Jenny Macklin (Jagajaga, Australian Labor Party, Minister for Families, Housing, Community Services and Indigenous Affairs) Share this | Hansard source

by leave—New research released today confirms what community organisations have been telling us since the global economic crisis struck last year. More Australians are under financial stress and are turning to community organisations for help. At the same time, these organisations are experiencing a reduction in investment income, corporate funding and funding from philanthropic trusts and foundations.

The report commissioned by my department and undertaken by the Centre for Corporate Public Affairs examined the impact of the economic downturn on not-for-profit organisations. Its findings confirm the anecdotal evidence many members are hearing in their electorates. Sixty-five per cent of community organisations reported an increase in demand for services as a result of the economic downturn. And, in the coming year, they expect things to be even tougher. Almost all community organisations expect an increase in demand and most anticipate a further drop in donations. As more low- and middle-income earners seek the services of welfare agencies, they are expecting a spike in demand for emergency financial assistance and counselling, employment services and housing. For the organisations on the ground these are more than just statistics in a report. For them there are faces behind the numbers—each person’s own story, the circumstances of despair which bring them to the doors of emergency relief providers.

We know from earlier research that more than half the people seeking emergency relief are women. Nearly all are on income support. Some are homeless. Most asked for help because they had run out of food or money. And we know with the onslaught of the global financial crisis that many more families are being buffeted by rapidly changing events beyond their control. Many are struggling because they have lost their jobs or have had their working hours reduced. In such cases, suddenly more than half their income can be consumed by rent or mortgage repayments. Then there is not much left to buy food or pay the bills.

The government has acted promptly and decisively to support Australians through these difficult times. We have doubled emergency relief funding and provided funding for more financial counsellors. From 1 March 2009 until 30 June 2011, current funding to the emergency relief program has been doubled. That is an increase of more than $80.4 million. Eleven million dollars of emergency relief funding was distributed immediately to providers back in March to meet urgent demand.

Today I can announce the allocations of extra funds to charities for the next two years. Emergency relief funding will flow to 689 organisations working in 1,299 locations across Australia. This will help very vulnerable Australians in 297 locations across New South Wales, 257 in Victoria, 254 in Queensland, 184 in Western Australia, 177 in South Australia, 38 in Tasmania, 18 in the ACT and 76 in the Northern Territory. Because it is difficult to forecast emerging areas of need in an economic downturn, we are building the capacity and flexibility to respond quickly where we have to so that we can deliver help when and where it is most needed. For example, in communities which might be dependent on mining or manufacturing, a sudden downturn has an impact on everyone. It then puts enormous pressure on emergency relief services.

To make sure we can move emergency relief funding quickly to where it is needed, we are putting $10 million into key community organisations so that they can use their local knowledge and distribute emergency relief funding through other community organisations to get help to people when they need it quickly. We are also investing $2 million to improve training opportunities for the people who are the face of emergency relief—the workers at the frontline. All up, this means that over the next two years there will be more than $120 million in emergency relief funding out there in our communities, helping an estimated one million people a year.

But we know that, to get people back on their feet for the long term, we need to do more than just fix their immediate problems. We want to equip them to take action early when faced with personal financial difficulties to reduce the likelihood of problems escalating. This means using the capacity and reach of emergency relief organisations to connect people who are struggling financially with other services.

We do want to harness the front-door capacity of emergency relief services to build ongoing financial capability and resilience. That is why we are funding 50 new financial counselling positions for the next two years—to try to break this cycle of financial crisis. This brings the total number of government funded financial counselling positions to 121 across Australia.

We are also investing $50 million over two years in innovative money management projects. This will include no-interest loan schemes or matched savings schemes to help people build financial self-reliance. Details of the organisations to be funded under this program will be announced very soon.

What I have spoken about today builds on our commitment to rebuild our social infrastructure, whether it is our unprecedented investment in social housing and in our schools or delivering long overdue pension increases to over three million age pensioners, people with disability and their carers. Our commitment is to shape a nation which shares its wealth to create opportunity for all, which tackles disadvantage and brings the vulnerable in from the margins and works for the betterment of all our people.

I ask leave of the House to move a motion to enable the member for Cook to speak for seven minutes.

Leave granted.

I move:

That so much of the standing and sessional orders be suspended as would prevent the member for Cook speaking for a period not exceeding seven minutes.

Question agreed to.

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