module nine diversification and other income earning opportunities MANAGING INDIGENOUS PASTORAL LANDS Pub no. 14/025 McClelland Rural Services Pty Ltd diversification and MODULE 9 other income earning opportunities Contents Introduction 3 List of Tables Sub-leasing or Letting Grazing Licences 5 Table 9.1 Small Scale Abattoir Activity in the Northern Territory 14 Agistment 8 List of Photos Agistment WA 8 Cover Photo – Dale Gorge Agistment in NT 8 Karijini National Park Agistment in Qld 8 Photo 9.1 Home Valley Station 13 Contracting 9 Photo 9.2 Gunbalanya Abattoir 15 Contractor Duties 9 Photo 9.3 Elijah Whitehirst, Owner Duties 10 Gunbalanya Abattoir’s First Employment on Non-Indigenous Indigenous Apprentice 15 Cattle Stations 11 Photo 9.4 Mosaic Burning at Fish River Station NT 17 Employment as Rangers 11 Mining Royalties and Employment 12 Operating an Indigenous Training Business 12 Burks Park Training Centre WA - horsemanship, cattle handling 12 Myuma Group - Plant hire, construction, mining, horticulture, hospitality, catering 12 ILC Roebuck Plains WA – On- the- job cattle handling 12 ILC Queensland Stations – On- the- job cattle handling 12 Tourism 13 Home Valley Station 13 Small Scale Abattoirs 14 Gunbalanya Meats 15 Palumpa 16 Never Never Meatworks (Mataranka) 16 Other abattoirs 16 Carbon Farming 17 Carbon Farming Initiative 17 Business Support and Grants 17 Issues to Consider 18 Northern Australia Models 19 2 MODULE 9 diversification and other income earning opportunities Introduction Traditional Owners (TOs) through Aboriginal corporations have title to significant areas of pastoral land in northern Australia. Although the corporations represent their local communities, they cannot employ everyone from these communities on their pastoral properties. Land ownership of pastoral properties, in addition to its cultural significance, may best be viewed as an investment by Aboriginal corporations which can provide a return to management and opportunity for capital growth. Even this may be limited because of the size, stage of development and livestock carrying capacity of some properties. Nevertheless, the sustainability of Indigenous pastoral communities can be enhanced through land and cattle-based diversification and other income earning opportunities which help to broaden economic activity, and create a more balanced income stream. Remote pastoral communities can also share in other expanding economic activities not directly related to cattle raising such as tourism, mining and carbon farming. If these activities occur on or near homelands, it will provide social cohesion through attachment to the land, access to sacred sites as well as cultural and traditional activities including hunting, fishing and gathering, underpinned by Native Title. Diversification and Income Earning Activities Module 9 expands on land-based diversification opportunities available to Indigenous pastoral rural communities to: • increase their income • reduce business risks from relying solely on the cattle market for income • provide their people with a broader range of skills to improve their employment prospects. The module also provides examples and models of the available business opportunities. Implementation requires more investigation by Indigenous pastoral interests and communities through business plans, and sourcing of finance or assistance programs where necessary. Activities covered in this module are as follows: Sub-leasing and Agistment Indigenous-owned properties which do not have the cattle, or means to finance cattle, can still utilise the available land and labour by being paid fees by other people to run cattle on their land. Such land use agreements involve sub-leasing, provision of grazing licences or agistment. Contracting Land use agreements, and the necessity for Indigenous owners to operate their own properties, opens up income earning opportunities for contractors from communities to perform mustering and fencing services. Other opportunities include earning fees for service to control fires, weeds and feral animals. 3 back to top MODULE 9 diversification and other income earning opportunities Employment on Non-Indigenous Cattle Stations Non-indigenous cattle stations. particularly corporations, have a policy of directly employing and training people from local Indigenous communities. Employment as Rangers Environmental activities can extend to paid employment as rangers as part of the ‘Working on Country’ Program. Mining Royalties and Employment Royalties from mining activity in northern pastoral areas are an important source of finance for many remote Indigenous communities and Land Councils. Mining companies also have a corporate social responsibility to employ local people. Operating an Indigenous Training Business Indigenous groups can provide training in cattle management, construction and cultural heritage. Small Scale Abattoirs Some Indigenous corporations are interested to become more involved in meat processing through ownership of small local abattoirs that kill their own cattle, and marketing and retailing the meat to local communities and tourist and mining businesses and settlements. Tourism Tourism is an expanding industry throughout northern Australia. Communities could be involved through ecotourism, and creative artistic and cultural activities. Ownership and employment possibilities in the region include roadhouses, hotels and motels at outback centres, which are not located on land used for pastoral activities. Other community possibilities are bee-keeping and bush tucker-related enterprises. Carbon Markets There are a range of opportunities emerging for Indigenous landowners in the carbon market Carbon sequestration, abatement and storage and biodiversity protection, are emerging as a new economy in northern Australia. 4 back to top MODULE 9 diversification and other income earning opportunities Sub-leasing or Letting Grazing Licences Traditional Owners may agree to sub-lease their land or grant grazing licences (in the case of the Northern Territory (NT)) to other pastoralists to run their cattle or to allow use for non-pastoral activities (See also Land Information Module 3). Those who wish to run cattle on unutilised Indigenous land may find this attractive, if they do not wish to invest in more land themselves. It gives access to alternative markets, allows expansion of their herd without borrowing to purchase land, and can provide the third party lessee with some protection against falling land values. These land use agreements are contracts, and it is essential that understanding be reached on the specific terms that are to apply to the contract. Terms or arrangements should be committed to writing and signed by all parties. Agreements may apply to all or part of the property and there may also be instances of multiple agreements on the one property. Sub-leasing or agreeing to a grazing licence can be a long term strategy for properties with limited pastoral potential, or as part of a transitional strategy for holdings with significant pastoral potential. In the former case, the emphasis of the sub-lease agreement will be on financial returns, while the latter case should also cover the transfer of skills and knowledge. However, a depressed cattle market can make it difficult to attract interest from third parties wishing to enter into sub-leasing or grazing licence agreements on Indigenous lands, since both parties must be able to profit from the arrangement. In Western Australia (WA) and Queensland (Qld), where Indigenous properties generally occupy pastoral leases, sub-leasing of all or part of leasehold land requires the written approval of the Minister. At present, there are 10-12 Indigenous Pastoral Leases with sub-leases in the Kimberley and Pilbara. As all WA pastoral leases expire on 30 June 2015, no sub-leases can be approved for a period extending beyond 29 June 2015. In the NT, most Indigenous pastoral activity takes place on Aboriginal Land Trust areas which is Aboriginal freehold. There, the negotiation of grazing licences between Traditional Owners and other local and interstate pastoralists takes place through Pastoral Land Use Agreements (PLUAs) driven by the Land Councils under the Indigenous Pastoral Program (IPP). Consultations found that some 17 properties controlled by Traditional Owners in the NT have issued PLUAs, under Section 19 of the Aboriginal Land Rights (Northern Territory) Act 1976 (Cwth) (ALRA). These land use agreements have been entered into with non-Indigenous and Indigenous operators, including the Indigenous Land Corporation (ILC). However, these are in a state of flux because of the downturn in the cattle market. 5 back to top MODULE 9 diversification and other income earning opportunities In all three jurisdictions in northern Australia, there are various types of agreements which can benefit Traditional Owners and local communities through the pathways listed below, or a combination of all or some: • an annual fee from sub-leasing or licensing and may include a portion of the profit from the cattle enterprise being conducted on the sub-let land • fee for services such as rangeland and station operations, fencing and mustering contracts • provision of training for young people and interested mature people • sustainable grazing levels, compatible with cultural and natural resource values • redevelopment of pastoral infrastructure for the future benefit of Traditional Owners • provision of Indigenous ranger services for environmental and rangelands