The Senate Finance and Public Administration References Committee Appropriateness and effectiveness of the objectives, design, implementation and evaluation of the Community Development Program (CDP) December 2017 © Commonwealth of Australia 2017 ISBN 978-1-76010-695-9 Senate Finance and Public Administration Committee Secretariat: Ms Ann Palmer (Secretary) Ms Lyn Beverley (Secretary) (until 23 June 2017) Mr Tasman Larnach (Principal Research Officer) Ms Kathryn Cochrane (Senior Research Officer) Dr Joy McCann (Senior Research Officer) (until 30 June 2017) Ms Sarah Terry (Research Officer) Mr Michael Finch (Research Officer) Ms Nicole Baxter (Administrative Officer) The Senate PO Box 6100 Parliament House Canberra ACT 2600 Ph: 02 6277 3530 Fax: 02 6277 5809 E-mail: [email protected] Internet: www.aph.gov.au/senate fpa Printed by the Senate Printing Unit, Parliament House, Canberra. ii Membership of the Committee Members Senator Jenny McAllister (Chair) ALP, NSW Senator James Paterson (Deputy Chair) LP, VIC Senator Kimberley Kitching ALP, VIC Senator Bridget McKenzie NAT, VIC Senator Lee Rhiannon AG, NSW Senator Lisa Singh ALP, TAS Participating Senators Senator Skye Kakoschke-Moore (until 22 November 2017) NXT, SA Senator Sue Lines ALP, WA Senator Claire Moore ALP, QLD Senator Dean Smith LP, WA Senator Glenn Sterle ALP, WA Substitute Member Senator Patrick Dodson (substitute for Senator Kitching) ALP, WA Senator Malarndirri McCarthy (substitute for Senator Singh) ALP, NT Senator Rachel Siewert (substitute for Senator Rhiannon) AG, WA iii Table of Contents Membership of the Committee ........................................................................ iii Acronyms and abbreviations ............................................................................ ix List of Recommendations .................................................................................. xi Chapter 1.............................................................................................................. 1 Introduction .............................................................................................................. 1 Conduct of the inquiry ............................................................................................ 1 Related inquiry ....................................................................................................... 2 Structure of the report ............................................................................................. 2 Chapter 2.............................................................................................................. 5 Consultation and the policy development process ................................................. 5 Introduction ............................................................................................................ 5 What is the CDP? ................................................................................................... 5 Policy process leading to the design of the CDP .................................................... 8 Developments since the implementation of CDP ................................................. 15 Committee view .................................................................................................... 22 Chapter 3............................................................................................................ 23 Nature and underlying causes of joblessness in remote communities ............... 23 Introduction .......................................................................................................... 23 Remoteness ........................................................................................................... 24 Younger age profile .............................................................................................. 27 Educational attainment ......................................................................................... 27 Lack of labour market economy ........................................................................... 30 Trauma .................................................................................................................. 35 Cultural and family obligations ............................................................................ 36 Reluctance of some businesses to employ Indigenous people or employ locally 38 Committee view .................................................................................................... 40 Chapter 4............................................................................................................ 41 Impacts of CDP on communities and individuals ............................................... 41 Introduction .......................................................................................................... 41 2 Financial penalties ................................................................................................ 41 Reduced pay and conditions ................................................................................. 46 Limited ability to engage with external bureaucracy ........................................... 49 Social dislocation in remote communities ............................................................ 53 Labour market issues ............................................................................................ 58 The nature of work-like activities......................................................................... 59 Limited ability for the bureaucracy to engage with participants .......................... 63 Committee view .................................................................................................... 64 Chapter 5............................................................................................................ 67 Impacts of CDP on providers ................................................................................ 67 Introduction .......................................................................................................... 67 Misaligned incentives for providers ..................................................................... 67 Limited local decision-making ............................................................................. 68 Difficulty in assessing employment outcomes ..................................................... 73 Impediments to employment ................................................................................ 77 Uncertainty about the future ................................................................................. 80 Committee view .................................................................................................... 81 Chapter 6............................................................................................................ 83 Alternative approaches to CDP ............................................................................. 83 Introduction .......................................................................................................... 83 Framework for reforming CDP ............................................................................ 84 Positive elements of CDEP .................................................................................. 87 Alternative approaches to joblessness and community development .................. 93 Committee view .................................................................................................. 104 Chapter 7.......................................................................................................... 105 Conclusions and recommendations..................................................................... 105 Transition to the new program ........................................................................... 105 Financial penalties .............................................................................................. 106 Development of the new program ...................................................................... 107 Government senators' dissenting report ....................................................... 117 CDP creating real jobs in remote communities .................................................. 117 Building on the success of CDP ......................................................................... 120 3 Consultation during the development and implementation of the CDP ............. 122 Activity attendance requirements ....................................................................... 123 Conclusion and recommendations ...................................................................... 126 Appendix 1 ....................................................................................................... 129 Submissions and additional information received by the committee .............. 129 Submissions ........................................................................................................ 129 Additional Information ....................................................................................... 131 Tabled Documents .............................................................................................. 131 Answers to Questions taken on Notice ............................................................... 132 Appendix 2 ....................................................................................................... 135 Public hearings ...............................................................................................