2013 Not for Profit Summit Opening Address Lynne Wannan 15

Not For Profit Summit 2013 Actions for Sustainability

Lynne Wannan Director Office for the Community Sector Department of Human Services

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Housekeeping Hearing loop Requested dietary requirements Twitter - #nfps2013

Mobile phones - silent Feedback Copies of presentations Networking list 3

Actions for sustainability – Why this theme? • Lots of change going on around us – demographic and policy wise • increasing demand and increasing complexity • increasing cost • a view that the way services have been provided has failed too many people and…. • recognition of how important the community sector is to supporting the Victorian people and thus to Victoria

Victoria - Changing Demographics • Victoria’s population has increased 8.5% between 2006 and 2011 • Victoria’s population is projected to rise from 5.5 million in 2011 to 7.3 million by 2031

• Gippsland is projected to expand from 248,500 to 306,600 between 2006 and 2036 And people are living longer 5

‘NEW’ ECONOMY

- global economy - neo-liberalism - computerisation / IT - specialised skills - social finance

The forces of change and their impacts (DPCD)

The knowledge economy/society - turbulent - uncertain - discontinuous - mobile

INDIVIDUALISATION - more freedom of choice - loss of traditions - different values

Different places / different communities - New divisions of labour - New roles for places - New settlement patterns - Different community prospects

The public service economy “A public economy need not be an exclusive government monopoly. It can be a mixed economy

with substantial private participation in the delivery of public services.” -

Vincent & Elinor Ostrom

(Beyond Public & Private, Gary L. Sturgess, NSW Premier’s ANZSOG Chair of Public Service Delivery)

Australia’s public service economy • 90% of residential aged care is delivered by the private and third sectors • 40% of hospital inpatients are treated in a private hospital • 30% of school students attend a private school • 20% of prisoners are managed by a private provider (Beyond Public & Private, Gary L. Sturgess, NSW Premier’s ANZSOG Chair of Public Service Delivery)

Victoria – increasing demand • Victorians made 55,000 reports of suspected abuse and neglect of children in 2010-11 – an increase of 49% from 2000

• The number of children in out-of-home care is growing – 5.3%per year - for aboriginal children the growth is on average 10.6% per annum • The number of people receiving homelessness services has increased by 6.8 per cent from 2005/06-09/10 • The number of children under 15 accessing homelessness services without a parent or guardian increased by 100% between 2005/06 and 2009/10

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Growing Cost of Disadvantage • Right now disadvantage is estimated to cost the Victorian economy $4.6 billion a year • An additional $213 million is spent on alcohol and other drug and non-clinical mental health services • The impact on individuals and families is also a big cost and lost opportunities • The much valued increases to the Social and Community Service (SACS) Award are estimated to cost in excess of $2 billion over the next several years

Multiple and complex disadvantage • A 2010 survey of young offenders in custody revealed that 35 per cent had previous child protection involvement, 34 per cent presented with mental health issues, and 88 per cent of cases had alcohol or drug use related to their offending • Research into disadvantage consistently indicates that families experiencing the most problems tend to be the least financially secure and often have multiple disadvantages. A relatively common constellation of disadvantages are low income and assets; low skills; difficulties finding and keeping a job; housing stress and poor health.

Too many Victorian service recipients have failed to thrive A DHS survey in 2012 of 162 males and 10 females in custody showed: •

34% had previous child protection orders

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67% had been expelled from school

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9% were registered with disability services

Victoria’s Vulnerable Children Inquiry (2012) reported that:

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Of the approx. 37,500 children who were the subject of a reoport on 09/10 almost 40% had been the subject of a substantiated case of abuse or neglect from 09/10 or earlier reports

Significance of the community sector • Australia’s public service sector accounts for 1520% of GDP, more than the mining and manufacturing sectors combined. • Community Organisations employ 8% of the national workforce • The Victorian government provides more than $2.2 billion annually to the community sector for service delivery • The sector contributes $43 billion to Australia’s Gross Domestic Product

Building community connectedness • Between 2006 and 2011, 11.3% of Victoria’s population provided unpaid assistance to a person with a disability (within 2 weeks prior to Census) • The economic value of volunteering in Victoria was in excess of $16 billion in 2006

• There are approximately 360 Neighbourhood Houses across Victoria with at least one Neighbourhood House in just about every town and suburb in Victoria

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Community Services - Constant Evolution

Focus of today It’s all about ensuring your organisation is sustainable as change unfolds -

• Getting the workforce right – both paid and unpaid • Sourcing finance for development and growth -Social • Engaging young people • Responding to people with complex needs • Getting the governance right for the changing environment • New models emerging as needs change; small and sustainable

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