Big Society and Australia:How the UK Government is dismantling the state and what it means for Australia

Christopher StoneAugust 2012

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CPD – Public Sector Research Program

http://cpd.org.au

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Delivering services in a ‘more with less’ fiscal environment

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Context

Federal

NSWQldSAVicTas

4,20015,00

07,5005,1004,2002,000

“if that means that some public servants are going to have to do more, well that's real life” NSW Premier Barry O’Farrell

“The Newman government ... has guaranteed frontline services will not be affected” Qld Treasurer Tim Nicholls

“A smaller public sector needs to be more productive” SA Treasurer Jack Snelling

“We are already seeing a managed reduction in back office and administrative positions, putting us on track to deliver our policy without impacting on frontline service delivery” Vic Premier Ted Baillieu

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What is Big Society?

• Manifesto of UK PM David Cameron, based on ideas of think tank director Phillip Blond

• More with less?

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Public Sector Cuts in the UK

Public sector spendingWelfare

Legal aidCommunities

departmentNew public housing

Higher educationLocal government

PoliceAverage government

agencyLocal government staff

Public sector employees

£81 billion£7 billion£350 million66%60%40%27%20%19%10-20%240,000 (2011)

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Community Sector Impacts

• £5 billion funding cut to sector (2012-2014)

• 2,000 charities affected by £110 million cut in 2011

• Community sector employment fell by 70,000 (9%)

• Impacts on NFP working conditions• Silencing or diminishing of NFP’s

advocacy role• Large NFP ‘crowding out’ smaller

ones

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Local services cuts

Example: Local libraries in the UK• Over 100 closed• 600 (20%) under threat of closure or

transfer to community• Legal challenge over ability of

untrained volunteers to run• Cuts to hours, services and staff in

remaining

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Corporate Scandals

• Southern Cross aged care: £600 million profit before collapsed leaving 30,000 people at risk

• A4e: fraud inquiry, targets not met, chair paid £8 million

• G4S: promised 12,000 Olympic security guards, provided 7,000, army called in

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What elements of Big Society exist in Australia, and what direction can we expect this agenda to take?

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Big Society Ideas in Australia• Anti-big government, privatisation

and outsourcing• NSW trial of Social Benefit Bonds• Support for Big society:–Cheryl Kernot–Peter Shergold–Vern Huges–Tom Tolchard

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Public Services Outsourcing in Australia

Heavy:• Telecommu

nications• Banks• Insurance

Moderate:

• Energy• Educati

on• Transp

ort

Light:• Postal• Broadcas

t• Water• Defence

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Other Public Service Functions• Law making, rule making, and policy

development–Consultancies significant

• Tax collection and managing government finance–Probably the area of least

outsourcing• Monitoring and enforcing–Quasi-regulatory regimes–Privatised prisons

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Transferable lessons?

• There are difference between Australia and the UK:–Federal system–% government spending–Government debt

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Comparison: Outsourcing employment servicesAustralia• Full introduction 1998• Systemic problems:

– Outcome measure focus

– Tight margins– Perverse outcomes– Fraudulent reporting– Failing the vulnerable– Local organisations

disadvantage

• UK• Full introduction 2011• Systemic problems:

– Outcome measure focus

– Tight margins– Perverse outcomes– Fraudulent reporting– Failing the vulnerable– Local organisations

disadvantage– NFP disadvantage

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Will a change of government bring us one step closer to the Big Society?

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Big Society in Australia?

“securing our future depends more on strong citizens than on big government”

“you can’t have stronger communities without a stronger economy to sustain them and you can’t have a stronger economy without stronger, more profitable businesses”

“community controlled public schools and public hospitals”

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Philip Blond in Australia• Author ‘Red Tory’• A “friend of Australia” – Abbott• Briefed senior shadow cabinet

members in mid 2011• Back again recently:–Q&A–Radio national–Various seminars

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Downsizing the state and how this will impact on workforce planning in the APS

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“Size” of the Australian Public Service• Over time by different measures• In comparison by different measures

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Outsourcing

• Potential for spinouts and mutuals?

• Need for, and challenges of, small community groups

• Accountability issues–Big corporations can influence

assessment–Ultimately, risk always lies with the

public sector

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Keeping the Work

• Staff asked to do more–Personal costs–Annuls the benefits?

• Barriers to doing more–Politicians?–State/Federal issues?–Reward and punishment issues,

and attitudes to risk?