Economic Opportunities (and Challenges) in the NDIS rollout for Local Government MAV Local Government Human Services Directors NDIS Forum WHEN: Friday 14 October 2016 TIME: 10.30am – 12.30 pm WHERE: 11.01 MAV 60 Collins St Joseph Connellan, MC Two Pty Ltd

Presentation Structure 1. Introduction & Purpose 2. NDIS Impact on Local Government 3. Local Government & Economic Development 4. NDIS Market Position Statements 5. A Case Study: Hypothetical Local Government 6. The Pitch (for the Hypothetical Local Government) 7. Questions & Comments

1. Purpose & about Presenter “To assist key Local Government economic development stakeholders to identify the potential economic opportunities (& challenges) in the roll out of the NDIS” About Joseph Connellan, MC Two Pty Ltd Advisor to NGOs, Government & Mutuals – last 10 years Advised large housing, disability, mental health, NDIA & State Government Mainly governance, disability & housing A lot of focus on NDIS Victoria, SA, NSW & Queensland Joseph Connellan, MC Two Pty Ltd Mobile: 043 8388 444 or joseph.connellan@gmail.com

2. NDIS Impact on Local Government Service Economic Citizens Challenges & Opportunities for Local Government: Services to people with a disability including & beyond Local Govt Citizens as the social & economic participation of people with a disability increases Economic as extra $2.5bn in Victoria mainly on employment

3. LOCAL Government & Economic Development: From Rural Council Victoria - ECONOMIC DEVELOPMENT GUIDELINES 2014 Advocate Engage with the community & other local, state & federal leaders To develop commitment to economic development Ensure actions based on & informed by the community’s preferred outcomes Lobby (individually or collectively) for specific action, resources or change Facilitate Pursue individual or joint venture commercial activities May include land development Provide incentives (e.g. rates holidays, relocation expenses & use of council facilities) Support information flow between business & consumers Use Council resources for local promotional activities Shape local laws that regulate to influence economic activity Advocate Facilitate Investigate Provide Services

3.1 LOCAL Government & Economic Development (Con’t) Investigate Collect data & undertake research to improve understanding & inform decisions Link to Community Plan, Council Plan & Operational Plan Use planning scheme & land zoning to support land availability Provide Services Service provision by Local Government can support development opportunities Advocate Facilitate Investigate Provide Services

4. NDIS Market Information NDIA publishes State Market Position Statement with regional information

4.1 Value of NDIS Support Expenditure NDIS expenditure in Victoira will double Expenditure broadly in line with population Some group may be underservised – indigenous, CALD, Regional Some regional areas have higher concentration of people with a disability due to being site of closed institutions 50% provision now from Victorian Government and 50% from NGO sector Likely exit of Victorian Government and entry of private providers from disability service provision

5.0 Hypothetical Council For Case Study Hypothetical “Our Local Government” Regionally based with stable population of 16,000 in 4 population centres spread over large area Includes significant population of indigenous people & people from CALD background Industries Largest industry (by far) is agricultural followed by retail and then health, community & aged 4 health services (with 25% revenue from aged care and 15% from primary health) Employment Largest employment type is Agriculture, Forestry and Fishing - 33% and declining Retail Trade - 9% stable and Health Care and Social – 8% and growing Service Provision Mixture of mainly Government & NGO service provision in disability services (some incomplete data) NGO providers predominantly from one based in region & one in Melbourne There 6 to 8 group older disability group houses in the region split between Govt & NGOs ($500k+pa) Predicted Growth in Hypothetical NDIS Region No 3 Hypothetical “Our Local Government” constitutes 15% of local NDIS Region No of recipients in Local NDIS Region from 3,200 to 3,500 - plus 9% Expenditure in Local NDIS Region from $180m p.a. - plus 64% (2020) Employment growth in Local NDIS Region from 800-1,000 to 1,000- 1,450 - plus 25% to 45%

6.0 The Pitch Approach (for the Hypothetical Case Study) Finance, economic & strategy people operate in their own culturally & linguistically framework. They tend to see human services as expenditure (often loss making) only. The Pitch Objective: To create champions amongst the economic & political decision makers to pursue economic development opportunities in the NDIS rollout. The Strategy: Name it i.e. The NDIS will be a significant economic disrupters in our municipality Acknowledge the broader social impact of NDIS & on Council operated services Don’t assume knowledge Initially provide high level information Maintain a primary economic focus Link it to local Acknowledge that it is competitive Put numbers (even broad estimates) around what success (& failure) looks like Propose a way forward

6.1 The Pitch - “Getting Our Share”: Economic Opportunities (& Challenges) in the NDIS Rollout for Hypothetical Local Government Background: NDIS is biggest social and economic reform in last 40 years in Australia $22,000+m pa nationally Economically NDIS will be about same size as residential & community aged care combined The profound impact of NDIS on Council & broader service provision is being dealt with separately What Economic Success (& Not So Successful) looks like for our Municipality after NDIS Rollout (2020): Possible Next Steps: Investigate what services & funding exist & what & when NDIS funds are likely to come Engage with key players including local & other providers, NDIA & Victorian Government Inform our community about the economic opportunities in the NDIS Economic Activity Current (Underserviced Groups) Successful (15% of Regional NDIS) Not So Successful (12% of Regional NDIS ) Expenditure $13m+/ $27m +/- $22m +/- Employment 110 +/- employed 185 +/- employed 145 +/- employed Providers Government + 2 NGOs ( 1 HQ) 10 private & 4 NGO (5 HQs in LGA) 5 private & 2 NGO (no HQs in LGA) Housing 7 Group Homes 6 redeveloped ($3m) & 2 new ($3m) 2 redeveloped ($1m) & I new site ($1.5m)

“Getting Our Share” Chart By 2020 the difference between getting our Municipality's share of the increased regional NDIS expenditure (+15% ) and having our community underserviced (+12%) may be $5m pa including 40 Full Time Employed positions. Joseph Connellan, MC Two Pty Ltd Mobile: 043 8388 444 or joseph.connellan@gmail.com $5m pa 40 FTE