A summary of the speech delivered by Federal Treasurer Peter Costello to the Communities in Control conference 2004.


Federal Treasurer Peter Costello told the Communities in Control Conference that networks and associations – from family groups to geographic, ethnic backgrounds to religious beliefs and community or sporting groups – were keys to strong communities.

However he also argued strongly that these networks – especially community-based groups – should not become dependent on government funding, and that the government should instead empower these groups and work through them to benefit their members and the wider society.

"These associations, these networks, these communities, are part of explaining how people look at themselves as well as how they look at the world. Our communities to some degree define us. To a large degree they help us define the world," he said.

"Few of the networks that are really important to us are instituted by the Government. Nor thankfully are they run or controlled by Government. Where we live, what our ethnic heritage is, what our religious faith is, who we choose to associate with are all part of the non-government sphere of life. It is the citizens and their associations that give character to society and ultimately government. It is not government that gives character to citizens."

Mr Costello illustrated the importance of having these associations – rather than just government funding - through citing the example of a school fete: "Suppose the Government were to say that it would make a grant to every school that has a fundraising fete on the understanding that as a result of that grant the fete was no longer needed and would no longer be held," he said.

"That way the school would have exactly the same resources without the fete as it did with the fete. The parents could save themselves all the time of setting up stalls and serving on stalls. The children could stay home and watch TV and no-one would be worse off. Or would they?

"A large part of the benefit of running the school fete is found not just in the money it raises but in the way it brings the parents together. It introduces the parents to each other, it gives them a common interest, it builds relationships and interdependence, it builds trust. It develops community."

The Treasurer also reflected on the consequences of "not living within a community" – and the importance of associations and networks to peoples' wellbeing – through the story of the unfortunate discovery of the body of an elderly lady in her home in Bentleigh in 2003; two years after her death from natural causes.

"Apparently this lady had deliberately cut herself off from family, had erected corrugated iron barricades around her house warning people to stay out. It is a fair bet that she did not attend a bowling club, a local church, a Probus club, or an elderly citizens activity where she was part of a network where she would be missed or that would, in a time of need, seek her out or seek out help for her," he said.

"A bowling club does not exist to provide medical or health care for older members of society. Nor does a Probus Club. But they do provide a network that can identify when one of their members needs assistance. They can provide support. If families fail these networks may, partially, step in and fill some of the gap.

"Regardless of their original purpose networks form a valuable support for individuals at a time of need. And not just in old age … young people too can be assisted by overlapping networks or associations."

Mr Costello said it was vital that community institutions continued to be formed, and that the government continued to work through them.

"As I have previously said the Government should whenever possible work through community organisations. But I would not want these organisations to become totally reliant on government funding. If they do they will lose their edge," he said.

"The best way of addressing need is to have the commitment and the passion of the volunteer, the support of government where appropriate, and to leverage the financial resources of the private sector as well.

"I believe that the engagement of the private sector is growing in Australia in community partnerships. Business leaders are members of the community and they want to live in a stronger community. They want their children to grow up in stronger communities. They know that stronger communities provide better employees and prosperous societies support prosperous businesses."

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