Sunday 16 March 2014

O'Farrell's cuts to homeless services is not just bad policy but bad economics

The drastic cuts of $5 million for homeless services in Sydney's CBD is not just bad public policy it is bad economics.

Welfare agencies as reported in Central Sydney on March 12, 2014 said the cuts "epitomises a government's lack of compassion as homeless numbers rise". 

I wrote only 5 days ago that there were 105,000 people homeless on any given night. A 23% increase since 2006.

Only 5 days ago did Jewish House launch "Project 2500". Through the engaging of PricewaterhouseCoopers a project plan was developed to demonstrate that an investment in $6.2 million would result in a potential savings to the state of NSW up to an estimated $243.2 million (minimum of $74.2 million) as a result in cost reductions in health, justice, welfare and eviction.

Cutting funds to homeless services is not a cost savings, it will just cause a huge financial cost to the state. As I have observed before the O'Farrell Liberal government does not have the intellectual ability to manage this states affairs. March 2015 can't come quick enough.



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