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Alcohol and drug council’s financial difficulties ‘caused by government’ Alcohol and drug council’s financial difficulties ‘caused by government’
(about 20 hours later)
The government is itself responsible for the “financial difficulties” it cited when it axed funding for the Alcohol and Other Drugs Council of Australia (Adca), according to the council’s chief executive.The government is itself responsible for the “financial difficulties” it cited when it axed funding for the Alcohol and Other Drugs Council of Australia (Adca), according to the council’s chief executive.
The Abbott government stripped the national peak body of its $1.6m annual funding last month, but the chief executive, David Templeman, said there was still opportunity for it to reverse the decision made by the assistant minister for health Fiona Nash as part of the deficit reduction strategy.The Abbott government stripped the national peak body of its $1.6m annual funding last month, but the chief executive, David Templeman, said there was still opportunity for it to reverse the decision made by the assistant minister for health Fiona Nash as part of the deficit reduction strategy.
Adca had operated as the national representative body for drug and alcohol service providers, advocating for harm minimisation, providing advice and information to successive governments on drug and alcohol issues in Australia for 46 years.Adca had operated as the national representative body for drug and alcohol service providers, advocating for harm minimisation, providing advice and information to successive governments on drug and alcohol issues in Australia for 46 years.
Templeman said the government led Adca to believe its funding was simply delayed, until its staff went to a meeting with a representative from Nash’s office who told them they were being defunded immediately.Templeman said the government led Adca to believe its funding was simply delayed, until its staff went to a meeting with a representative from Nash’s office who told them they were being defunded immediately.
“We had a very clear understanding in April that funding had been approved,” he said.“We had a very clear understanding in April that funding had been approved,” he said.
In a statement to Guardian Australia, a spokeswoman for Nash said: “The Australian government has been advised that Adca had experienced financial difficulties. The company has now gone into voluntary administration. The government will assist to cover its debts where appropriate.”In a statement to Guardian Australia, a spokeswoman for Nash said: “The Australian government has been advised that Adca had experienced financial difficulties. The company has now gone into voluntary administration. The government will assist to cover its debts where appropriate.”
The statement was “simply untrue”, said Templeman, adding that the financial difficulties that Nash’s spokeswoman referred to were “of their own making” because the government had not paid funding to the council this year.The statement was “simply untrue”, said Templeman, adding that the financial difficulties that Nash’s spokeswoman referred to were “of their own making” because the government had not paid funding to the council this year.
“The only financial difficulties which Adca has experience in this financial year from 1 July to date is because … no money has been paid to Adca from 1 July,” he said.“The only financial difficulties which Adca has experience in this financial year from 1 July to date is because … no money has been paid to Adca from 1 July,” he said.
“It’s nonsense to say that we’ve been experiencing it for quite some time.”“It’s nonsense to say that we’ve been experiencing it for quite some time.”
Financial documents show that at the end of the 2012/13 financial year Adca had a surplus income of about $22,000, (after reporting a loss of about $144,000 in 2011/12) and more than $400,000 in equity at 30 June 2013.Financial documents show that at the end of the 2012/13 financial year Adca had a surplus income of about $22,000, (after reporting a loss of about $144,000 in 2011/12) and more than $400,000 in equity at 30 June 2013.
In 2013 Adca’s budget was increased by $400,000.In 2013 Adca’s budget was increased by $400,000.
Templeman said a range of circumstances around the defunding of Adca raised questions about whether there were factors at play other than the perceived “financial difficulties” that Nash cited.Templeman said a range of circumstances around the defunding of Adca raised questions about whether there were factors at play other than the perceived “financial difficulties” that Nash cited.
On 14 October Templeman received a reply to a letter he had written to Tony Abbott in which the prime minister said that the work the two men did was “different”. Abbott added: “I look forward to working with you in the years ahead.”On 14 October Templeman received a reply to a letter he had written to Tony Abbott in which the prime minister said that the work the two men did was “different”. Abbott added: “I look forward to working with you in the years ahead.”
Templeman said the council also received an advance payment from the Department of Health in April towards the running of Drug Action Week in 2014. Templeman said the council also received an advance payment from the Department of Health on 9 Octobertowards the running of Drug Action Week in 2014.
“If there was a problem with the organisation the last thing they’d be doing is talking about running a program … in 2014 and making a payment,” he said.“If there was a problem with the organisation the last thing they’d be doing is talking about running a program … in 2014 and making a payment,” he said.
Two Adca presidents have hit back at the government’s “disturbing” and “short-sighted” decision in an open letter to Abbott.Two Adca presidents have hit back at the government’s “disturbing” and “short-sighted” decision in an open letter to Abbott.
Former president Neal Blewett, a key minister in the Hawke government, and most recent president Mal Washer, a former Liberal MP, in their letter released earlier this week label the cost-cutting a “false economy” and said decades of knowledge had been lost “in a flash”.Former president Neal Blewett, a key minister in the Hawke government, and most recent president Mal Washer, a former Liberal MP, in their letter released earlier this week label the cost-cutting a “false economy” and said decades of knowledge had been lost “in a flash”.
“It is disturbing that after 46 years of policy development, advocacy and advice to governments, Adca is now a victim of the new government’s cost cutting – all for a saving of only $1.5m in annual funding,” said the letter.“It is disturbing that after 46 years of policy development, advocacy and advice to governments, Adca is now a victim of the new government’s cost cutting – all for a saving of only $1.5m in annual funding,” said the letter.
“This is an issue that will echo across Australia – not only in the cities but in country towns, in rural and remote areas, in Aboriginal and Torres Strait Islander communities. For that is the extent of the territory that falls within Adca’s ambit.”“This is an issue that will echo across Australia – not only in the cities but in country towns, in rural and remote areas, in Aboriginal and Torres Strait Islander communities. For that is the extent of the territory that falls within Adca’s ambit.”
Templeman believes Adca’s name may have come up in a search for health-related advisory councils when the government was axing a number of advisory bodies in November, and that no further investigation of their work was done.Templeman believes Adca’s name may have come up in a search for health-related advisory councils when the government was axing a number of advisory bodies in November, and that no further investigation of their work was done.
“That might have been the end of the search … they presented a list and somebody didn’t check that we were a national peak organisation and the extent of our involvement, and we could have ended up on the chopping block that way,” he told Guardian Australia.“That might have been the end of the search … they presented a list and somebody didn’t check that we were a national peak organisation and the extent of our involvement, and we could have ended up on the chopping block that way,” he told Guardian Australia.
“I don’t know, but these things sometimes do occur when you’ve got new arrangements in place.”“I don’t know, but these things sometimes do occur when you’ve got new arrangements in place.”
• The date of the advance payment from the Department of Health was incorrectly stated as April. This has been updated.
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