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5. Native Title and Indigenous Economic Development
Native title and native title processes are fundamental to the future economic development of indigenous communities. The Native Title Act has enormous potential to provide local economic empowerment in the medium to long-term. Several examples of successful agreements on native title land are included in this resource kit (see the Development Agreements on Native Title Lands Fact Sheet).
Indigenous peoples, governments and other Australians have long recognised that welfare dependence or dependence on continuing government programs is not a way ahead for indigenous people. Unemployment and poverty have considerable social costs, contributing to poor health, harmful behaviour, lack of success in the education system, and unacceptably high custody rates.
It makes clear economic sense to leave indigenous rights intact and to uphold the Right to Negotiate processes which are allowing indigenous Australians to participate in developments on their own land.
Government policy
The Commonwealth Government sees economic development as the key to the success of its indigenous affairs policies, The Minister for Aboriginal and Torres Strait Islander Affairs, Senator John Herron, setting out broad policy directions in his Lyons lecture (Canberra, 15 November 1996), , said: 'As a Government we believe in economic independence and restoration of self-esteem.' The Minister has been very impressed by many thriving indigenous enterprises and by communities in which 'there is a desire and a striving towards genuine self-sufficiency and self-empowerment . . . real economic and self-suff iciency'.
'The Job Ahead'
The aim of most dedicated programs of assistance is economic independence, but a report released in April of this year demonstrates the immense scale of this task. The Job Ahead1 shows that underlying demographic trends and the limitations of current government labour market programs will result in a significant worsening of the economic status of indigenous Australians over the coming decade. It estimates that:
- the indigenous population is likely to increase from 280,000 in 1991 to 400,000 in 2006. It is conservatively estimated that the Indigenous working age population will be almost 30 per cent greater;
- the indigenous unemployment rate is likely to increase from the current 39 per cent (as against 8.5 per cent for non-indigenous Australians) to 43 per cent in 2001 and 47 per cent in 2006;
- to attain employment equality with the general population b y 2001 would require the creation of 1 1,000 new jobs a year. Further, if dependence on government were to be minimised and the CDEP scheme and community sector work was to be abolished or gradually reduced, employment requirements 'reach absolutely impossible levels'.
The cost of inaction
The Job Ahead urged more Government investment in indigenous economic and employment programs, especially considering the cost of doing little or nothing. These costs include continued income support for indigenous Australians through the Department of Social Security and ATSIC's CDEP program, plus the indirect costs of long-term economic marginalisation and associated social problems. Helping indigenous people to become economically independent would generate potential tax revenue, would enhance national production and Australia's international reputation, as well as returning major dividends in areas of social policy such as health and housing, It would also give a much needed boost to regional economies, benefiting indigenous and non-indigenous people alike.
Aboriginal people become stakeholders
The High Court's recognition of native title and the Native Title Act have transformed the legal position of a once powerless and marginalised group. They have made Aboriginal people stakeholders in their own country and given them the means to:
- control the protection of their culture;
- be involved in economic activity through agreements under the Right to Negotiate provisions of the NTA; and
- have more control over negative social impacts related to development (e.g. access to alcohol and land degradation).
Native Title has the potential to provide an all-important land base. Successful indigenous enterprises in the Northern Territory such as those of the Jawoyn Association at Katherine or the Yolgnu enterprises in north-east Arnhem Land are based on land ownership achieved through the operation of the Aboriginal Land Rights (Northern Territory) Act 1976.
Native title rights give indigenous people leverage in negotiations about development. for example, through agreements with miners and other resource users they can negotiate economic development packages that provide employment and training, or trust funds for social and cultural development. .
Dismantle the existing rights of indigenous people under the NTA and you destroy an opportunity for economic independence just as it is beginning to develop.
In the case of tourism enterprises in remote Australia the indigenous relationship with the land is already adding value to the country, and ownership and management structures should reflect this fact.
Economic Empowerment Package
The National Indigenous Working Group proposes the creation of a capital base to allow equity participation in development and investment on indigenous land. The capital fund represents the core of an Indigenous Economic Empowerment Package.
The package would establish a framework in which indigenous people can secure recognition of their rights from government and other land users, beneficial outcomes from that recognition, better relationships with governments and other land users, and more security and certainty in key areas of community life.
1. The Job Ahead: Escalating economic costs of Indigenous employment disparity, J. Taylor and J.AItman, Centre for Aboriginal Economic Policy Research, Australian National University, Canberra, 1997
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