Good plans before good policy

BY including an incomplete plan for a National Disability Insurance Scheme in last week's federal budget the government tried to bank political capital for an idea still in its infancy.

But the fiscal problems with doing so are beginning to show, putting at risk the consensus of goodwill behind the scheme.

Yesterday, under questioning on Sky News' Australian Agenda, Finance Minister Penny Wong was unable to say whether ultimate funding for the NDIS would be drawn from consolidated revenue or some sort of levy. It's an important question given that, once fully operational, the scheme is predicted to cost $8 billion a year. The government is yet to decide.

She was unable to tell us what contribution, if any, the states would make to the scheme. That's because no agreement has been reached. The Productivity Commission says the states shouldn't pay anything but the commonwealth insists they do.

And Wong couldn't answer questions about the long-term effect of the NDIS on the structural deficit. The usually well-briefed minister fell victim to Julia Gillard's bid to ensure she has a legacy that will last longer than this parliament.

Bill Shorten can claim credit for the idea - Gillard is hoping to take credit for turning it into a reality. Hence the NDIS was rushed into the budget following Gillard's announcement that a scaled-back version of the scheme would start a year earlier than the Productivity Commission recommended.

But details are thin on the ground and the idea, while a good one, risks becoming a failure. It is reminiscent of Kevin Rudd's poorly arranged healthcare reforms, which were bogged down by funding disagreements with the states.

Planning and consultation are paramount for a good idea to become good policy. After nearly five years in office, that's a lesson this government still hasn't learnt.