Contracting: the impact on non-government organisations
Margot Rawsthorne
Social Policy Research Centre
Contact Email:   margot.runsw.edu.au

Much has been written about the impact of contracting on government/non-government relations. The move to contracting of services was seen by government as a crucial reform that would lead to improved public accountability, more efficiency, greater focus on client needs and better targeting. The non-government sector feared contracting would undermine independence and autonomy, divert visions and see a power shift to government grants administrators. This paper, drawing on questionnaire research with some 650 non-government organisations across Australia, will explore whether the reformist hopes or the non-government sectors fears have been realised. It will highlight the significant role played by program-specific requirements in shaping organisational experiences. It will show that whilst contracting is a settled reality for many non-government organisations, significant levels of organisational stress remain in the sector. The causes of these stresses are somewhat surprising, and indicate some of the challenges created by contractual arrangements for government/non-government relations.

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