Palaszczuk Government seeks market solutions to complex social problems

The Palaszczuk Government today met with key investors, financial institutions and social service providers to seek solutions to complex social problems such as homelessness as part of its Social Benefit Bonds (SBBs) pilot program.

Treasurer Curtis Pitt said the government wanted to encourage market participation in the budget initiative announced earlier this year.

He said the aim of today’s market sounding forum was to engage with potential participants in the SBB pilot program, gather inputs and ideas from the market, and provide collaboration opportunities between interested parties.

“Social Benefit Bonds have been trialled successfully elsewhere in the world and in Australia. The market sounding will provide vital input into the process here in Queensland,” he said.

“This is a very important program to address entrenched disadvantage with innovative solutions, in addition to existing arrangements with social service providers in the State.

“The bonds will source finance from private investors and will provide a return only when agreed outcomes are achieved, rather than when the services are delivered.

“Complex social problems need both the government and the private sector to work together to drive innovative outcomes.

“We need a whole-of-community response to address problems like homelessness, reoffending and Indigenous disadvantage.

“That’s why we want to partner with service providers and the private sector to develop three SBBs and innovative solutions to address those areas.”

The pilot program will not involve outsourcing of any government services, with its sole focus being on delivering new services not currently delivered by government.

The bonds will source finance from private investors and will provide a return only when agreed outcomes are achieved, rather than when the services are simply delivered.

The forum is a key element of broader market engagement being conducted by Queensland Treasury, which today launched animations explaining social benefit bonds to investors and service providers.

For further information visit: www.treasury.qld.gov.au/SBB

Media contact: Martin Philip 0427 919 548