Social impact investment update
The South Australian Government opened its second round of Social Impact Investments, with a focus on better outcomes for children and young people in out-of-home care, and after leaving guardianship. This follows South Australia's first social impact investment in the Aspire homelessness program delivered by The Hutt St Centre.
Interestingly, the Commonwealth Government is providing $5m as partner with the South Australian Treasury Department, as an early foray into learning and engaging in the social impact investment space.
Latitude Network is assisting with the preparation and development of an application focusing on improved outcomes from the residential care context.
New South Wales
The NSW Office of Social Impact Investment (OSII) is reviewing proposals from three organisations focusing on Indigenous employment and empowerment. Latitude Network was been supporting one Indigenous organisation through the 'co-development phase' where OSII collaborated with the social organisation to advise and develop a proposal together. The intent is to support organisations to prepare robust proposals that are more likely to meet Treasury's requirements and be successful through what can sometimes be an arduous 'Joint Development Phase' of financial and contract negotiations to conclude a social benefit (impact) bond legal agreement.
The Victorian Treasury is a long way through negotiations with two organisations in the 'Joint Development Phase' for its next round of social impact bond investments. This round focuses on primary and secondary school aged children who have become disengaged from school and have a variety of other complexities in their lives. Latitude Network is supporting Melbourne City Mission and the Hester Hornbrook Academy in the negotiations.
Yesterday’s release by Infrastructure Australia of its annual Infrastructure Audit is a timely reminder of how important capital spending is to our social, community and health sectors.
It is also a reminder of how ineffective our social infrastructure currently is in addressing some of the growing and increasingly complex health and social challenges facing our communities.
The report notes that it is the challenge of operating within ‘sector-based structures’ and the ‘lack of integration’ that stops us from effectively addressing these challenges through our infrastructure investments. Indeed, it can often make things worse as a result of getting differing levels and types of services depending on where people live (p.394).
Perhaps the most critical statement in this section of the report, however, is the following:
“…challenges remain, however, in overcoming sector-based planning, funding and governance structures which limit the incentives for different infrastructure sectors to work together to improve benefits to communities.” (p. 394)
The take-out here is that the success of an infrastructure investment should not be measured by the quality or scale of the build itself but the extent to which it delivers solutions to complex and enduring social and health challenges. To do that, it requires a process that breaks down silos and creates incentives for different parts of the infrastructure system to work together with outcomes at the centre.
Latitude Network’s work with Brimbank City Council in Victoria as well as Logan City council in Qld has delivered a process which puts the social and health focus at the core of the investment, including the identification of outcomes, service delivery approaches, cross-sector partners and governance structures. The planning, design, construction as well as the operations can then proceed, confident that we are arming this piece of infrastructure with the tools it will need to truly have an impact.