Community sector strengthening
Price Index Negotiations 2009-2012
Negotiations have been underway for some time regarding indexation for the 2009-2012 Funding and Service Agreements between the Department of Human Services and health, housing and community services. The Price Index Working Group reached a settlement on indexation with Government on May 4.
VCOSS is pleased to confirm that the Government has committed to an annual indexation of 3.14% each year for three years, plus a continuation of the $2m per year capacity building payments allocated across the sector.
This figure is an increase from the previous rate of 2.9% plus the $2m capacity building payment and applies to the Department of Human Services (DHS) and Department of Education and Early Childhood Development (DEECD) funded community organisations.
VCOSS had been advocating strongly for a 4.2% Price Index, based on advice provided by the Allen Consulting Group last year. However, it has been clear over the last few weeks that the economic climate has contributed to significant reductions in Consumer Price Index (CPI) and Wage Price Index (WPI) projections and we were concerned that this would lead to a significantly lower Price Index offer. We welcome the increase in the Price Index and the certainty it provides to organisations over the next three years given current economic conditions.
VCOSS also welcomes the continuation of the additional $2m capacity building payment, which is on top of the indexation rate as its allocation is controlled by the development needs of each organisation. Although this payment itself has not been increased since the last agreement, it does bring the total indexation rate to around 3.3%.
VCOSS had campaigned for the Price Index to apply to all government funded services. Unfortunately, the current price index only applies to DHS and DEECD funded organisations (with exceptions such as HACC and kindergartens). VCOSS will undertake further advocacy work with relevant organisations to engage other departments, including the Department for Planning and Community Development and the Department of Justice, for broader implementation of the Price Index.
This outcome was possible thanks to the combined efforts of all the organisations and individuals who have taken part in the Community Sector Sustainability Campaign. This campaign has included The Allen Consulting Group/ VCOSS productivity cuts survey and report, the Community Sector Advocacy Day, significant local and state media coverage initiated by community organisations and peak bodies and the lobbying of local MPs by many organisations. A big thank you to everyone who has participated in this campaign including the members of the Price Index Working Group.
For more information, please contact Paula Grogan at VCOSS, E: paula.grogan@vcoss.org.au
Download the Price Index May 4 media release
Community Sector Advocacy Day
VCOSS hosted a Community Sector Advocacy Day at Parliament House on March 11. The Advocacy Day was a new initiative for the community sector in Victoria and provided an opportunity to showcase the diversity of our sector and the challenges and opportunities it faces. In total, thirty-seven Members of Parliament along with forty-nine representatives of the community sector participated.
A key aim of the day was to highlight the funding pressures faced by community organisations particularly given the global economic downturn and the increased demand for services. The community sector is calling for indexation of 4.2% to ensure the value of funding keeps pace with the costs of service delivery.
A report about the day is available here (Word, 184KB).
A background paper presented to MPs about the key issues is available here (PDF, 440KB) .
Price Indexation Working Group
The Price Indexation Working Group was established to work on behalf of the community sector to negotiate the best possible level of indexation for the 2009-2012 period. As a sub-committee of the VCOSS Statewide Peaks and Networks Forum, this Working Group is chaired by the CEO of VCOSS and resourced by the VCOSS Human Services Partnership Policy Officer. Membership includes representatives from a range of peak bodies across the sector:
- National Disability Services Victoria
- Youth Affairs Council of Victoria
- Association of Neighbourhood Houses and Learning Centres
- Kindergarten Parents Victoria Council to Homeless Persons Jesuit Social Services
- Mackillop Family Services
- VICSERV
- Centre for Excellence in Child and Family Welfare
- Berry St Victoria
- Action on Disability in Ethic Communities
- VCOSS
The Price Index Working Group has played a pivotal role in securing the 3.14% annual indexation and the continuation of the $2 million per year capacity building payments.
'NGO Price Indexation', Allen Consulting Group, August 2008
Background Paper - NGO Price Index and CPI changes