This Memorandum introduces the Government's program for delivering on our commitment to embed the principle of prevention and early intervention into government decision making.

Prevention and early intervention is premised on the idea that stopping a problem from occurring or acting early to stop it from getting worse offers better, more cost effective social, economic and environmental outcomes for society than interventions later in the lifecycle of a problem.

By focusing more on prevention and early intervention, we aim to increase life expectancy and productivity of individuals and communities, sustain our natural environments, and minimise demand for acute or crisis interventions over the long term. This new focus is critical for the welfare of NSW – to support people to actively participate in community life, improve productivity, and lead to better life opportunities for future generations.

To achieve a shift of effort across government towards prevention and early intervention, Priority F4 of the State Plan commits the Government to embedding the principle of prevention and early intervention into future policy development and program design. The Government has developed a Policy Framework on Prevention and Early Intervention to guide delivery of this commitment. A summary of the Policy Framework is at Attachment 1.

Facilitating prevention and early intervention approaches across government is a major undertaking. The Framework will therefore be trialled over the next 12-18 months, so that refinements can be made before the Framework is fully adopted. Initially, it will be focused on human services and criminal justice issues. As such, the Director General of the Department of Premier and Cabinet will use the Human Services and Criminal Justice CEOs Forum to advance actions under the Framework. The Framework will be applied more broadly as it is further refined.

As lead Minister for this Priority, I encourage all Ministers and agencies to respond to the clear commitment made in the State Plan by actively engaging in the effort to shift the focus of policymaking and resource allocation towards a prevention and early intervention approach.

Morris Iemma MP
Premier of New South Wales

[this Memorandum does not supersede any other Memorandum]

Attachment 1

Policy Framework on Prevention and Early Intervention

The Government has developed a Policy Framework on Prevention and Early Intervention. The Policy Framework has two components.

1. Embedding the principle of prevention and early intervention into agency decision making. This will be achieved by –
   • setting high level policy parameters for moving to a prevention and early intervention focus; and
   • implementing a range of tools and strategies, including program reviews to reduce demand on acute services and reallocate resources over time to prevention and early intervention initiatives;
2. Practically implementing the principle of prevention and early intervention through targeted action on particular issues.

Implementation of proposed actions will be managed within existing agency resources.

1. Embedding the principle of prevention and early intervention into agency decision making

A. High level policy parameters for moving to a prevention and early intervention focus.

Objective

The Government's objective is to improve quality of life and productivity by preventing problems from occurring, or intervening early to manage problems before they escalate.

Definition of prevention early intervention

A prevention and early intervention approach embraces a range of activities that can be undertaken during the life cycle of a problem, from taking action to prevent a problem emerging through to taking action early in the life of a problem to stop it from getting worse or to limit its impact.

Guiding principles

• Existing capital and recurrent policies and programs will be progressively reviewed to identify opportunities to shift effort towards prevention and early intervention approaches.
• All new policies and programs will be developed and assessed, having regard to whether there are prevention and early intervention alternatives that may generate a better buy for the investment made.
• Prevention and early intervention proposals will, where possible, be supported by available evidence on their cost effectiveness and capacity to address disadvantage. Building a strong evidence base will remain a key focus of government.
• Increased effort in prevention and early intervention will be balanced against the ongoing need to invest in a range of other services including services that occur later in the lifecycle of a problem.
• Funding arrangements for prevention and early intervention approaches will have regard to the fiscal environment and how the benefits of investment in prevention and early intervention approaches are distributed between agencies.
• Collaboration between agencies and with stakeholders will be a priority, where considered appropriate for achieving outcomes.

B. Tools and strategies to assist agencies to shift effort towards prevention and early intervention approaches

The Policy Framework includes the following tools and strategies to facilitate the adoption of prevention and early intervention approaches. These will be progressively developed and implemented as the Framework is trialled over the next 12-18 months.

• Program reviews. Starting with the Departments of Health and Community Services in 2008, major public sector agencies will review two acute programs per year, covering a minimum of 5% of each of their budgets for the year. The reviews will focus on opportunities for reducing demand on acute services, and will be used to inform targeted action on particular issues. Department of Premier and Cabinet (Performance Review Division) will work with agencies and support them in developing the tools for conducting the reviews.
• Assessment tool. Department of Premier and Cabinet will develop an assessment tool for agencies to use in developing all capital and recurrent proposals. The tool's main purpose will be to examine whether prevention and early intervention alternatives offer a better buy for the investment made. Treasury will also examine refinements to the budget process (eg budget templates used for submission of budget proposals) to support a rigorous assessment of proposals against the principle of prevention and early intervention.
• Targets for agency performance in shifting effort to prevention and early intervention. Targets will be developed by 2008/09. All human services and justice agencies must develop baseline data on existing prevention and early intervention programs, by March 2008.
• Capacity building and knowledge management. Department of Premier and Cabinet will investigate measures to build capacity within agencies for shifting effort to prevention and early intervention, and for collecting and managing information on prevention and early intervention strategies.
• Evidence. CEO cluster groups will develop a research and analysis agenda, to be led initially by the Human Services and Justice Cluster and focusing on the issues selected for targeted action. Arrangements for ongoing mapping of government programs and initiatives in prevention and early intervention will also be organised, so that the Government can measure the shift to prevention and early intervention action.
• Funding mechanisms. Department of Premier and Cabinet and Treasury, in conjunction with relevant agencies, will explore innovative funding mechanisms to mobilise resources for prevention and early intervention initiatives, including measures for attracting contributions from the Commonwealth and private/not-for-profit sectors.
• Cross agency collaboration. CEO cluster groups will be used as a vehicle for facilitating cross agency action, including the preparation of interagency funding proposals that recognise the distribution of benefits between agencies.

2. Practically implementing the principle of prevention and early intervention through targeted action

On a rolling basis, the Government will select one or two issues or population groups for priority attention under the Policy Framework.

The first issues for priority attention over the next 12-18 months will be:

• People aged over 65 years;
• Aboriginal children aged 0-5; and
• Domestic and Family violence.

DPC will work with relevant agencies to develop appropriate work programs for these identified areas, taking into account existing processes and other State Plan Priorities.