If there is one industry that could give the renewables or pharmaceutical rent seekers a run for their money it would have to be NDIS.
The idea that Private equity can treat people with disabilities as commodities is a joke. Why on earth would the government (Julia Gillard) privatise helping people with disabilities.
It’s a scheme that needs to be cleaned up so that genuinely disabled people get the help they need. And I quote: “From lingerie retail empires and chicken burger franchises to selling wheelchairs, mobility scooters and providing disability carers for those on the NDIS. This is where the smart money is, according to billionaires and millionaires looking for their next payday. Private equity companies from Australia, the US and Europe are spending hundreds of millions of dollars buying up NDIS providers and services. Many are currently operating at a loss as they are fattened up in preparation for sale. But the $42 billion a year scheme which supports 650,000 Aussies can be very lucrative, with one public fund that also invests in the NDIS reporting more than 12 per cent in gains over the past 12 months. The flood of cash into the NDIS has raised concerns among experts and workers that money supposed to pay for the care of some of Australia’s most vulnerable will instead end up in the pockets of already wealthy investors.”
Quote from: CourierMail.com.au
Senate on 24/06/2024 and 26/06/2024
BILLS – National Disability Insurance Scheme Amendment (Getting the NDIS Back on Track No. 1) Bill 2024 – Second Reading
Senator RENNICK (Queensland) (19:58): I rise tonight to speak on the National Disability Insurance Scheme Amendment (Getting the NDIS Back on Track No. 1) Bill 2024 and support comments made in this chamber about having a much more sustainable NDIS system whereby the money goes to the people who need it but isn’t wasted on people who don’t need it. It is interesting. I actually read an article yesterday online in Brisbane’s Sunday Mail about how the National Disability Insurance Scheme is now being gouged by private equity owners. Let me tell you that the moment you hear the words ‘private equity’ you really need to find yourself a very good proctologist, because these people gouge the system. It doesn’t matter whether it’s public or private. I am sure that the NDIS system wasn’t set up so that we could make wealthy billionaires wealthier.
I have always been of the belief—and I have said this in regard to banking and everything like that—that the best system to have in any country or any particular part of the economy is a private sector that encourages efficiency and productivity et cetera but also a backstop with public competition as well. In the health system, we have public and private hospitals. In the education system, we have public and private schools. I, myself, am advocating for a public bank because I believe that since we privatised the Commonwealth Bank we’ve seen the private banks gouge the market. We haven’t got greater competition; what we’ve got is greater market concentration. I think that, in the NDIS system, we must have a backstop in the public sector, as well, that can provide ethical, solid—
The ACTING DEPUTY PRESIDENT ( Senator Hughes ): Order, Senator Rennick. You will be in continuation.
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Senator RENNICK (Queensland) (18:26): I continue my remarks about the importance of making sure that the NDIS remains a sustainable and efficient manner of delivering adequate support to the people who need it. That’s very, very important because, as I touched upon when I first started this speech two nights ago, unfortunately private equity has moved into this industry and there is very little as a public backstop to ensure that there is ethical competition in the industry. One of the things that I’ve learnt in my time as a senator—in my life, actually; not just in my time as a senator—is that things work best when we have a public-private structure whereby we have the private practice or industry out there always seeking better efficiency gains, cutting-edge technology et cetera, but we actually—
The ACTING DEPUTY PRESIDENT ( Senator Marielle Smith ): Senator Rennick, I’m just going to ask those leaving the chamber to please do so quietly. It’s difficult for others in the chamber to hear Senator Rennick’s remarks and, indeed, for Senator Rennick to hear me as chair.
Senator RENNICK: In having public and private, I think we really need to look at having better government support—public government support—within the NDIS system because, as we saw in the banking sector, when the CBA was privatised we let the private market rip, and 20 years later we ended up with a royal commission into misconduct in the financial system.
What privatisation has shown us is that you don’t get greater competition; you get concentration of market power. When we look at our hospitals and our schools, I think they are structured the best, in that, for hospitals, we have private hospitals and public hospitals, and, in the school system, we have private schools and public schools. The private schools and the private hospitals are there so that, if people want to pay a little bit extra and get a little bit more of what they think is better service, then they can pay extra for that. But, given that the NDIS, like banking, health and education, is an essential service, we need to make sure that we have a government backstop.
There was a very good article in the weekend’s Sunday Mail. It talked about private equity entering the NDIS system. We have now got millionaires moving in. They’re looking at achieving a rate of over 10 per cent return. I’m sorry, but people with disabilities shouldn’t be seen as a commodity to be traded. I find that completely and utterly offensive. I get that farming is a private industry. I get that, because it is better having farms in private hands. But, when we are talking about the life, dignity and worth of every individual, we have to make sure they get adequate, correct care. This is why I really think we need better public systems in the NDIS system and, as I have said, to make sure that we don’t let the private market rip, because we are dealing with people’s lives.
I accept that this is never going to be easy. It’s easy to criticise the current minister, but—I’m going to be honest here—when you have something like almost half a million people on the NDIS, with a range of disabilities, it is not going to be very easy to make a one-size-fits-all type of situation. I don’t want to make too many overreaching generalisations. I know there are times to have a bit of a crack in the chamber, but I don’t think that we should be doing that in this particular case when we’re dealing with people’s suffering and disability.
I will just conclude by saying I look forward to the amendments that the coalition are going to bring on, but I also would ask that we all work together to support those people who are most in need. I have three beautiful, healthy children. I cannot imagine what it would be like to have a child who needs the support of constant care. In fact, one of my old school friends who I talk with quite often is Toni Mitchell. Her son, Joshy, has needed a lifetime of support and care. She’s a single mum. She is a true champion. I don’t know if I could cope with the struggles that she has gone through. Toni, if you are listening, this one’s for you. I look forward to hopefully this bill helping make life better for people who are disabled.
