Province takes first step on road to ‘social impact bonds’

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This article was published 04/07/2017 (3045 days ago), so information in it may no longer be current.

Manitoba’s Progressive Conservative government has issued a request for proposals to select a consultant to help develop partnerships with the private sector to fund social programs.

The PCs promised the establishment of “social impact bonds” during the 2016 election campaign.

Family Services Minister Scott Fielding said the government is creating “a new channel for philanthropy” it hopes will help solve costly, complex social issues and benefit the broader community.

“Social impact bonds are a new tool to tap into Manitoba’s potential to find creative solutions and foster new business, social and community partnerships,” he said in a statement.

Fielding sought to allay concerns the government would be farming out existing programs to the private sector.

“I want to be very clear. This is about building on current social service programming. SIBs will support and work alongside current programs, but do not replace them. They are one tool in the toolbox,” he said.

Social impact bonds encourage the private sector and community groups to partner with government to deliver prevention programs designed by experts and front-line service organizations, the province said in a news release. The government sets specific goals in collaboration with service providers, secures private investment and repays investors only if the service provider meets the project’s outcome.

The province is now requesting proposals from qualified professional consultants to provide expertise and mediation between the government, social service providers and investors.

“The consultant would recommend an innovative proposal for a landmark SIB, develop a contract with outcome targets and evaluation criteria, develop a framework for future proposals and help build government ability to manage projects,” according to the press release.

Jeff Wharton, chairman of the province’s Social Impact Bond Committee, said SIBs find a way to use private capital for the public good.

“While traditional government programs may be funded regardless of whether they are working, SIBs would only receive tax dollars based on success. This type of innovation will give Manitobans better value for their money and provides an efficient addition to current funding, not a replacement,” he said.

Hundreds of SIB initiatives are underway around the world but are still emerging in Canada, Wharton said. One partnership in Saskatchewan created a support home for single mothers and is expected to save that province up to $1.5 million over five years by reducing the number of children in government care.

In Manitoba, the use of social impact bonds could be used by the Families and Justice departments to find new ways to reduce the number of children in care and reduce the rate of re-offenders in the criminal justice system, the government suggested.