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Gabrielle Meagher - Designing Social Service Markets: Risk, Regulation and Rent-Seeking

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Gabrielle Meagher Designing Social Service Markets: Risk, Regulation and Rent-Seeking

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Governments of both right and left have been introducing market logics and instruments into Australian social services in recent decades. Their stated goals include reducing costs, increasing service diversity and, in some sectors, empowering consumers. This collection presents a set of original case studies of marketisation in social services as diverse as family day care, refugee settlement, employment services in remote communities, disability support, residential aged care, housing and retirement incomes. Contributors examine how governments have designed these markets, how they work, and their outcomes, with a focus on how risks and benefits are distributed between governments, providers and service users. Their analyses show that inefficiency, lowquality services and inequitable access are typical problems. Avoiding simplistic explanations that attribute these problems to either a few bad apple service providers or an amorphous neoliberalism that is the sum of all negative developments in recent years, the collection demonstrates the diversity of market models and examines how specific market designs make social service provision susceptible to particular problems. The evidence presented in this collection suggests that Australian governments market-making policies have produced fragile and fragmented service systems, in which the risks of rent-seeking, resource leakage and regulatory capture are high. Yet the design of social service markets and their implementation are largely under political control. Consequently, if governments choose to work with market instruments, they need to do so differently, working with principles and practices that drive up both quality and equality.

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Designing Social Service Markets Risk Regulation and Rent-Seeking Edited by - photo 1

Designing Social Service Markets

Risk, Regulation and Rent-Seeking

Edited by Gabrielle Meagher, Adam Stebbing and Diana Perche

Published by ANU Press The Australian National University Canberra ACT 2600 - photo 2

Published by ANU Press

The Australian National University

Canberra ACT 2600, Australia

Email: anupress@anu.edu.au

Available to download for free at press.anu.edu.au

ISBN (print): 9781760465315

ISBN (online): 9781760465322

WorldCat (print): 1343931525

WorldCat (online): 1343931378

DOI: 10.22459/DSSM.2022

This title is published under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence.

Designing Social Service Markets Risk Regulation and Rent-Seeking - image 3

The full licence terms are available at creativecommons.org/licenses/by-nc-nd/4.0/legalcode

Cover design and layout by ANU Press

This book is published under the aegis of the Social Sciences Editorial Board of ANU Press.

This edition 2022 ANU Press

Abbreviations ACCC Australian Competition and Consumer Commission - photo 4

Abbreviations

ACCC

Australian Competition and Consumer Commission

ACECQA

Australian Childrens Education and Care Quality Authority

ACFI

Aged Care Funding Instrument

ACTU

Australian Council of Trade Unions

AIRC

Australian Industrial Relations Commission

ALP

Australian Labor Party

ANAO

Australian National Audit Office

ATSIC

Aboriginal and Torres Strait Islander Commission

AUST

Allied Unions Superannuation Trust

BUS

Builders Unions Superannuation Fund

CCS

Child Care Subsidy

CDEP

Community Development Employment Projects

CDP

Community Development Program

COAG

Council of Australian Governments

CRA

Commonwealth Rental Assistance

CSHA

CommonwealthState Housing Agreement

DAA

Department of Aboriginal Affairs

DEWR

Department of Employment and Workplace Relations

DIAC

Department of Immigration and Citizenship

DILGEA

Department of Immigration, Local Government and Ethnic Affairs

DIMA

Department of Immigration and Multicultural Affairs

DIMIA

Department of Immigration and Multicultural and Indigenous Affairs

DPO

disabled peoples organisation

DSS

Department of Social Services

ECEC

early childhood education and care

FOFA

Future of Financial Advice

FPO

for-profit organisation

GFC

Global Financial Crisis

HSP

Humanitarian Settlement Program

HSS

Humanitarian Settlement Services

IHSS

Integrated Humanitarian Settlement Strategy

IOM

International Organization for Migration

ISC

Insurance and Superannuation Commission

JSA

Job Services Australia

KPI

key performance indicator

LLLB

Living Longer, Living Better policy

LUCRF

Labour Union Cooperative Retirement Fund

NAHA

National Affordable Housing Agreement

NCCS

National Child Care Strategy

NCOA

National Commission of Audit

NDIA

National Disability Insurance Agency

NDIS

National Disability Insurance Scheme

NDS

National Disability Services

NGO

non-government organisation

NPO

non-profit organisation

NQF

National Quality Framework

NQS

National Quality Standard

NSW

New South Wales

NTER

Northern Territory Emergency Response

OECD

Organisation for Economic Co-operation and Development

OSSA

Occupational Superannuation Standards Act 1987

PM&C

Department of the Prime Minister and Cabinet

PPP

publicprivate partnership

RAC

residential aged care

RJCP

Remote Jobs and Communities Program

ROMAMPAS

Review of Migrant and Multicultural Programs and Services

RSE

Registrable Superannuation Entity

SHA

State Housing Authority

SHI

Social Housing Initiative

SHP

Special Humanitarian Program

SIS

Superannuation Industry Supervision

SMSF

self-managed super fund

UK

United Kingdom

UN

United Nations

VET

vocational education and training

List of figures
List of tables
Acknowledgements

Several of the chapters in this collection began as contributions to a workshop sponsored through the generative and generous program for such events funded by the Academy of the Social Sciences in Australia. We would like to thank the Academy of Social Sciences for its support. The workshop was co-convened by Gabrielle Meagher and two very generative and generous fellows of the academy, Valerie Braithwaite and Mark Considine, both of whom have made towering contributions to the study of public policy, marketisation and regulation. We would like to thank Val, Mark and all the participants in the workshop for two very informative and engaging days.

We would also like to express our gratitude to Frank Bongiorno, Jenny Stewart and the Social Sciences Editorial Board of ANU Press for their support for and confidence in the book. We thank the two anonymous reviewers who gave us thoughtful and very helpful advice for improvements, to which we have done our best to respond.

In addition to the expert knowledge and deep insights that readers will find in their chapters, the authors have made contributions visible only to us as editors: they have been responsive and patient, which we appreciate enormously.

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