Brotherhood Comment April 2005
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ISSN 1320 8632A REGULAR UPDATE FROM SOCIAL ACTION AND RESEARCHApril 2005Doing things differentlyPolicies to end persistent povertyOn 31 March, the Brotherhood’s Executive Director, Tony Nicholson, spoke at the opening plenary session of the Sustaining prosperity: new reform opportunities for Australia conference at the University of Melbourne. This article is based on his speech.In the last two decades, after a Like other measures, the HILDA poverty, suggesting that those in shaky start, we’ve gained a better data doesn’t include the homeless. poverty may move into low-paid understanding about how to At the last census, the Australian work but then lose their job and effectively manage a deregulated Bureau of Statistics counted over move back into poverty again. economy. The central bank and 100,000 homeless. Most were in other policy makers are now the first third of their working That said, it highlights one better placed to keep interest lives. About half were actively important fact: our society is still rates and inflation down. in the labour market. I challenge producing a hard core of people in any one to suggest they are not persistent poverty, and we need to Whilst we are not yet as advanced experiencing persistent poverty. direct much of our effort to helping in dealing with the social If we’re to use HILDA data them lift themselves out of it.consequences of a deregulated to measure the persistence of economy, we are beginning to poverty it ...

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ISSN 1320 8632
A REGULAR UPDATE FROM SOCIAL ACTION AND RESEARCH
April 2005
Doing things differently
Policies to end persistent poverty
On 31 March, the Brotherhood’s Executive Director, Tony Nicholson, spoke at the
opening plenary session of the Sustaining prosperity: new reform opportunities for
Australia conference at the University of Melbourne. This article is based on his speech.
In the last two decades, after a Like other measures, the HILDA poverty, suggesting that those in
shaky start, we’ve gained a better data doesn’t include the homeless. poverty may move into low-paid
understanding about how to At the last census, the Australian work but then lose their job and
effectively manage a deregulated Bureau of Statistics counted over move back into poverty again.
economy. The central bank and 100,000 homeless. Most were in
other policy makers are now the first third of their working That said, it highlights one
better placed to keep interest lives. About half were actively important fact: our society is still
rates and inflation down. in the labour market. I challenge producing a hard core of people in
any one to suggest they are not persistent poverty, and we need to
Whilst we are not yet as advanced experiencing persistent poverty. direct much of our effort to helping
in dealing with the social If we’re to use HILDA data them lift themselves out of it.
consequences of a deregulated to measure the persistence of
economy, we are beginning to poverty it will at least need to be
The Brotherhood believes the new
see more clearly how to prevent supplemented by other data sets.
economy demands a new approach
people from being excluded from
to social policy. If we get it right, participating in wealth creation. Most importantly, the HILDA
we will not only reduce poverty
data is too short in duration.
but also give a powerful boost How to include more people While we agree that short-term
to wealth creation. It requires all in mainstream economic and poverty is far preferable to long-
of us to do things differently.social life of the country—this term poverty, the HILDA data fails
is the debate we need to have, to measure the extent to which
We need to give people—those who not the sterile argument that has short-term poverty is intermittent.
are unemployed, underemployed, dragged on over recent years International evidence shows that
receiving non-activity tested about how we measure poverty. although the proportion of the
benefits, or suffering chronic population that is continuously
The Brotherhood doesn’t agree poverty due to substance abuse, poor is low, the population with
with published conclusions from disabilities or mental illness—low average incomes over the long
the Household, Income and Labour term is significantly higher. This the ‘capacities’ (as renowned
Dynamics in Australia (HILDA) is explained by repeat spells of Cambridge economist Amartya
Survey that poverty in Australia is a Continued next page
short experience for most (Wooden
2005). To date the HILDA data Contents
is limited in measuring the extent
Who are the disadvantaged? Poverty measurement 30 years after Henderson ......................................................4–5
to which poverty is persistent for
Welfare reform: How are proposed changes likely to affect vulnerable Australians? ................................6–7individuals and families. At best
it has identified that many people Sole parents: Finding the right balance? .........................................................................................................................................................................8
are caught up in a ‘churn’ between
A new welfare history agenda: Rethinking the role of the non-government sector ...................................................9unemployment and a succession
of low-paid, low-skilled, short- Innovative engagement: The Victorian Southern Region Citizens’ Panel ..............................................................................10
term jobs, insufficient to lift them 4Introducing YP : Piloting an integrated service for young homeless job seekers ..........................................................11
permanently out of poverty and
Public transport and social policy: An interchange to address social exclusion ...........................................................12leaving them with no chance of
building assets. Rather people are Refugee regional settlement: Romance and reality ........................................................................................................................................13
left teetering on the edge of poverty.
Free trade agreements and workers’ rights .........................................................................................................................................................14
www.bsl.org.au April 2005 1Doing things differently
Policies to end persistent poverty
from page 1
Sen would say) to cope with the In concrete terms, the Brotherhood Tony Nicholson
new economy. These capacities is arguing for people to have (03) 9483 1327
will assist people to cope with more access to the big passport tnicholson@bsl.org.au
a more flexible employment to success in the employment
Referencemarket and a changing society, market—education and life skills.
Wooden, M 2005, ‘Poverty relatively which demand higher skills and We want people to move from
transient’, Australian, 19–20 February, p.30.
in which people have different welfare to a job and then on to
family responsibilities, and an even better job—not from The full text of Tony Nicholson’s speech is
enable them to contribute to the welfare to a succession of low- available on the Brotherhood’s website.
nation’s economic growth. paid, low-skilled, short-term jobs.
Recent submissions
Submissions or statements made by • BSL Response to Australian • Submission to Treasurer
the Brotherhood of St Laurence in Consumers and Money, John Brumby on the
the last year include: A Discussion Paper by the development of the Victorian
Consumer and Financial Government's 2005–06
• Submission to the Victorian Literacy Taskforce, July 2004 Budget, December 2004
Ophthalmology Service Planning
Framework, April 2004 • Submission to Senate • Submission to DIMIA on
Community Affairs References Australia’s Refugee and
• Helping local people get jobs: Committee Inquiry Into Special Humanitarian Program
the Brotherhood of St Laurence Aged Care, August 2004 2005–06, January 2005
experience in Fitzroy and
Collingwood, supplementary • Submission to the Productivity • Response to the DEWR
submission to House of Commission Inquiry into discussion paper on
Representatives Standing the economic implications Disability Open Employment
Committee on Employment for an ageing Australia, services, February 2005
and Workplace Relations September 2004
Inquiry into employment: • Response to Commonwealth of
Increasing workforce • Joint submission to Mental Australia Joint Committee on
participation, May 2004 Health Community Public Works re Maribyrnong
Consultations of Human Immigration Detention Centre
• Joint submission to the Rights and Equal Opportunity – Additional accommodation
Productivity Commission Commission and Mental and related works, by BSL as a
Review of National Competition Health Council of Australia, member of Justice for Asylum
Policy Arrangements, with with Catholic Social Services Seekers, February 2005.
VCOSS and Centre for Victoria, September 2004.
Public Policy, June 2004
• Response to Community
• Submission to the Senate Care Division, Department
Employment, Workplace of Human Services, on the
Relations and Education report, Protecting children:
References Committee Ten priorities for children’s
Inquiry into student income wellbeing and safety in
support, June 2004 Victoria, December 2004
Brotherhood Comment is published three times a year by the Social Action Published in April 2005 by
Brotherhood of St Laurenceand Research Division of the Brotherhood of St Laurence.
67 Brunswick Street
The Brotherhood of St Laurence works for the well-being of Australians Fitzroy, Victoria, 3065 Australia
ABN 24 603 467 024on low incomes to improve their economic, social and personal circumstances.
It does this by providing a wide range of services and activities for families,
Telephone: (03) 9483 1183the unemployed and the aged. It also researches the causes of poverty,
Facsimile: (03) 9417 2691
undertakes community education and lobbies government for a better deal E-mail: publications@bsl.org.au
for people on low incomes.
2 April 2005 www.bsl.org.auFrom the General Manager, Social Action and Research
The year 2005 has begun with low-paid work will inform this Public Policy a national conference
a bang for SAR. We were well research. Serena Lillywhite’s work on 18 May to highlight these issues.
represented at the Transitions in corporate social responsibility
and Risk: New Directions for has led to exploration of protecting Continuous improvement
Social Policy conference hosted workers’ rights under a potential Internally 2005 has been busy.
by the Centre for Public Policy China–Australia Free Trade SAR has had significant input into
and our Executive Director Tony Agreement (see page 14). research aspects of the strategic

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