Sky News PM Agenda
E & OE
SPEERS:
Well there have been some reports this week that the National Disability Insurance Scheme is creating a bit of grief at senior levels of the Government, with some apparently wanting to slow down the roll out. Not so, according to the Minister for Disabilities, Mitch Fifield, he insists the Government is still committed to the full roll out of the NDIS and there is no mood to slow it down. Mitch Fifield joins me now, Minister thank you very for your time.
FIFIELD:
Hello David.
SPEERS:
Let me start with that simple question, will the NDIS still be delivered in full and on time?
FIFIELD:
I’m absolutely determined to see the NDIS delivered in full. This is…
SPEERS:
And on time?
FIFIELD:
…this is part of what is the core business of the government, which is providing extra support to people who face challenges for reasons beyond their control.
SPEERS:
And will it be delivered on time?
FIFIELD:
Now, I’m working intently on a series of bilateral negotiations with each of the states and territories. This is complex and detailed work.
SPEERS:
I’ll get to that, but is the commitment still to deliver it on the timeframe that’s been laid out?
FIFIELD:
The timeframe is to have the full scheme delivered by 2019. As I say, and this isn’t being tricky, or playing with words, or anything of that nature, we have to land a series of bilateral agreements with each jurisdiction. Each bilateral negotiation will follow its own path. And as I said to the Senate when asked yesterday, negotiations with New South Wales are going extremely well, and that I hope to have something to announce in the near future. But, this is an important point David, it’s not possible to announce the conclusion of a bilateral agreement until it’s been concluded. We can’t unilaterally, as the Commonwealth, declare that negotiations are over. It takes two parties to come together.
SPEERS:
Let me ask you, what’s the hold up with New South Wales, the most populous state. What’s the hold up on finalising this. What’s the problem?
FIFIELD:
There is no hold up. We’re going through an orderly and methodical process of negotiation and discussion.
SPEERS:
About what in particular right now, because we’re pretty close, I think it’s the end of this month you’re meant to have it done?
FIFIELD:
There are a range of issues which need to be worked through. Now, I don’t want to cite any particular issues because…
SPEERS:
Why can’t you tell us why?
FIFIELD:
Because these are negotiations which are taking place between both parties. I don’t think it’s helpful to provide a public running commentary.
SPEERS:
But are you talking about money here, are you talking about locations of the rollout?
FIFIELD:
It’s nothing that would be a deal-breaker. We’re just working through the range of issues that you would expect to be worked through in a bilateral negotiation.
SPEERS:
So, let’s go to that. You’re already collecting money from the increased Medicare levy. But the Commonwealth is holding onto that, not passing it to the states. Is that a problem for the states, for New South Wales at the moment?
FIFIELD:
It’s certainly not a problem for New South Wales. The previous government put on the table an offer that 25 per cent of the Medicare levy proceeds would be given to the states and territories. And they laid out a timetable for that which essentially involves the jurisdictions passing particular benchmarks, and that the states would then have that money provided to them to reimburse them for certain costs they’ve incurred.
SPEERS:
And is that happening?
FIFIELD:
Well, the first thing that’s got to happen is that jurisdictions have to sign on to the bilateral agreement for full state-wide rollout. And the second thing that’s got to happen, is jurisdictions have got to meet the benchmarks that would release that money.
SPEERS:
You’ve really got the upper hand here haven’t you? They don’t get any money until they sign the bilateral agreement with you.
FIFIELD:
Well we are not the prime source of the states’ funds for the NDIS.
SPEERS:
Pretty big chunk though.
FIFIELD:
It’s important to recognise that the scheme at full rollout will be a $22 billion scheme. $10 billion comes from the states–essentially the money that they would have been putting towards disability services that they run if they weren’t transferred to the Commonwealth. There’s $3 billion which is money that the Commonwealth would’ve been spending on its disability services in the absence of the NDIS. And then there’s a further $9 billion which will be the Commonwealth’s new investment.
Now there’s a portion of the money that the states are putting towards the scheme, which the Commonwealth is providing from that half a per cent increase in the Medicare levy. But, that money flows really on the basis of performance. Once States have achieved certain benchmarks, then they’ll get that money.
SPEERS:
What are the benchmarks they have to meet to get the money?
FIFIELD:
Benchmarks as to the percentage of their jurisdiction which has entered into the Scheme, and ultimately the States have got to pass 50 per cent coverage in their jurisdiction, on the basis of the agreement put forward by the previous government, before they can access the full funds.
SPEERS:
And in the meantime that $3 billion sits on the Commonwealth balance sheet and really helps the Federal Budget look better.
FIFIELD:
Well it’s Commonwealth revenue raised through Commonwealth taxation. And one of the preconditions, in Opposition, that I put on, for our support for the increase of the Medicare levy, was that the previous government put those proceeds in a dedicated fund, under the stewardship of the Future Fund. To make sure that it could not be raided for any purpose other than the NDIS. So every dollar that is raised by the half a per cent increase in the Medicare levy will go to the NDIS. And the States will get every dollar of the 25 percent of those proceeds, which the previous government offered.
SPEERS:
Let me come back to the timing of this. The trial phase is due to be completed on the 30th of June next year. Is that still going to happen?
FIFIELD:
Well the trials in a sense never conclude….
SPEERS:
But you transition from that point to full rollout? That’s still the timeframe?
FIFIELD:
That’s right. The trials in a sense cease to be trials in the area where they are and they just become a regular part of the scheme. The agenda is that from the middle of next year we’ll progressively move to rollout beyond the existing trial sites. Important to recognize that in the ACT, it’s a trial site, but it’s a whole-of-jurisdiction trial so in effect the transition to full scheme has already started in the ACT. Western Australia is having a different sort of trial. They have an NDIS-run trial site and a Western Australian Government-run trial site. And at the conclusion of that there’ll be an evaluation. And that will be one of the inputs for Western Australia to determine how they come into the Scheme. Which leaves six jurisdictions which I’m in the middle of, we’ll not in the middle of, well progressed in relation to bilateral agreements.
SPEERS:
Will the full rollout still be done by 2019?
FIFIELD:
That is the target date. As I say, we are working through those bilateral agreements at the moment.
SPEERS:
I’ve got to say. It sounds like there’s some doubt now about this date.
FIFIELD:
That is the target date that we have. But, the target date is a function of bilateral agreements. We are working to conclude those bilateral agreements. And as I say, New South Wales, things are tracking extremely well. And we’re working hard with the other jurisdictions…
SPEERS:
How do you decide, together with the States I assume, where and how you are going to roll this out? Yes I understand the trial sites are there but I think they cover about 30,000, the full rollout will cover about 430,000. How do you decide where and how the rollout occurs? Does it go to those who have no coverage at the moment? What’s the process?
FIFIELD:
How that is determined, jurisdiction by jurisdiction, is by negotiation. So some states are looking at having a geographical rollout, moving region by region, covering all age cohorts. Now part of what’s negotiated with jurisdictions is the phasing of people who are currently receiving state supports, and the phasing of people who are currently receiving Commonwealth supports, and the phasing of people who might not currently be receiving supports. So they’re the sorts of details that are being worked through. But I don’t want anything to be read into the words that I’m using when I talk about the importance of the bilateral agreements. Because I want to emphasise, that this is a cooperative venture between the Commonwealth and the States and Territories. We cannot unilaterally declare that negotiations are concluded. It takes two signatures to effect bilateral agreements.
SPEERS:
But from the Commonwealth’s part. There are reports this week of some hesitation in the Expenditure Review Committee about this. Is there any move to slow down or spend less on the NDIS?
FIFIELD:
We are not looking to cut a dollar from the NDIS.
SPEERS:
You won’t cut a dollar?
FIFIELD:
We won’t cut a dollar from the NDIS. You only need look at the Budget papers to see that in the forward estimates we had the funding profile there that’s required for the rollout of the scheme.
SPEERS:
And you’ll still spend it on the timeframe that’s laid down?
FIFIELD:
We’re endeavouring to introduce the NDIS as quickly as we can. I am not looking for ways, I am not looking for reasons or rationales, to slow down the scheme…
SPEERS:
What about your colleagues? Those in Cabinet?
FIFIELD:
Not at all. We want this to be rolled out as quickly as it can be. But I’ve got to emphasise, we are not the sole agent in this endeavour. We work with State and Territory Governments, they are our partners. There is nothing that we can do alone. But we are working hard to move forward, in concert, and to conclude agreements so we can deliver the scheme in full.
SPEERS:
Let me finally ask you this, Mitch Fifield. I know your commitment and enthusiasm for the NDIS is clear. Scott Morrison when he took the Social Services portfolio described the NDIS as the jewel in the Government’s crown. We don’t see he, or the Prime Minister talking much about the NDIS, visiting the trial sites, owning it as a Government initiative. If it’s going well at the moment, why is that the case?
FIFIELD:
Look I’ve visited trial sites with the Prime Minister on a number of occasions. He’s been a great supporter…
SPEERS:
When was the last one?
FIFIELD:
I couldn’t tell you off the top of my head. But on numbers of occasions, in both Opposition and Government, I’ve been with the Prime Minister in trial sites. Scott Morrison, you don’t need to go further than your quote, that Scott see’s the NDIS as the jewel in the crown, as part of the core business of Government. It’s one of the reasons why we want to repair the budget, because you cannot have a good social policy, without a good budget policy, without a good economic policy. That’s what we are working hard on.
SPEERS:
Disabilities Minister Mitch Fifield, good to talk to you about the NDIS. Thank you very much for joining us.