LEGISLATIVE COUNCIL Economic development in Aboriginal communities Standing Committee on State Development Inquiry into economic development in Aboriginal communities Ordered to be printed 30 September 2016 according to Standing Order 231 Report 40 - September 2016 i STANDING COMMITTEE ON STATE DEVELOPMENT New South Wales Parliamentary Library cataloguing-in-publication data: New South Wales. Parliament. Legislative Council. Standing Committee on State Development. Economic development in Aboriginal communities / Standing Committee on State Development. [Sydney, N.S.W.] : The Committee, 2016. i– xvi; 122 pages; 30 cm. (Report no. 40 / Standing Committee on State Development) Chair: The Honourable Greg Pearce, MLC. “September 2016” ISBN 9781922258250 1. Aboriginal Australians—New South Wales—Economic conditions. 2. Business enterprises, Aboriginal Australian—New South Wales. I. Title. II. Pearce, Greg. III. Series: New South Wales. Parliament. Legislative Council. Standing Committee on State Development. Report no. 40 330.9944 (DDC22) ii Report 40 - September 2016 LEGISLATIVE COUNCIL Economic development in Aboriginal communities Table of contents Terms of reference v Committee details vi Chair’s foreword vii Recommendations x Conduct of inquiry xv Chapter 1 Driving reform 1 Culture as central to reform 1 Issues with the current approach to Aboriginal affairs 2 Urgent need for a whole-of-government approach to Aboriginal affairs 5 Relocating Aboriginal Affairs 6 OCHRE 9 Aboriginal Economic Development Framework 10 Strong entity 12 Public sector employment and procurement 13 Industry Based Agreements 17 Local Decision Making 19 Accountability, transparency and evaluating efficacy 21 Chapter 2 Building the capacity of individuals 23 Capacity building of individuals 23 Education programs and role models 23 Opportunity Hubs 24 Community-specific culture in the education curriculum 26 Other programs 27 Post-school training and employment 31 Private sector 34 Chapter 3 Building the capacity of Aboriginal organisations 37 Capacity building for Aboriginal organisations 37 The local Aboriginal land council network 38 Government funding and policy delivery models 39 Compliance requirements 42 Governance 45 Staff and training 50 Supportive environments 51 Report 40 - September 2016 iii STANDING COMMITTEE ON STATE DEVELOPMENT Entrepreneurship 53 Chapter 4 Leveraging economic opportunities from land and water 59 Land claims under the Aboriginal Land Rights Act 1983 59 Concerns about land claims under the Aboriginal Land Rights Act 1983 60 Delay and backlog in assessing land claims 60 Issuing of land with limited title 65 Zoning of land 66 Native Title 74 Partnerships between local Aboriginal land councils and local councils 77 Leveraging economic opportunities from water 79 Appendix 1 Submissions 83 Appendix 2 Witnesses 85 Appendix 3 Minutes 88 iv Report 40 - September 2016 LEGISLATIVE COUNCIL Economic development in Aboriginal communities Terms of reference 1. That the Standing Committee on State Development inquire into and report on strategies to support economic development in Aboriginal communities in New South Wales, including but not limited to: (a) options for sustainability and capacity building of NSW Aboriginal communities into the future, utilising existing community networks and structures (b) leveraging economic development support, including provided by the Commonwealth Government and the private sector (c) establishment and sustainability of Aboriginal owned enterprises. 2. That the committee report by 30 September 2016. These terms of reference were adopted by the committee on Tuesday 25 August 2015 and referred to the committee by the Hon Leslie Williams MP, Minister for Early Childhood Education, Minister for Aboriginal Affairs, and Assistant Minister for Education. Report 40 - September 2016 v STANDING COMMITTEE ON STATE DEVELOPMENT Committee details Committee members The Hon Greg Pearce MLC Liberal Party Chair The Hon Mick Veitch MLC Australian Labor Party Deputy Chair The Hon Rick Colless MLC The Nationals The Hon Paul Green MLC Christian Democratic Party The Hon Natasha Maclaren-Jones MLC Liberal Party The Hon Ernest Wong MLC* Australian Labor Party * The Hon Ernest Wong MLC replaced the Hon Sophie Cotsis MLC as a committee member on 7 March 2016. Contact details Website www.parliament.nsw.gov.au Email [email protected] Telephone 02 9230 3504 vi Report 40 - September 2016 LEGISLATIVE COUNCIL Economic development in Aboriginal communities Chair’s foreword The committee was unanimous in finding that there is a desperate and moral need for leadership and action on the deplorable outcomes for our Aboriginal communities. However, encouragingly, we also found there is a broad acceptance that now is the time to act. The inquiry was established to consider strategies to support economic development in Aboriginal communities in New South Wales as a means of addressing disadvantage and creating sustainable communities. Sadly and unjustly, despite decades of investment and goodwill by successive governments, there continues to be an unacceptable level of disadvantage in Aboriginal communities. There has been a depressing lack of progress in Closing the Gap. Aboriginal children are twice as likely to be at risk of sexual abuse.1 Aboriginal women are six times more likely to experience domestic violence than non-Indigenous women.2 Incarceration rates demonstrate the urgent need for action with 50 per cent of the New South Wales juvenile detention population made up of Aboriginal children. There are horrific figures for youth suicide, homelessness and reduced life expectancy. Scandals such as the Northern Territory juvenile detention system expose all Australians to shame and international criticism. There is widespread commitment to engage to address problems, particularly from Aboriginal communities themselves and there are many examples of successful Aboriginal activities. However, the reality is that there continues to be a clear divide and resultant disadvantage between Indigenous and non-Indigenous Australians. Economic development is the key to unlock this spiral of shame. The NSW Government has taken some positive steps through the OCHRE Plan and education, health and Aboriginal housing. Direct policies include public sector employment, the construction industry and procurement. OCHRE envisages development of an Aboriginal economic development framework which is the ‘key vehicle’ for driving economic opportunity for Aboriginal people in New South Wales. However, over two years since the release of OCHRE the framework is still in development. The lack of outcomes cannot be ignored and there continues to be widely held concerns about government acting in silos, duplication and waste, a lack of a sense of urgency and accountability, and reliance upon top down government rather than community partnerships and enabling support. New South Wales has unique advantages to tackle the underlying causes of economic disadvantage: Relative to other states and territories New South Wales has a high urban and regional Aboriginal population and a relatively small remote population. Since 1983 New South Wales has had a lands claim process which allows Aboriginal communities to claim ownership of vacant Crown land with which the communities have a connection thus (subject to clearing the enormous backlog of claims) underpinning cultural and development opportunities. 1 Child Family Community Australia, Child protection and Aboriginal and Torres Strait Islander children (September 2015), https://aifs.gov.au/cfca/publications/child-protection-and-aboriginal-and- torres-strait-islander-children. 2 NSW Bureau of Crime Statistics and Research, Trends and patterns in domestic violence assaults: 2001 to 2010 (May 2011), http://www.bocsar.nsw.gov.au/Documents/BB/bb61.pdf. Report 40 - September 2016 vii STANDING COMMITTEE ON STATE DEVELOPMENT A strong land council network and a system of land ownership provide considerable opportunities to enhance Aboriginal prosperity, however, there are serious issues relating to governance and accountability. New South Wales is embarking on a $73 billion infrastructure spend with many opportunities for Aboriginal employment and business participation. The committee has concluded that a major push from the government is needed to generate momentum, and sustain it, in the area of economic development in Aboriginal communities. We recommend a strong coordinating agency to drive economic reform in a way that harmonises Aboriginal economic development with the state’s broader economic policy; developing and harnessing capacity building opportunities; and ensuring that the economic prosperity and development opportunities envisaged by returning land to Aboriginal communities under the Aboriginal Land Rights Act 1983 are able to be realised. It must be recognised that lasting improvements can only be achieved through consultation and cooperation between government, the communities themselves and their leaders and other sectors. Objectives for Aboriginal economic improvement must be front and centre with respect to Aboriginal culture and history included. Desired outcomes and accountabilities must be clear and assessable. The committee has recommended: Responsibility for Aboriginal policy and programs should be moved to the Premier cluster. An advisory board with the Premier as Chair should be formed including appropriate Aboriginal, government and private sector representation as a coordinating