accumulated wisdom.
FIFIELD:
That’s right. You want to have a continuity, but you also want to have renewal. So that was the discussion. I don’t have the capacity, and the other Ministers don’t have the capacity, to remove board members before their terms expire. If there is to be earlier renewal and if there is to be staggering, the only way that can happen, the only way that that would happen would be if a board member concluded their term early. That was the sum total of the discussion of Ministers. I’ve got to say, I make absolutely no apology for discussing with my Ministerial colleagues, what is the best corporate governance arrangements for the NDIS. At full rollout, this will be a $22 billion a year scheme.
FAINE:
Yeah, it’s huge. Okay so the basic contention is that there is talk of cutting the scope to find budget savings and get rid of some of the Labor hacks off the board. I’ll put it bluntly, you deny and deny it, is that right?
FIFIELD:
Deny and Deny…
FAINE:
Well we’re happy to leave it there. Senator Fifield I’m more than happy to leave it there and put it to the test in the event that we have to get back to you and say well, hang on that’s what you said today on the 26th of February. We’ll see if that moment ever arises…
FIFIELD:
Hold us to the mark Jon. What I will ensure…
FAINE:
That’s what we’re here for…
FIFIELD:
That’s right, what I will ensure is that the NDIS is the very best possible scheme it can be.
FAINE:
Well what that actually means I’m not sure, time will tell.
FIFIELD:
Delivering it in full.
FAINE:
That would be wonderful.
FIFIELD:
Thanks Jon.