ABC 7.30 with Sarah Ferguson
FERGUSON:
Western Australia joined the rest of the country today with the states premier and Tony Abbott agreeing to trial sites for the National Disability Insurance Scheme. On the same day Treasurer Joe Hockey has been making strong criticism of the management of those trials, saying the scheme risks ending up as a farce as big as the pink batts program. So what are we to make of the messages coming from the Government? Is it pulling back from its expensive commitment to the landmark scheme? The Minister responsible for the NDIS Senator Mitch Fifield was in Melbourne today making a speech about the future costs of aged care in Australia and the need for more reform as the population ages, I spoke to him a little earlier.
Mitch Fifield welcome to 7.30.
FIFIELD:
Good to be with you.
FERGUSON:
Now the Treasurer said this morning, and he’s repeated it a couple of times during the day that if we don’t get on top of the proper management of the National Disability Insurance Scheme, it could end up as bigger farce as the pink batts program. What is the comparison between the NDIS and pink batts?
FIFIELD:
We’re determined to implement the NDIS in full. But it’s important to have an honest and open assessment of the foundations of the scheme. The independent board of the NDIS Agency commissioned a capability review that found that the previous government’s decision to bring forward launch of the scheme by twelve months has fundamentally compromised some of the key capabilities necessary for full rollout. So, what our job is, is to make sure that the foundations are firm so that we can deliver the NDIS in full
FERGUSON:
Does that mean that you’re still committed to the full funding and the same date of rollout or are you starting to change your mind about that?
FIFIELD:
Look, we’re completely committed to the delivery of a full NDIS. We are in the process of honouring the bilateral agreements that have been entered into between the Commonwealth and the States and Territories. And in those bilateral agreements are the timelines for the scheme. Now they can only be changed by way of renegotiating the bilateral agreements.
FERGUSON:
And have you started having those conversations with the states about a potential delay?
FIFIELD:
No we haven’t. But what we are awaiting is advice from the NDIS Board as to what the implications are of the capability review for their ability to deliver the NDIS according to the timelines that are in those agreements.
FERGUSON:
So that means that a delay is possible?
FIFIELD:
Our best source of advice on the capacity of the NDIS Agency to deliver according to the bilateral agreements is the Agency itself. And if they see any issues that arise from the capability report that affect their ability to meet that timeline, then they’ll provide that advice to us.
FERGUSON:
It’s obviously very important for the sector we’re dealing with here and forgive me for pressing you on this but that review has already been conducted, you’ve issues a press release about it, are they telling you now that you now that they need a delay?
FIFIELD:
We have not received advice from the NDIS Agency in relation to their capability to meet the timelines that are in the intergovernmental agreements. That advice will be forthcoming. But in the meantime, we’re getting on with the job of delivering the NDIS. But I want to be clear, we’re not looking for ways to delay the NDIS. We’re looking for ways to deliver the NDIS. And it’s important to recognise that the previous Government – in bring forward the commencement of trial sites by a year, a year ahead of the more prudent timetable of the Productivity Commission – in doing that, the previous Government have compromised the foundations of the scheme. We’re looking for how we can deliver this in full.
FERGUSON:
The way it looks from the outside Mitch Fifield, is that you’ve always talked about this being an issue with very strong cross party support. It looks like you’re getting some push back from within your own party, is that correct?
FIFIELD:
No. Not at all. I do not know of a single Coalition Member or Senator who is not absolutely committed to the full delivery of the NDIS.
FERGUSON:
And does that mean with the same level of funding?
FIFIELD:
The scheme will cost what the scheme will cost and the Productivity Commission work has been assessed by the Australian Government Actuary and what they find is that in full rollout the complete cost of the scheme will be about $22 billion. Now half of that is Commonwealth money. Half is State. And about 8 to 9 billion dollars of that amount will be new Commonwealth money. This is making up for chronic neglect in the past. We’re determined to deliver. The Prime Minister is determined to deliver. We are not going to let Australians with disability down.
FERGUSON:
And there is no suggestion coming from the Commission of Audit for example that you should be looking to cut back on the Governments component of that funding?
FIFIELD:
Well, the Commission of Audit have as one of their three principles that government should do those things that only government can do. Now, facilitating proper support for Australians with disability is core government business. And I do not expect that the Commission of Audit will in any way shape or form suggest that the NDIS is anything other than the core business of government.
FERGUSON:
Let’s move to the speech you made today in the area of aged care. The biggest change in aged care that’s coming is Labor’s reforms in fact that are going to be brought in, in July. And those are as you know, comprehensive changes to means testing. You seem to have accepted those reforms. Is there anything in them that you want to change?
FIFIELD:
Look I mean, when you’re an incoming government and a new minister you don’t start with a clean slate. There may have been some things we might have done a little differently. But, in the broad, I think that the changes which come into effect on the 1st of July are a step in the right direction. We want more choice for consumers. We want more choice for providers. And people who can make an appropriate contribution to their care should do so. But there has also got to be an appropriate safety net.
FERGUSON:
Are you looking at an increase though in the contribution to that care, for example looking to leverage the assets that aged home owners have locked up in their houses.
FIFIELD:
Look, we’re not at this point in time looking to do anything different to what has been legislated. I think it’s important to allow these changes to bed down. Obviously, as Minister, I want to keep a close eye on the real world effects both for consumers and for providers. And we want to learn lessons from these changes. But I think before looking to any further changes we really need to give these the opportunity to bed down.
FERGUSON:
You said today, and I was quite surprised to learn this actually that only 5% of people in aged care are actually in residential facilities, the rest are being cared for at home. You said that the result of these changes will mean that more of that burden falls into the at home sector. But carers in that sector say they’re doing their absolute maximum, they’re overwhelmed, they can’t do anymore, how can you change that?
FIFIELD:
Look, I’m not talking about unpaid family carers shouldering additional responsibilities. As you say, only 5% of people who receive aged care support do so in a residential care setting. Most people who enter residential care do so in their mid-80’s. And 75% of people who receive funded aged care support do so in their homes. That is a trend that will only increase. I think what you’ll see is, obviously a continuation of high care residential care. I think what we know of as low support residential care will slowly disappear. And the bulk of support will be in the home.
FERGUSON:
At the same time the number of packages as they described it are available to help people in the home are capped. Are you going to have to lift that cap to make more of them available as the numbers increase as we know they’re going to?
FIFIELD:
We’ve announced a new aged care funding round. Applications will open for that in May. But you’re right, there is an element of rationing to the current system as we know it. That’s one of the recommendations that the Productivity Commission, in their landmark report…
FERGUSON:
What are you doing about that rationing?
FIFIELD:
… was to end rationing. But that is something to look at in the next stage of reform. At the moment, as I say, I think they’ll be a rebalancing over time, from residential care to home care packages.
FERGUSON:
There is also going to have to be a huge increase in the workforce in this particular area. Now I know Labor put money aside to increase the wages, you’ve put that money back into a pool, what are you actually doing now to draw more people into the workforce? The turnover is something like 40% at the moment, that’s not sustainable.
FIFIELD:
And, in addition, between now and 2050 there will need to be a doubling of the workforce in the aged care sector. The workforce numbers will go to something north of 870,000 people. So we need to have a strategy,
FERGUSON:
You say we need a strategy, what is your strategy? You’re the Minister now.
FIFIELD:
Absolutely. Well I think part of it is to look at both the aged care workforce and the disability workforce in tandem. Both will be doubling at about the same time. What you do in aged care will have an effect in disability, and vice-versa. We need to look at ways to make working in the social services area incredibly attractive. But I think we’ve also got to recognise that for the majority of people in the aged care sector, and in the disability sector, they do this work because when they wake up in the morning they want to know they they’re going to be making a difference to someone’s life. Yes, quality of workplace is important, but it’s not the only factor and neither is pay.
FERGUSON:
Mitch Fifield that’s all we’ve got time for but I appreciate you coming in to talk to us this evening after your speech, thank you.
FIFIELD:
Thanks indeed.