Child protection organisations are laying off staff and experiencing financial uncertainty because of dysfunctional government processes, according to the ACT Greens.
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Greens spokesperson for Children and Young People Meredith Hunter has described the Community Services Directorate's relationship with local organisations as ''disrespectful''.
She said a review of child protection in the territory should investigate the financial arrangements between the Government and community partners.
''There have been some reports made to me about disputes over invoices, and invoices are often not paid on time,'' she said.
''There has been haggling over services that are delivered, the Government has not been clear and upfront about expectations, policies and procedures.''
The Minister for Community Services, Joy Burch, announced on Wednesday a review of child protection in the territory after the Community Services Directorate asked an unapproved organisation to provide 24-hour emergency care for five young children.
Ms Hunter said the Government owed tens of thousands of dollars to the community organisation that housed the five children.
In a letter sent to Ms Burch on September 8, Ms Hunter raised concerns about payment processes between the Government and service providers.
''It is clear that there was not adequate communication ... Given that securing emergency care is not an exceptional or particularly uncommon event I fail to understand why there is not a schedule of fees that providers sign up to at the commencement of the placement to ensure that everyone understands what their obligations will be.''
Opposition spokeswoman for family and community services Vicki Dunne said community organisations needed more financial certainty from the Government.
''They don't have high cash flows and they are paying hard working people who are not often earning much money,'' she said.
''They cannot afford to run up debts.''
Ms Dunne said she was aware of service providers who had contacted the department and refused to take on more clients until they were paid properly.
A spokesperson for the minister said current payment processes were transparent and met appropriate time frames.
He said the terms of reference for the review were still being finalised, but were likely to investigate the financial arrangements of the unnamed agency.
ACT public service advocate Anita Phillips will begin conducting the review shortly.