Regeneration - Not Just Welfare Reform

The Australian Catholic Social Welfare Commission today welcomed many of the proposals contained in the Final Report on Welfare Reform but remains concerned that its recommendations may provide the opportunity for Government to simply get tough on welfare recipients.

The Acting National Director of the ACSWC, Mr John Ferguson, responded to the government appointed report, "There is broad consensus in the Australian community that the social security system has not kept pace with growing and changing community needs and requires reform. But the high rates of joblessness, underemployment and reliance on government benefits, cited as the reason for this reform, are not entirely the result of the performance of the social security system. The disadvantage experienced among many groups and regions of Australia despite a decade of strong economic growth is more an indictment on our broader economic systems."

The Report highlights five strategies for Welfare Reform, including more individualised service delivery and simplified payments, the introduction of additional incentives supporting job search and voluntary work and recommendations for Government, business and the community to meet their Mutual Obligation by more actively providing support and opportunities.

Mr Ferguson said "The Report states that, in return for the favourable economic environment the Government has created through its economic management, businesses can do much more in terms of employing and training disadvantaged job seekers and accommodating the needs of parents and carers in the workforce. While, the Reference Group's stronger emphasis on the responsibilities of Government and business is welcomed, we are yet to see concrete proposals on how these groups will be required to share the benefits of over a decade of economic reform.

"The challenge is now before the Commonwealth to ensure that governments and business, as the key drivers of economic performance, meet an obligation to shoulder more of the load by regenerating economic opportunity among deprived communities and groups. Without the establishment of clear requirements on Government and business, the rules and regulations of Mutual Obligation will remain an exercise in social control without the corresponding benefits to individuals and families.

Mr Ferguson concluded, "The recommendation that Mutual Obligation now be extended to all income support recipients of workforce age, including sole parents and people with disabilities, makes the need for stronger job creation, training and transition support a concern of the first order."