SERVICE DELIVERY THROUGH THIRD SECTOR ORGANISATIONS

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SERVICE DELIVERY THROUGH THIRD SECTOR
ORGANISATIONS

• Dr Dugald Monro
• CRPSM
• CRPSM Lunchtime Seminar
• 2 November 2005

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INTRODUCTION

• Paper concentrates on why TSOs are used to
  deliver specific services under a number of
  Commonwealth programs.
• Whether TSOs should be expected to compete with
  other sectors and implications for the
  administration of TSOs are also considered.

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Reasons for Using TSOs

• 3 reasons may be identified
• Comparative advantage
• i.e. that TSOs may be more effective and/or
  efficient than other sectors
• Social capital
• paper only considers where this is a means to an
  end, not an end in itself
• Historical reasons
• these may explain why TSOs have been used but do
  not answer whether they should be used

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Comparative Advantage

• One approach sees this arising from failure of
  Government or private for profit sectors to meet
  need
• TSOs may be more trusted or offer possibilities
  for service users to be involved.
• Billis and Glennerster see comparative advantage
  arising from disadvantage of client
• financial, personal, social or community
  disadvantage.

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Choice

• A variation on comparative advantage is choice
• TSOs may provide a distinct type of service not
  available from other providers
• offering such a choice may be considered
  desirable, without assuming that the TSO
  provision is necessarily better.

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Selected Commonwealth Programs Delivered Through
TSOs

• See hand-out (Table 1).

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Comparative Advantage

• 5 programs are directed at disadvantaged
  clients but the pattern of TSO use only partly
  meets theory
• in those aimed at financial and social/personal
  disadvantage (SAAP, Jobs Network) TSOs are strong
• In those aimed at personal disadvantage TSOs the
  position is mixed
• in Residential Aged Care TSOs are declining after
  competitive arrangements introduced
• with HACC and Disability services Governments as
  well as TSOs are significant providers.

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Comparative Advantage (2)

• Clients of Child Care are not necessarily
  disadvantaged
• claim for comparative advantage rests on TSOs
  offering better quality, being more trusted
• role of TSOs in decline since competitive
  arrangements introduced.

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Choice

• Two programs, community housing and
  non-government schools, aim to increase choice
• both areas have separate funding arrangements for
  the different sectors
• actual choices of clients may reflect funding
  arrangements and not intrinsic merits of sector
• social capital aspects are part of the choices
  offered
• e.g. tenant participation, religious based
  schools.

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Social Capital

• The programs considered relate to social capital
  in four ways
• one, Landcare, uses building social capital to
  achieve its objectives
• for two social capital is part of the choices
  offered
• for four the expertise of the TSO sector may be
  harnessed through advisory structures and may be
  important to achieving objectives
• for three may bring additional advantages such as
  linking clients to networks although not vital to
  the programs objectives.

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Historical Reasons

• Except for Jobs Network and Landcare, TSOs were
  pioneers or significant early providers in their
  fields.

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Should TSOs Compete for Funding?

• Where comparative advantage is the reason for
  using TSOs in principle competition seems
  desirable, however
• if social capital is important to the programs
  strategy e.g advisory committees, the sector
  needs to survive
• if choices offered by TSOs are considered
  desirable, those TSOs need protection
• processes need to recognise possible advantages
  of TSOs such as quality and not simply cost and
  efficiency.

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Administrative Issues

• A common claim about TSOs is lack of
  accountability (Mulgan) and following own agendas
  (Johns etc.)
• however informality and ability to be flexible
  may give TSOs their comparative advantage so
  strict adherence to accountability measures
  problematical (Dollery and Wallis, Mulgan)
• performance measures need to consider all reasons
  for TSOs possible advantage such as quality,
  empathy with clients.

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Conclusions

• Comparative advantage is the claimed reason for
  TSO involvement in most cases
• that use of TSOs does not entirely match theories
  of comparative advantage points to a need to
  closely examine whether TSOs deliver the claimed
  advantages
• Importance of social capital as an additional
  strategy for achieving objectives points to a
  need to examine this role
• There is a need to examine selection and
  administrative processes to ensure advantages of
  TSOs are properly considered.