Social Impact Bonds Critique 2016

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The recent announcement by the NSW Government that the National Australia Bank (NAB) and the Australian Community Support Organisation (ACSO) have signed up as investors to their recent ‘social impact investment’ scheme must be met with further scrutiny.

Justice Action is concerned that attempts by the NSW government to distance itself from the direct implementation of criminal justice programs reduces their accountability as elected officials in providing effective services for its citizens. Seen in conjunction with recent efforts to privatise the prison system in its entirety, there is legitimate cause for further examination.

Justice Actions is also concerned at the inclusion of ACSO, a Melbourne based organisation. Motivated by a return on investment may potentially lead to the watering down of benchmarks regarding recidivism rates and the successful re-integration of prisoners. We believe that their advocacy role could be compromised as an investor in this scheme. The decision by the NSW Government not to publicly reveal the exact investment amounts and the potential returns for investors’ further obscures the relationships at the heart of this scheme.

As a criminal justice advocacy organisation, Justice Action is primarily concerned with ensuring that the rights and needs of those in Australian prisons and locked hospitals are met. Justice Action is not against attempts to innovate and provide better quality of services to these people. However, the absence of a truly independent authority assessing the success of these programs does not bode well for transparency and accountability within government programs.

Justice Action would like to see greater transparency within the program. The relationship between investors and the Government must be more clearly defined in the public sphere. The relevant expectations and obligations of both groups must also be clearly outlined. Importantly, considering the alarming statistics surrounding the criminal justice system in NSW, accountability for failure, and success, must be made clearer.

Justice Action is pleased that the NSW Government is taking prison reform seriously. However, as with any essential government service, due caution must be taken to ensure that the relevant parties are not adversely affected.

See the Sydney Morning Herald Article here 


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