9 August 2001

Independent Review Of Job Network

The Assistant Treasurer, Senator Rod Kemp, announced today that the Productivity Commission will undertake an independent review of the Job Network. The review will commence on 3 September 2001.

This review is part of the Government's comprehensive strategy, released in 1998, to evaluate the Job Network.

Following the commencement of the review, the PC will release an issues paper and invite expressions of interest from anyone wanting to participate in the review. I encourage all interested parties to make submissions to the Commission at that time, and attend its public hearings.

The terms of reference for the review are attached.

CANBERRA
9 August 2001

Media contacts:
Richard Wise Assistant Treasurer's Office (02) 6277 7360

 

INDEPENDENT REVIEW OF JOB NETWORK

PRODUCTIVITY COMMISSION ACT 1998

  1. I, ROD KEMP, Assistant Treasurer, pursuant to Parts 2 and 3 of the Productivity Commission Act 1998, hereby refer the Independent Review of Job Network to the Commission for inquiry and report within 9 months of receipt of this reference. The Commission is to hold hearings for the purpose of the inquiry.

Background

  1. In the 1996-97 Budget, the Commonwealth Government announced major changes to the arrangements for active labour market assistance in Australia. The changes were comprehensive, involving the most significant reorganisation of labour market assistance arrangements since the establishment of the Commonwealth Employment Service in 1946.
  2. The model developed, which includes Job Network, was guided by three key principles:
    • a strong focus on outcomes, that is to deliver a better quality of assistance to unemployed people, leading to better and more sustainable employment outcomes;
    • to address the structural weaknesses and inefficiencies inherent in arrangements at the time, by changing the role of government to that of a purchaser rather than a provider of assistance; and
    • the use of competition to drive greater efficiency for the taxpayer and increased choice for consumers.
  3. In announcing the reforms, the Government stated that there would be a full evaluation of the new arrangements. The Evaluation Strategy included a requirement for an independent review of the Job Network's policy framework. It was envisaged that the review would provide an assessment of the strengths and weaknesses of the model for delivering employment services and its application to other types of government services.

Scope of Inquiry

  1. Having regard to the guiding principles established by the Government, the Commission is to critically examine and comment on the framework for delivering labour market assistance arrangements including:
    1. the application of the purchaser-provider model to employment assistance;
    2. the roles of the relevant players including:
      • Commonwealth funded employment service providers;
      • training providers utilised by Commonwealth funded employment service providers;
      • Centrelink; and
      • The Department of Employment, Workplace Relations and Small Business, the Department of Education, Training and Youth Affairs and the Department of Family and Community Services;
    3. areas where the model could be improved; and
    4. the possible scope for the model to apply, in full or in part, to other types of Commonwealth Government service delivery.
  2. In conducting its review the Commission will have regard to research already undertaken, including that undertaken for the evaluation of Job Network, as well as drawing on community input and call for submissions from interest groups and the broader community.
  3. The Government will consider the Commission's recommendations, and the Government's response will be announced as soon as possible after the receipt of the Commission's report.