Guide to Giving
MEDIA, JOBS & RESOURCES FOR THE COMMON GOOD
NEWS  |  Good Business

New Zealand’s First Social Bond Falls Through


Wednesday, 13th July 2016 at 8:52 am
Ellie Cooper, Journalist
The New Zealand government’s first social bond, set to target employment for people with mental illness, has failed to get off the ground with the Not for Profit provider withdrawing from the scheme.

Wednesday, 13th July 2016
at 8:52 am
Ellie Cooper, Journalist


0 Comments


FREE SOCIAL
SECTOR NEWS

 Print
New Zealand’s First Social Bond Falls Through
Wednesday, 13th July 2016 at 8:52 am

The New Zealand government’s first social bond, set to target employment for people with mental illness, has failed to get off the ground with the Not for Profit provider withdrawing from the scheme.

New Zealand flag

In 2013 the government began investigating the use of the social bond model and allocated nearly $29 million in last year’s budget to support four bonds.

The first program due to roll out would have involved employment consultants working in GP practices to assist people with mental illness into the workforce.

However, negotiations reportedly broke down, leading the provider, Wise Group, one of the largest non-government organisations in New Zealand’s mental health sector, to walk away.

Wise Group said it was unable to comment on why the bond collapsed, with all inquiries directed to the county’s ministry of health.

But Platform Trust, a body supporting mental health organisations of which Wise Group is a member, told Radio New Zealand the outcome was disappointing but not surprising.   

“I think it’s absolutely indicative of the cost to the community sector of doing business with government. We’re seeing this over and over again,” Platform Trust chief executive Marion Blake said.

“The government is inviting innovation, inviting propositions that will change the way that we do things, but yet we go through what appears to us, from the community sector, as tedious bureaucratic slow processes that kill things before they’re even born.”

The bond was expected to have already started, but private investors were reportedly put off because the government would not guarantee financial security if the bond failed.  

New Zealand’s ministry of health website said the three other areas to be targeted by social bonds were youth offending, adult reoffending and the management of chronic illness.

In Australia, New South Wales was the first government to trial social impact bonds, followed by South Australia. Both Queensland and Victorian governments have expressed interest into the model.


Ellie Cooper  |  Journalist |  @ProBonoNews

Ellie Cooper is a journalist covering the social sector.

AON

FEATURED SUPPLIERS


HLB Mann Judd is a specialist Accounting and Advisory firm t...

HLB Mann Judd

Yes we’re lawyers, but we do a lot more....

Moores

...


Helping the helpers fund their mission…...

FrontStream Pty Ltd (FrontStream AsiaPacific)

More Suppliers

Get more stories like this

FREE SOCIAL
SECTOR NEWS

YOU MAY ALSO LIKE

Thinkers Look to Melbourne to Grow SA Purpose Economy

Wendy Williams

Thursday, 21st September 2017 at 4:44 pm

Australian Organisations Score in the Top 10 Per Cent of B Corps Globally

Luke Michael

Monday, 18th September 2017 at 5:03 pm

New CEO to Lead TDi into Next Phase as Bessi Graham Stands Down

Wendy Williams

Friday, 15th September 2017 at 9:46 am

Australian Companies Recognised for Changing the World

Luke Michael

Wednesday, 13th September 2017 at 5:02 pm

POPULAR

Moves to Stop Volunteering at Overseas Orphanages

Luke Michael

Wednesday, 13th September 2017 at 1:54 pm

Future Uncertain for Disability Organisations Following Funding Cuts

Wendy Williams

Tuesday, 19th September 2017 at 8:29 am

Majority of NFPs Are Not Believed to be Well-Run, According to New Survey

Luke Michael

Tuesday, 12th September 2017 at 4:14 pm

More Australians Are Giving Time Not Money

Wendy Williams

Monday, 11th September 2017 at 5:07 pm

Guide to Giving
pba inverse logo
Subscribe Twitter Facebook

The social sector's most essential news coverage. Delivered free to your inbox every Tuesday and Thursday morning.

You have Successfully Subscribed!