Doubts about signing new CSDA if it incorporated four per cent cut

13/3/97

Disability Services Minister Paul Omodei has advised the Commonwealth that he will seriously consider whether to sign a new Commonwealth/State Disability Agreement (CSDA) if it incorporates a four per cent budget cut.

Mr Omodei would also consider his options in relation to shared Commonwealth/State responsibilities for CSDA tied grant services in Western Australia.

He said he had conveyed these views to Federal Family Services Minister Judi Moylan at a meeting today in which she confirmed that the Commonwealth intended to impose the cuts from June 30, the date on which the current CSDA expires.

The proposed cut in funds was contrary to the findings of last year's National Evaluation of the CSDA.

Mr Omodei said the evaluation clearly documented the widespread unmet demand for disability accommodation and support services across Australia.

This information was the foundation for negotiations for the new CSDA, which was to come into operation on July 1.

The Commonwealth had acknowledged the accuracy of the information and the only rational course, therefore, was to consider the level of increased funding in the next agreement to more adequately meet the need.

"The concept of cuts to existing funding levels simply cannot be part of the planning process," Mr Omodei said.

"People with disabilities are the most vulnerable in the community and they have first call on the community's funds.

"No amount of budget difficulties at the Federal level can justify the removal of any funding from disability services.

"The amounts are not large by Federal budget standards, but a three per cent cut is enough to break many of the smaller services."

Mr Omodei said that about 60 representatives from almost all of the non-Government agencies which deliver services to people with disabilities and their families attended a meeting he called at short notice last night to discuss the proposed cuts.

They expressed shock and disappointment at the news and agreed to lobby all Federal MPs and Senators from WA, outlining the effect of the cuts on the agencies and the individuals and families within their electorates.

"The Commonwealth is claiming that these cuts have been known about for many months, but it is clear that they were not known to the agencies," the Minister said.

"We have checked with all other States and they share our view that the cuts were not expected and that the foundation for discussion of a new CSDA was the evaluation which so clearly showed the need for more funds."

Media contact: Hugh Ryan 366 0200