This report contains the proceedings of the Conference held in Hobart, Tasmania, on 27 May 1988. The theme of the Conference, Community Services Policy: Economic and Social Implications. The seven papers in this report cover a wide range of issues in community services - issues of efficiency, redistribution, equity, equality, administration of services, service delivery, and occupational welfare. This nexus of interrelated issues lies at the heart of contemporary debate over the role of community services in the welfare state and their impact on social welfare. Together, the papers represent analysis of the spectrum of problems and issues confronting the welfare state from a social policy perspective. While this perspective acknowledges the importance of economic developments to the welfare state debate, it places these in a broader social framework that is central to the discussion. Despite the undoubted importance of the economic arguments, informed debate on the nature and effects of welfare state provisions must encompass this broader perspective. The discussion forum at the Conference raised a number of issues of direct relevance to community services. Problems of measurement in evaluating costs and benefits, economic integration of qualitative aspects of services, the role of local government, particular problems identified in the Home and Community Care (HACC) program, rural / urban differences, and the limitations of resources in certain geographical areas were some major concerns that the participants thought needed more consideration in policy and in the allocation of resources.