David Johnston (WA, Liberal Party, Minister for Justice and Customs) Share this | Hansard source

I thank senators for their contributions in this debate on the Employment and Workplace Relations Legislation Amendment (Welfare to Work and Vocational Rehabilitation Services) Bill 2006. In summing up, I want to say that the bill contains a number of amendments to the Disability Services Act to support the staged introduction of contestability of vocational rehabilitation services. Currently the only organisation providing Australian government funded vocational rehabilitation services is CRS Australia. This bill, in supporting the opening-up of the vocational rehabilitation services market, ensures that people with injuries or disabilities will have better opportunities for assistance. The government’s proposed amendments to the Disability Services Act 1986 are about providing choice and diversity for people who require rehabilitation to assist them getting back into employment.

The services that different organisations will provide will help ensure that people will have the range of support they will need to help them re-enter the workforce. These changes will be implemented from 1 July 2007. Competition will mean that job seekers in most locations around Australia will be able to choose which provider best suits them, and star ratings will be developed to help job seekers identify which providers offer the best services. Having more providers will also mean better coverage for many regions, rather than job seekers relying solely on the one provider. CRS Australia is currently the national provider monopoly, and a monopoly means the government runs the risk that if people are unhappy with services there will be no alternative.

Introducing new players into the market will lead to innovation. We will see this in virtually every industry. Where there is more than one player in the market, there will be additional incentives to improve performance. Maximising outcomes for a diverse job seeker population requires responsiveness, creativity and flexibility. Competition among multiple providers will drive this. This forms part of the government’s continued commitment to help job seekers build capacity and find and maintain work through employment and related services.

The government’s vision for supporting people with disabilities is to provide more opportunities for participation in the economic and social life of the community. The amendments in this bill uphold the integrity of the social security law and ensure that the right people are granted the right payments and allowances. It is about providing consistency with the administration of the social security system.

I would also like to clarify certain points that speakers have raised in relation to the pensioner education supplement. Senators on the other side would have you believe that we are abolishing the pensioner education supplement altogether. Eligibility for the pensioner education supplement was extended through special provisions of the DSP transition group—that is, those people who claimed and were granted DSP between 11 May 2005 and 30 June 2006 and who have transferred to Newstart or Youth Allowance as part of the Welfare to Work reforms. People who have an ongoing eligibility for the disability support pension or parenting payment will continue to receive this supplement.

It would also seem that some senators have not properly understood how vocational rehabilitation services actually work. Vocational rehabilitation providers have not and will not diagnose an individual’s medical condition. To receive vocational rehabilitation services, job seekers must first be assessed by a job capacity assessor. This is the same process for job seekers who are referred to Disability Employment Network providers. Job capacity assessors are able to use this information to make an assessment of the impact of any health, injury or personal barriers on work capacity. This system will continue with job seekers who are referred to new private sector vocational rehabilitation providers undertaking the same assessments as those referred to CRS Australia. We are not changing the process of referral with these legislative amendments. The system that has operated as part of Welfare to Work will continue into the future.

I would also like to address and clarify certain points in relation to financial case management and breaching. Members on the other side continue to peddle this claim that our system of accountability is harsh and onerous. Case management under Welfare to Work is providing additional safeguards to protect the most vulnerable in our society. Claims by the outspoken opposition spokesperson, Senator Wong, and many other senators that it is ‘one strike and you are out’ within the system are absolutely wrong and typical of Labor trying to mislead the public once again. The learned senator has not done her homework with respect to this proposal. The facts are clear. Under Welfare to Work, if an individual breaches their agreement to look for work or participate in mutual obligation three or more times without a reasonable excuse in a 12-month period then they will receive an eight-week penalty. Only people who fail to accept a suitable job or leave a job for no reason may be automatically penalised. Claims that people will lose their houses or go hungry as a result of case management are absurd.

The system is not harsh; it is very fair and encourages the unemployed to make the most of the assistance provided to them and take up work opportunities. People in receipt of taxpayer funded income support usually want to work and actively look for a job. There are built-in safeguards to ensure job seekers only lose payment when they deliberately and knowingly choose not to look for work or accept a suitable job offer. The system is not about forcibly imposing penalties on individuals. The reformed case management program attempts to protect and assist an individual at every step—to continue to provide any ongoing assistance required to find a job. These measures will help to further provide assistance to vocationally rehabilitate or reskill these individuals to help them remain in or enter the workplace. I commend the bill to the Senate.

Question agreed to.

Bill read a second time.