Federal funding shortfall poses threat to disability services

Organisations that provide disability services are facing an uncertain future because of the Federal Government’s refusal to meet its funding responsibilities, Disability Services Minister Warren Pitt said today.

Mr Pitt said service providers were worried about the Federal Government’s failure to provide adequate funding increases in the new five-year agreement that is currently being negotiated.

“At a time when the Commonwealth Government is boasting about huge budget surpluses, the Federal Minister, Mal Brough, is short-changing people with a disability by refusing to offer any funding to cover population growth,” Mr Pitt said.

“To make matters worse, the Federal Government has advised that there will be no change to the method used to calculate the annual rate of indexation to be applied to funding for services.

“This rate is currently 1.8 percent, which is less than inflation.

“Everyone within the sector, apart from the Federal Minister it seems, knows that the costs of providing these vital services are rising faster than inflation.

“Even the Federal Government’s own Senate Standing Committee on Community Affairs recognises the need for realistic indexation for disability services funding.

“Without funding increases to at least match inflation, service providers will have to consider cutting back services to existing clients or provide fewer clients with services.

“Both options are unacceptable and Mr Brough should be rethinking his position with regard to funding for some of the most vulnerable people in society.”

Negotiations for the five-year Commonwealth State/Territory Disability Agreement started earlier this month, with the Federal Government refusing to offer any extra funding to meet Queensland’s well-documented population growth.

“Combined with the inadequate indexation, the Federal Government’s funding offer is an insult to Queenslanders with a disability, their parents and carers,” Mr Pitt said.

“In the past five years, the Queensland Government has doubled its level of funding for disability services while the Federal Government’s contribution rose only 16 percent.

"The Federal Government has fallen so far behind that it needs to contribute a further $72 million, just to bring its share of funding back to 2002-03 levels.

“Without this funding, critical services such as accommodation support, community support and respite are in jeopardy.

“Mr Brough has also managed to offend non-government service providers by claiming that the quality of services is not up to scratch.

“Yet all service providers in Queensland must adhere to our Disability Service Quality System, and some have even gone beyond this level to acquire international quality accreditation.”

Media contact: Peter Nibbs 3235 4280