Politics management help: Productivity commission In Australia
Executive Summary
Productivity commission an independent and advisory body was enquired by Australian government, to look into national disability scheme, and how it could be designed, administered, financed and implemented, in the late 2009. The report highlight that the service provided for disability segment was inefficient and under funded. The commission advised that National Disability Insurance Scheme (NDIS) must be designed in order to provide care and support for disable people. In the present scenario, the government is providing full support to the proposal of the productivity commission regarding NDIS. The services that are being provided to the disabled must be improved, but the main disagreement is arising in the context of fund scheme required for improvement in this segment. Productivity commission highlighted that NDIS will make a positive impact on the economic condition of the country. Labor market for people will also witness a possible increase for people with disability. Australian bureau of statistics highlighted that this step will prove to be extremely helpful positively affect the workforce with a disability and bring dignity into their lives. The final action plan, which is designed for an effective base of NDIS, requires a comprehensive and composite planning structure and joint efforts from the stakeholders. In order to make the scheme sustain for a long period the funding plan should be formally agreed by all the authorities.
Introduction
In 2009, the productivity commission an independent research body was specially ordered by Australian government to work upon the social, environmental and economic issues which are emotional; to the welfare of all Australians and national disability scheme and how it should be designed, administered, financed and implemented (Productivity Commission, 2012). In august 2011, the final report was submitted by the commission, which highlighted that the disability service of Australia was inefficient and under funded (Council of Australian Government, 2011). For this purpose, the commission proposed an NDIS, i.e. National Disability Insurance Scheme to create better facilities of care and support for the disables (Productivity Commission, 2012). The current status of fund for the disability sector, the total funding is around $7 billion dollars in which $2.3 is contributed by the federal government and $4.7 is given by territory and state governments. The commission has calculated that the amount needed to successfully establish the scheme will be double the figure. “Directing payment into consolidated revenue premium fund using agreed formula entrenched legislation” is the scheme, which is recommended by the commission to the government so that it can fund the entire bill amount. This amount can be contributed by the government if it reduces the amount that is spent on unimportant issues and also the government can hike up the tax level. Another option, which is comparatively less preferred, is that the government of all levels should contribute for the funds of the scheme (Dempsey & Nankervis, 2005).
Views of Federal, State and Territory government on NDIS
The report that has been submitted by the productivity commission for the scheme of NDIS has been able to gain the consent of all levels of government. The government agrees that the disability sector requires improvement in services. The main disagreement that is there between the two state governments i.e. federal and state government is related to the funding of the NDIS scheme (Australian Broadcasting Corporation, 2012).
Economic Scenario:
Productivity commission (2011) highlighted that implementation of NDIS will have a positive impact from the economic perspective. This scheme will lead to increase in the labor market for people who are disabled and will reduce their dependence on other people. Also it will increase the revenue level of the government from taxes and will give an expanded economic benefit. The implementation of this scheme will be immensely helpful in creating employment opportunities for disable people. The foremost problem is that NDIS is still in its reform stage, which raises the question on the economic benefit that it will be able to provide. For instance, it has been estimated that the scheme will lead to an increase in workforce of labor by 200000 which is a quarter of the total of disability support person (DSP) population. If this number is used in any model of microeconomics the results indicate massive economic gains (Long, 2012). The increase in the workforce of disabled will reduce the level of cost to be borne by the government and also lower down the burden of social security payment.
Sociological Scenario:
The sociological scenario of the scheme ensures positive results for society. The NDIS as a scheme will prove to be extremely helpful for the disabled people as it will make them a part of the society and also be valued as they will be given opportunities to participate in a community. The Australian bureau of statistics (2012) explained that such a step will have a positive impact on the lives of individuals. The people with a disability will be able to change their lives and bring dignity in their lives. It will make a positive impact on their mental health and also improve the choices they are going to undertake. In the words of Silver, (2010) most people who are suffering from disability tend to suffer from multiple disadvantages and their inclusion in the society and employment levels will help these people to fight discrimination and gain equal opportunity like other people (Silver, 2012).
Epidemiological Scenario:
In this context, final action that is taken under NDIS will require ample and combined attempt of effective planning and sequencing of actions, and also the efforts of the stakeholders within the disability system. A properly designed base will require a vigorous data system which is functional in accordance with all the authorities and lies within the disability structure (Ciro, 2011). The commission has laid effective guidelines to gain a successful base for the NDIS scheme.
Political Science Scenario:
In the words of Palmer and Short (2010) the federal political parties, which is in power, also influences the health insurance policies in most of the cases (Palmer and Short, 2010). In the context of Australia, it is necessary to highlight that there are four main political parties: The Australian Labor Party, Liberal Party, Australian Greens and National Party of Australia (Department of foreign affairs and trade, 2008). Presently, the party in power is Australian Labor Party, and its main opposition is Liberal Party. While the scheme has been able to gain positive acclaim from both parties the principal disagreement is in the context of funding of the scheme. Labor states are working in compliance with the federal government for funding of the scheme and also, some liberal states are offering minimal level of funding (Council of Australian Government, 2012). The Queensland government is not having sufficient funds, and on the other hand, it might be depressing the government to fulfill its responsibility for the disable people of Australia. If the policy is enacted it will prove to be beneficial for the labor party as they might take the full credit for implementation of the scheme and this, might prove to be a wrong step on the part of liberals.
Recommendations
In order to ensure the sustainability of the scheme, it is extremely essential that the funding scheme to be followed for the implementation of NDIS must be formally agreed upon by all the authorities. The NDIS should connect with low intensity response, which will help in reimbursing any inherent future cost that might have to be borne at the time of implementation of the scheme. This resolution should not be restricted to early life stages but should be spread out across the complete life span. The main focus of the scheme is to help the disable to identify their strengths so that they are able to participate in all acts of their communities. As explained by NSW Government (2012), the commission should make use of mechanism, which will prove to be helpful in identifying and supporting the low intensity sustenance needs and that will guarantee their community a tool of cooperation so that they are able to improve their lives for gaining higher levels of support (NSW Government, 2012). Along with this commission also needs to channelize its action in a manner so that it is able to cost effectively minimize the impact of disability. This will help in maximizing the social and economic participation of people who are suffering with disability (OECD, 2007). The prime option is to maximize and strengthen the axiological value of employment for people who are disabled. This will further facilitate delivery in establishing the relationship between NDIS and their employment services. The main focus of the productivity commission is that the scheme should not create any obstacle for the workforce engagement.
Conclusion
Thus, from the above discussion it can be summarized that NDIS scheme will have a significant and positive impact on the life of the disable people. It aims at covering the Australians who are suffering from any disability regardless of how and where they are situated. The final report that has been submitted by the productivity commission has been able to gain acceptance from all the political parties. The main disagreement, which is faced, is related to the funding scheme that should be adopted by the companies. Thus, it can be concluded that the scheme is designed effectively yet there is scope of some improvement before it is actually implemented.
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