Video transcript Human Services Reform in Victoria Gill Callister, Secretary, Department of Human Services Community and human services reform conference – Building better lives for Victorians in need Thank you, Chris. Thank you, Minister. Good morning, everybody. Can I start by acknowledging the Wurundjeri people of the Kulin nation, as the traditional owners of the land on which we meet today and pay my respects to the elders, past and present and, of course, pay my respects to elders of other communities who are with us today. So, a couple of weeks from Christmas – thank you to everybody for making the time to be here for this event. Our community sector partners, colleagues from local government and others from Victorian government departments. It seemed a very opportune time, as we reach the end of 2013, to stop and take stock of the vast array of reform challenges that are either underway or in front of us and try and have some sense of how these things fit together, as we go forward into 2014. Because, whether you are actively engaged in some of these things at present, or observing some of them or sitting poised, ready to jump into some of them, there is a substantial amount of reform underway and, I think, that one of the big opportunities for us today is to try and lift up and look at how some of these things fit together. Some of the challenges that they pose for us, going into next year and beyond and how, in our day-to-day efforts, we start to think about some of the key reform themes. It’s also an opportunity and, I think, this is a very concrete deliverable that we need out of today, to think about what are the various structures and dialogues and ways in which we come together, either currently or that we would prefer to in the coming year, to make sure that we are interacting and talking and having dialogue about the myriad of things that we have to discuss, both at that higher level reform end and at the day-to-day business end and, I’m hoping through the various discussions and workshops and presentations, that that is something that we have some very specific discussion about. And, some of the challenges that we’re facing aren’t dissimilar to those that many of us have faced in our entire careers. Some of these challenges have been around for generations. Read any annual report from the department for the last century or reports from VCOSS since 1946 and they outline challenges such as fragmentation, silo structures, workforce and demand. But, I think what’s different now is the intensity and the intensity has escalated these challenges from sometimes frustrating, to potentially debilitating and that intensity is now slowing the rate and, in some cases, potentially reversing the rate at which we’re shifting the dial on disadvantage and vulnerability in social problems and issues in Victoria. So, I want to talk a bit about what some of the data and figures are telling us about vulnerability and disadvantage and then I want to talk about some of the reform themes. Every year, disadvantage in Victoria is estimated to cost at least $5 billion, when we consider both the costs of services and welfare systems and the impact on reduced economic activity by a whole group of Victorians. The household income and labour dynamics in Australia’s survey showed that 64% of people who exited poverty in 2002 were back in poverty within 6 years and, increasingly, a lot of the data shows us that people rarely present with a single problem that is easily solved and people talk about increasing complexity but one of the challenges for us, I think, is to try and get underneath that complexity and understand what might be driving it. Increasing numbers of people are seeking assistance and the demand for services is rising across the board. But, it’s important for us to try and understand what’s driving that demand. Is it an expression of churn, of people being referred and re-referred around the system? Is it an expression of some of our interventions being inadequate and needing significant review? Is it an expression of referral behaviour, whereby people feel the need to involve families in more and more services and the Minister gave a good example of that before? And, I just want to take you through some of the data that we have about demand and, it doesn’t cover the interests of necessarily everybody in the room, but it does tell us some things about our service system. In Child Protection, there has been a 15% increase in reports over the last 12 months. 15% from last year to this year, and it continues to rise. If that doesn’t change, reports are projected to increase by a further 15% to 96,000 in 2014-15 and 111,000 in 2015-16 and that’s without any unforeseen policy changes that might drive that even further. But the interesting thing is what’s driving that growth, with an 87% increase between 2005-06 and 2012-13 is its re-reported children. There is a group of children who, over the course of their 0-18 childhood, are reported multiple, multiple times into the Child Protection System. And, it’s really important for us to try and unpack and understand what’s driving that. Whether it’s episodic intervention with services, whether it’s inadequate interventions, as I talked about before. There’s a whole range of possibilities. It’s certainly telling us something about the impact of family violence, substance abuse and mental illness because those three things are the key things that are most likely to drive re-reports into the Child Protection System. And, what does it mean about our Child First platform and have we made the most of the potential that that platform offers? What’s the relationship between participation in some of those protective services that help build resilience and strength in child development? Early childhood services, for example, and what’s the relationship between early childhood services and our Child First platform? And, we have the age-old disconnect here between adult-focused services for adults with mental illness and adults with drug and alcohol problems and child services. Those services such as child protection and early childhood focused more on children and their families. And that disconnect is something that the vulnerable children strategy is aimed at, trying to break down and change the ways in which those services work together but we have a fair way to go. If we look at Child First, there is a correlation between the rate of reports to Child Protection and the number of referrals from Child Protection to Child First. So, we’ve seen a 94% increase in referrals to Child First from Child Protection from 2076 in 2009-10 to 4026 in 2012-13 but the bulk of families being referred into Child First are not from Child Protection. The bulk of those families are going in from other referral sources and I don’t know entirely what that means. This may be a very good thing, whereby people are finding their help earlier and getting to the right services earlier, but it certainly hasn’t affected the re-reports into Child Protection. And there are increasing numbers of vulnerable children and families presenting to Family Services, with complex issues. Over 63% of families referred in 2012-13 had one or more complex issues, compared with 55% in 2007-08. 42% of the families being referred from Child Protection had experienced family violence and 30% had experienced mental health problems. And, one of the other interesting pieces of information is that the average hours of family services case work has risen by 118% between 2007-08 and 2012-13. It’s gone from an average of 38 hours spent with a family, to 82 hours and, again, this raises an interesting question about whether we have any strong data that indicates length of service being provided to a family, relating to better outcomes or more sustained improvement over time. Because an increase in average number of hours like that drives cost and access enormously. Our out of home care rates in Victoria are growing at around 5% each year and, for Aboriginal children, this is even higher. It’s close to 9% growth each year and this is against a context of Victoria still being a jurisdiction that removes the lowest per capita rate of children of anywhere in Australia. If the rate of growth of children in out of home care had matched the child population growth rates of the past 10 years, we would have 1800 fewer children in care. We continue to have children in out of home care, likely to be more involved in the youth justice system and much more likely than other children to have contact with the police. And, if we look at this more closely, we see the rate of children in out of home care varies greatly by area, with key hot spots in rural localities. So, why is an Aboriginal child in inner Gippsland twice as likely to be in care, as an Aboriginal child in Goulburn. And, for me, part of this answer goes to the question of ‘place’ and the need to have a much stronger focus on ‘place’ in how we can figure our services. Not just the needs of people but our service responses, our level of integration, our practices and culture vary across places in Victoria. Homelessness itself increased by 31% between 2006 and 2011, with 22,789 people counted as homeless on Census night and one of the questions to ask is what’s driving that? Is it is mental health problem and, we know that in part, it is. Almost half of those people were under the age of 25 and 1 in 6 was a child under 12. And, perhaps one of the most concerning, and yet not necessarily front of frame issues, about that high number of children and young people in the homelessness system, is the crisis that it brings for their education. And, we have 34,400 people on the public housing waiting list, with over 10,000 of those in the priority one housing category. And, while slightly less than 1% of the Victorian population, Aboriginal people account for 7% of the Victorians accessing specialist homelessness services and currently on our Disability Service Register, we have 4,201 people waiting for services. Increasingly, this data doesn’t tell us enough and, increasingly, we need to understand the interrelationship between the drivers of demand, in order to respond effectively. Making a lasting change in people’s lives, requires a range of inter-related and increasingly integrated responses. We can often improve peoples’ life circumstances at a point in time, but despite the significant efforts, dedication and resourcing, we are struggling to change the tide, in terms of chronic disadvantage. And, how should we respond? I won’t dwell on the changes today in the department itself but, one of the things that our reorganisation has been designed to do, is to significantly transform the way we think about and are arranged to provide services to vulnerable Victorians and this goes to both our policy and program development, as well as our area-based structure for service delivery. We have been trying to lead by example and model that it can be done in a different way and there is no intention for this to be confined to the, developing more integrated place-based responses, which we’ll talk about in a moment, is one of the most core themes underlying much of the reform underway. And, I think the other important thing about all of that data is that it says perhaps our efforts in the areas of prevention and early intervention remain quite substantially elusive. During Peter Shergold’s consultations, we heard many times that we need to be better connected to universal systems to develop better planning and coordination across all levels of government and there are still 150,000 children living in jobless households in Victoria and the youth unemployment rate is nearly four times that of the overall unemployment rate. And, around 70% of job services Australia clients seeking employment, do not get successful outcomes through engagement with the Commonwealth Employment system. This is possibly the single biggest indicator for life-long exclusion and disadvantage and, while we have some promising examples of how we bring this to the forefront of our operating and delivery models across the state, it is still a long way from being systemic. And, then if we add, by the year in which we have the full roll-out of the new SAX award, Victoria will be spending an additional $450 million a year, just on the existing services, without any increases. So, I want to turn to the reform landscape and talk a bit about it, not just from the perspective of the actual reforms, but to try and draw out, what I think are some of the common themes and some of the themes are more common to some of the reforms than others. The Minister talked about the need for better integration and coordination that offers holistic delivery that meets clients’ needs. We talk a lot, at the moment, about client-centred approaches. Coordination and integration are different things and, as we put integration and client-centred approaches into the frame for how we think about reforming service delivery. We need to be clear that these are different approaches and there’s a number of reforms underway that are tackling this. The action plan to address violence against women and children is an example of the theme at work, with an emphasis on prevention, early intervention and a better response driving partnerships across government and community sector organisations. Another theme is more flexibility to innovate and design and deliver services that put clients at the centre and have a maximum impact and we can see this at work in the Victorian Homelessness Action Plan, particularly the innovation action projects that are part of the plan. The need for cross-government, whole of government, cross provider collaboration is a stronglyemphasised theme, in order to achieve better outcomes for people and their communities and the Victorian Vulnerable Children’s strategy underlines that commitment across government to improve outcomes for vulnerable children and families. But how we actually realise that on the ground, is still something significantly in development. That creates a performance management framework, so a measurement framework to monitor outcomes and is committed to establishing local networks to improve how we deliver services at the local level. A strong focus on area. So, moving from a problem and program approach to some of the problems and demand that I described earlier to a people and place approach. And, the department’s transformation has been largely focused around ‘can, in fact, we make that shift and transition?’ And, greater client choice and control and we’ve been – Victoria has really pioneered the way in choice and control in disability services for a number of years now, but the NDIS takes this to universal entitlement. It broadens the focus on choice and control, in the form of individual support packages and makes those support services for people with a disability a universal entitlement. And the NDIS won’t make many, many changes in the way people with disabilities receive their services. It separates assessment and planning from service delivery. It gives people choice and control over how and where they receive their services and it will fundamentally change the structure of the relationship between Commonwealth and State governments, between service providers and governments and between service providers and clients using those services. And, one of the interesting things, I think, for other parts of the service system is, should we have that concept of packages? Should we think about separating access and planning and delivery and should we think about opportunities to give clients greater choice and control in other parts of the service system? Partnerships between government service providers and clients to co-design services is a key reform element and I think we’re seeing that substantially in the establishment of the community sector reform council, which the Minister talked about. A stronger focus on productivity and efficiency and maximising public value from investment. And, I think, this theme is being played out, not just because we’re in tight fiscal times, but because there is an increasing need for accountability to demonstrate the best possible outcomes, both to clients themselves and to the Victorian community. And, some of the reforms, the recommissioning in community mental health and drug and alcohol services are targeting at simplifying access, improving service effectiveness and efficiency and then there’s the other aspect of that, which is more – which is increasing accountability, and creating a service system accountable for the outcomes that it achieves and this will come up increasingly through the Royal Commission. It’s come up through various audits by the Auditor-General and, from time to time and increasingly, is a focus of the Ombudsman. That is, to say, not just the activities of government, but the activities of the broader service sector. And, we’re looking to a much stronger focus on outcomes and we talk about this a lot and we know how difficult it is to change the system from an output-driven system to an outcome-driven system and that, in fact, we’ll probably need both. That we can’t necessarily trade all outputs for outcomes but we need a better understanding of how we get sustained improvements for our efforts and the Minister talked about Services Connect and Simon will present Services Connect in more detail later. So, I won’t go into it, but Services Connect is at the heart of how we want to have more integrated systems services that deliver a broader, inter-related set of outcomes. So, I think, the focus for us is how we keep these reform themes, and the actual reforms that they are related to, in frame. How in our day-to-day work, we start thinking about these themes, how we think about the structure of our delivery, the models of our services, the research or evidence that they’re based on, the impacts they appear to be having or not having, the opportunities to bring all of these themes together, as we go forward and the service sector reform project is one very important but one very important component of that. The Minister spoke about the principles and the challenge will be to put the principles into action. I think we agree on the principles. I’m not sure we’ll all agree on the best way to interpret some of the principles and the establishment of the Sector Reform Council which I know Michaela will talk about, is an important step in ensuring there’s strong dialogue between government and the sector, on these issues, but it isn’t the only avenue and it can’t be the only avenue, where we are having this set of complex and inter-related discussions about reform. Some of which is delivery, some of which is structural, but all of which is pretty critical. So, I think, this is a terrific opportunity to commence this discussion. To get in our frame what some of these reforms mean. What the size of them are, how far progressed some of them are. Where we’re up to and what role each and every person in this room in their organisation, and beyond, plays in taking this forward. And, of course, in doing that, we have a myriad – we have a number of relationships. We have a partnership around reform, policy, service delivery, going forward. We also have a regulatory relationship. We have a business relationship and we have an on-the-ground working with the client service delivery relationships. It’s not one single relationship between government and the community sector, it is a myriad of those and there are a myriad of relationships between yourselves as well. So, this has to be part of how we talk today. This group of relationships are the various ways in which we need to have dialogue, going into next year, and there’s two workshops this afternoon that will give you the opportunity to tell us what you think about the way we are working together and the transformation program and talk about what the structure of dialogue and discussion and interaction around these issues should be next year. This should be the start of very high level engagement around reform. I know, for example, in Geelong, where the NDIS launch site is well underway, there are many providers and government and a whole range of bodies, sleeves rolled up, integrally involved in how that launch rolls out. But, it is very important that other organisations get closer to that and understand the implications of what’s being trialled in Geelong for how we roll that out across the state. Services Connect is in pilot sites in a few places and, as the Minister said, now needs to be expanded. So, this is something on the ground that we are doing together, rather than something that you’re observing. And it needs to be something that a broader range of people are participating in. Those are just two of the reforms that I mentioned but it is important, out of this, that we have a clear road map for next year about how we are engaging in discussion and participating in the development of all of these things. So, I anticipate this being a beginning and next year being a year of very high intense engagement between us at a range of levels, and I hope that today, we can get some clarity about how we actually make that happen. And, I look forward to the discussions, as the day goes on. Thank you.