The Government and VCOSS released Peter Shergold's Report into 'Service Sector Reform' just before the Cup long weekend.  The report received very little coverage as a result despite wide ranging recommendations for the future delivery of our social services.  The Financial Review picked up its underpinning premise immediately that being the outsourcing of service delivery from the public sector to the Non Government Sector.  It is extremely disappointing that a report that was commissioned by Government and overseen by a Senior Government Interdepartmental Committee allowed open criticism of the professional work of public servants to go unchallenged in the report.  Many of the comments questioning the role of public servants in policy development, contract management, funding criteria and accountability measurements were made by organisations who have sort not just to deliver our services but to be involved at the policy formation level and further displace our members from even this element of work.  In what should also raise concern for members is the Report highlights the move by DHS to introduce Services Connect as an “integrated service delivery model” which is glowingly referred to as a reform to “ transcend traditional administrative boundaries through streamlining access points….”  Which given many of the concerns, complaints and the operational dysfunction this model has thrown up, it would be of grave concern if this were to underpin any changes to the delivery of social services in a contracted out service delivery model. 

Shergold makes 25 recommendations for action but Recommendation 6 is the key to understanding the focus. 

“6. Delivering services through non-government organisations  

While decisions on the most appropriate approach to service delivery should be based on a careful evaluation of the most effective way of creating public value, the default position should be an expectation that an increasing range of government services will be delivered by non-government organisations”

No matter how it is dressed, this is contracting out our work, and our members should be furious to be not only excluded from being a delivery option, but to be so openly vilified.

Recommendation 19 highlights the ideological underpinnings of the Report by reference to new forms of Social finance.

“19 Encouraging new forms of social finance

The Victorian Government should examine how it can best leverage private capital for public good by supporting social enterprises to trade in pursuit of their mission, enter into partnerships with businesses and to attract capital from responsible investors.  Additional levels of corporate support, private debt or equity investment should be seen to supplement, rather than substitute, traditional sources of funding.”

This recommendation is focussed on introducing into Victoria Social Impact Bonds, or “pay-for-success” contracts as they are known in the US.

This idea is not a new one and is just rhetorical cover for further privatisation.  The so called reform occurs concurrently with widespread public sector job losses.  It leads to costly taxpayer clean-ups when social services fail while corporations clear out with the profits.  Public Services’ being delivered by shifting the government workforce to a lower wage non-government or faith based service provider has been the model embraced by conservative governments across the globe yet their proponents are struggling to point to one success.

Work undertaken on this funding model and the risks it takes with service delivery have been summarised by the Canadian Public Sector Union NUPGE.

UNISON the public sector union in the UK has also reviewed this funding model along with the Public Service Mutuals concept which have stemmed from the Cameron Governments agenda to privatise large sections of the UK Civil Service known as 'Big Society".

CPSU members in DHS need to send a message to the Department and the Government that their jobs are not for sale. 

Start by pledging to campaign against the sell out of our jobs by registering your support at myjobisnot4sale@cpsuvic.org and arrange a meeting at your work place to discuss this latest attack on our professional standing within the social services sector.

Please contact CPSU Team Leader Emily Castle at ecastle@cpsuvic.org or call 9639-1822 with any queries.