The release of a draft National Compact between the 'Third Sector' and Federal Government has raised hopes for a new era in the relationship between Government and the not-for-profit sector. Through PilchConnect, our specialist legal service for not-for-profit community organisations, PILCH has played a key role in shaping the draft Compact by participating in an expert National Compact Joint Taskforce.
The 'Third Sector', a term somewhat new to the Australian vernacular, is intended to cover a diverse range of not-for-profit organisations ranging from unions and churches, to sporting associations, environment and arts organisations, self-help groups and community services organisations. The Government has deliberately cast the net wide to capture the diversity of the sector and to promote national and holistic responses to common issues. While this is to be encouraged, marshalling the often diverse and divergent views of the sector will not be without its challenges as the Compact is refined and implemented.
The draft Compact is a non-binding agreement that will establish a set of core principles aimed at underpinning the way that the Government and sector relate to each other, strengthening sector viability and delivering better policy and programs. Its lofty (but laudable) vision is to contribute 'to a more inclusive Australian community with better quality of life for all'.
The draft Compact outlines 'rules of engagement' under thematic headings such as respect, inclusiveness, diversity,effectiveness, efficiency and sustainability. Drilling down into detail, the Compact suggests a priority list of important actions, such as:
- protecting the right to advocacy, irrespective of any funding relationship
- documenting and promoting the value and contribution of the Third Sector
- reducing red tape and streamlining reporting - very much the focus of PilchConnect's work
- improving funding and procurement processes, and
- improving information sharing, including access to publicly funded research.
As with for many non-binding statements of intent, governance arrangements for the Compact will be important in determining its efficacy. In this case, the Government has proposed the formation of a new National Compact Council comprising 'Third Sector champions'to represent the interest of the sector on Compact issues, develop implementation plans and recommend 'processes to resolve differences'. The precise composition of such a group may be a cause of some consternation for the Government, but the concept of a strong voice to represent the diversity of the sector in Government forums is certainly a step in the right direction.
The development of the draft National Compact puts paid to a Rudd Government election promise to work actively with the Third Sector to improve sector-Government relations, and has been described as an 'unprecedented opportunity for the Government and the Third Sector to articulate and encourage active and positive partnerships', recognising 'the critical contribution of the Third Sector to Australian communities and to supporting the most vulnerable in society'. Importantly, the Compact is intended as a whole of Government response to engaging with the Third Sector,with Cabinet sign-off on the document proposed by the end of 2009.
The National Compact represents an important step towards improving Government-sector relations and draws on experience from the UK and some Australian States. The Government has now released a consultation paper and opened an online forum to allow Third Sector organisations to have their say about the draft Compact. The work of the Third Sector touches all of us, be it through service delivery, volunteering, philanthropy or weekend exploits, and PILCH encourages all Australians and community organisations to engage in the consultation process and have their say.
For more information about the National Compact and participate in the consultation process, visit: http://www.socialinclusion.gov.au/Pages/default.aspx