Victoria, NSW cave on NDIS trial benchmark

27 Jul 2012, 7:46 pm   -   Source: AAP

Prime Minister Julia Gillard has welcomed fresh bids by NSW and Victoria to host National Disability Insurance Scheme trial sites.

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The NSW and Victorian Liberal governments have bowed to public pressure and agreed to meet federal funding benchmarks to host trial sites for the multi-billion dollar National Disability Insurance Scheme (NDIS).

Premiers Barry O'Farrell and Ted Baillieu faced a backlash from carers and disabled people who turned to digital media, talkback radio and other forums to express anger at the states' initial reluctance to put more money on the table to get the scheme moving.

At a Council of Australian Governments meeting this week, NSW and Victoria lodged a joint bid covering the Hunter and Geelong regions.

But it was rejected by the federal government as too low to support the separate trials which are being co-funded by Labor.

However, the states on Friday reversed their proposal and agreed to the federal benchmark funding figure of $20,779 per person, per year.

"I'm not surprised that when people saw the results of the meeting this week and they worried that people in Victoria and NSW weren't going to benefit that they stepped up to have their say," Prime Minister Julia Gillard said of the public backlash.

NSW offered an extra $35 million, on top of a redirection of an existing $500 million funding in the disability system, although this is still short of the requested $70 million.

The federal government believes NSW would stump up more funds to cover administration and other costs after talks in coming days.

"While there is still some work to be done, Premier O'Farrell acknowledged that more money needs to be put on the table by NSW," Ms Gillard said.

"I am now very optimistic we will see NDIS launch sites in NSW and Victoria."

Victorian Premier Mr Baillieu pledged $42 million - including an extra $17 million over three years for a trial covering 4135 clients in the Barwon region and $25 million to cover the cost of an administrative agency in Geelong.

Mr Baillieu said his government had always been committed to the NDIS.

"I am in no way going to allow this issue to be treated as a political football," he told reporters.

"It is not a backdown at all."

The Labor governments of South Australia, Tasmania and the ACT have already pledged to co-fund launch sites for the NDIS from mid-2013.

The trials will be supported by $1 billion over four years from the federal government to provide individual care packages for an initial 10,000 people, expanded to 20,000 people by mid-2014.

Once the scheme's teething problems are ironed out, and an ongoing funding source is identified, the full NDIS could start in 2018 covering around 400,000 people at a cost of $15 billion a year.

Queensland's unfunded bid for a trial site was rejected, and federal authorities plan to watch and learn how Western Australia's new disability care system works.

Opposition Leader Tony Abbott on Friday rejected a state leaders' suggestion the government fund the longer term NDIS through a special levy.

But he also said Ms Gillard should respect the fact that the states already funded the majority of disability services.

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