In his Mid Year Financial Economic Outlook statements this week, Treasurer Joe Hockey construed 'The Economy' as some rare prized orchid, requiring careful nurturing, while the patient gardener waits for just that one moment in a lifetime when the flower blooms.
The trouble with treating The Economy like a prized bloom is that we fail to recognise that the it exists to serve people. The health of our economy should be measured by the degree to which it lifts up those people who are vulnerable, frail and in need of support. A healthy economy is one in which opportunities are created for people to exercise greater degrees of self-determination, and where people have access to support to enable them to seize the opportunities available.
Listening to Mr Hockey and so many in political leadership speak of The Economy, one could be forgiven for thinking that if only the architecture and financial settings were right then all of society's ills will fade away. Sadly the reality is more stark. While Mr Hockey and others tinker with The Economy - a little water here, a little fertiliser there - people living in the community are struggling to live lives of simple dignity.
Many non government social services agencies are embedded in the community, lending support to individuals and families day in and day out. Demand for services and support at Christmas will peak as families struggle to find something to celebrate, let alone finding something to celebrate with.
The availability of social support services is not keeping up with the demand. In a recent survey undertaken by the Australian Council of Social Services of 1000 community service workers, 43% of these services reported that they are simply unable to meet the needs of people coming to them for help. The largest service gaps exist in areas of the greatest need: among services working most closely with those on the lowest incomes and with the highest levels of need in their communities.
The May Federal Budget delivered a major blow to expenditure on welfare as well as changes to income support. This double whammy of reducing levels of support and reducing the support available has directly affected the most vulnerable people in our community. On the surface it appears that the most vulnerable were easy targets for the budget cuts recommended by the Commission of Audit. Revenue raising options were not given the same attention as reducing expenditure on social services to deal with the alleged budget emergency.
As a result of the May Budget, the capacity of non government social services agencies to respond to people in need has been further hampered by changed and protracted tendering processes that go to the heart of their viability. Many agencies are highly vulnerable to the outcomes of this tender process, which is now well-delayed beyond the promised decision deadline. Many are uncertain as to how, and in fact whether, they will be able to continue to support their clients over the Christmas period and beyond.
Government has been clear that it wants a more competitive tendering environment, fewer and larger organisations for contract purposes, and a reduction in spending on social services. The Department of Social Services received an overwhelming response to its July 2014 grants selection process, receiving more than 5500 applications totalling $3.9 billion of services value. However the Government has advised there is only $800 million available meaning many organisations will be unsuccessful with their applications.
The impact of funding uncertainty has had alarming effects on service providers. The results of a Continuity of Funding survey undertaken by Mental Health Australia were worse than anticipated with 73% of respondents saying that they would be forced to reduce local options for consumers, 40% reporting they have already lost staff and an alarming 91% confirming that if their funding future is not confirmed in the short term they will have to further reduce staffing numbers.
Even if services continue through transferring of funding to other agencies, there is still a significant impact on the people served. Research shows that people who have suffered significant trauma in their lives find it difficult to establish trusting relationships, and trust lies at the heart of effective social support services which enable people to move from support to independence.
Despite the difficult year for the sector, there are some signs of hope for the future. We believe that most Australians do care about how the poor and vulnerable are treated: the widening inequality gap between the rich and poor does not sit comfortably with most Australians. We witnessed a backlash to the Medicare co-payment proposal and other harsh measures including the proposed cessation of income support for six months for young unemployed people. This outcry led to the Government backing down on some of the more punitive changes to social service programs and support.
We welcome the focus in Patrick McClure's Welfare Review on job creation and training as a way of breaking the cycle of disadvantage. Not everyone is capable of working but for those who are able to work, employment provides stability, opportunities for education, and greater social participation as well as an income. Increased employment is also the best means of stimulating growth in the economy.
This Christmas will be a time of anxious waiting for many in the social services sector. Our thoughts are with those affected by the uncertain funding environment, the committed and hardworking staff of our social service organisations and most importantly the people and the communities they support.
Marcelle Mogg is CEO of Catholic Social Services Australia.
Orchid image by Shutterstock.