Page 3891 - Week 12 - Wednesday, 19 October 2005
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flagship commitments in the Canberra social plan, and is designed to support government and non-government agencies to progressively change service delivery to improve social outcomes for individuals, families and communities experiencing disadvantage and social exclusion. Fifteen extremely worthwhile projects were funded in the 2004 round of the community inclusion fund, and applications for the 2005 round have recently closed.
It is very pleasing that one of the key targets in the Canberra social plan has already been achieved, well ahead of its target date. One of the key targets in the Canberra social plan was to reduce the level of long-term unemployment to 12.5 per cent of total unemployment by 2013. It is very pleasing that in 2003-04 long-term unemployment in the ACT accounted for about 10 per cent of total unemployment. The long-term unemployed, according to the Australian Bureau of Statistics, are those people who have been looking for work for more than a year. In 2002-03 there were about 1,300 people who it was considered would fit the definition of long-term unemployed, or 17 per cent of the total number of unemployed people.
In 2003-04 the number of long-term unemployed people in the ACT had fallen to just on 700. Long-term unemployment as a proportion of total unemployment has been declining over the past three years, due to the strong economic growth of Canberra. The personal and social costs of long-term unemployment are significant. Employment provides people with a sense of identity, participation, and order in daily life. The longer a person is unemployed the fewer chances they will have of escaping from that situation. There is a danger that some children will grow up in families and neighbourhoods which have little contact with the world of paid work, detached from the opportunities and aspirations that most people take for granted.
As we have heard today, recent decisions by the federal government regarding welfare, disability support pensions and the WorkChoices agenda are likely to have the opposite effect and actually increase unemployment. They will certainly increase underemployment and create a new class of working poor. The government will continue to oppose these changes and work towards reducing the number of people either experiencing long-term unemployment or at risk of long-term unemployment. The community inclusion board is playing a very important role and will continue to provide advice to the government on approaches to improving social and economic outcomes for those who feel marginalised in the labour market.
In March this year the ACT government commenced an innovative project to help low-income people in Canberra break free from the vicious cycle of consumer debt. Analysis of ABS information by the government has revealed the extent of consumer debt affecting the community. There are 13,000 low-income people in Canberra currently experiencing severe financial stress as a result of unmanageable levels of consumer debt in their lives. And there are about 20,000 low-income households who although not currently experiencing financial stress may do so if interest rates rise, their employment opportunities contract, or their personal circumstances change due to relationship break-ups or ill health. Unmanageable levels of consumer debt are a heavy burden on people’s lives and have a myriad of consequences affecting family relationships, employment, health and participation in the community. The pilot project commenced in March and the government looks forward to a comprehensive evaluation of the impact of the project when it concludes next year.
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