Bennelong Society Conference 2005:
Remote Aboriginal Communities: Where are the Jobs?

Indigenous Economic Development

Dennis Bree

Good afternoon Ladies and Gentlemen. Thank you for the opportunity to address you on the important issue of Indigenous Economic Development.

I start from the premise that there is general agreement in this country that it is essential that we work towards First Australians getting a fair share of the economic cake. We come at this from different positions, altruism, guilt, sense of fair play, a feeling that we are all diminished by the historic treatment of Indigenous people and I'm sure many other motivations---including I might add the opportunity to partner up with Indigenous groups and make a dollar or two---in my view the most sustainable motivation.

But at the end of the day most non-indigenous Australians can quite happily get on with their lives without thinking about the debilitating impacts of welfare dependency.

This is not the case for the Northern Territory.

For us this is a mainstream issue.

Indigenous Territorians make up about 30% of our population, 40% of our school population, they own 54% of the land under the Aboriginal Land Rights Act and this includes 85% of our coastline.

We live in the same suburbs as Indigenous people, work with them, play sport with them, have Indigenous friends and marry into their families.

We are also humbugged in urban centres---humbug is a peculiarly NT term---it can mean all sorts of things but in this context we mean harassment and begging---and we see the results of poverty and desperation played out in our hospitals, in our prisons and in our streets.

The Territory is a mixed bag---incredible multiracial harmony beside fear and revulsion.

Why do we have these seemingly contradictory sets of emotions and relationships?

Tensions in relationships come from a sense of difference and wariness of the unknown, compounded by an unwillingness to understand that difference.

One of the core issues at the heart of this difference is poverty.

The statistics in the NT are stark.

Indigenous people account for 25% of all adults in the Northern Territory, but the indigenous share of total income is only 11%. The Indigenous share of income from employment (excluding CDEP) is only 4%.

The Indigenous labour force participation rate is less than 40%. If Community Development Employment Projects (CDEP) is counted as unemployment, 57% of the indigenous labour force is unemployed.

In 2001 only 36% of Aboriginal and Torres Strait Islander Territorians were employed or looking for work. The median weekly income in the NT is much lower at $490 per family compared with $1390 for non-Aboriginal families.

To maintain employment levels at the current rate for Indigenous Territorians, it is estimated that there would need to be 1,026 more jobs created per year from 2001 to 2011. To lift the employment level to the non-Indigenous level, there would need to be an additional 19,901 jobs created in the same period---nearly 2,000 jobs per year (Source: John Taylor and Yohannes Kinfu etc).

Indigenous Territorians continue to experience some of the worst housing and associated living conditions of any groups within the Australian community.

Approximately 96% of communities were classified 'very remote' or 'remote' with none of them being classed as 'highly accessible'. Community housing in the Northern Territory's rural and remote Indigenous communities is marked by overcrowding, poor infrastructure condition and the use of improvised shelters largely in response to inadequate housing options. Current Indigenous housing stock amounts to approximately 6,000 houses in more than 700 recognised rural and remote communities. It has been estimated that over $1 billion is needed to remedy the backlog of Indigenous housing demand in the Northern Territory. This equates to approximately 5,000 houses that need to be built.

Government projections indicate that there will continue to be a significant unmet need for many years as population growth and ageing housing stock tip the balance against the supply of new houses and repair and maintenance of existing houses.

Education

Indigenous students have lower levels of English literacy and numeracy achievement than non-Indigenous students. In the 2001 national benchmark results for literacy and numeracy competency, only 29% of NT Indigenous students achieved the year 3 reading benchmark, compared to 90% nationally.

Some how we have allowed education to become voluntary. Who here would have gone to school under these circumstances.

Health

Non-Indigenous Territorians enjoy amongst the highest standards of health and life expectancy in the world, while the health of Indigenous Territorians is worse than many developing countries.

In remote communities, Indigenous children are 3 times as likely as non-Indigenous children to die before the age of one. The main cause of illness is preventable infections.

Indigenous Territorians are at greater risk of developing serious chronic illnesses, and dying younger because of them. The causes of chronic diseases are not fully understood but the risk of developing them is linked to:

• Poverty and social disadvantage---the 'social determinant of heath'
• Illnesses that arise from social disadvantage, poor living conditions and poor housing, such as infectious diseases and malnutrition
• Low birth weight

Research reveals that for some Territory communities the incidence of end stage renal disease is up to 30 times the national incidence for all Australians.

Law and Order

At the entry point into the criminal justice system, Indigenous people are five times more likely to be apprehended than non-Indigenous people. This over representation is also mirrored at the end of the criminal justice system where Indigenous people are 11 times more likely to be imprisoned than non-Indigenous people. On average, 78% of the Northern Territory's adult prison population is Indigenous and 89% of juveniles held in detention are Indigenous.

In summary, First Australians in the Territory are clearly socially and economically deprived by whichever indicator you want to use. And they are certainly not getting a fair slice of the economic cake---despite ownership of over 50% of the land. It is a fair question to ask whether any other discrete group---substitute for Aboriginal if you will, say Greek, or Chinese or Phillipino---all substantial ethnic groups in the NT: would these groups experience similar levels of poverty if they owned 54% of the land mass and 85% of the NT coast?

There are sad historic forces that have led us to this point.

It is not my intention to address them.

My purpose here is to talk about what we are doing to try and turn it around.

And turn it around we must---for the Territory there is no choice. The outcome of a 'do nothing' approach will mean the accelerating drift of Indigenous Territorians to urban centres in search of housing, education and health services and escape from the often violent and dysfunctional communities.

This in itself would not be a problem except they come with little education and skills and quickly feel excluded from the mainstream and separated from their country and families. Often these visitors end up in a cycle of homelessness and poverty, estranged from their home community and a social and economic burden on towns. Worse still, they are often the in-your-face visible sector of the Aboriginal community: it does nothing to promote the image of the Territory or of hard working Indigenous Australians when the first and enduring image of Aboriginal Territorians is one of street drunkenness and, here's that word again: humbug.

The Territory Government has set Indigenous Economic Development as a high priority. We have not done this in isolation. We have listened to Aboriginal leaders and Aboriginal communities and the message we are getting is loud and clear. Aboriginal people are telling us they want better lives. They want independence and they understand that the most viable vehicle for breaking out of a devastating cycle of welfare dependency and hopelessness is economic development.

Chief Minister Clare Martin said

Too many Indigenous Territorians have been forced to survive on welfare for too long. Indigenous Territorians have a right to aspire to increased economic independence and self reliance.

The keys to Indigenous economic development are co-operation and consultation. Economic progress for Indigenous Territorians is essential for the future of the Territory. My Government believes that developing partnerships with Aboriginal communities is the best way to drive economic growth in the bush. Looking after the bush and its people helps move the Territory ahead.

One tool NTG has put in place is the Taskforce on Indigenous Economic Development, which I chair.

This Taskforce is made up of representatives of the Australian and NT Governments, Indigenous organisations and the private sector.

It is tasked with co-ordinating and driving efforts of all sectors in this field, to ensure co-operation in the NT government agencies and to report regularly to Cabinet. In my 30 years in the public sector this is the most co-operative period between the Commonwealth and State governments.

The philosophy of the Taskforce membership is a practical and pragmatic one.

Their focus is on achieving outcomes through partnerships, developing a psychology of success and working with people and organisations that want to get things done---demand driven rather than supply driven. It is about creating options---where Indigenous people have a choice about their future.

And because it was important that all agencies continued to provide services to Indigenous Territorians we have quite deliberately not sought a budget other than for a small secretariat to carry out this work.

This ensures no one in government can abrogate their responsibilities by pointing to the Taskforce and we can focus on building partnerships, co-ordinating and monitoring rather than getting bogged down in ongoing operations. That's the theory!

The NT IED Strategy, released in May 2005, identifies opportunities for economic development in thirteen industry sectors:

• Aquaculture and Fisheries,
• Arts,
• Community Services,
• Construction,
• Forestry and Agri-business,
• Government,
• Horticulture,
• Knowledge and Culture,
• Mining and Production,
• Natural Resource Management,
• Pastoral,
• Retail and Services, and
• Tourism

Within each of these industry sectors, case studies have been identified that demonstrate that positive outcomes are being achieved.

Associated with this sector by sector analysis is a commitment to:

• A community development approach---we can not impose solutions
• Learning lessons from successes and failures---why would we assume success?
• Acting within a whole of government, whole of community framework---a complex problem requires a complex, co-ordinated solution.

Supporting measures for the implementation of this strategy are:

• Leadership
• Governance
• Communication and promotion---particularly celebrate success
• Skills development
• Community infrastructure
• Research and data collection

I will now turn to a few examples to give some flesh to the theory.

Indigenous Pastoral Project

A significant amount of land claimed under the Land Rights Act had formerly been pastoral properties. In the main they decreased dramatically in productivity due to poor management.

A few years ago this project was put together with the goal of bringing properties back into production with a target of 50,000 head in three years. They are comfortably on track.

The project is run by a committee made up of the Northern and Central Land Councils, the Indigenous Land Corporation and NT Government Department of Primary Industry, Fisheries and Mining working with Traditional Owners of pastoral stations.

A good example of their approach was Amanbidji Station in the Victoria River District.

A pastoral property that was essentially cut back to a killer herd with deteriorated infrastructure is now run as three operations. Management decisions are made by a committee of traditional owners.

• One operation is leased to Consolidated Press for 10 years on the condition of high quality infrastructure at the end of that lease;
• One to a neighbour in return for management skills; and
• One for the Community to build their own herd and employ their own kids.

So far this project has been a huge success and is providing a role model for others.

In addition to bringing Aboriginal pastoral stations back into commercial production, the chronic shortage of labour in the pastoral industry can only have one long term resolution---Aboriginal labour. Already we have had small successes in placing Aboriginal trainees in apprenticeships and seasonal work. More recently we are working with private pastoral interests to develop training packages and employment pathways to alleviate the current labour crisis in this industry.

Construction

Leveraging government expenditure in communities---particularly on housing---is seen as an important employment opportunity. The Indigenous Housing Authority of the Northern Territory (IHANT)---a partnership between the Australian and Northern Territory Governments and having a majority Indigenous Board---has developed procurement guidelines and policies to encourage the use of Indigenous Building Teams. Teams in which the employees are working towards trade qualifications.

This program is now being expanded due to demand from Communities and it is hoped to have over 500 Indigenous people in the construction industry by the end of 2006 (up from 200 at the 2001 Census).

The approach is now being expanded to include all NT Government expenditure in the bush through a new Remote Area Construction unit.

Construction is seen as a key short-term job generation as commercial skills can be developed quickly and added to in a modular form.

We expect it to be extended to urban construction as well to overcome the chronic skill shortage in the industry and get away from its dependence on transient workers.

Caring for Country

Caring for Country is a program developed by the Northern Land Council 'to assist Aboriginal families to effectively manage their country, sustaining healthy people and healthy country'.

In practice, it attempts to provide meaningful economic activity on country by respecting and working with both Indigenous knowledge and science-based knowledge through setting-up Ranger programs.

There are several types of Ranger programs in existence including:

• fee for service provision of environmental and cultural management services, eg. Mimosa control, crazy ant eradication, fire management, feral animal control
• Partnership in caring for sea country eg coast watch activities with relevant agencies eg AQIS
• Enterprise development based on 'sunrise' industries, eg. Wildlife utilisation and carbon trading
• Commercial utilisation of wildlife for the pet trade, bush medicines and foods, crocodile egg collection and incubation, sponge and trepang aquaculture.
• enterprise development based on 'mainstream' industries eg pastoral or tourism---importantly there are over 30 Caring for Country programs on NLC lands with about 350 people being employed---this is a valuable source of skilled and committed labour for new and emerging business opportunities.

The demand is much greater than can be catered for. As well as inherently valuable, it is also a stepping stone to better paying jobs and business development.

Most of the environmental management and coast watch activities are currently under-valued by agencies---it is quite common for Rangers to be working alongside government officers being paid significantly higher wages than the CDEP wages most Rangers receive. With heightened awareness of the value of a pristine environment in the North to tourism and rising security concerns for our lengthy coastline I am sure the economic value of these activities will be recognised.

Additionally the available research demonstrates that the cost of traditional owners managing this important natural asset is significantly less that the cost of engaging a government agency to do the same job.

Forestry

Sylvatech is a forestry company owned now by Great Southern Plantation and based on Melville Island north of Darwin.

They are building a business expected to have a turnover of $140M and employing 130 people by 2008.

The Tiwi Islands---Bathurst and Melville---are home to about 1800 people---this is a significant employer and business generator.

Through the Tiwi Land Council, the Tiwi Traditional Owners have developed significant business interests on the islands. As well as owning the wharf which takes out the timber, it has income-producing interests in a Barramundi Fishery, a small tourist resort and a mining venture---in the main low risk licensing interests with employment a bonus. The Local Government also contracts for civil construction works.

In the case of forestry employment after a number of failures they have 21 local people employed in what appears to be a stable arrangement. The lessons learned from previous attempts have been applied:

• Provision of mentoring; and
• Payment of real wages not CDEP for both economic and status reasons.

This should not surprise us but it highlights that we have misaligned the economic drivers.

This is an example of positive results based on persistence, good will and a willingness to learn.

While I speak of some success not every effort ends in success. But the Taskforce's view is that:

1. We need to learn from all outcomes---success, failure and anything in between---and apply these lessons; and
2. Persist---these challenges have not emerged overnight and we need to have a long-term view and commitment.

Other lessons we are learning are:

1. Commercial and social outcomes should not be expected from a business. A business should focus on achieving profits. If the owners wish to use their profits for a social outcome that's fine (example Larrakia Development Corporation)---but social outcomes should not be an expense of the business or it will almost certainly fail.
2. The key to long-term economic equity is education. Without Indigenous Territorians gaining access to good education we will be providing special programs forever.
3. We need to address marginal tax rates that inhabit the desire to transition from welfare to work. People must benefit or they will not engage.
4. Pay people proper wages where possible---CDEP does have the stigma of welfare in some place.
5. We need to engage with Indigenous communities to ensure they understand their options so that their aspirations can be better informed.
6. We need to listen to and understand the aspirations of Indigenous people and understand that there will not be a homogenous view. If we work with people's aspirations our efforts will be more likely to bear fruit---businesses only succeed when people demonstrate a commitment to making the business work
7. We need to recognise that the issues we are discussing are complex and there is no silver bullet---no simple solution no matter how tempting. It requires commitment, persistence, and a willingness to listen to indigenous people and to respond.
8. We need to acknowledge that this is do-able. More and more successful role models are emerging and the old attitude of dismissal and hopelessness simply does not help.

David Ross, Director, Central Land Council stated:

Success breeds success. Indigenous workers provide models for others to follow. The industry values its Indigenous workers. Negative stereotypes are replaced by success stories.

In the Territory we are working towards a goal of colour blind economic statistics.

This is not just for Indigenous people---it is to build a better Territory for us all.