 We talked about the growing demand for services and the Gapping Government funding, so I'm not going to dwell on that anymore. But the opportunities this creates for sectors is actually to organise ourselves differently. For the community sector to be less running where the money is and where the programs are and more shaping their strategies and developing the capacity, including the financial capacity to deliver on that. For philanthropy to be driving impact well above their weight. For governments to be able to drive conversations about better outcomes. And I think what the minister spoke about this morning about being a catalyst and an aggregator of resources is an incredibly important role for government. And I've spent the last four years in federal government working on exactly those issues of how government can play a role in driving the opportunities to fund and finance the work of service delivery and social change differently. But also for investors and asset owners, those who drive the money in our country that includes superannuation funds that control about $1.7 trillion in assets who need to be able to get better diversification in the kinds of things they invest in who when I talk to them actually want to invest in community infrastructure and in things that are good for the community, but don't always have the tools to do that and don't always know how to have those conversations with government or with people that actually understand where the need is. So what we work on is how we can actually realise some of these opportunities for all of those sectors and often that involves creating creative collaborations and new ways of working together. And we can start to focus in on where these opportunities are in a whole range of ways and we don't have time to go into all of them today. But when I talk to people about this, it's not about changing everything that you do but it's about engaging in this conversation around some of the areas where we have either the greatest need or the greatest opportunity. There are some areas and we'll come to it in a minute where we've thrown everything at it from a policy perspective. Service delivery agencies have been working hard for a long time and yet we haven't shifted the dial. You don't have to look far in Australia to find some of those notwithstanding the relative wealth of our country, long-term unemployment, intergenerational issues and the outcomes for our Indigenous communities are a few of those. And we led quite a lot of work thinking about these at a community level and there are a range of ways in which we can look to start to address some of those issues differently and say how could we actually apply innovation models? How can we apply different models of investment? And to me this comes down when you really strip it back from all the technicalities that you can get into quite quickly to problem solving. How are we going to bring together the right people with different skills to problem solve differently around the hardest challenges? How are we going to bring those people together around the areas where if we don't do something differently we'll see communities and people in need fall into greater decline. The communities that are undergoing massive structural adjustment with manufacturing pulling out. The communities that have been under-invested for a while. I'm sure that those communities have the opportunity for jobs and economic dynamism. How do we actually engage in the processes of change around things like the NDIS to actually try to say this is an area where we need to actually do some things differently and if we don't we'll go in the wrong direction and we want to create positive cycles in our community. So I want to just give you a few examples of where that's already happening. We've looked at that in relation to how we can bring a focus on economic opportunity in work that I led in the federal government with Mission Australia and National Australia Bank and JB Weir. So a non-traditional collaboration right across sectors saying how can we apply some of the best learning internationally to actually create economic opportunity and have capital flow into those communities mainly with a focus on supporting small and medium enterprises to create jobs and to create activity locally. We know that social infrastructure is an area of real need and I apologize the slides aren't playing so nicely with this computer but disability, aged care, affordable housing, early childhood all areas where there's already government revenue streams that are in the mix where we know that there's bricks and mortar assets and the things that financiers can get their heads around and we know that there's a need for transformation of services for us to look not just at more services to meet need but at the quality of services. Are we providing for aging in a way that you or I would want to actually be in those facilities? Are we helping our kids get the best start to life? Are we enabling people to enter the housing market and we've already talked a lot about disability this morning? We know that the outcomes for Indigenous Australians can be improved and I know you won't be able to see the detail of these slides but suffice it to say that the large bars at the bottom represent the substantiated abuse or neglect notifications for kids in Indigenous communities. They're the light coloured bars relative to the kids in other communities. At the top the light bars are smaller because they represent the completion of year 11 or 12 or above by kids in Indigenous communities. We don't need to rehearse all of the issues to say that this is an area where there's already significant policy shift and where we have some of those opportunities to say how are we going to try to do things quite differently. We've talked a bit this morning about market mechanisms and sometimes this does involve bringing a market dynamic. There are a number of market failures in the way that we address not only the capacity for innovation but also the capacity to fund and finance the community sector. There are classic economic pillars of asymmetries of information of different mechanisms that are not serving parts of the community well and when I look at our financial system and as I said to the financial system inquiry the key question there is the one we talked about earlier to what end, to what end do we have a financial system? But what's important I think when we talk about the community sector in this picture is that the community sector represents a part of the demand picture. The community sector can actually step up and lead on saying this is what we need to be able to finance our organisations effectively. This is what we need to be able to make effective use of our balance sheets. You heard David talk this morning about the assets that they had at Odyssey House. One of the people who's very active in helping these issues to develop was not only a leader in research at Macquarie for many years but his treasurer of Bush Heritage and they have huge unencumbered land reserves and he found he couldn't get finance from the bank. So he said what's going on here because that's not actually enabling us to do our best work. Sometimes we won't know the answers and so one of the things we're trying to do through Impact Investing Australia is helping the right people around the problems that we can design things that will work. There's examples of this happening all around the world and I don't have time to go into all of them today but you can see briefly from this graph by the wonderful Ted Jackson and associates that there is an incredible variety of activity going on and what's interesting to me is it's going on right across political systems, right across different systems of providing social services and right across different types of cultural barriers around the world. Very briefly, some of the things that are happening are things like the Garvey Bonds. The Garvey Bonds are helping to immunise kids against preventable disease all around the world. What do they do? They say well we know that governments are going to pay for a certain amount of immunisation. We know the World Health Organisation is going to come through and pay but they can't provide enough funds to immunise all the kids today. The bonds raise money from investors who get repaid when that government money does come through and the agency money does come through but in the meantime the kids get immunised today. So far somewhere close to 290 million children have been vaccinated who would not otherwise have yet been vaccinated and that's been estimated to save at least 5 million children's lives. Threadneedle is a new fund in the UK that's actually teaming up with the big issue and their investment arm and is also teaming up with Big Society Capital and they're offering debt product tailored to the needs of the social sector. I won't dwell on some of the other examples but it's interesting to see internationally that now some of the mainstream investors are starting to step into the space. Goldman Sachs, emboldened by their experience with social impact bonds in New York has set up a $250 million fund to invest in social outcomes and social assets. So at the moment if you really try and put your hands around it some of this looks small scale. Sometimes that's because it's really hard to actually work out where some of the existing mechanisms and things that people have been doing in the not-for-profit sector working with their banks and financiers and out of responsible investment where that stuff ends and where what's now been called impact investing starts. But on a conservative estimate JB Weir did this analysis with us about 18 months ago and said in Australia we could expect growth about equivalent to what they've seen in the US and the UK which has been about 30% a year and in 10 years that would take us to an annual market of about $32 billion and that's only looking at what we can do inside Australia not what we could do in and from Australia and that picture gets even more interesting when you see organisations like USAID and DFID from the UK actively setting up funds to assist in developing in those growth markets and taking corporate partners and not-for-profit partners into those growth markets. The little dark blue dot there is even with that potential realise what it would be in the context of the whole of the financial markets. So still relatively small. So perspective is a great thing here because you can look at and say oh well it's small is it really that big a deal? On the other hand you can look at it and say the global estimates say that's probably around a half a trillion dollars which relative to aid spending and international philanthropy is still a chunk of money. It also tells us that we can try and experiment with this without breaking the bank. We can make modest targeted plays to actually work out where are the best and most appropriate ways that we can leverage private capital to assist in delivering public goods and social services. There's still lots of constraints and risks alongside the benefits. The benefits are that we can actually enlarge the body of capital that's seeking to have positive social outcomes. That we can get a longer term focus that we can bring back the conversation to value creation and innovation talk about outcomes and efficacy and work across boundaries. But largely a lot of this is still happening deal by deal. We're just starting to see the emergence of funds and things that indicate we're maturing the market. There's more to be done on measurement and there's more to be done in developing track record and some of that will take time. But you see organisations like the Bank of America teaming up with Bridges Community Ventures to do papers on how we can actually de-risk some of these initiatives and we see increasing activity globally across a whole range of fields where we're seeing the types of institutions start to develop the impact investing policy collaborative a global learning exchange the global impact investing network a range of alliances and also research-studying develop. This is complemented by local organisations and again we haven't got time to go into all of them but when we look across the world it's active in their local environments from the US to Israel to India and South America. And that's starting to deliver practice and practice is really important when we're going to build new fields. We need activity, we need to prove the concept but we also need to develop practice so that more people can come into it. And internationally there's now a concerted effort to try to actually coalesce building some of that infrastructure and understanding that's needed. So in the capacity as chair of the G8 last year David Cameron launched an initiative the social finance forum and I'd hoped you could listen to him but our video is not playing. And he said if we accept that we need to have capital markets to actually drive business and enable businesses to create new value if we accept that we need capital markets to help governments provide infrastructure to provide services and finance that work why do we not accept that we need capital markets to help the social sector deliver at its best and actually fund and finance that work appropriately. And this can help governments then target where they put their spending so that the leverage is happening in appropriate areas but also that precious resources are directed to the areas where no one else will go. This task force is chaired by Sir Ronald Cohen as I mentioned earlier and the OECD is providing research that will come out in early September they had a meeting in Paris just on Friday and there's working groups looking actively at issues of measurement, at issues of asset allocation at issues of how do we preserve the social mission if the money is going to come and go and come from different sources so that we can actually make sure that the integrity of that social purpose and focus on people is still there. And leaders in their fields from around the world many of whom are experienced right across sectors are now leading that effort and they won't have all the answers by the time the task force reports in September but they'll be starting the work and with them they're bringing people from all the participating countries. We're privileged to be representing the Australian sector and Australia is so far the only country outside the G8 to be at the table other than the EU that's there already. That's on the strength of the work that's been done here and the attention it's gained for quality as well as the interest in expanding this conversation well beyond the G8. So the chair asked every country participating to set up national advisory boards we've set up a national advisory board here in Australia that I chair and it has fantastic representation from leaders across sectors and the members are listed on our website if you'd like to follow up or follow up with me afterwards and the role of those advisory boards is not only to inform the work of the task force from local experience and local needs and issues but also then to answer the really important question what are we going to do about that here and we're really excited about being able to engage the advisory board in Australia which in a way brings together the same kind of group the Senate Economics Committee recommended in 2011 that we have to put concerted focus on these issues of how are we going to create robust access to capital for the community sector and to feed the work of social innovation other new platforms are growing up the Global Learning Exchange is one that is in collaboration with the World Economic Forum I'm privileged to provide strategic direction for that and we carry out a number of webinars that are available online with leaders from around the world and there are regional forums kicking off next week in Panama City so to realise the potential of this what we're telling our advisory board and what I'm telling anyone else will stop and listen is we need leadership we need to build the infrastructure for more work to happen but also to make it easier for more players to actually engage and we need to do some real work we need to find deals to do and we need to really realistically and pragmatically assess the needs of the community sector the social needs in our country and where we can actually make a sensible match with that and what the financial systems can offer we need to get governments to play a role in this because it's absolutely vital that there is that catalytic effort and that there is that aggregation of resources and we need philanthropists to play as well because what we're seeing globally is often a small amount of risk taping capital can bring others to the table the research that there is points to all of these factors policy symbiosis and the opportunity for governments too is to be saying this is a policy priority we want people to focus over here otherwise they'll decide and they may focus on some really worthy things but there's an opportunity in the mix there catalytic capital which doesn't have to come from government it comes from a range of sources and in some cases it comes from the philanthropic sector and in some cases it comes from courageous investors putting mission first and last make no mistake this is about financial discipline but it's about social outcomes and a lot of the work internationally is making sure that focus is maintained and multilingual leadership not only celebrating but saying we're learning it's essential to be successful in creating social and economic value to have people who can speak to all sectors and who understand what it really takes to deliver on the ground as well as different options for bringing capital to that work I'm going to leave it there and encourage you if you're interested to have a look at our website impactinvestingaustralia.com that has a number of resources and issues and also news and events on these developments internationally and locally and also if you're interested please do sign up for the Global Learning Exchange webinars where we're able to tap into the leaders and what's working all around the world and that is at gle-i-i-p-collaborative.org but I can provide you with those details afterwards and also happy to follow up with questions and comments