5AA Radio Adelaide Mornings with Leon Byner
E&OE
BYNER:
Let’s put in a call to someone that we have a fairly good relationship with and that’s Mitch Fifield, who is the Assistant Minister for Social Services. Mitch, merry Christmas and thanks for joining us.
FIFIELD:
Good to be with you Leon.
BYNER:
What can we do for the 2,500 or more disabled in the community who are waiting for services, but there is no money yet?
FIFIELD:
Well Leon, David Holst who I know you had on is a great guy and a terrific advocate, and he’s quite right to focus on the fact that there is a waiting list. I guess that really was part of the impetus of the idea for the NDIS in the first place. Which is around Australia, there is rationing, waiting lists, there’s underfunding. People are having to wait too long and it’s not good enough. But unfortunately because of the scale of the task, it’s not possible to switch the NDIS on nationwide on a particular day. Which is why it’s being phased through the nation, commencing with the series of trial sites. One of which is South Australia.
BYNER:
So, we are being told by the State Minister, and this is being supported to a degree by Mr Holst, and that is that there are moneys being collected now and there are moneys already pledged which should have come but are not.
FIFIELD:
Well that’s not right. The South Australian Minister is incorrect. There are two things here that I guess we’ve got to look at. One is the funding for the trial site in South Australia. Where there is a bilateral agreement and there is Commonwealth money and State money going in. And we’re honouring our commitment 100 per cent.
BYNER:
So how many people involved in this trial site, do we know?
FIFIELD:
The estimated population at full rollout for the trial site, which is a youth cohort, is a bit over 5,000 people. One of the issues here is that the Gillard Government and the South Australian Labor Government mis-estimated what the total trial population would be in South Australia. So we’re working through that cooperatively. You mightn’t know that from the South Australian Minister on radio, but our officials are working through that cooperatively.
But the other issue, and I guess this is what David Holst was focusing on was the proceeds from the increase in the Medicare levy that was passed by the Gillard Government. Now we shared your concern and that of David when the Gillard Government put that forward. We thought it’s a good idea, people need that money. But we wanted to make sure that money was put in a safe place where politicians of the day couldn’t direct it to anything other than the NDIS. So when I was Shadow Minister I said, look we’ll support it, but on one condition and that is the Guardians of the Future Fund are the custodians of that money. And it can only be distributed towards the NDIS.
BYNER:
Well that’s fine except no one’s getting it.
FIFIELD:
Well part of the legislation provides for distributions to the States. South Australia will have a distribution in 2015-16 16-17, 17-18. And there are a number of benchmarks a little further down the track, that need to be met, for that money to be allocated.
BYNER:
I need to pick you up on something. I have in front of me a piece of paper that says the Commonwealth agrees that it will fund any costs associated with higher population numbers, higher per person care and support costs. 100% of the Agencies cash flow risk, and other risk sharing arrangements identified in schedules A and E during the launch. So that means that, what you’ve just told me before is not quite what I’ve just read out which is part of the legislation.
FIFIELD:
In relation to the trial sites you’re right. The Commonwealth has responsibility for 100 per cent of any cost overruns. We are honouring our financial commitment.
But we have the issue where there has been an error in terms of the estimation of the population. Now we’re talking to South Australia about how we can agree – we as the Commonwealth, we’re not going to do anything unilateral. How we progress will be by way of agreement. The bilateral agreements provide for where there are issues like this that both sides sit down and talk about it, and work it through.
But we’re not going to be walking away. We’re not going to be reneging. We want to work this through cooperatively.
BYNER:
My interest is, it’s not far from Christmas. There are good people out there with families and people who love them. Who have issues and needs and the important thing for most people listening today is that we can meet that need. Now I know there is all sorts of agreements and protocols, but we don’t want to get to a situation where that swamps the very people it’s supposed to serve do we?
FIFIELD:
We certainly don’t Leon. And in relation to the money in the Disability Care Australia Fund, the proceeds of the Medicare levy, which I know David Holst said would be good to get out sooner rather than later. There will be distributions from that year by year. But the States and Territories will also be able to draw down further upon that when they meet key conditions including agreement to full scheme…
BYNER:
So what do we have to do in South Australia to get some money for those with a need now? What would we have to do?
FIFIELD:
There’s money that is going to come in 15-16 and subsequent years and every year thereafter from that fund to South Australia. In terms of the release of I guess what you might call significant funds from there – according to the legislation passed by the previous government – the funds flow in a more significant sense once at least 50 per cent of the eligible population is covered by the Scheme. And that’s because that’s the stage at which the states will incur greater costs.
BYNER:
The argument now is that the money that’s already owing to those people that have an unmet need part of this scheme are not flowing.
FIFIELD:
Well until the scheme is rolled out the States maintain responsibility for disability services and for waiting lists. In terms of the money in the Disability Care Australia Fund, you can’t spend a dollar twice. The money that’s in that fund is earmarked and dedicated to the NDIS.
BYNER:
You can’t spend it twice but right now we’re talking about not spending it once.
FIFIELD:
Well there will be some funds coming to support the trial site.
BYNER:
When?
FIFIELD:
15-16.
BYNER:
When in 15?
FIFIELD:
I can’t give you the particular day, but they flow in 15-16.
BYNER:
When? Well we’re not even a month away from 2015 so what January? February? March? June? July? Give me a time.
FIFIELD:
That will be detail that’s worked out between the Commonwealth and the state of South Australia.
BYNER:
When do you work that out?
FIFIELD:
Part of the agreements which are already in place…
BYNER:
I’m just trying to give people who have a need some idea of when they can expect something and we can’t tell them.
FIFIELD:
We already have the trial site being rolled out for youth cohorts in South Australia. So there are already people getting the better deal as a result of the trial site. Beyond those trial site eligible people at the moment, the State still has responsibility.
So the State can’t say the Commonwealth has got to take responsibility for those areas that they currently have responsibility for. So when people come into the NDIS, it becomes a Commonwealth responsibility.
BYNER:
Okay so when in 2015 will these funds start flowing?
FIFIELD:
I would imagine from the start of that financial year Leon.
BYNER:
So it’s not until the end of June next year.
FIFIELD:
There will be some funds coming from the Disability Care Australia Fund, but we’ve got to come back to what the purpose of what the Disability Care Australia fund is…
BYNER:
Nobody doubts what the purpose is, it’s a question of getting the money to where it’s needed.
FIFIELD:
That’s right. And those funds flow in earnest once the state jurisdictions meet certain benchmarks, such as having 50 per cent of their population covered by the NDIS.
The Disability Care Australia Fund, those monies are factored into the budget of the NDIS. And if you pull money from the Fund now and give it to South Australia now, for what are currently South Australian responsibilities now, then we won’t have the money to fund the NDIS itself.
So the purpose of the Fund is to fund the NDIS. To assist the states with their contributions to the funding of the NDIS. But outside of the NDIS trial population, the states still have responsibility for waiting lists. Now the purpose of the NDIS is to help states address that, but it’s something that’s phased in over time.
BYNER:
Alright, so when can we tell the disabled in our community who are looking for basic relief like even a shower or cleaning services, that are not getting it now, that are entitled and should be to it, when can they expect something? We don’t know. Or at least not until the middle of next year, is that what you’re telling me?
FIFIELD:
No. We know that people will have a much better deal once the NDIS is rolled out fully. We also know that people will progressively be getting a better deal as the NDIS is rolled out and phased in South Australia. But, during that time, for those people who are not part of the NDIS – because as I say you can’t flick a switch and have it everywhere on one day – until that time the State retains responsibility.
BYNER:
Okay, so are we only funding the agreed numbers and not the overrun, because the overrun according to the piece of legislation I read is being funded by the feds, by the Commonwealth?
FIFIELD:
We have honoured all of our contributions, all of our obligations to South Australia. As we’ve discussed there’s been an error in the estimation…
BYNER:
Which you guys will cover according to what I’ve read out, right?
FIFIELD:
We’re not wanting to take unilateral action. We will honour our obligations. We will honour cost overruns as per the bilateral agreements. But how we address this situation is something that we’ve got to nut out cooperatively with South Australia.
BYNER:
When can you do that? It’s an urgent need so are you going to get together with Mr Piccolo before Christmas?
FIFIELD:
I will be. That’s assuming that he comes to the Disability Reform Council meeting which I’m chairing later this month. Which is all the Commonwealth and State Disability Ministers. He hasn’t been to the last couple of those meetings so I hope he comes to this one. I know our officials are going to be talking in the coming week about this very issue.
But Leon, I just want to make it clear to your listeners that the money in the Disability Care Australia Fund will be completely and absolutely allocated to the NDIS, and it won’t go on administration. I can promise you that.
BYNER:
Okay. That’s Mitch Fifield, the Assistant Minister for Social Services.