CHAPTER 1
Introduction
Terms of reference
1.1
On 22 August 2011 the Senate referred the following matters to the
Senate Education, Employment and Workplace Relations References Committee for
inquiry and report by 22 November 2011:
The administration and purchasing of Disability Employment
Services (DES) in Australia, with particular reference to the Government’s
2011-12 budget announcement to undertake a competitive tender of the Disability
Employment Services – Employment Support Services program for contracts with a
performance rating of 3 stars and below under the Department of Education,
Employment and Workplace Relations’ DES Performance Framework, including:
(a) the impact of tendering more than 80 per cent of the
current DES on the clients with disability and employers they support under the
current contracts;
(b) the potential impact of losing experienced staff;
(c) whether competitive tendering of more than 80 per cent of
the market delivers the best value for money and is the most effective way in
which to meet the stated objectives of:
(i) testing the market,
(ii) allowing new ‘players’ into
the market, and
(iii) removing poor performers
from the market;
(d) whether the DES Performance Framework provides the best
means of assessing a provider’s ability to deliver services which meet the
stated objectives of the Disability Services Act 1986 such as enabling
services that are flexible and responsive to the needs and aspirations of
people with disabilities, and encourage innovation in the provision of such
services;
(e) the congruency of 3 year contracting periods with
long-term relationship based nature of Disability Employment Services – Employment Support Services program, and the impact of moving to 5 year
contract periods as recommended in the 2009 Education, Employment and Workplace
Relations References Committee report, DEEWR tender process to award
employment services contract; and
(f) the timing of the tender process given the role of DES
providers in implementing the Government’s changes to the disability support
pension.[1]
1.2
The Senate set 22 November 2011 as the reporting date for this inquiry.
This was subsequently extended to 25 November 2011.
Conduct of the inquiry
1.3
Notice of the inquiry was posted on the committee's website and
advertised in The Australian newspaper, calling for submissions by 26
September 2011. The committee also directly contacted a number of interested
parties to notify them of the inquiry and to invite submissions. The committee
has received a total of 90 public submissions as listed at Appendix 1. Appendix
1 also includes information of answers to questions on notice and documents
tabled by the committee.
1.4
The committee conducted a public hearing in Melbourne on 27 October
2011. Witnesses who appeared before the committee are listed at Appendix 2. The
Department of Education, Employment and Workplace Relations also provided the
committee with a presentation on the regression model used to rank Disability
Employment Service providers.
1.5
Copies of the Hansard transcript from the hearing are tabled for the
information of the Senate. They can be accessed online at http://aph.gov.au/hansard.
Structure of this report
1.6
The committee's report is structured in the following way:
(a) Chapter 1 (this chapter) outlines the conduct of the inquiry;
(b) Chapter 2 discusses the current and historic Disability Employment
Services;
(c) Chapter 3 summarises the key issues raised by during the course of the
inquiry; and
(d) Chapter 4 discusses the performance framework in depth.
Note on references
1.7
Submission references in this report are to individual submissions as
received by the committee, not a bound volume. References in this report are to
the proof Hansard. Please note that page numbers may vary between the proof and
the official transcripts.
Acknowledgements
1.8
The committee would like to thank the large number of individuals and
organisations who took the time to make submissions that helped shape the
thinking of the committee in preparing to write this report.
1.9
The committee would also like to thank Ms Channelle Leeder, Miss
Maranatha Sao-Mafiti and Mr Brian Wood who appeared before the committee at a
public hearing in Melbourne and shared their personal experiences as people
with a disability seeking work.
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