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A PUBLICATION OF THE COMMUNITY & PUBLIC SECTOR UNIONSPSF GROUP - VICTORIAN BRANCH - WWW.CPSUVIC.ORG
issue 3 | volume 28 | winter edition
PUBLICPERSPECTIVE
PRISON PRIVATISATION NATIONAL REPORT
- SEE PAGE 14
PRIVATISATION TROJAN HORSES
THE PRODUCTIVITY COMMISSION IS CURRENTLY UNDERTAKING A REVIEW
TO PUSH FOR FURTHER PRIVATISATION OF OUR HUMAN SERVICES
- SEE PAGE 6
VISIT CPSUVIC.ORG
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CONTENTS3. CADETSHIP INITIATIVE UPDATE WorkonthedevelopmentofaCadetshipProgramis
wellunderway.
4. KEEPING WORK IN-HOUSE Strengtheningourpublicsectoristhetaskdriving
Victoria’sSpecialMinisterofStateGavinJennings.
6. PRIVATISATION TROJAN HORSES TheProductivityCommissioniscurrentlyundertaking
areviewtopushforfurtherprivatisationofourhumanservices.
8. SOCIAL BONDS HAVING NO IMPACT Moreexamplesoftheconceptsfailureoverseas,as
socialbondsarerightlybeingcriticised.
10. FRED CULLEN, JOE BIDEN AND THE U.S. FLAG
TheVicePresidentialvisittoMelbournerecentlyledJoeBidenstraighttostalwartCPSULifememberFredCullenOAMaboutacertainU.S.flag.
12. 1ST CONSCRIPTION REFERENDUM CENTENARY NewresearchbyRobertBollardprovidesafascinatinginsightinsideourpredecessorunion,theVictorianStateServicesFederation(VSSF)
14. PRISON PRIVATISATION Withprivatecontractorsoperatingninefacilitiesin
fivedifferentstates,Australiahasthehighestrateofprivateincarcerationpercapitaofanycountryintheworld.
PUBLICPERSPECTIVE
PUBLIC PERSPECTIVE IS A PUBLICATION OF THE COMMUNITY & PUBLIC SECTOR UNION SPSF GROUP - VICTORIAN BRANCH -
WWW.CPSUVIC.ORG
WORK ON THE DEVELOPMENT OF A CADETSHIP PROGRAM IS WELL UNDERWAY.
ArisingfromournewVictorianPublicServiceEnterpriseAgreement,theinitiativeisincludedintheServiceDeliveryPartnershipPlan(SDPP)whichfocusesonimprovingservicedeliveryandbuildingthecapabilityoftheVPS.
TheprogramisbeingdesignedtoworkasacontinuumofYEStraineeships.
ThepartnershipwillprovideyoungdisadvantagedVictorianswithanopportunitytobeplacedwithinthepublicserviceandtoreceivetrainingtowardsacquiringanewqualificationatCertificate4level.
ThecadetswouldbeemployeddirectlybyaDepartmentoragencycoveredbytheEnterpriseAgreementatGrade1level.
TheywouldthenbeenrolledintoaCertificate4inGovernmentwhichispartoftheGovernmentSkillsAustraliaApprovedTrainingpackages.
ThecertificateisrecognisedAustraliawideandwillprovideagoodbaseforthecadetsinlookingforongoingjobsinVictoriaandinterstate.Theprogramwillbeevaluatedoverthe3yearsofthepilottoensurethatthetargetoutcomesarebeingachieved.
TheunionandDEDJTRwilldevelopamentorprogramtoensureanydifficultiesthecadetsmayencountercanbeaddressedratherthanhavethemdropout.
ThisinitiativewillassistmanyyoungunemployedVictoriansintoarewardingcareerintheVictorianPublicServiceandunderpintheGovernments’jobscommitment.
CADETSHIP INITIATIVE UPDATE
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KEEPING WORK IN-HOUSE
Gavin JenningsrecentlytoldonlinemagazineTheMandarinthatGovernmentcertainlywantstobemoreconfidentintheknowledgebasecentrallyandwithinagenciessowe’llbeabletomakewiserdecisionsabouthowmuchgoesoutsideandwhowegoto.
TheGovernmentwantstobuildthecapabilitiesandskillsetsofinhousestaffwhilemovingawayfromtheexpensiverelianceonoutsourcedadvice.
Whilethepreviousgovernment’sanswertothiswastogivepreferencetooutsourcing,Jenningssays,hewouldratherbuildin-houseability.
ThemoveisseenastimelyasGovernment’sfaceanincreasinghostileelectoratetiredofexcusesforfailingpublicinfrastructureandservicesandquestionsaboutwhetherwidespreadoutsourcinghasbeenworthwhileincludingfromformerPrimeMinisterandCabinetheadTerryMoran.
LastyeartheGovernmentwonwidespreadpraisewhenitcancelledthepreviousgovernment’splanstooutsourcethestate’ssharedITservicesproviderCenITex.
Governmentstoppedthatprocesssowecouldbringitinhouseanddevelopourworkingknowledgetobeabletomakemorematuredecisionsabouthardwareandsoftwaremaintenanceregimesinthefuture,Jenningssaid.
Thegovernmentplanstosignoffonanewstrategyshortlyandpartofthesolutionwillbeskillingupexistingemployees,includingmanagers.
“Theydon’thavetobecometechnicians,theydon’thavetobecomespecialists,buttheyhavetohaveagreaterappreciationofwhatourcurrentcapabilityisandwhatoptionstheremaybeavailabletothem.
“Theyhavetohaveskilldevelopmentwithinorganisationstoliftthegeneralcapabilityacrosstheworkforce…Wehavetomakesurewehaveaworkingculturethatvaluesthatskillbaseanddevelopsitovertime”JenningstoldTheMandarin.
STRENGTHENING OUR PUBLIC SECTOR IS
THE TASK DRIVING VICTORIA’S SPECIAL
MINISTER OF STATE GAVIN JENNINGS.
CONSULTANCIES (SOURCE ANNUAL REPORTS)
2013/14 (excl. GST) 2014/15 (excl. GST)
DEDJTR $4.26 million DTPLI $13.23 million
DELWP $2.603 million DEPI $3.102 million
DTF $3.601 million $21.4 million
DoJR $379,998 $379,094
DET $2.040 million $5.6 million
DPC $1.025 million $1.307 million
DHS inc DOH $5.697 million $11.06 million
Vic. Police $2.612 million $2.836 million
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PRIVATISATION TROJAN HORSES
Casestudiesshowthattheseprivatisationattemptshaveresultedinlessaccountabilityandadiminishedqualityofservice.
TheProductivityCommissionisattemptingtoapplymarketprinciplesofcompetition,contestability,anduserchoicebasedonassumptionsthatoftendonotexistintheareaofpublicservicedelivery.
ThisProductivityCommissioninquiryunfortunatelyisafaitaccompli.
TheFederalGovernmenthasdesignedtheinquirytoproducerecommendationsforthefurtherprivatisationofpublicservices,whichwilldonothingtoimproveservicequality.
CPSUwouldwelcomeagenuinediscussionintohowwecanbetterdeliverpublicservicesthatwouldbeopentoalloptions.
Thismustincludeincreasingresourcesandfundingforservices;directcitizeninvolvementinco-designingservices;andholisticservicedeliverywhichtakesanintegrated,whole-of-governmentapproachtocomplexsocialproblems.
It’sdisappointingthattheFederalgovernmentandtheProductivityCommissionisonlyinterestedinexploringoptionsthatwilltakecontrolofpublicservicesawayfromourcommunity,andputtaxpayermoneyintothepocketsofprivateers.
Timeforarealdiscussionabouttheservicesourcommunityneeds.
THE PRODUCTIVITY COMMISSION IS CURRENTLY UNDERTAKING A REVIEW TO PUSH FOR FURTHER PRIVATISATION OF OUR HUMAN SERVICES DESPITE WIDESPREAD EVIDENCE THAT THESE CHANGES IN PRISONS, EMPLOYMENT SERVICES, AND THE VET SECTOR HAVE NOT BEEN SUCCESSFUL IN DELIVERING BETTER SERVICES.
TheFederalGovernmentaskedtheCommissionjustpriortotherecentgeneralelectiontoundertakeaninquiryusingthelatestprivatisationbuzzwordstosetoutthetaskrequiredaslookingfor”theincreasedapplicationofcompetition,contestabilityandinformeduserchoicetohumanservices”.
‘Humanservices’aredefinedascoveringadiverserangeofpublicservices,includinghealth,education,communityservices,jobservices,socialhousing,prisons,agedcare,anddisabilityservices;howevertheinquirystatesthatthislistisnotexhaustive,andtheFederalGovernmentisalsoopentoothersuggestionsforservicesthatcouldbeprivatised!
Theinquiryispredicatedontwopoints:first,thathumanservicesneedtobeimproved,andsecond,thattheonlywaytoimproveservicedeliveryisthroughincreased‘competition,contestabilityanduserchoice’(privatisation).
Surelyagenuinediscussiononservicedeliverywouldbeginwithestablishingifpublicservicesneedtobereformed,andthenwouldcommenceadialoguewhichisopentoallideasforimprovingservices.
Itisclearfromthetermsofreferenceandtheissuespaperthatthisinquiryisnotaboutgenuinelyimprovinghumanservicedelivery–itisabouttheprivatisationofmorepublicservices.
Privatisationand‘themarket’donotdeliverbetterhumanservices.
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SOCIAL BONDS HAVING NO IMPACT
Ifgovernmentsthoughtthemodelwasthebees’kneesthenthey’dapplyitacrosstheirinhousedepartmentalservicedeliverypersonnelbuttheydon’tandwon’t,andthat’sthedeadgiveawayaboutthemotivation.
Thereisalreadywidespreadprivatisationofourchildprotectionresidentialcareservicestonon-governmentandfaithbasedproviderswithinexcusablelevelsofneglectaboutbasictransparencyandaccountabilitytoVictoriansabouthowandwhoisstaffingtheseprogramsandwherethemoneyisspent.
TheBondmodeljustfurtherencouragesthisracetothebottomwithlowwagesandcasualisationoftheworkforcewhobecomeentrustedwiththeresponsibilityforlookingafterourmostvulnerablecitizens.
Hardlysomethinganycaring,maturecountrywouldwishtoaspireto.
New Zealand government’s firstsocialimpactbondpilothascollapsedleavingmorethanNZ$1.5milliondollarsspentontheprojectsofar,andnothingtoshowforit.Whenessentialservices,likeLifelineinNewZealand,strugglingforfundsandfacingclosure,it’sirresponsibleforGovernment'stowastemoneybyexperimentingwithfailedfundingmodels.
‘Thefundingwouldhavebeenbetterusedbythestatetodesignanddeliverexcellentsocialservicesthatwork,’saidourNZPSAcolleagues.
Thisisyetanotherexampleoftheconceptsfailureoverseas,associalbondsarerightlybeingcriticisedastheresourcesdirectedatachievingparticularoutcomesisnotincreased.
Inrealitynosocialbondcontracthasyetbeenpaidoutanywhere.
Evidenceisshowingthatthesemedievalfinancingarrangementsjustcreatebudgetinginflexibilityanddivertmoneyfromotherprojectsasspendingcommitmentsarepushedyearsinadvance.
Themotivationofgovernmentsisshorttermcostandriskshiftinglikeallformsofprivatisation.
Resourcingresponsibilityisjustshiftedtospeculatorsandprivateerswhowantstateunderwrittenmonetaryreturnsrelyingondifficulttodefineoutcomemeasuresandweakevaluation.
ProponentsarejustconfusingPrivatisationwithPhilanthropy.
InAustralia,NewSouthWalesistriallingsocialimpactbonds,howeverthebenevolentsocietySIBtrialinthatStateisjustbusinessasusual(BAU)accordingtoouranalysisandwithasmallsampleoffamiliesandfixedcosts,theprojecthasbeenleftoveritsbudgetedcostandanylosseswillcertainlybesocialised.UnfortunatelytheSouthAustralian,QueenslandandVictoriangovernmentshaveexpressedinterestintheseshinynewtoysalso.
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FRED CULLEN, JOE BIDEN AND THE U.S. FLAG
The Vice Presidential visit to MelbournerecentlyledJoeBidenstraighttostalwartCPSULifememberFredCullenOAMaboutacertainU.S.flag.
InitiallyflownbyUSmarineswhentheylandedinGuadalcanalin1942theflaghadbeenpresentedtotheRSLin1957andfounditshomeatIvanhoeRSLwhereFredwasPresident.
FredhailedfromSheppartonandstartedworkasateacherofgrade7atAscotValeWestpublicschoolwhilestillateenagerandwasjust19whenhe‘escaped’fromhisjobasateachertovolunteerforthearmy.
Fredsaiditwasamatterofeconomicnecessitywithteacherpayandaccommodationcosts’leavinghimjust4shillingsaweektoliveonthatitwasanobrainertoenlistwithfullboardandtheArmyoffering35shillingsaweek.
FredservedinLae,theRamuValleyandMarkhamValley,allinNewGuineawiththe4thFieldRegiment,RoyalAustralianArtillery.
Fredsufferedfourboutsofdenguefeverbeforehewassenthomeinjuredonahospitalshipin1944afterhe‘duckedintime’butstilltookaJapanesesniper’sbulletthroughhishatandhead.
AsFredstilllaughs,soperhapstheideaofanobraineralmostcametofruition.
HewasinHeidelbergRepatriationHospitalfor4monthssoitwasnolightgraze.Fredgainfullyusedhistimeinhospitaltodoa2yearcorrespondencecourse(diploma)atBurnleyHorticultureCollege(rememberinghewasinhospitalforonly4months).
SubsequentlyFredwasdeclaredunfitforactiveserviceandgotajobwiththeAuditSectionoftheArmy.
Butin1947FredreturnedtotheEducationDepartment,workingintheExaminationsBranch,asFreddescribed"entombedintheTreasuryBuildings".
SotorelievethatfeelingFredundertookacommercedegreewhilestillaclerkintheAdministrativeDivisionoftheVPSgraduatingin1950.
FredstayedwiththeEducationDepartmentforsometimeandfurthereducationsawhimcompleteanArtsdegreewithmajorsinPoliticalScienceandPsychology.AndwithsuchqualificationsFredbecameastudentcounsellorforrecipientsoftheCommonwealthScholarshipSchemeandmoveduptobeinchargeoftheBranchin1958.
Thenin1961FredbecameDirectorofStaffTraininginthePremiersDepartment.In1964FredbecameDeputyHeadoftheMinesDepartmentandconcludedhispublicservicecareerin1982asHeadoftheMinesDepartment.
FredbecameaVPSAmemberin1940,aunionLifememberin1992andisourlongestservingmember.
Bitofgostillinthemanindeed.Bytheway,theU.S.silkflagwasdeterioratingabitrecently,sotheRSLIvanhoeCommitteesoughtadvicefromtheUSembassywhotookonfullrestoration,includingmountingandframing,andthiswasreturnedbyVicePresidentJoeBidentoFredCullenduringlastmonth’svisit.
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1ST CONSCRIPTION REFERENDUM CENTENARYNew research by Robert Bollard to be published later this year to coincide with the Centenary of Australia’s 1st Conscription Referendum provides a fascinating insight inside our predecessor union, the Victorian State Services Federation (VSSF), and our connection with the anti-conscription movement and the Australian Labor Party after the fallout following the Easter uprising in Ireland.
Public Perspective has permission to print an extract ahead of its publication.
Discontentwiththewar,mutedifnotabsentin1914and1915,wasexpressedmoreopenlyinthesecondhalfof1916,mostobviouslyinthecontextofthefirstconscriptionreferendum.
Themaingeneratorofthatdiscontentwas,ofcourse,theappallingcarnageontheWesternFront,beginningwiththefirstmajorbattleinFrancethatinvolvedtheAnzacs,FromellesinJuly1916.
Thesectariandimensiontothecrisiswasgenerated,mostobviously,bytherevoltinIrelandwhichfedintotheexistingsectariandimensionwithinAustraliansociety.Thisdimensionhaditsreflectionswithinthepublicservice.
DiscriminationagainstCatholicsincertainareasofemploymentmeantthattheywereoftenover-representedintheprofessionswheresectariandiscriminationdidn’tapply.ForcontemporaryAustraliansoneofthehardestthingstograspaboutAustraliainfirsthalfoftheTwentiethCenturywastheall-pervasivereligioussectarianism.
The“politicalcirculars”inquestionhadencouragedmembersoftheFederationtosupporttheunsuccessfuleffortsofMauriceBlackburn,theLaborMLAforEssendon,toretainhisseatinthestateelectionofNovember1917.
The“political”divisionsreferredtowerenotsimplythenormalonesbetweenLaborandTory,butasharperdivisionbetweenproandanti-conscriptioninthecontextofastateelectionheldonlyonemonthbeforethesecondconscriptionreferendumof1917.
Inthecontextofotherevidence,theunion’sdecisiontobackBlackburnappearsmorethansimplyarewardtoafriendoftheunion.Blackburnhadafterallbeenthemainagent,behindthescenes,marshallingtheparliamentaryforcestopassthelegislationin1916thatrestoredpoliticalrightstopublicservants.
Bollard’sresearchconcludesthatitwasanexpressionofagrowingdiscontentwiththewarwhich,whiletheofficialsmayhavebeenreluctanttoexpressitopenly,neverthelessisattimesvisiblebeneaththeveneerofpatriotismintheunion’sjournal.
TherebellioninIreland,beginninginEaster1916,andtakingplaceinthecontextofthewar,broughtthissectariantensionintosharprelief.
ThecaseofArthurCalwell,thefutureleaderoftheLaborParty,isrevealing.CalwellnotesinhisautobiographythatitwasalmostimpossibleforCatholicstogainemploymentasbankclerks.Bycontrast,foryoungCatholicmen,thefactthatentrytothePublicServicewasviaanexammadeitanattractiveoption.Calwell,whowouldserveasSecretaryoftheStateServicesFederationinthe1920s,wasduringthewar,ajuniorclerkintheAgricultureDepartment.
Calwell’sreactiontotheeventsof1916isfamous.
Aninvestigationoftheunionduringthewarrevealsthedisastrouseffectofthewar–notmerelythecasualties(wellover700fromtheranksofthestatepublicserviceitself)butthecollapseinlivingstandards.
Thisiswhatisrevealedmostofallintheunion’sjournal,wheretheearlypatrioticflushofenthusiasm,whilstneverentirelydrownedout,isincreasinglycrowdedoutbycomplaintsaboutwages.
Afactorwithconnectingthepainfeltduetothefallinwagesandgrowingwarwearinesswastheenormouspressureonpublicservantstomake“voluntary”contributionstothewareffort.Theunionitselfhaditsownpatrioticfundin1915.
Itwasn’tuntilMarch1918thattheMelbournepresscarriedaseriesofreportsregardingasplitthathadoccurredintheVictorianStateServicesFederationthatprovidefurtherinsightandinthewordsofonenewspaper.
"become detached owing to a difference of opinion concerning the distribution of political circulars during the State election campaign in November, to establish a new federation. The promoters of this movement state their aim is to create a body without political or sectarian views."
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PRISON PRIVATISATION NATIONAL REPORT
GambierismanagedusingacombinationofresourcesprovidedbyaprivatecontractorandtheDCSandthereisnoevidencetosuggestthehybridmodeloperatinginSouthAustraliaiscosteffective.
VictoriawasthefourthstateinAustraliatohaveprivatelymanagedprisons,followingQueensland,NewSouthWalesandSouthAustraliaandisunusualinAustraliainthattheoriginalprivatisationsin1996didnotoccurinacontextofrisinglevelsofincarceration.
ThemostrecentdataavailablefromtheProductivityCommissionshowthatthetotalnetexpenditureandcapitalcostsofVictorianprisonswas$527millionin2015.TheVictorianbudgetforprisonsandcorrectiveserviceswas$815.7millionforthesameyearhowever;neithersourcegivesabreakdownofcostsintopublicandprivatecomponentsofthecustodialsystem.
ThecostoftheVictorianprisonsystemhasrisendrasticallyinrecentyears,inlinewiththegrowthoftheprisonpopulation.
AUSTRALIA NOW IMPRISONS MORE PEOPLE THAN AT ANY POINT IN ITS HISTORY.
36,134peoplewereincarceratedacrosseightstatesasofJune2015,andprivatelyrunprisonsincarcerate18.5%ofAustralia’sprisonpopulationandclearlyplayalargepartinthefunctioningofourcustodialsystemanewUniversityofSydneyReporthasfound.
Infact,Australiahasthehighestrateofprivateincarcerationpercapitaofanycountryintheworld.
Privatecontractorsoperateninefacilitiesinfivedifferentstates:twoprisonsinQueensland,twoinNewSouthWales,oneinSouthAustralia,twoinVictoriaandtwoinWesternAustralia.
Tasmania,theAustralianCapitalTerritoryandtheNorthernTerritorydonotyethaveprivateprisons.
TheGEOGroup(GEO),G4SandSercoarethethreeprivateprisoncontractorswhoarenowresponsibleforover6,000Australianprisonersandabsorbaconsiderableamountoftaxpayermoneynationally.
Despitethis,researchintoprivateprisonsinAustraliaisextremelylimited.
QueenslandshowcasesmanyoftheworstaspectsofAustralia’sexperiencewithprisonprivatisation.Asthefirststatetoprivatisethemanagementofacustodialfacility,Queenslandencounteredmanyproblemsassociatedwithpoorcontractdesign,poorplanningandinadequateregulatoryoversight.
Manyoftheseproblemscontinuetoday,some27yearsafterthefirstfacilityopened.Intermsofcosts,Queenslandprovidessuchlittleinformationtothepublicthatitisimpossibletoassessthecostofprivateprisons.
ManyoftheproblemsassociatedwithprisonprivatisationinQueenslandaremirroredinNewSouthWales.SuccessiveNewSouthWalesgovernmentshaveheldtheviewthatthecommercialsensitivitiesassociatedwithprivateprisoncontractsnecessitateconfidentialityandthesecommercial-in-confidenceprotectionshavelimitedthescopeofpublicoversight.
South Australiafailedtointroducestatelegislationthatspecificallyaddressestheuseofprivateproviders,makingthestate’sexperienceofprisonprivatisationunique.Asaconsequence,Mount
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PRISON PRIVATISATION: CONTINUED
Thetotalbudgetforcustodialserviceswas$408millionin2005–2006,comparedto$815.7millionin2013–2014.
WhileVictoriahasthehighestproportionofinmatesheldinprivateprisonsinanystateinAustralia,itisthemostdifficulttoassessintermsofaccountability,costsandperformance.
TheVictoriangovernmentiscurrentlybuildinganew1,000-bedprivateprisonatRavenhall.GEOisresponsiblefordesign,construction,financing,maintenanceandoperations(includingcustodialservices).
ForthefirsttimeinAustralia,thecontractincludesincentivepaymentsforreductionsinreoffendingbutgiventhecomplexityofpost-releaseissues,andtheintegrationofpublicwithprivatelyrunfacilities,howthiswillworkinpracticeisunknown.
ItappearsthatperprisonercostsinVictoriahasrisendespitetheincreasedrelianceonprivatecontractors.
Western AustraliarepresentsthemostsophisticatedexampleofprisonprivatisationinAustralia,usingtheservicesoftwoprivateprisonstomanageafairlydramaticriseinprisoninmatesoverthelast20years.
AdvocatesforprivatisationoftenrefertoAcaciaasanexampleofhowprivateproviderscandeliverperformanceimprovementsandinnovationsbutoverlookAcaciaPrisonhousingonlymedium-securityprisoners,takespartinnoremandactivity,andoccupiesmodernfacilitiesthatarethelargestinAustralia.
Inaddition,mostcostreductionsassociatedwithprivateprisonsareachievedthroughreductionsinstaffinglevelsandexperiencewhichovertime,(OICS-WA,2015),produceperformancerelatedproblems.
AllstatesinAustraliaareunderpressuretoprovideinfrastructureforagreaternumberofprisonerswhilstbudgetconstraintsremaintightandthisfuelsdebateaboutfutureprisonprivatisation.
Inordertoestablishtheimpactofprivatisationonthecustodialsystem,arangeofcostandperformancedatamustbemadeavailablebythosestateswithprivateprisons.
Agenuinecomparisonintermsofperformance,costandefficiencywillonlybepossibleonceallprivateprisonsaresubjecttosimilarlevelsofpublicaccountability,andthiswillrequireagenuinecommitmenttoevidence-basedprisonpolicyreform.
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