3. Local Communities
The global economic recession is impacting on every community in Australia.
Some regions and groups are, however, affected more than others because of entrenched disadvantage, geographic barriers and isolation, or reliance on particular industries.
Regions with high concentrations of manufacturing, construction, retail trade, rental, hiring and real estate services as well as accommodation and food services are particularly affected.
As well, some groups of Australians need additional assistance. Many Indigenous Australians, people with disability and jobless families, especially those with long‑term unemployed members, face barriers to success and these barriers are being magnified by the economic downturn.
The Government is already investing substantial resources to tackle entrenched disadvantage. These efforts are being boosted in the face of the economic downturn.
The Government is closely monitoring developments in regional areas and the impact of the downturn on disadvantaged groups in order to intervene early to support local communities to protect jobs in their own local area.
This chapter focuses on these strategies and finishes with a consolidated summary of efforts in the Education, Employment and Workplace Relations portfolio and in the 2009—10 Budget to close the gap on Indigenous disadvantage.
Tackling disadvantage in the job market
There are a number of reasons why Australians may suffer disadvantage. Disadvantage can increase the risk of unemployment, which in itself entrenches and deepens that vulnerability. The Australian Government is determined to minimise unemployment and support those Australians traditionally disadvantaged in the labour market.
As already described the Government has undertaken substantial reform to improve the support of unemployed Australians. This includes the reform of employment services to create the new Job Services Australia from 1 July 2009 and the new streamlined Disability Employment Services from 1 March 2010, as well as the creation of the Productivity Places Program through a National Partnership with state and territory governments.
Jobless families
Addressing the disadvantages experienced by jobless families is a key priority. There were approximately 224 500 jobless families in Australia in March 2009. These are families with a dependent child under the age of 16 that receive income support, with either one or both parents having no reported earnings in the previous 12 months. The Government is developing an evidence base on the risks faced by jobless families and how the provision of services can be enhanced in disadvantaged locations.
The Government has asked the Australian Social Inclusion Board to provide further advice on how the risks of long‑term disadvantage and unemployment can be reduced for jobless families. It has also asked the Board how this can be done in conjunction with other reforms that could be undertaken in disadvantaged local communities around Australia.
A community engagement project with jobless families and local stakeholders in three selected locations commenced in February 2009 in three selected locations. Findings from this project will inform future policy in this area.
Local approaches to global problems
The Government is determined to take every opportunity to stimulate local economies to create a flow of jobs, build community infrastructure and develop social capital. The Government is providing local communities with the resources they need to reinvigorate themselves and reduce local hardship through supporting local jobs, local training and local opportunities.
Innovation Fund
The Government has established a $41 million Innovation Fund to identify innovative ways to connect disadvantaged job seekers to training and employment. Projects that foster innovative place‑based solutions to overcoming barriers to employment will be funded.
Priorities for the Innovation Fund include:
- job seekers with mental health conditions that put them at risk of homelessness
- Indigenous job seekers
- families experiencing intergenerational unemployment.
The first projects will commence on 1 July 2009.
A Compact with local communities
The third part of the Government's Jobs and Training Compact is the Compact with Local Communities to support those communities hardest hit by the global economic recession. This compact is about doing more from the ground up to engage people in local communities to make the most of their skills and resources. Coupled with the Community Infrastructure Program and the Innovation Fund initiatives, this brings the Government's investment in local communities to $1.5 billion.
Jobs Fund $650 million
This Budget provides funding for a core element of the Compact with Local Communities—the $650 million Jobs Fund to secure and create Australian jobs. The Jobs Fund is supporting and creating jobs and increasing skills through innovative projects that build community infrastructure and increase social capital in local communities across the country.
Through the Jobs Fund the Government is investing in one‑off capital projects and providing seed funding for social enterprises. Funding is available to organisations including: non‑profit organisations; employment service providers; industry associations; unions; peak bodies; regional development agencies; industry associations; local, state and territory governments; and community organisations to deliver a range of community‑based projects.
The aim of the Jobs Fund is to produce long‑term improvements in communities affected by the global economic downturn.
The Jobs Fund has three streams:
- up to $300 million for Local Jobs. Funding will be available for community infrastructure projects with a focus on the promotion of environmentally friendly technology and heritage. Funding of $60 million has been specifically set aside for heritage‑related projects and $40 million for the construction of bike paths
- up to $200 million to Get Communities Working. Seed capital will be available for self‑sustaining projects, which create jobs and provide activities and services to improve community amenity. Get Communities Working will provide funding for a diverse range of innovative employment and social projects
- up to $150 million for Infrastructure Employment Projects. This will provide for investment in 'bricks and mortar' infrastructure projects that generate jobs in regions affected by the economic downturn. These infrastructure projects will include new and major renovations or refurbishments.
- The Jobs Fund projects focus on directly generating jobs for people in communities with already high unemployment, rising jobless rates or which are particularly vulnerable.
Local Employment Coordinators $20 million
Some regions in Australia have been impacted by the global recession more than others. The Government is placing Local Employment Coordinators in selected regions to manage and drive local responses to job losses and declining economic conditions. This initiative will cost $20 million over two years, with funding to be phased in over three years. Local Employment Coordinators will be progressively deployed and will be in place for up to two years.
Local Employment Coordinators will play a vital role in:
- ensuring there is a rapid response to helping employees who are made redundant
- coordinating government, community and business partnerships to stimulate local economies and generate new job opportunities
- brokering agreements between the Australian, state and local governments in order to align efforts across all tiers of government and strengthen community links.
- Local Employment Coordinators will also work with community stakeholders to identify and develop effective projects that are eligible for the Jobs Fund and can be quickly implemented.
Local Employment Coordinators will initially be located in seven priority areas identified as being most in need. These are:
- Canterbury‑Bankstown and south western Sydney in New South Wales
- Illawarra in New South Wales
- south eastern Melbourne in Victoria
- Ipswich‑Logan in Queensland
- northern and western Adelaide in South Australia
- south west Perth in Western Australia
- Northern Tasmania.
Funding for the local employment coordinators has already been provided for in the forward estimates.
Local Jobs Champions
Mr Lindsay Fox and Mr Bill Kelty will support the work of Local Employment Coordinators by advising employers in communities affected by the economic downturn on how to keep their employees. Mr Fox and Mr Kelty will act as Local Jobs Champions, providing advice on alternatives to laying off employees. They will also promote Government support and assistance available to individuals, employers and communities.
2020 Summit—Golden Gurus
As part of its response to the 2020 Summit, the Australian Government announced in April 2009 that it would commit $400 000 to a national Golden Gurus program. This program will encourage skilled mature‑age people who are retired, semi‑retired or not working full time to provide voluntary mentoring support to small businesses, including New Enterprise Incentive Scheme (NEIS) businesses, and the community. The program will be developed in 2009.
Drought assistance initiatives
In 2008—09 the Government provided $46.9 million for several drought‑related support programs.
These include:
- Exceptional Circumstance Relief Payments that assist eligible families with students in drought‑affected areas in accessing Youth Allowance and other student income support initiatives
- Drought Assistance for Schools, making it easier for rural families experiencing financial hardship as a result of the drought to meet ongoing educational expenses and the cost of educational activities such as student excursions
- the Declared Drought Area Incentive, which encourages primary producers who hold an Exceptional Circumstances Certificate to continue to access skill development and employment opportunities in a declared drought area
- Drought Force, which assists individual farms and farming communities severely affected by drought with volunteers or people on income support, helping with drought mitigation tasks such as maintenance of irrigation channels, hand feeding, stock watering, fencing, and general repairs and maintenance
- Flexible Arrangements for Newstart allowance and other benefits for people unemployed due to drought.
Closing the Gap on Indigenous disadvantage
In November 2008, all Australian governments, through the Council of Australian Governments (COAG), agreed to targets for Closing the Gap in education, employment, health and mortality outcomes between Indigenous and non‑Indigenous Australians.
Four of the six targets agreed by COAG fall within the education, employment and workplace relations portfolio. These include the following:
- ensure access to early childhood education for all Indigenous four‑year‑olds in remote communities within five years
- halve the gap in reading, writing and numeracy achievements for children within a decade
- halve the gap for Indigenous students in Year 12 attainment or equivalent attainment rates by 2020
- halve the gap in employment outcomes between Indigenous and non‑Indigenous Australians within a decade.
The targets form a core component of the COAG National Education Agreements and National Partnerships described in Chapter 2. The National Education Agreement (NEA) provides the foundation for the Education Revolution in all of Australia's schools, with a particular focus on more effective targeting of resources to meet the needs of Indigenous students. Through the new arrangements in this agreement, national targets have been established to focus progress towards the ultimate aim of equity in opportunities between Indigenous Australians and other Australians.
In addition to the National Partnerships in early childhood and school improvement, COAG agreed to a National Partnership on Indigenous Early Childhood Development, which provides for the establishment of 35 Children and Family Centres, in collaboration with the states and territories.
Improving employment opportunities and the job readiness of Indigenous Australians is crucial to building pathways out of poverty and disadvantage. Reforms to employment services through the new Job Services Australia, as well as the expansion and refocusing of the Indigenous Employment Program (IEP) and changes to the Community Development Employment Projects (CDEP) program will strengthen Australia's capacity to support Indigenous Australians to obtain sustainable employment.
Providers of universal and Indigenous specific services will work in partnership and will be required to enter into Service Level Agreements that set out how they will work together in communities, providing complementary support for individual Indigenous job seekers.
The new IEP will allow the Government to work more closely and in partnership with Indigenous communities, organisations and individuals to deliver a broad range of projects suited to local circumstances and focusing on the best employment outcomes. Through the reformed IEP organisations from around Australia have an opportunity to tender to become a member of the new panels that will deliver local employment solutions for Indigenous Australians.
Job Services Australia
Indigenous‑specific employment services will build on the services provided by Job Services Australia and provide more tailored assistance to Indigenous job seekers. Job Services Australia providers and providers of CDEP and IEP will work together to deliver better employment and training outcomes.
There are additional resources to assist Indigenous job seekers in remote areas and significant incentives to help Indigenous Australians complete secondary school and improve vital literacy and numeracy skills. Indigenous organisations will be delivering Job Services Australia and every Job Services Australia provider will have an Indigenous Employment Strategy to help them employ and retain Indigenous Australians within their own organisations.
From 1 July 2009 more than 25 Indigenous organisations will provide services through Job Services Australia.
Education initiatives
Indigenous students will benefit from the Government's Education Revolution reforms in schools.
In addition, the $2.1 billion being invested in Indigenous education in 2009—2012 includes a number of specific measures in the 2009—10 Budget to improve educational opportunity for Indigenous students.
Improving education opportunities for Indigenous Australians in the Northern Territory $106.5 million
In the 2009—10 Budget, the Government is continuing to support initiatives in the Northern Territory to close the gap.
These initiatives are:
School Nutrition Program: $37.5 million over three years. This is a continuing initiative that aims to improve student engagement with school and student attendance through a breakfast and lunch program for school‑age children in communities. Local Indigenous people also benefit from the program through increased job and training opportunities
Teacher Housing: $11.2 million over one year. This initiative addresses part of the urgent need for teacher accommodation in the Northern Territory and will improve teacher employment and retention rates in remote communities. Twenty‑two additional teacher houses will be constructed, adding to the $5 million already provided for the construction of up to 10 teacher houses in Wadeye.
Expanding the Enhancing Education elements of the NTER: $45.7 million over three years. This includes an additional $23 million for the Quality Teaching Package and $22.7 million for the Accelerated Literacy initiative.
Language, Literacy and Numeracy Program: $3 million over three years. This will create additional Language, Literacy and Numeracy Program (LLNP) places to enhance the employment prospects of Indigenous Australians in the Northern Territory. The additional funds will allow LLNP providers to deliver a more tailored course that matches the needs and priorities of specific Indigenous communities.
Crèches in Northern Territory communities: $9.1 million over three years to continue the operation of the nine new crèches already established; finalise the construction of one new crèche; and provide upgrades to two existing crèches.
Indigenous non government school education programs —application of indexation $19.7 million
Funding for Indigenous students in non‑government schools and school systems has been appropriated through the Schools Assistance Act 2008 using a new formula known as Indigenous Supplementary Assistance (ISA). This formula will be applied based on Indigenous student enrolments and will be indexed by movements in the Average Government School Recurrent Costs (AGSRC) to ensure that funding levels are kept in line with recurrent school funding. As a result of these revised arrangements ISA funding will be increased by a further $19.7 million over the next four years.
The Schools Assistance Act 2008 also establishes an Indigenous Funding Guarantee as a transitional initiative to ensure that non‑government school authorities continue to receive funding for Indigenous students comparable to their entitlements in 2008.
Expansion of the Sporting Chance Program $10 million
The Government will contribute $10 million over four years to improve the level of school engagement for some 1400 Indigenous students through an expansion of the successful Sporting Chance Program. The program uses sport as a vehicle to improve student participation and engagement in schooling.
The Government will contribute funds to:
- establish around 10 new school based sports academies across Australia, with a particular focus on improving the participation and engagement of girls in schooling
- the Former Origin Greats (FOGS) to establish school based academies, with a focus on rugby league in Queensland.
The expansion is based on a funding partnership. In general, the Australian Government contributes approximately one third of the annual operating costs of academies and providers source the balance from state and territory governments, as well as corporate and other sponsors.
Indigenous Education Scholarships $20 million
In partnership with the corporate sector, the Australian Government is providing $20 million over three years to support a 20‑year scholarship program that will provide scholarships to Indigenous students. This will be funded from within DEEWR's existing resources.
Employment and economic development initiatives
Jobs providing government services
Through the Minister for Families, Housing, Community Services and Indigenous Affairs, as part of the COAG National Partnership on Indigenous Economic Participation, the Australian Government will provide $172.7 million to fund around 2000 jobs to support the delivery of government services that were previously subsidised by the CDEP program. The employees who gain these jobs will receive mainstream benefits such as wages, superannuation and access to training and professional development. The Government will also provide $203.1 million for the continuation of more than 1600 jobs already funded in the Northern Territory from CDEP activities, and 40 jobs in four Cape York welfare reform trial communities.
Indigenous Economic Development Strategy
An Indigenous Economic Development Strategy will help Indigenous Australians achieve long‑term economic independence (IEDS).
This strategy will promote economic participation and wealth creation by Indigenous communities and individuals and will seek to build partnerships with the corporate sector. Innovative ideas and a long‑term commitment have the potential to broaden job opportunities in an environment where many Australian companies are prepared to support Indigenous Australians.
Indigenous Employment Program: improving employment opportunities for Indigenous Australians $190.6 million
In this Budget, the Government is committing an additional $190.6 million in new funds over five years to the new IEP elements. The total administered cost of the IEP over five years is $778.8 million. Through the IEP, the Government will support Indigenous Australians and their communities, industries and employers to deliver employment outcomes suited to local circumstances.
The new IEP will meet the needs of more employers, including small and medium size businesses. It will support more communities in developing their own economic direction and help more Indigenous people get jobs and start businesses. This will be achieved through increased funding; more flexible support; encouraging, recognising and promoting achievements in Indigenous employment; building aspirations; and providing mentoring to individuals and businesses.
The new IEP will begin on 1 July 2009.
Language literacy and numeracy support for Indigenous Employment Program participants $21.6 million
To support the language literacy and numeracy needs of Indigenous participants in the new IEP, the Government is committing in this Budget an additional $21.6 million over four years to provide 6000 new Workplace English Language and Literacy (WELL) places. Employment opportunities for Indigenous Australians, especially in remote and regional areas, are often limited by their poor language, literacy and numeracy skills and these additional places will assist in addressing this barrier to sustainable employment.
Traineeships $53.6 million
The 2009—10 Budget provides support for 400 new traineeships across the government services sector and 60 additional ranger positions in remote communities through the new Indigenous remote workforce strategy. The traineeships, which will be at least at the Certificate III level, are expected to be in a range of sectors including child care, education support, rangers, community policing, health and aged care.
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