Stephanie Kelly, NTCOSS’s CEO, spoke to Adam Steer about how tough it is for Territorians enduring cost of living increases and decades high inflation. However at a time when they are needed more than ever, social services providers are effectively having their funding cut and having to find ways to save money and that means less staff or in some cases closing their doors completely.
ADAM STEER: The thing is, the cost of living isn’t generational. It doesn’t really matter which generation you come from. Goods and services are geting more expensive, and it’s hitting your pocket.
Here’s the thing, though. Just when you might need social services, many are struggling to stay open. What that means is that some of those services are having to find ways to save money
and that means less staff or in some cases closing their doors completely. Dr Stephanie Kelly is the brand new chief executive of the Northern Territory Council of Social Services. Dr Kelly, Hello.
DR STEPHANIE KELLY: Good morning, Adam.
AS: Welcome to the Top End. How are you finding your new gig?
SK: Yeah, thank you very much for the welcome. And it is such a privilege to come in here. Nine and a half weeks, literally.
I’ve been in the role and still very much getting my head around the complexity of the territory, meeting our members, but loving it.
AS: I mean, you’ve stepped into the role in a particularly tough time for social services in the NT. What have you sort of managed to get your head across in such a short time about the sector?
SK: Yes, It’s a fascinating time. You know, historically, the context I’ve lived in the territory before and there’s a few things coming back. I’ve been away for eight years that are puzzling me and cost of living.
I heard another expression last night watching the news. The cost of staying alive is I think the challenges of that up here are so much more pronounced than in any other part of the world.
From my experience and my observations, it’s the effects are becoming real, observable and visceral.
You know obviously we are in a cost of living crisis. And you know, here in the NT we have the highest inflation that we’ve seen in decades.
So coming into the role at that point, and while the Reserve Bank held off on introducing new interest rate rises yesterday they the impacts of the last 12 over year.
But you know, you could argue the last five years and you know have had a huge impact yet we live in the wealthiest nation in the world and so we’re told and you know,
Australia ranks reasonably well in the OECD in terms of income, but it’s still in the bottom half in terms of inequality in the Western world.
So it’s tricky to reconcile all this privilege of living in Australia, the wealthiest nation in the world, the privilege of living with the oldest civilisation, our Aboriginal and Torres Strait Islander populations who are
highly represented as citizens in the Northern Territory and currently served by two governments who are boasting surplus in their budgets.
And I’ve come in and heard, and there’s a few things that are still puzzling me, but hearing from our members, some of the very real stories and very real impacts of working
in this challenging space And you know, I’m starting to hear phrases like losing hope about what this is going to look like.
AS: Is that from the service providers that you’re hearing, that type of thing?
SK: Yeah. So in terms of, you know, all the statistics which we collect as a regular part of our role, our fantastic team at NTCOSS produces a regular annual cost of living reports on,
costs of food costs, of transport, costs of utilities, housing costs and access.
But one thing that has completely puzzled me coming into the role is this thing in terms of our funding agreements, and that applies to us in several of our members,
whereby while we’ve been privileged and are very, much value the funding that we have, particularly from the Northern Territory Government and have our members
have been successful in negotiating five year funding agreements, which has been a huge thing over the last few years.
But since 2018 these are our members have been subject to these things in their funding agreements whereby with annual budgets, indexation measures are applied and
they’re not aligning with CPI and they’re not aligning with what other states and territories are applying to their social services.
AS: Yeah. So basically, I mean, we’ve heard this from a couple of the social service providers is that, you know, with CPI sitting somewhere around that 7%, they’re not and
their funding increases at 2%, they’re virtually getting a funding, cut we’re getting on year by year basis and that of course snowballs over a number of years, doesn’t it?
SK: Yes, and it is. And since 2018, we’re beginning to document the cumulative effect of that.
So while we’ll have numbers for several of our members, those you use the word cuts, whether it’s cuts or indexation measures or a decline in real terms in resourcing
to achieve our outcomes in the context of that need growing has been anywhere between just under 1% less and 3% less each year over the last five years and possibly even prior to that.
But under the last five years since 2018 and referred to as efficiency, dividends and savings, dividends whereby the public sector applies this private sector language
and passes it on and not completely to the same calculation to every member.
What we have worked out in the last round of indexation measures that were announced last month one point up to 1.3%,
which we have been informed for 93% of our members. We have roughly around 100 members who all work in the sector around for 93%.
That that’s only a $5,000 decline in budget. Now for some of our members if you only if you’re running on an $80,000 budget and you’re a one person operation,
$5,000 is substantial. You know, we’re not asking you to remember the cost of a loaf of bread, but have we lost sight of what $5,000 can achieve?
AS: So what are we seeing out of this? Are people getting turned away, those in need getting turned away?
SK: Well, what we’re seeing is that we’re starting to quantify that 5000. And what I’m hearing is from many of our members, it’s more like a cumulative 16% over the last five years.
So for many, that’s 100. 140, $150,000. So our members are making decisions now, such as there’ll be a sort of a triage.
The things that will get dropped, I would imagine, will be access to training for staff, ability to evaluate outcomes in order to continue to advocate for the benefits of the services cuts on,
you know, on office costs.
But once we take care of all of that and I don’t think our members are out there living the high life either.
But once that start, you know, once that doesn’t take care of the effects, it will be. I’m hearing that members are will are now decidingto not fill positions for which they have gaps,
meaning they’re going to have to fill those positions.
They’re getting tired. None of these indexation measures have taken into account the 5.75% recent Fair Work increase in minimum wage and award wages for our sector and
the 4.5 from the previous year
and the additional 1% in superannuation over the last two years federally.
And those all have to be paid into our sector and nobody wants to take away from that because that’s an. Yeah, but we’re becoming Ifeel like our, sector is becoming the shock absorbers.
AS: Well we are on ABC Radio Darwin, it is 19 to 9. Adam Steer with you Doctor Stephanie Kelly is the brand new boss of NTCOSS. Just a couple of questions because I do have to move on.
The Minister for Domestic Violence, Kate Warden, has announced $2.125 million for 17 new properties to help families escape domestic violence. Is that enough, simply?
SK: Well, it’s a start.
Okay.
It’s a start. And we I you know, we certainly acknowledge the work that is being done. And I do take my hat off to Minister Kate
Worden has always been a strong advocate to the federal government for the need and the value for needs based funding in the territory.
So it is a start.
AS: I also want to move on to rental rights. This is what the Northern Territory Shelter’s Peter McMillan said on the program yesterday.
PM: “Sadly, Adam, we’re in a dog box when it comes to rental riots.
We’re the worst in the country by a long shot. “
AS: In April, you released a report that called for changes to the Residential Tenancy Act in the Northern Territory. Very briefly, what needs to get changed here Dr Stephanie?
SK: Well, we are in a housing stress, aren’t we,
And payments for rent are, you know, or whether it’s rent or mortgages, you know, generally over 30% of weekly income and for some of our citizens paying 50%, 60% up to 90% of income
and we have the highest rate of renters also in the territory. I think we’ve estimated that in order to begin to fix the problem up here interms of the housing shortage,
we would need 12,000 more homes in the Territory.
But having that lowest percentage of homeowners, you know, most of our citizens here aren’t even in the conversation about home ownership.
They need protections as renters. And there are incredible models around the world that can be used.
And I’m not using the term rent control, but things like an independent rental bond body.
We need some measures of common sense and consideration and ceilings on the percentage rises that landlords can come in.
AS: And we know that in the ACT they’ve just put it’s not a rental cap but they’ve put a regulation around how much I think it’s 150% of CPI or something.
So it’s not unreasonable for the landlords, but at some type of rent thing. And of course you see in the rest of the country rental bond boards that don’t exist here in the Northern Territory.
We have invited the Chief Minister, Natasha Fyles, to speak on what plans the Northern Territory Government does have to adapt some of those rental rights.
They first promised it in 2018 and it sounds like not a lot has gone on. So we are hoping to speak to her tomorrow. Dr Stephanie Kelly, it is good to talk to you this morning.
Come back into the studio. Love to talk to you again.
SK: Love to. Lots to talk about. Thank you very much, Adam.
Dr Stephanie Kelly, who is the new head of NTCOSS.