July 2004

Funding eases wage pressure

A $4.8 million funding boost will ease wage pressures on Victorian non-government community services agencies.

Community Services Minister Sherryl Garbutt said the Government would provide the extra funding in 2004–05 to ensure agencies could meet the new minimum wage increase of $19 per week handed down by the Australian Industrial Relations Commission (AIRC) earlier this year.

‘The Government has already delivered a $64 million funding boost over the next three years to non-government community services agencies in Victoria.

‘This extra $4.8 million will help agencies meet the new minimum wage standard and ensure all staff are paid appropriately.

‘This Government has always maintained that the new three-year funding agreements allowed for additional resources to be made available if changing conditions—such as safety net wage movements—confronted the sector.

‘The new funding agreements are delivering greater funding certainty for the non-government sector and have the capacity to respond flexibly to exceptional circumstances.’

Ms Garbutt said the Government would review the need for further funding increases to cope with wage pressures at the end of the 2004–05 financial year.

‘The Government is now delivering a significant funding increase of 7.25 per cent over the three-year funding agreement to the non-government community service agencies.

‘This agreement will give agencies funding security to plan for the future and continues the Government’s strong record of investment in community services.

‘Since 1999, the Government has increased funding for child and family support services by 52 per cent and funding for disability services by 59 per cent.’

Ms Garbutt said the new funding package would include a $7 million Community Sector Investment Fund to assist non-government agencies to drive improvements in the delivery of services over the next three years.