Feds must face facts for funding disability services

Disability Services Minister Warren Pitt says the Federal Government is short-changing Queenslanders with a disability by refusing to recognise the state’s continuing population growth.

Mr Pitt said Federal Community Services Minister Mal Brough, himself a Queenslander, had failed to increase the level of funding for disability services in the latest round of negotiations between the Commonwealth and the states and territories.

“Thousands of Queenslanders with a disability could miss out on vital services such as in-home care, respite support or accommodation because the Federal Government won’t meet its obligations,” Mr Pitt said.

“Since 2002–03, Disability Services Queensland has provided support for an extra 4300 people with a disability, due mostly to substantial increases from the state government.

“Disability Services Queensland currently helps more than 18,000 people – a number that should be substantially higher if the Federal Government met its obligations.”

Mr Pitt said that while the Queensland Government continued to increase funding in response to the increasing demand for quality specialist disability services in our state, the Federal Government had lagged behind.

“During negotiations in Adelaide today about the new Commonwealth State/Territory Disability Agreement, the Federal Government refused to provide extra funding to reflect Queensland’s growing population,” he said.

“This means that under the new agreement, which is due to start in July this year, the level of Federal funding will be woefully inadequate in meeting the needs of people with a disability in this state.

“Furthermore, the Commonwealth has refused to change its method of calculating the rate of annual indexation applied to funding.

“This is despite the fact that a Federal Senate committee report, released today, strongly recommends changes to the indexation formula because it is based on flawed assumptions.

“The report also concluded that the disability sector will experience an ‘ever-increasing demand for services’, but this position obviously isn’t shared by the Federal Minister.”

Mr Pitt said the Federal Government’s failure to maintain funding levels meant that the funding burden was falling upon the states and territories.

“When the current CSTDA started in 2002, the Queensland Government contributed $238 million while the Federal Government supplied $102 million,” he said.

“In the past five years, Queensland’s funding has virtually doubled to $467 million while the Federal Government’s contribution rose only 16 percent, to $118 million.

“To put this shortfall in perspective, the Federal Government’s commitment to disability services in Queensland five years ago represented 30 percent of total funds. Yet in 2006–07, the Federal Government contribution only represents an estimated 20 percent of the total.

“At a minimum, the Commonwealth needs to contribute a further $72 million just to restore its funding to the 2002–03 share.”

Mr Pitt said an assumption about possible productivity gains built into the Commonwealth’s indexation formula was flawed.

“This assumption may work in the manufacturing or mining sectors, where technology can be used to achieve productivity gains, but it’s inappropriate within the disability sector, where human interaction is the nature of the business,” he said.

“Disability support workers cannot be replaced by machines.”

Mr Pitt said he would seek the support of stakeholders within the disability sector and politicians at all levels to lobby the Federal Minister.

“It’s about time the Federal Government faced up to the facts and put more money into disability services funding in Queensland,” he said.

Media contact: Peter Nibbs, 3235 4280