THE CASE FOR ADDITIONAL INVESTMENT FOR · PDF fileconflict resolution service: the case for...

THECASEFORADDITIONALINVESTMENTFORCOMMUNITYBASEDALTERNATIVEDISPUTERESOLUTIONANDRESTORATIVESERVICES

CONFLICTRESOLUTIONSERVICE–THENEXT30YEARS.

2018/19ACTBUDGETSUBMISSION

CONFLICTRESOLUTIONSERVICE:THECASEFORADDITIONALINVESTMENTFORCOMMUNITYBASEDALTERNATIVEDISPUTERESOLUTIONANDRESTORATIVESERVICES–2018/19ACTBUDGETSUBMISSION

2 | Page

CONTENTS

EXECUTIVESUMMARY.........................................................................................................................................................3ENVIRONMENTINWHICHCRSOPERATES...........................................................................................................................4ImmediateImpactoffundingshortfallonservicedelivery.................................................................................................4Caseexamples–ListeningtothevoicesofCRSclients........................................................................................................5

CaseExample1)preventionoffamilyvioenceandbuildingcapacityforconflictresoluton...........................................5CaseExample2)Journeyingtowardsco-parenting-CommunityMediationServices....................................................6CaseExample3)Fromfamilycrisistofamilyresilience,–YouthCrisisMediationService.............................................6

WHYCONTINUETOINVEST?................................................................................................................................................7Alternativedisputeresolutionworks:Itcandeliverbetteroutcomesforindividualsinvolvedintheseprocessesthantraditionaljusticemodels.................................................................................................................................................7Alternativedisputeresolutionisacosteffectivewaytoresolvedisputes......................................................................7TheACTmodelofcommunityledalternativedisputeresolutioncontinuestobeinnovativeandanexampleofbestpractice.............................................................................................................................................................................7TheACTGovernmenthascommittedtobecomingarestorativecommunity.................................................................7Thereisgrowingevidenceregardingtheusefulnessofalternativedisputeresolutionprocessesandrestorativepracticeinsolvingcomplexsocialissues..........................................................................................................................7

WHYSHOULDGOVERNMENTINCREASEFUNDING?............................................................................................................9Demandisincreasingandhasoutstrippedanyincreaseinfundinglevels......................................................................9Complexityincasesisincreasingandresolutionrequiresmoretimeandresources....................................................10Methodologiesareevolvingandengagementislesslikelytoresultinformalmediation............................................12ThetrendsoutlinedaboveareadverselyimpactingonCRS’operationalcapacity.......................................................14

CRSPROPOSALFORADDITIONALFUNDING......................................................................................................................15Restorestaffingbacktopre2017/18levelstomeetdemand($100,000).....................................................................15Upgradeoffacilitiesatthegrffincentre($15,000)........................................................................................................15AdditionalinvestmentinadministrativeandorganizationalinfrastructureandTechnology($50,000).......................15Investingindevelopmentactivitiestodevelopasustainablebusinessmodelintothefuture($70,000).....................16Leadingthecommunityresponsetorestorativepractice($75,000).............................................................................16

CONCLUSION......................................................................................................................................................................17ENDNOTES.........................................................................................................................................................................18ATTACHMENTA:THEECONOMICIMPACTOFAREDUCTIONINCRSSERVICES………………………………………………………………20


3 | Page

EXECUTIVESUMMARY

Foroverthirtyyears,theConflictResolutionService(CRS)communityhasprovidedaninvaluableservicetotheACTcommunityandeconomy,providingalternativemethodsfordisputeresolution.CRShasoperatedinadynamicenvironment,andinasectorthatisexperiencingunprecedentedchangeandtransformation.

Alternativedisputeresolutionapproachesareawell-testedwayofmanagingconflictanddisputes.Theyarecosteffective,andoftendeliverbetteroutcomesforpeoplewhoarebeingsupportedtoresolveconflict.Theyarenowbeingcomplementedbyrestorativeapproaches.TheACTGovernmenthassignalleditsintentiontodeclareCanberraa‘RestorativeCity’,andrestorativepracticeisincreasinglybeingrecognisedaswaytorespondtoconflictinchallengingsocialareasincludingelderabuse,disability,domesticandfamilyviolence,andchildprotectionandout-of-homecare.

CRSisthesoleproviderinCanberraofcommunitydisputeresolutionsupportservices,withotherAustralianjurisdictionsdeliveringthesesameservicesthroughGovernmentdepartments.iAssuchCRSistheGovernment’sresponsetoacorecommunityneedwhichcoversmultipleportfoliosrelatedtoJustice,Policing,SchoolsandYouth,FamilyViolence,HomelessnessandCommunityDevelopment.Thismulti-portfoliocharacteristicofCRShasbeendemonstratedthroughthefundinghistoryofCRSoverthepasttwentyyears,whichhasseenGovernmentfundingsourceschangefromJustice&CommunitySafety,Health,Education,andSocialHousingandHomelessnesswithintheCommunityServicesDirectorate.

CurrentlyallCRScontractsareadministeredthroughSocialHousingandHomelessnesswithintheCSD.CRSbelievesthatconsiderationshouldbegiventothenatureofitsspecialisedcommunitydisputeresolutionservicesanditsmulti-portfoliorelevance,andtheneedforacabinetlevelconsiderationofthisbudgetproposal.

InthiscontextoverthelasttenyearsCRShasabsorbedasignificantincreaseofdemandandcomplexityincaseswhichhassignificantlyoutstrippedincreasedfundingintheorganisation.ThisbudgetsubmissionseekstoaddressthisimbalancewhichrepresentsasignificantthreattotheACTGovernment’scommitmenttomeettheneedsforalternativedisputeresolutionsupportservicesinthecommunity.Overthistenyearperiod,therehasbeen:§ adoublingofourclientnumbers;§ analmostfivefoldincreaseincontactwithclients;and§ atenfoldincreaseinthetimespentwithclients.

Inresponse,CRShashadnooptionbuttodivertresourcestofrontlineservices,whichhaserodedorganisationalinfrastructureandcapacity,andhasseriouslythreatenedthelonger-termsustainabilityoftheorganisation.

Inthe2017/18financialyearthissituationthenforcedCRStoreduceitsstaffingandcutitsserviceoutputbyapproximately50%.Assuch,weknowthatnowmanyvulnerableCanberransarenotabletoaccessthedisputeresolutionsupporttheyneed.Thiswillhaveanegativeimpactuponindividuals,familiesandupontheefficiencyofotherexpensiveandmoreadversarialdisputeresolutionsystemsintheACT(i.e.Policing,Courts,ACAT,YouthJusticesystem,LegalAidandCommunityLegalservices).CostBenefitAnalysisstronglysupportsthisclaim(SeeAppendixAontheEconomicImpactofaReductioninCRSServices).

Assuch,CRSisapproachingtheACTGovernmentwithaproposalforGovernmenttoincreasetheinvestmentinCRSbymodest$300,000forthe2018/19financialyear.

Thiswillenabletheorganisationto:

RestoreCRSstaffingbacktopre-2017/18levelstomeetbasicdemand($100,000); UpgradefacilitiesattheGriffinCentre($15,000); Investinadditionaladministrativeandtechnologyresources($50,000); Investresourcesinbusinessdevelopment,tounlockthepotentialoffee-for-serviceactivities($70,000);and InvestinCRS’worktodevelopcommunityledrestorativepracticeinareasofkeyneed($75,000).


4 | Page

ENVIRONMENTINWHICHCRSOPERATES

Thereisrecognitionthatalternativedisputeresolutionandrestorativepracticescancontributetoaprogressiveandcohesivecommunity.TheACTGovernmenthasconsistentlyrecognisedthevalueofcommunitybasedprocesses,mostnotablythroughitsinvestmentinCRSastheleadingagencytosupportfamily,neighbourhoodandcommunityalternativedisputeresolutionservices.ThegoalofCanberrabecomingaRestorativeCityrequiresawholeofcommunityresponse,andthisendeavourhasitsbestchancetosucceedifthereisinvestmentintocommunityinfrastructureandcommunityleadershiplinkedtothebroaderworkofalternativedisputeresolutionprocesses.

ThisopportunitycomesatatimeofsignificanttransformationfortheACTcommunitysector.iiCRShasnotbeenimmunetotheimpactofincreaseddemandandcomplexityintermsofclientsandtheoperationalenvironment.

Asdemonstratedbelow,overthelasttenyearstherehasbeenasignificantmismatchofinvestmentanddemand.Whilefundinghasincreasedbyafactorof2.7,outputhasincreasedtenfold.Todatethishasbeenmanagedbysacrificinginvestmentinareassuchasofficeaccommodation,systemsandadministrationinordertoprioritiseservicedelivery.ThisisnolongerafeasibleapproachandCRSurgentlyneedstoinvestininfrastructure,locatedtofit-for-purposepremises,developa

sustainablebusinessmodel,diversifyitsfundingsourcesandexpanditsserviceofferingsinrestorativepractice.

IMMEDIATEIMPACTOFFUNDINGSHORTFALLONSERVICEDELIVERY

TheCRSwasestablishedafterthecommunitybuiltthecasefortheimportanceofanindependentandcommunitybasedalternativedisputeresolutionserviceandsincethistimehasexistedwithsupportfromtheACTGovernment.

CurrentlytheACTGovernmentprovidesfundingofapproximately$630,000annuallytosupportcoreoperationsoftheorganisation.Thisincludesprovidingalternativedisputeresolutionservicestothecommunityinareasincludingfamilybreakdownandfamilystress,neighbourdisagreement,communityconflictandworkplaceissues.

ACTGovernmentServiceFundingAgreementsfortheCDPprogramsetsoutthetargetgroupforCRSservicedeliveryasfollows:

RESIDENTSOFTHEACTWHOAREEXPERIECINGCONFLICTWHOAREEITHER:1)LOWINCOME;2)VULNERABLE; 3)DISTRESSED

RESTORATIVECITY?Onthe10February2016theACTLegislativeAssemblycalledontheACTGovernmentto:WorktowardsthedeclarationofCanberraasarestorativecity,whichwillconfirmitscommitmenttoexploringandimplementingcreativesolutionstosharedproblemsusingrestorativeprocessesandcontinuingtheACT’svisionforsafetyandmoreconnectedcommunities.

OVERTHELASTTENYEARSTHEREHASBEENASIGNIFICANTMISMATCHOFINVESTMENTANDDEMAND.


5 | Page

CRShaseightofficestaff(6FTE)andinanygivenyearbetween15-25qualifiedmediatorsonourcommunitypanelwhoareengagedonacasualbasis.CorealternativedisputeresolutionmethodologiesthatCRSemploysincludepre-mediationsupport,mediation,youthcrisismediation,facilitation,conflictcoachingandcommunityeducation,trainingandaccreditation.

ThesituationofCRSfundingnotmatchingtheincreaseddemandhasbeenfurthercompoundedbythecumulativeimpactovertenyearsofcommunitysectorsalariesincreasingannuallybyabout5%peryear,yetACTGovernmentfundingonlyincreasesby2%peryear.

InresponsetothissituationCRShashadnootherchoicebuttoreducestaffhours,andreduceitsservicedeliveryoutputbyaround50%.SinceAugust2017thesereductionsinstaffhourshaveresultedinaninabilityforCRStorespondtoincomingrequestsforfromthepublicforservicesandforthefirsttimeinitshistory,theestablishmentofphonelinediversionstoansweringmachines,andthetriagedwaitinglists.

CRSistheonlycommunitybaseddisputeresolutionserviceinCanberraforlowincome,vulnerableanddistressedpeoplewhoarestuckindestructiveconflict.WehavealwaysmaintainedarigorousIntakeassessmentprocess,andreferoutextensivelytootherserviceproviderswhencasesdonotmeetourspecificservicemandate.WealsoregularlywithdrawourserviceswhendisputesarenotsuitableforMediation.

AssuchweknowthatthereductionsinCRSserviceoutputhavetheconsequencethatvulnerableCanberranswillnothaveaccesstothespecializeddisputeresolutionsupporttheyneed,andthatthiswillhavesignificantnegativeimpactsonthempersonallyandanadverseimpactonthebroaderCanberracommunity.

Putsimply,webelievethatCanberrahasacriticalneedforcommunitydisputeresolutionservicesoperatingatthelevelsprovidedbyCRSoverthepastyearsandalsoathigherlevels.

Furthertothis,theCRSBoardisveryconcernedthattherecentreductionswillsignificantlyrestrictthecapacityofCRStoprogresswithcriticalorganisationalandservicedevelopmentprojects.Thisisespeciallyimpactedbythefactthatnowallstaff,includingtheCEOandPracticeManger,arenowoperatingonaparttimebasis.Theseprojectsarevitalinunlockingexistingconstraintsandallowingtheorganisationtoinnovate,manageimmediaterisksandachievelongtermsustainability.

CASEEXAMPLES–LISTENINGTOTHEVOICESOFCRSCLIENTS

ThefollowingthreestoriesprovideapowerfulinsightintovalueofcommunitydisputeresolutionservicesintheCanberracommunityandhighlighttherelatedbenefitstoindividuals,familiesandtotheGovernmentthroughensuringthepreventionoffamilyviolenceandtheresolutionofconflictoutsidetheadversarialcontextoftheCourtsandlegalsystem.Allidentifyinginformationinthesecaseexampleshavebeenremovedorchanged.

CASEEXAMPLE1)PREVENTIONOFFAMILYVIOENCEANDBUILDINGCAPACITYFORCONFLICTRESOLUTON

InAugust2015IaccessedtheservicesofCRSforsupportwithaconflictIwashavinginmylife.IhadleftatoxicrelationshipwhilepregnantandhadtakenoutaDVOonmyex-partner.InDecemberwhenmydaughterwasafewmonthsold,myex-partnerandIattendedmediation.IthadbeenalongtimesinceIhadseenmyex-partnerandIwasveryscaredandnervousaboutmediation.ThewonderfulstaffatCRSmademefeelverycomfortableandthemediationprocesswasverypleasantandsuccessful.

InMarch2016,ex-partnerandImadeanattemptatgettingbacktogether.Withinafewmonths,wehadbrokenupandwerehavingserioustroubles.WereturnedtomediationinOctober2016andhadasuccessfuloutcome,andhavesincehadagreatco-parentingrelationship.

ThroughthesupportofCRSIwasabletofeelconfidentwiththeco-parentingrelationshipIhavewithmyex-partner,andhavelearnedhowtoapproachanddealwithconflict.Myex-partnerandIhavebeenabletochangeourparentingagreementwhennecessary,andhavelearnedhowtocompromisebecauseofwhatwelearnedduringthemediationprocessatCRS.

IamgratefulforthesupportIreceivedfromCRSasitpreventedfamilyviolence,andhasensuredmydaughterwillhaveahealthyandmeaningfulrelationshipwithbothparents.


6 | Page

AssomeonewhohasbenefitedfromtheavailabilityofthissupportserviceinCanberra,IstronglyencouragetheACTGovernmentdowhatevereveritcantoensureCRSisabletocontinueprovidingitsservicestomoreandmorepeople.

IamgratefulforthepastinvestmentintoCRS,andIthankyouinadvanceforyourconsiderationofmylettertoyou,andtheongoingneedsofthisvaluableCanberracommunityorganisation.

CASEEXAMPLE2)JOURNEYINGTOWARDSCO-PARENTING-COMMUNITYMEDIATIONSERVICES

SeanandMyerhadlivedtogetherfor3yearsandhadbecomeparentsofalittleboy,Michael,whowas18monthsoldwhentheyseparated.Myerwasfromalargeclose-knitfamilysoshemovedintothestreetwhereherparentsandhersisterandherfamilyalllived.Seanworkedshift-workandhisrosterwasalwayschangingsoitwasverydifficulttohavearoutineofMichael’stimewithhisfather.SeancontactedCRStorequestmediationwithTinainthehopethattheycouldfindacivilwayofcommunicatingregardinghistimewithhisson.

MyerfoundSeantobeveryaggressivewhenheapproachedherrequestingtoseeMichael.Thisinturnhadtheresultofavoidinghiscallsandface-to-facecontact.ThisavoidancehadthenresultedinSeanbecomingmorefrustratedandhewasfindingitincreasinglydifficulttomanagehisemotionalresponses.SeancalledtheIntaketeamonseveraloccasionsseekingcoachingonhowtorespondtoaparticularsituationwithMyer.

FollowingtheirIntakeinterviews,SeanandMyercametogetherfortheirmediation.TheywereabletoagreethattheywouldworktogetherinthebestinterestsofMichaelandthattheywouldeachsupporttherelationshipoftheotherparentwithhim.Theymadeacommitmenttocommunicaterespectfullyandthedetailsofhowitwouldoccurwereagreeduponandwrittenup.Theyalsoagreedtobothseeachildpsychologistregardingappropriatecareofsuchayoungchild.

CASEEXAMPLE3)FROMFAMILYCRISISTOFAMILYRESILIENCE, –YOUTHCRISISMEDIATIONSERVICE

15yearoldJanewasfromaculturallyandlinguisticallydiversefamilyandwasrepresentativeofanumberofFamilyTreeHouse(FTH)CALDclientswhobecameparticipantsinthisprogramoverthelastyear.Jane’smothercontactedtheFTHinthefirstinstanceasJanehadrunawaytwiceintheprevioustwoweeks.EventhoughJanehadreturnedhome,herangerwasupsettingthewholehousehold.Janehadbecomeviolentinthehouseholdandhaddestroyedproperty.Inresponse,theparentshadconfiscatedallelectronicdevicesandtheyhadrefusedpermissionforhertoparticipateintheout-of-schoolactivitiesthatsheobviouslyenjoyed.TheparentsbelievedthatifJanedidnotgetwhatshewanted,shewouldthrowatempertantrum.TheywereworriedthatJanemighthaveamentalillness.

BoththeparentsandJaneattendedtheirinitialIntakeinterviewsandproceededtoreceiveconflictcoachingover6sessionseachduringthenextcoupleofmonths.Duringthistime,Janerevealedthatherparentswereextremelyauthoritarianandhadveryhighexpectationsofherpersonalbehaviourandherschoolresults.Shewasaverybrightgirlandexpresseddeepinterestinhistory,literatureanddance.Shewaspreparedtoliveoutofhomeifnecessarytoescapewhatshesawasherparentssuffocatingauthority.

Theparents,throughcoaching,wereabletomodifysomeoftheircommunicationwithJanetotheextentthatJanerecognisedthattheyweremakinghugeefforts.Thethreefamilymembersparticipatedinafamilymeetingandwereabletomakesomeagreementsaboutexpectations.TheycontinuetobecontactedbytheFTHforongoingsupport.


7 | Page

WHYCONTINUETOINVEST?

ALTERNATIVEDISPUTERESOLUTIONWORKS:ITCANDELIVERBETTEROUTCOMESFORINDIVIDUALSINVOLVEDINTHESEPROCESSESTHANTRADITIONALJUSTICEMODELS

AlternativedisputeresolutionisnowastandardpracticeacrossAustraliaandisrecognisedasaneffectiveandusefulmethodologyforresolvingdisputes.iiiivThesemethodsarenowbeingemployedoutsidecriminaljusticesettings,inareasincludingchildprotection,vfamilyanddomesticviolenceviandelderabuseviiwithverypromisingresultsinrelationtoresolvingconflictandaddressingharms.

ALTERNATIVEDISPUTERESOLUTIONISACOSTEFFECTIVEWAYTORESOLVEDISPUTES

Thereisglobalrecognitionoftheeffectivenessofalternativedisputeresolutionasacosteffectivealternativetolitigation.Thesesavingscanrangefrom3to50percentofthecostsincurredbyfirmsthatgothroughacourtlitigationprocess.viiiAVictorianParliamentaryReviewin2007identifiedakeybenefittoalternativedisputeresolutioniscostandtimesavings.ixForfurtherCostBenefitAnalysisevidenceseeAttachmentA:“EconomicresearchrelevanttotheeconomicvalueoftheCanberraConflictResolutionServiceInc’sdisputeresolutionandtheeconomicimpactofareductioninservice”(preparedbyProfessorAnneDaly,UniversityofCanberra).

THEACTMODELOFCOMMUNITYLEDALTERNATIVEDISPUTERESOLUTIONCONTINUESTOBEINNOVATIVEANDANEXAMPLEOFBESTPRACTICE

Sincethelate1980’s,theACThasledAustraliainitssupportofcommunitybasedalternativedisputeresolution.WhileotherjurisdictionshavegenerallyfundedservicesthathavebeenembeddedinGovernmentdepartmentsorattachedtothelegalprofession(forexamplecommunitylegalcentresorLegalAid),theACThasfundedanindependentorganisationtoleadthiswork.Therearespecificstrengthsinthismodel,particularlyinreducingtheopportunityforconflictbetweenalternativeprocessesandlitigation.xThenationalmediationconference(www.mediationconference.com.au)tobeheldinCanberrain2019providesanopportunitytoshowcasetheuniqueapproachtheACTtakestoalternativedisputeresolutionandhowtheACTcontinuestobeinnovativeinthewayitdeliverscommunitycentredandownedservices.

THEACTGOVERNMENTHASCOMMITTEDTOBECOMINGARESTORATIVECOMMUNITY

Inearly2016,theACTLegislativeAssemblycommittedtoworktowardsthedeclarationasarestorativecity.xiWorkhascommencedaroundthis,includinganinquirybytheLawReformAdvisoryCommittee.xiiThereisalsoaneedtosupportcommunityledpracticeinthisarea.CRSisproudofitslonghistoryasacommunitybasedleaderinrestoringrelationshipsfollowingconflictandtheexperienceofharm.CRSbelievesthatakeycomponentofCanberraasaRestorativeCityisensuringthepopulationhasaccesstocommunitydisputeresolutionservices.AppropriatelevelsofGovernmentinvestmenttoensurethatdemandforcommunitydisputeresolutionservicescanbemetisacriticalaspectofthevisionforCanberraasaRestorativeCity.

THEREISGROWINGEVIDENCEREGARDINGTHEUSEFULNESSOFALTERNATIVEDISPUTERESOLUTIONPROCESSESANDRESTORATIVEPRACTICEINSOLVINGCOMPLEXSOCIALISSUES

Evidencesuggestsanumberofsignificantopportunitiesaroundrestorativepracticesthatsitoutsidethejusticesystem,including:


8 | Page

ELDERABUSE:Withanageingpopulationtherisksforexploitationofolderpeopleisbecominganincreasingproblem.TheQueenslandGovernmentistrainingtheuseofmediationandrestorativepracticeinthisarea,withpromisingresults.xiiiVictorianagencieshavedevelopedmediationmodelsthatareabletopreventelderabuse.xivWiththeroll-outofsignificantreformsinagedcare,particularlyfocusedonclientcentredcareandindividualfundingmodels,xvtherewillbeanincreaseinfamilybaseddisputesandaheightenedriskofelderabuse.ThereisasignificantopportunitytodevelopandimplementmodelstosupporttheACTcommunityandcomplementthegoodworkthathasoccurredtodatetoaddressandreduceelderabuse.

DISABILITY:consumers,advocatesandthecommunityhavewelcomedtheroll-outoftheNationalDisabilityInsuranceScheme.Evenasthisisthecase,therehavebeenchallengeswithitsimplementation.Whiledataisdifficulttoobtain,therehavebeenmanyexperiencessharedregardingtheconflictanddisputesthathaveariseninregardtoassessmentsandthedevelopmentofplans,relationshipsbetweenpartiesinvolvedinplans,andwithinfamilieswhoarenavigatingthiscomplexarrangement.Inthecontextofdevelopingadisabilityjusticestrategy,thereareopportunitiestoexplorehowrestorativepracticeandalternativedisputeresolutionprocessescanbeacorepartofthestrategyandplan.

FAMILYANDDOMESTICVIOLENCE:whilegoodworkisoccurringaroundtheuseofrestorativejusticeforthoseengagedinthejusticesystem,thereispromisingpracticeemergingaroundtheuseofmediationandrestorativepracticetosupportvictimsoffamilyanddomesticviolencewhoareunableorunwillingtoengageinthecriminaljusticesystem.BuildingonworkinNewZealandarounditsvalueintheareaofsexualassault,xviAustralianresearchhassuggestedthatcarefullydesignedalternativeresolutionprocessesmaydelivermoresatisfactoryoutcomesforsomevictimsofdomesticandfamilyviolence.xviiModelssuchastheRoundTableDisputeManagementprocessusedatLegalAidVictoria,andtheTelephoneDisputeResolutionServiceoperatedbyRelationshipsAustraliahavebeenidentifiedasgoodpractice.Inaddition,approachessuchasintroducingaspecialistmodelofmediationforfamilyviolencematterswhichdeliversamoreintegratedandco-ordinatedapproachusingprofessionalsfromarangeofdisciplinebackgrounds.xviiiThispromisingpracticesuggeststhatthisisanimportantissuetoexploreastheACTGovernmentdevelopsandimplementsitsstrategytoreducedomesticandfamilyviolenceinourcommunity.

OUT-OF-HOMECARE:GiventheworkthathasoccurredinNSWwithregardtotheuseofmediationandrestorativepracticeintheareaofchildprotectionisdeliveringpromisingresults,itwouldbeusefultoexploreitspotentialastheACTGovernmentcontinuestoimplementthenewapproachtoout-of-homecareservices,asoutlinedinAStepUpforOurKids:theout-of-homecarestrategy2015-2020.xix

SCHOOLS:WiththereleaseofSchoolsforAllbytheExpertPanelonstudentswithcomplexneedsandchallengingbehaviour,itwasnotedthatthereistheneedtosupportschoolwidepositivebehaviour.Restorativepracticeshavebeenidentifiedasakeywaythatthismayoccur.xx


9 | Page

WHYSHOULDGOVERNMENTINCREASEFUNDING?

DEMANDISINCREASINGANDHASOUTSTRIPPEDANYINCREASEINFUNDINGLEVELS

CRShaskeptverydetaileddatainrelationtoitsservicedeliveryforthepastfifteenyears.Ananalysisofthisdatademonstratesclearlythattherehasbeenasignificantincreaseinworkloadoveraten-yearperiodto2015,clientnumbershavealmostdoubledovertheperiod,from1320clientsto2552clients.CRShasanalysedtheoccasionsofserviceprovidedtothecommunityoveraten-yearperiodtoidentifytrendsandissuesagainsttheincreasestofunding.Itrevealsthatoccasionsofservicehasincreasedbyafactorof4.6.Thisisagainstanincreasedfundingthatstandsatonlyafactorof2.7.CRSalsorecordstheamountoftimespentwithclients,togainapictureoftheneedsofclientsandwherestaffarefocusingtheireffort.ContactandoutputfromCRShascontinuedtogrow,andisnowalmosttentimesthelevelitwastenyearsago.Thisisagainstanincreaseofrevenuefortheorganisationofonly2.7timesoverthesameperiod.Thisdemonstratesthattheoutputoftheorganisationhassignificantlyoutstrippedanyfundingincreases.Theleveloftimerequiredalsopointstoanincreaseincomplexitywhichisexploredingreaterbelow.

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

1000030000500007000090000110000130000150000170000190000210000

Timespentwithclientscomparedwithrevenueincreases

Timewithclients(minutes) TotalRevenue

SERV

ICEDE

LIVE

RY

CRSholdsdetaileddataon15yearsofservicedelivery

CLIENTNUMBE

RS

Clientnumbershavedoubledfrom1320to2552overtenyears CLIENTCO

NTA

CT

Leveloftimespentwithclientshasincreased ashascomplexityinclientcases

DEMAN

DVS

FUNDS

MismatchofDemand(OccassionsofServicex4.7)VsInvestment(Fundingx2.7)


10 | Page

COMPLEXITYINCASESISINCREASINGANDRESOLUTIONREQUIRESMORETIMEANDRESOURCES

Itisunsurprisingthatthenatureofconflictsanddisputeswillchangeovertime.Liketherestofthecommunityservicessector,thereisevidenceemergingaroundincreasingcomplexityinissuesandcases.WhileCRSisnotatherapeuticservice,itisimportantthatweworkcloselywithotheragenciestoputinplacesupportsthatenablepartiestoworktoresolvedisputes.CRSendeavourstoestablishlinkswithotheragenciestoachievelastingoutcomesforclients.Thisjoined-upapproachwhilecriticalispartofthecomplexityweexperienceasreferredtoabove.Thechartbelowprovidesinformationregardingwherethemajorityofreferralscomefrom,overtheselectedperiods2011/2012,2012/2013and2015/2016.WhilereferralsfromSupportlink(ACTPolicing)continuestoprovidethemostreferrals,otherreferralpathwayshaveshiftedquitesignificantly.Electronicreferralsthroughthewebsitearenowaprimarychannelforinitialengagementwiththeservice.Inaddition,whilesomegovernmentagenciessuchasCanberraConnect(AccessCanberra),HousingACT,CareandProtectionandtheChildren,YouthandFamilyGatewayareemergingaskeyreferralagencies,thereisareductioninotheragenciessuchasACTPlanningandLandAuthorityandmunicipalservicesareas.

Thissuggestscomplexityinthatthereisashiftawayfrommorestraightforwardissuessuchasneighbourhooddisputestomorecomplexrelationshipandfamilyissues.

050

100150200250300350400

TheChangingNatureofReferralstoCRS

2011/2012 2012/2013 2015/2016

Over10yearstherehasbeenashiftawayfromstraightforwardissues (neighbourhooddisputes)

Increasingtrendinprovidingresolutionservicesfordomesticandfamilyviolenceissues

Complexityofcasesisincreasingwithrelationshipandfamilyissuesincreasingfrom14casesin2011-12to985casesin2015-16)


11 | Page

MorestrikingisananalysisoftheagencieswhoengagewithCRStosupporttheirworkwithclients,whichalsodemonstratestheincreasingcomplexityofcases.Asoutlinedbelow,therehasbeenasignificantshiftoverafive-yearperiodtoissuesrelatingtorelationshipandfamilyissues.Forexample,referralstotheFamilyRelationshipadvicelineandwebsitehasjumpedfrom14in2011/2012toanastonishing985in2015/2016.ThereisanincreasingtrendaroundissuessuchasdomesticandfamilyviolenceexemplifiedbyacomparisonofreferralstotheDomesticViolenceCrisisServicewhichhasrisenfrom13in2011/12to69in2015/16.ThereareclearlystronglinkstotheworkofCRSandthebroaderACTGovernmentcommitmenttoreducedomesticandfamilyviolence.Thisisanareathatrequiresfurtherinvestigationandresourcing.

0

100

200

300

400

500

600

SelectedReferralsfromCRStootherAgencies

2011/2012 2012/2013 2014/2015


12 | Page

METHODOLOGIESAREEVOLVINGANDENGAGEMENTISLESSLIKELYTORESULTINFORMALMEDIATION

CRSisaservicethatisevolving,inlinewithcommunityneedandclientexpectations.Mediationcontinuestobeanimportantelementoftheserviceoffering,buttheorganisationisintroducingothermethodsthatfocusparticularlyonearlyinterventionandinformalresolutionofdisputesandconflicts.Assuchthereisasmallreductioninmattersthatareproceedingtoformalmediation.Giventhatmediationisoneoftheserviceswherethereisaclientfeeforservice,ifthistrendcontinues(asitisexpectedto),itwillimpactonthefinancialperformanceoftheorganisation.Thechartbelowmapstheincreasesinthenumberofmediationsthatactuallyoccurred–whichhasremainedconsistentwholeenquirieshaveincreasedsignificantly.Itshouldbenotedthatsuccessinmediationoutcomeshasremainedhigh,andinfacthasincreasedinrecentyears,sittingatover90%.

Whiletheactualnumberofmediationsconductedannuallyhavereducedslightlyovertime(asdistinctfromtheproportion),theengagementofclientsinconflictcoachinghasdoubledoverthelastthreeyears.Therehasalsobeenashiftintimespentonmediationandclientcoachingovertime,demonstratingthatconflictcoachingisgrowinginsignificance.

0100200300400500600700800900

1000110012001300

TenYearTrendformediation

Disputessuitableformediation AcceptsMediation MediationSessions

0 100 200 300 400 500 600 700

2013/2014

2014/2015

2015/2016

Shiftsinservicedeliverymodelforalternativedisputeresolution- numberofcases

MediationSessionLogRecords ClientCoachingLogRecords


13 | Page

0 5000 10000 15000 20000 25000

2013/2014

2014/2015

2015/2016

ShiftinServiceModelRegardingAlternativeDisputeResolution- TimewithClients

MediationSessionMinuteswithClient ClientCoachingMinuteswithClient

Over1

0Years

Hasseentheemergenceofnewmethodssuchasearlyinterventionandinformalresolutionofdisputesandconflict O

ver1

0Years

Thesuccessinmediationoutcomeshasincreasedtoover90%

Over1

0Years

Theengagementofclientsinconflictcoachinghasdoubledinrecentyearscausingashiftintimespentwithclients.


14 | Page

THETRENDSOUTLINEDABOVEAREADVERSELYIMPACTINGONCRS’OPERATIONALCAPACITY

Theanalysisoutlinedabovedemonstratesasignificantincreaseindemandforservices,andoutputbytheorganisationtorespondtothisneed.Thishashadanumberofimpactstotheoperationsoftheorganisation.Theyincludethefollowing:

§ CRSISATCAPACITYINRELATIONTORESPONDINGTOREQUESTS:Theinformationprovidedabovedemonstratesthesignificantincreaseinserviceprovisionoverthelasttenyearswhichhasnotbeenalignedwithfunding.AsCRShasstruggledtomeetdemand,ithasshiftedresourcesfrominfrastructureandadministrationintofrontlineserviceprovision.Thisisastrategythatcanonlybemaintainedinplaceforashortperiodandtheoperationalinfrastructureoftheorganisationnowrequiressignificantinvestment.IthasalsomeantthatCRShasreacheditscapacityinrelationtorespondingtoissuesandcommunitycontacts.Theserviceisatthepointwhereminimalmarketingorpromotionoccursastheorganisationwouldnotbeabletorespondtoanyincreaseindemand.Atthistime,CRSiskeenlyawarethatthereisunmetdemandinsectionsofthecommunitybuttheservicecannotrespondduetocapacityrestraints.ThissituationhasbeenfurtherimpactedbynecessaryreductionsinstaffingimplementedinAugust2017,whichhaveresultedintheneedtosignificantlyreduceservicedeliveryoutputs.

§ CRSISUNABLETOAFFORDTOBELOCATEDINPREMISESTHATAREFITFORPURPOSE:PhysicalconstraintssuchaslimitedprivatespacemeansthatCRSisunabletoholdshuttlemediationsessions(astandardmethodofmediation)ormorethanasinglemediationsessionatonetime.Aswellasbeingabletorespondtocommunityneed,thisresultsinanunder-utilisationoftrainedandaccreditedmediatorsandmeansCRSisunabletodeveloponeoftheareasofthebusinessthatcouldbecomplementedbyuserfees.Inaddition,thecurrentprogramsarelocatedovertwofloorsofthepremisesandcreatesignificantinefficienciesandrisksforthemanagementofstaffoftheorganisation.OverthepastsevenyearsCRShasexhaustedallavenuestosecuremoreappropriatetenancyarrangementsattheGriffinCentre.Withtheaboveissuesinmind,andalsotheneedfordedicatedtrainingspace,CRSneedstotransitiontofitforpurposetenancyarrangements.

§ CRSHASHADLIMITEDOPPORTUNITYTOUNDERTAKEESSENTIALWORKSUCHASEXPLORINGNEWOPPORTUNITIES,DIVERSIFYINGSERVICEMODELSANDDEVELOPINGDIVERSEREVENUESOURCES:TheemphasisthatCRShasplacedonrespondingtocommunityneedhasresultedinlimitedopportunitytoinvestinbusinessdevelopmentactivities.Thisisnowanurgenttaskfortheorganisation,withtheneedtounlockthepotentialtobuildonthesuccessoftheorganisationtodatetobuildongoingsustainablebusinessmodels.CRShasmanyavenuestodevelopbusinesspartnershipswithindustryassociations,businesses,tertiaryinstitutions,andgovernmentdepartments,howeverthecurrentsignificantconstraintsmakesuchbusinessdevelopmentimpossible.CRSalsoisideallyplacedtobethecommunityhubforRestorativePracticesandrelatedprofessionaltrainingandcommunityeducation.

CRShasreacheditscapacityinrelationtorespondingtoissuesandcommunitycontacts

CRSfacesunmetdemandinsectionsofthecommunitybuttheservicecannotrespondduetocapacityrestraints


15 | Page

CRSPROPOSALFORADDITIONALFUNDING

CRSisseekingadditionalfundingof$300,000inthe2018/19financialyeartoinvestinfourkeyinitiativesthatwillhelptoensureitcanmeetdemand,andachieveongoingviabilityandsustainability.

RESTORESTAFFINGBACKTOPRE2017/18LEVELSTOMEETDEMAND($100,000)

AsalreadyoutlinedaboveCRShashadnootheroptionbuttoreducestaffingandthishashadtheeffectofreducingservicedeliveryoutput.Thesereductionswillprovideabalancedbudgetinthe2017/18financialyear,howevertheyalsomeanCRScannotmeetthebasicdemandforitsservices.CRShasalsoinvestedsignificantlyoverthepast12monthsonimprovingitsadministrativeandgovernancepractices.Thishasincludedrenewingitsinternalfinancialandadministrativesystems,re-writingitsConstitution,recruitingnewBoardmembersandgainingACNCregistrationasaCharitablePublicBenevolentInstitutionwithDGRstatus.ItisevidentalreadytotheCRSBoardandStaffthatthestaffingandrelatedservicedeliveryreductionsarenotanacceptablecourseofactionduetothenegativeimpactonvulnerableclients,andtherestrictionsitplacesonfutureorganisationaldevelopmentbyhavingallstaff,includingmanagement,operatingonaparttimebasis.$100,000willaddresstheincreasedcostofdeliveringservicesthathaveimpactedCRSinanincrementalwayoverthepasttenyears,andenabletheorganisationtorestoreitsstaffingbacktotheminimumrequiredtomeetbasicdemand.

UPGRADEOFFACILITIESATTHEGRFFINCENTRE($15,000)

Thecurrentpremisesareinadequateforthecurrentandfutureneedsoftheserviceandhaveanumberoflimitationswhicharenotpossibletomaintaininthemediumterm.AkeyissueisthedistributionofstaffandprogramsovertwofloorsoftheGriffinCentrewhichcreatesdisjointedserviceprovision,hampersadequatesupervisionandstaffsupportandcreatesadditionalriskfortheorganisationintheneedtomanagemultipleworkenvironments.Inaddition,thereisalackofaccesstoprivatespacesandenvironmentsneededtodeliveralternativedisputeresolutionservices.Thisfundingwillassistwithofficerelocationcoststoimproveofficearrangementsacrossthecurrenttenancyatlevels2and3attheGriffinCentre.Thisisaviabletemporarysolutionfortheshorttermwhileothertenancylocationsareinvestigatedforthefuture.

ADDITIONALINVESTMENTINADMINISTRATIVEANDORGANIZATIONALINFRASTRUCTUREANDTECHNOLOGY($50,000)

LikemanyorganisationsCRShasdivertedfundingfromadministrationandinfrastructureintofrontlineservicedeliveryasdemandhasincreased.Whiletheorganisationhasbeenabletodothisforashortperiod,itisnotasustainablemodelmovingintothefutureandisemergingasasignificantriskaroundtheorganisation’sviability.Giventhesignificantchangesinthelocalcommunitysector,itisimperativethatCRSinvestsinappropriateadministrativeandoperationalresourcestoensurethatitcontinuestobeaprofessionalandbestpracticeorganisation.Thisadditionalfundingwouldenable:

Investinginnewoperationalsystemsthatcansupportthesubstantialincreaseinenquires,intakeandassessmentprocesses(includingthemigrationanddevelopmentofanewdata-basesystem);

Increasinginvestmenttoensureadequateadministrativefunctionsareinplacetomanageanorganisationwithahighvolumeofclientcontact;and

Strengtheninggovernance,riskandcomplianceactivitiesfortheorganisation.


16 | Page

INVESTINGINDEVELOPMENTACTIVITIESTODEVELOPASUSTAINABLEBUSINESSMODELINTOTHEFUTURE($70,000)

Asoutlinedabove,theneedtothefocusonfrontlineserviceshasseenCRSunabletoadequatelyfocusonbusinessdevelopmentactivities.CRSiswellawareofthemanyavenuestodevelopbusinesspartnershipswithindustryassociations,businesses,tertiaryinstitutions,andgovernmentdepartments,buthavebeenunabletoinvesttheappropriateresourcestoenablebusinessplanningtooccur.Withoutinvestmentintheimmediatefuture,theongoingviabilityoftheorganisationwillbeatsignificantrisk.TherecentworkthatCRShasundertakentoenableittodevelopcorporatebusinessrelationships,establishPBICharitablestatusandattractdonationsrequiresongoingfocusandinvestmenttopursueopportunitiesanddeveloprelationshipsandpartnerships.Assuch,theorganisationwillinvestadditionalfundsto:

Developacomprehensivebusinessplan,whichsetstargetsandmilestonestosupportthedevelopmentofCRSasasustainableandviableorganisationinthemediumterm;

Pursuearangeofagreementsandrelationshipswithindustrybodiesandinstitutionsinareassuchastheconstructionandbuildingindustry,andtertiaryandvocationaleducationsectors;

Developitscapacityinfundraisingandattractingphilanthropicsupport;and PursueopportunitiestodevelopCRSasaprofessionaltrainingandcommunityeducationhubinrelationto

alternativedisputeresolutionprocessesandrestorativepractices.

LEADINGTHECOMMUNITYRESPONSETORESTORATIVEPRACTICE($75,000)

ThereisarealopportunityfortheACTGovernmenttosupportthecommunityasitworkstowardsthedeclarationofCanberraasarestorativecity.WhiletherehasbeensignificantprogressindevelopingacommunityofpracticearoundrestorativejusticeandpracticeintheACT,therearestillsignificantopportunitiestoembedrestorativepracticeacrossthecommunity,expandingthelearningsfromthejusticesystemintoareasofconcerninourlocalcommunity.Withthisadditionalinvestment,CRSwillmovetointroduceanumberofthefollowinginitiatives:§ ELDERABUSE:introducingacommunitybasedmediationandrestorativemodel,basedontheVictorianmodelfor

membersofthecommunityworkingtoresolvedisputesandpreventelderabuseinaperiodofchange;§ DISABILITY:introducingacommunitybasedmediationandrestorativepracticemodeltargetedtosupporting

peoplewithdisability,theircarersandfamiliesastheynegotiatetheNDIS;§ DOMESTICANDFAMILYVIOLENCE:refiningCRS’responsetovictimsimpactedbydomesticandfamilyviolence

andworkwithexpertstoexploretheintroductionofrestorativepracticeforvictimshesitanttoengagewiththecriminaljusticesystem;

§ CHILDPROTECTIONANDOUT-OF-HOMECARE:workwithserviceproviders,carersandfamiliestoinvestigateuseofrestorativepracticewithintheout-of-homecaresystem;

§ SCHOOLS:buildingonthestrongbasewithinACTschoolsectors,andthepriorityincreatingsupportiveschoolenvironmentswiththereleaseofSchoolsforall,worktosupporttheeducationsectortoincreasetheuseofrestorativepractice.

Assuch,aninvestmentof$75,00wouldbeusedtoenableCRSto:

Employanexpertincommunitybasedrestorativepractice,tosupportCRStodeveloptheirmethodologies,servicemodelandpracticeinrelationtorestorativepractice;

EngageasaleaderintheprocessofsupportingtheACTtobecomearestorativecommunity,focusingonunlockingthepotentialofcommunitybasedrestorativepractice;and

Exploretheopportunitiestodevelopleadingpracticeintheareasoutlinedabove.


17 | Page

CONCLUSION

ThisisapivotalpointintimeforCRS.Afteraperiodofsignificantgrowthinrelationtodemandandactivity,itisnowtimetoreflectontheelementsrequiredtoensurethattheorganisationcontinuesandthrivesinaverydifferentfundingenvironment.Withmodestinvestment,theorganisationwillbeabletocontinuetodeliverhighqualityandaccessiblealternativedisputeresolutionservicesandmakeasignificantcontributiontotheACT’saspirationtobecomearestorativecommunity.Welookforwardtoexploringtheseopportunitieswithkeydecisionmakersandpolicymakers.


18 | Page

ENDNOTES

iForexample,see• https://www.qld.gov.au/law/legal-mediation-and-justice-of-the-peace• https://www.disputes.vic.gov.au/contact-us• http://www.courts.justice.nsw.gov.au/Pages/cats/catscorporate_adrdirectorate/catscorporate_adrdirectorate

.aspxiiKeyfactorsthathavedriventhistransformationhaveincluded:

• reformwithinarangeofsubsectors,mostnotablyindisabilityandagedcaresectors;• areductioninCommonwealthresources,inareasincludingcommunitylegalservicesandthespecialist

homelessnessservices;and• increasedexpectationsaroundgovernanceandregulations,includingtheintroductionoftheAustralian

CharitiesandNot-for-ProfitCommission,andanumberofsub-sectorregulatorybodies.iiiKathyMack.2003.CourtReferralToADR:CriteriaAndResearch.AustralianInstituteofJudicialAdministrationIncorporatedandtheNationalDisputeResolutionAdvisoryCouncil.ivNationalAlternativeDisputeResolutionCouncil.2012.YourGuidetoDisputeResolutionAustralianAttorneyGeneralsDepartmentCanberra.vAnthonyMorgan,HayleyBoxall,KiptooTerer,DrNathanHarris.2012.EvaluationofalternativedisputeresolutioninitiativesinthecareandprotectionjurisdictionoftheNSWChildren’sCourt.ResearchandPublicPolicySeries118.InstituteofCriminology.Canberra.viField,Rachael.2010.FDRandvictimsoffamilyviolence:Ensuringasafeprocessandoutcomes.AustralasianDisputeResolutionJournal,21(3),pp.185-193.viiDepartmentofJusticeandAttorneyGeneral.2016.SupportedElderMediationDiscussionPaper.QueenslandGovernment.viiiInessaLove.2011.SettlingOutofCourt:LoveHowEffectiveIsAlternativeDisputeResolution?Viewpoint:publicpolicyfortheprivatesector.Note329.http://siteresources.worldbank.org/FINANCIALSECTOR/Resources/282044-1307652042357/VP329-Setting-out-of-court.pdf(AccessedNov2016).ixVictorianParliamentLawReformCommittee.2007.AlternativeDisputeResolutionDiscussionPaper.http://www.parliament.vic.gov.au/images/stories/committees/lawrefrom/alternate_dispute/Discussion_paper.pdf(AccessedNov2016).xDrLolaAkinOjelabi,2010.ImprovingAccesstoJusticeThroughAlternativeDisputeResolution:theRoleofCommunityLegalCentresinVictoria,Australia.ResearchReport,FacultyofLawandManagement,LaTrobeUniversity.xiMsPorteretal.OpCit.xiiACTLawReformAdvisoryCommittee.2016CurrentInquires.Accessibleathttp://www.justice.act.gov.au/page/view/565/title/current-inquiries(AccessedOct2017).xiiiDepartmentofJusticeandAttorneyGeneral.2016.SupportedElderMediationDiscussionPaper.QueenslandGovernment.xivThemediationmodeldevelopedbyFamilyMediationCentreisdemonstratedthroughtheircasestudiesandcanbeaccessedviatheirwebsite:http://www.mediation.com.au/wp-content/uploads/2014/12/SCR-Case-Studies-A4Portrait_updated.pdf(AccessedNo2016).xvReformprocessesandimplementationcanbeaccessedviatheHealthDepartment’swebsite:https://agedcare.health.gov.au/aged-care-reform(AccessedNov2016).xviShirleyJülichetal.2010.ProjectRestoreAnExploratoryStudyofRestorativeJusticeandSexualViolence.http://rpe.co.nz/wp-content/uploads/2013/09/The_Project_Restore_Report.pdfxviiField,Rachael.2010.FDRandvictimsoffamilyviolence:Ensuringasafeprocessandoutcomes.AustralasianDisputeResolutionJournal,21(3),pp.185-193.xviiiIbid.


19 | Page

xixACTGovernment.2015.AStepUpforOurKids:theout-of-homecarestrategy2015-2020.Accessibleathttp://www.communityservices.act.gov.au/ocyfs/out-of-home-care-strategy-2015-2020/out-of-home-care-strategy-2015-2020(AccessedNov2016).xxMsPorteretal.OpCit.


20 | Page

ATTACHMENTA–THEECONOMICIMPACTOFAREDUCTIONINCRSSERVICES

Economic research relevant to the economic value of the Canberra Conflict Resolution Service Inc’s dispute resolution and the economic impact of a reduction in service

Professor Anne Daly University of Canberra

Greg Barrett Rhian Williams

Mediation and Alternative Dispute Resolution services have major economic impacts on communities. In recent years economic research, particularly Cost Benefit Analysis, has been used to quantify and value the extent by which the benefits of community mediation, exceed its costs. This research demonstrates that community mediation delivers substantial economic benefits exceeding its costs.

Valuing community mediation costs and benefits In Cost Benefit Analysis, a economic valuation framework is used to make complex reality tractable. The research summarised here is consistent with this rigorous economic framework. What are the benefits? Community mediation has significant economic benefits: • reduced costs for government (resources freed for their next best use), • more productive businesses (including more employment), • more productive community activities (including more employment), • better educational outcomes, • better health outcomes, and • better child protection outcomes. The settlement of community conflict, in the absence of community mediation, is a continuing process using significant economic resources. Settlement of conflicts, through community mediation, will free resources for other economic opportunities, increase the productivity of government, community and private resources, and provide major benefits to the wider community. Community mediation minimises the resources required for conflict resolution and makes both existing and new investments in the community more productive. Community mediation frees resources that would have been used in a court based dispute resolution. For example in NSW and Queensland it typically takes four and a half years to finalise common law workers’ compensation claims (Productivity Commission 2004:237). Community mediation dispute resolution is quicker and releases resources (of lawyers, courts, employers, insurance agents and disputants) for their next best use. Community mediation reduces the cost of policing, courts, prisons, health care, education, and other community services. Community mediation improves the productivity of disputants and their families. This increased output is a benefit to society. It derives from the faster return to work and better health outcomes from the reduced delays and more respectful treatment of disputants. This improved productivity extends to the disputant’s families through freeing family time and better educational outcomes for disputants’ children.


21 | Page

To produce these benefits, community mediation uses (in administration, mediation meetings & training) a set of resources (labour, materials, etc). These resources are therefore unavailable for other uses in society (ie they are included in cost benefit analysis as an opportunity cost to society). Cost Benefit Analysis uses these outcomes to value the net impact on a community’s economic wellbeing.

Decision criteria Cost Benefit Analysis values the impacts (costs and benefits) of community mediation in economic terms (ie impact on society’s wellbeing). These values are aggregated using a discount rate embodying society’s trade-off between current and future consumption. The discounted impacts are then compared using decision criteria. The findings of a Cost Benefit Analysis are commonly expressed by two decision criteria: • The benefit cost ratio takes the present value of total benefits and divides this by the present value of total costs. The ratio is useful for comparing the efficiency of programs across different program scales. A ratio greater than 1 demonstrates that there is a net economic benefit to society. • The Net Present Value (NPV) is the amount by which the present value of benefits exceeds the present value of costs. This is a good measure of the size of the economic impact. A positive NPV demonstrates that there is a net economic benefit to society.

Cost Benefit Analysis of mediation programs The literature on Cost Benefit Analysis of mediation programs finds considerable economic benefit (Morgan et al 2012:21). For example, CBA evaluations of the use of mediation in: • the Legal Aid Family Dispute Resolution Service found a B/C ratio of 1.5 and a NPV of $37 million (KPMG 2008), • Irish accident compensation mediation (Personal Injuries Assessment Board) produced a B/C ratio of 1.9 and an NPV of €27,703 per case Hogan (2006), • the Victorian Right People for Country Project found a B/C ratio of 3.8 and an NPV of $3.0 million (Daly & Barrett 2012), • Yuendumu found a B/C ratio of 4.3 and an NPV of $4.4 million (Daly & Barrett 2014), • the Accident Compensation Conciliation Service found a B/C ratio of 3.0 and an NPV of $916 million (Daly, Barrett & Williams 2016), and • Mornington Island found a B/C ratio of 10.6 and an NPV of $17.4 million (Daly & Barrett 2016). The economic literature clearly demonstrates that mediation has a substantial net economic benefit to community. Bibliography Daly A and Barrett G, (2012) ‘Economic Cost Benefit Analysis of the Right People for Country Project’ Canberra:

University of Canberra. Daly A and Barrett G, (2014) ‘Independent Cost Benefit Analysis of the Yuendumu Mediation and Justice Committee’

Alice Springs: Central Desert Regional Council. http://www.centraldesert.nt.gov.au/files/attachments/yuendumup_cba_0.pdf

Daly A & Barrett G, (2016) ‘Mornington Island Restorative Justice Program’ Mornington Island: Junkuri Laka Wellesley Islands Aboriginal Law, Justice and Governance Association Inc.

Daly A, Barrett G & Williams R, (2016) ‘Cost Benefit Analysis of the Accident Compensation Conciliation Service” Melbourne: Accident Compensation Conciliation Service.

Hogan, Vincent. (2006) A Cost-Benefit Analysis of the Personal Injuries Assessment Board, Clonakilty: Injuries Board.


22 | Page

KPMG (2008) Family dispute resolution services in Legal Aid commissions evaluation report. Canberra: Attorney

General’s Department. Morgan, Anthony & Boxall, Hayley & Terer, Kiptoo & Harris, Nathan (2012) Evaluation of Alternative Dispute

Resolution Initiatives in the Care and Protection Jurisdiction of the NSW Children's Court, Research and Public Policy Series No. 118, Australian Institute of Criminology, Griffith.

Productivity Commission. (2004) National Workers’ Compensation and Occupational Health and Safety Frameworks, Report No. 27, Canberra.

THE CASE FOR ADDITIONAL INVESTMENT FOR · PDF fileconflict resolution service: the case for...

Documents

Transcript of THE CASE FOR ADDITIONAL INVESTMENT FOR · PDF fileconflict resolution service: the case for...