1. 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: am – pm
WHERE: MAV 60 Collins St
Joseph Connellan, MC Two Pty Ltd

2. 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

3. 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: or

4. 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

5. 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

6. 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

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

8. 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

9. 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, 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, plus 25% to 45%

10. 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

11. 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)

12. “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: or
$5m pa
40 FTE