More Government cuts for community workers?

By ASU-NSW & ACT (Services) Branch

With the community services sector and workers in not-for-profit and charitable services still reeling from the effects of changes to tax arrangements due to come into effect on July 1st, another serious challenge has emerged for the Government in relation to the proposed efficiency dividend of 2% that the Government imposed on most departments as part of the budget.

The Australian Services Union (ASU) claims that it has been unable to get a response from the Government on whether or not the efficiency dividend will be required of programs that the Government funds in the social and welfare area. These programs, like Community Housing Programs, Home and Community Care Programs, Disability and Accommodation support programs, Community Legal Centres and Family and Relationship Services would effectively have their funding cut if the 2% efficiency dividend was applied.

"We have been unable to get any clarification from the Government on this issue," said NSW ASU Secretary Sally McManus. "It would be staggering if the Government applied these efficiency dividends to community service programs. There is no fat in these programs and the application of any so called efficiency dividend would inevitably lead to cuts in services to the most disadvantaged and marginalised," said Ms McManus.

The Australian Services Union is also yet to hear if the Government will meet its election commitment to increase funding to community service organisations to keep pace with increased wages, a commitment that came directly from Mr Rudd's office when he was Opposition Leader.

"With wages due to increase by 3.5% on July 1st in NSW and with other wage increases in the pipeline in other States, it is absolutely imperative that the Government meet its election commitment," Ms McManus said.

"This Government has made much of its desire to keep faith with the Australian electorate by keeping all of its election commitments, this is one commitment that we have yet to see delivered," she said.

Each year the Government supplements or indexes its grants to keep pace with increased costs. Whilst the NSW and ACT governments have made it clear that they will index grants to keep pace with increased wage costs the Commonwealth has yet to clarify this matter more than a month after the budget.