CHAPTER 2 - THE BILLS

COMMONWEALTH SERVICES DELIVERY AGENCY BILL 1996
REFORM OF EMPLOYMENT SERVICES BILL 1996
REFORM OF EMPLOYMENT SERVICES (CONSEQUENTIAL PROVISIONS) BILL 1996
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CHAPTER 2 - THE BILLS

Commonwealth Services Delivery Agency Bill 1996

2.1 This Bill establishes a new statutory authority, the Commonwealth Services Delivery Agency (the Agency), to be responsible for delivering various Commonwealth services. It will be located in the Social Security portfolio.

2.2 Initially, the Agency will deliver all programs and services currently administered by the Department of Social Security (DSS), plus some services currently provided by the Department of Employment, Education, Training and Youth Affairs (DEETYA) and the Department of Health and Family Services (DHFS). These include employment services, income support, child care payments, student assistance and services to families and youth. In the longer term, it is intended that the Agency will deliver services that are the responsibility of other Commonwealth departments [1] thus becoming a one-stop-shop for a wide range of government services.

2.3 The objectives in creating the Agency are to provide an improved standard of service delivery to the community and to individuals, and to increase service delivery efficiency and effectiveness. [2] The Agency will simplify and streamline service delivery through an integrated and national network of offices. The current DSS network of regional offices, together with its Teleservice Centres, Family Service Centres and Retirement Service Centres, will go to the Agency and form the core of its service outlets. It will also take on some offices that are now part of the CES network along with the Student Assistance Centres. [3]

Reform of Employment Services Bill 1996

Reform of Employment Services (Consequential Provisions) Bill 1996

2.4 Comprehensive reforms of labour market assistance for unemployed Australians were announced in the August 1996 Budget. The proposed reforms were detailed in a Ministerial statement, Reforming Employment Assistance. Following the release of that statement the Government consulted extensively with interested parties across Australia. Fifty-eight meetings, spanning all capital cities and four regional centres, were held with welfare organisations, community groups, employment service and training providers and organisations representing employer and job seeker interests. Some 340 written submissions were lodged as a part of this consultative process. A report on the public consultations was released in November 1996 (DEETYA, Reforming Employment Assistance).

2.5 The Reform of Employment Services Bill aims to set up a more effective system for the provision of employment services for job seekers by establishing mechanisms to deliver employment services and by establishing a fully competitive market for employment assistance. In particular, the Bill will:

2.6 The Bill provides for the provision of `employment services' by private, community and public sector entities contracted by the Commonwealth. `Employment services' means unemployment benefits within the terms of the Constitution and encompasses both unemployment benefit payments and services which assist the unemployed. In the Bill, `employment services' includes self help assistance, labour exchange, job search assistance, employment assistance, and entry level training support services.

2.7 Employment assistance will be the most intensive form of assistance and may involve training, job search assistance, wage subsidies or other innovative and flexible forms of assistance as determined by the Employment Minister. Employment assistance will be based on an assessment of personal need and will be provided to eligible job seekers by the employment placement enterprises (EPEs) contracted by the Commonwealth. EPEs will be able to decide with the participant the optimal kinds and mix of assistance needed to get the participant a job.

2.8 The public provider of employment services will be the Public Employment Placement Enterprise (PEPE). PEPE will be a company under the Corporations Law, wholly owned by the Commonwealth. In line with the Government's requirement for competitive neutrality in the employment services market, the legislation does not distinguish among private and community providers the EPEs and the public provider PEPE.

2.9 The Commonwealth Services Delivery Agency will be responsible for deciding, based on broad eligibility criteria in the legislation, which job seekers will be participants in the employment assistance scheme. To ensure that places are directed to job seekers most in need and who have the capacity to benefit from assistance, the legislation provides for discretion on the part of the Agency to ration the flow of people eligible for employment assistance into employment assistance participation. The referral process is provided for in the legislation. If there is more than one EPE to which a participant could reasonably be referred, the participant will be given the opportunity to nominate the EPE he or she would prefer. The Agency will nominate an EPE for those participants who do not express a preference.

2.10 The legislation requires participants to enter into an Employment Assistance Activity Agreement (EAAA) with the EPE providing their employment assistance, setting out a program of activities aimed at getting the participant a job or improving their job prospects. The EAAA will also set out the rights and responsibilities of the EPE and job seeker and the timeframe for completing these activities. The EAAA must take into account the participants' capacity to comply with the agreement.

2.11 Some job seekers may not meet the eligibility criteria for employment assistance as determined by the Employment Minister. A formal and objective special needs assessment may see whether employment assistance of the type and level able to be offered is suitable for the job seeker's special needs. The legislation enables the Agency to refer a person to a new community support program in order to gain assistance in accessing services that will address disadvantages that are acting as a barrier to achieving employment.

2.12 The legislation provides for access by the Commonwealth to information to enable it to monitor compliance with contractual arrangements and meet accountability requirements, and also access information for more general monitoring and evaluation purposes.

2.13 The legislation also provides for the establishment of a national advisory committee to advise on the provision of employment services and for the establishment of regionally-based area committees to advise the Employment Secretary on employment and training opportunities and increase the Department's responsiveness to regional labour markets.

2.14 Other provisions in the Bill provide for protections and accountability mechanisms for the government, service providers and job seekers including:

2.15 The Reform of Employment Services (Consequential Provisions) Bill 1996 deals with consequential matters arising from the Reform of Employment Services Bill 1996. The Bill repeals the Employment Services Act 1994 and provides for transitional arrangements in relation to the cessation of the present case management system. Other amendments include extending the operation of the Freedom of Information and Privacy Acts to the new arrangements for the provision of employment services and providing for the Ombudsman to investigate complaints about the provision of employment services. The Bill also amends a number of other Acts as a consequence of the abolition of the CES.

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FOOTNOTES:

[1] Commonwealth Services Delivery Agency Bill, Explanatory Memorandum, p.1.

[2] Minister's Second Reading speech, House of Representatives Hansard, 4 December 1996, p.7414.

[3] ibid.

[4] Reform of Employment Services Bill, Explanatory Memorandum, p.4. The description of the Bill in this part has been summarised from the outline and purpose sections of the explanatory memorandum and the Minister's Second Reading speech.