Parliamentary Secretary to the Treasurer, Senator Ian Campbell, and the Minister for Employment Services, Mal Brough, today released the report of the Productivity Commission's Independent Review of Job Network and the Government's final response to this report.
Mr Brough said the Job Network's success in providing employment services had been reflected in the report.
"Input from independent bodies, like the Productivity Commission, assists the Government in making the Job Network even better for both job seekers and the maturing employment services industry," Mr Brough said.
The report has found that Job Network's purchaser-provider model, with its focus on outcomes, competition and choice "is a suitable policy framework for the delivery of active labour market programmes" and notes that "competition between providers and the use of outcome payments have created incentives for improved efficiency and better outcomes".
Senator Campbell said the Government welcomed the report as a significant and authoritative examination of Job Network.
"The report has confirmed the Job Network's place and strong record in providing employment services," Senator Campbell said.
"The Government supports the overall thrust of the commission's recommendations, particularly the endorsement of the purchaser-provider model."
Mr Brough said the Productivity Commission had confirmed that the Job Network is delivering employment outcomes at a much lower cost than previous assistance regimes.
"Other messages of the report are that the star ratings approach to performance assessment is performing an important function in the operation of the employment services market and that the success of Job Network could have lessons for other areas where Government purchases services."
Mr Brough said the Commission's finding that there was room for further improvement was to be expected.
"In 1996, the Government embarked on what was then a revolutionary approach to the delivery of employment assistance. The Commission has found that the framework is appropriate; it is effective; and it is cost-efficient. The Commission has also found there is room for improvement and the Government accepts that."
The report recommends incremental reform, much of which has been addressed in the Active Participation Model for employment services, which was announced in the 2002-03 Budget and will be implemented in July 2003.
Mr Brough said not all of the Productivity Commission's recommendations are supported by the Government.
"In particular, the Government is committed to a third employment services tender and does not support the introduction of voluntary participation in Intensive Assistance," he said. The Government, however, will be giving further consideration to these recommendations in the continued evolution of employment services policy."
"This report adds to a considerable body of research from both independent and internal evaluations which have served to help evolve the Job Network into a model now gaining international respect for its innovation and success."
The Government's response to the report is available at http://www.parlsec.treasurer.gov.au and http://www.workplace.gov.au. Copies of the Report are available from Government Info Shops, or may be downloaded from the Productivity Commission website at www.pc.gov.au.
Media inquiries: Greg Jackson (Minister Brough's office) 0419 713 246
Wayne Grant (Senator Campbell's office) 0407 845 280