Dear Minister
Mr Kevin Driscoll, CBE, OBE
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- Bu səhifədəki naviqasiya:
- Mr William (Sam) Jeffries, Deputy Chair.
- Shaping the ILC’s Land Acquisition policy
- Focusing on opportunities in pastoral and tourism industries
- Bringing land into production
- A priority on employment and training
- Collaborating to achieve significant outcomes
- A bold vision to create Indigenous enterprises and jobs
- Figure 1: Governance Overview ILC BOARD
- Figure 2: Structure of the ILC and its Subsidiaries
- Figure 3: Purpose, Priorities and Output 2010–11.
- Priority Outcomes
- National Indigenous Land Strategy 2007–12 (NILS)
- Regional Indigenous Land Strategies (RILS)
- Regional Land Management Projects
- Figure 4: Program Structure
- Land Acquisition and Land Management
- Table 1: Funding Received from the Land Account Since 1 July 2004.
- Table 2: Agency Resource Statement for 2010–11
- 2010–11 2010–11 2010–11 Source
- FUNDS FROM OTHER SOURCES
- Table 3: Resources for Outcomes
- Budget Actual Expenses Variation
Mr Kevin Driscoll, CBE, OBE. Mr Driscoll is a business person with extensive experience in the building, construction and cattle industries, in business and property investment. In 2010, he celebrated 50 years of the establishment of the Driscoll Group of business interests. He is Chairman of Directors of his own family companies: the Driscoll Group, National Homes Pty Ltd, Driscoll Pastoral Company, Executive Air Travel and hotel interests. He has extensive pastoral interests in central Queensland. Mr Driscoll organised, and was the founding president of, the Queensland Young Labor Party in the late 1940s. Mr Driscoll organised, and was the founding president of, the Queensland Home Builders Association which later merged with the Queensland Housing Industry Association. He was elected as the combined organisation’s first President. Mr Driscoll was elected National President of the Housing Industry Association (HIA) in 1966 and served until 1968. In 1968, he was awarded life membership of the Australian Housing Industry Association and later awarded life membership of the Queensland Division of the HIA. In 1972, he was appointed Director of the Australian Housing Corporation – an Australian Government instrumentality. He was a member of the Companies and Securities Advisory Board from 1989 to 1996. He was a Director of World Expo 1988, and a Board Member of the Prince Charles Hospital Foundation. He was also Deputy Chair of the Lang Park Trust (Suncorp Stadium) from 1991 to 1995. He was an original member of the Board of the Queensland Tourist and Travel Corporation. In 1980, Mr Driscoll was awarded the Order of the British Empire and, in 1987, was made a Commander of the British Empire. Mr Driscoll has been a Justice of the Peace for 52 years. He is also a contributor to many charities and research foundations. Mr Driscoll is currently the Chairman of the Business, Employment and Training Committee of the ILC. Mr Driscoll was appointed to the ILC’s Board in March 1998, reappointed in August 2004 and, in September 2007, again reappointed, for a further four years.
Ms Goolagong-Cawley, a member of the Wiradjuri nation, was born in Griffith, New South Wales. She has been Australian Sportsperson of the Year and Australian of the Year. In 1988, she was inducted into the International Tennis Hall of Fame and, the following year, into the Aboriginal Sporting Hall of Fame. At Barcelona, in 1992, she became one of the first international Olympic torch bearers and later, at Monte Carlo, was part of the successful Sydney 2000 Olympic bid. Ms Goolagong-Cawley served on the National Indigenous Advisory Committee to SOCOG at the games. In her tennis career, Ms Goolagong-Cawley was ranked the number one player in the world in 1971 and 1976. In total, she won 92 professional tournaments, was a finalist in 18 Grand Slam events, winning Wimbledon twice, the Australian Open four times, the French Open once and was runner up four years in succession at the US Open. At her second Wimbledon win in 1980, she became the first mother to win since Dorothy Lambert Chambers in 1914. She represented Australia seven times in the Federation Cup, winning in 1971, 1973 and 1974. Following the death of her mother in 1991, Ms Goolagong-Cawley returned to live in Australia. In 1995–96, she was a board member of the Australian Sports Commission. Since 2005, Ms Goolagong-Cawley, in partnership with the Indigenous Sports Foundation, has run the Goolagong National Development Camp for Indigenous youngsters who have the potential to become professional players, coaches or administrators. Along with Sir William Deane, she is currently the Co-Patron of Reconciliation Australia, and is a Director of the National Centre of Indigenous Excellence. Ms Goolagong-Cawley was appointed a board member of the ILC in September 2007 for four years. Mr William (Sam) Jeffries, Deputy Chair. Mr Sam Jeffries is a proud Mooraworri man. Born and raised in Brewarrina, he is the youngest of seven children and he has been involved in Aboriginal Affairs since leaving school. Mr Jeffries has spent practically all his life in north western NSW, having long term involvement in the development of responsible leadership, community development, and developing regional and community governance models. After the abolition of ATSIC and the Regional Councils, Mr Jeffries successfully negotiated the continued involvement of Indigenous people as partners with Australian and NSW governments in the Murdi Paaki COAG Trial from 2002–07. He has co-authored an Indigenous policy journal published by Jumbunna Indigenous House of Learning, written papers on national representation, and written and presented many speeches on public policy matters relating to Aboriginal and Torres Strait Islander people. Mr Jeffries has held a range of senior positions including: Walgett Shire Councillor from 1999 to 2003, ATSIC Councillor from 1990 to 2005, Chairperson of the Murdi Paaki Regional Council from 1996 to 2005, Board Member of the Aboriginal Housing Office from 1998 to 2005, and Chairperson of the NSW ATSIC State Council from 2002 to 2005. Current appointments include: Co-Chair National Congress of Australia’s First Peoples, Chairperson of the Murdi Paaki Regional Assembly, Board Member of the Western Catchment Management Authority, Panel Member of the NSW Aboriginal Trust Fund Repayment Scheme, Chairperson of the National Aboriginal Sports Corporation Australia, and Co-chairperson of National Centre for Indigenous Excellence Ltd. Mr Jeffries is Chairperson/CEO Indigenous Environmental Services. Mr Jeffries was awarded the Centenary Medal in 2001 for services to Aboriginal and Torres Strait Islander communities with a priority on governance. Mr Jeffries is Adjunct Professor Jumbunna Indigenous House of Learning, University of Technology, Sydney. Mr Jeffries was appointed to the Board as Deputy Chairperson in August 2004 and reappointed in September 2007 for a further four years. The ILC Board
In 2002, the Board reviewed the outcomes from the early purchases of the ILC, and it found many of the acquired properties were not achieving Indigenous benefits. As a result, the Board made major policy changes including implementing a four-stream program to focus on the delivery of social, cultural, environmental and/or economic benefits, and focusing the assessment of new projects on the capacity of the applicant and the suitability of the property. It established a property-by-property remediation strategy to assist Indigenous title-holding bodies from early acquisitions to develop greater capacity to manage their land and bring properties into good condition so that they could effectively deliver benefits. The Board has placed a clear focus on defining and measuring benefits achieved through its Land Acquisition Program and ensuring there is direct alignment with wider government efforts aimed at Closing the Gap in Indigenous disadvantage. The National Centre of Indigenous Excellence conceived and constructed by the ILC at Redfern has been cited by government as an example of an Indigenous program which is helping to close the gap. Focusing on opportunities in pastoral and tourism industries In its 2006 revision of the NILS, the Board identified that the pastoral and tourism industries would be focus areas for strategic projects to be developed by the ILC. The Board believed there were land-based opportunities in these industries from which Indigenous people could derive significant benefits. The ILC committed to purchasing land or leasing Indigenous-held land and to developing projects as viable enterprises, as centres of Indigenous employment and as hubs for skills development while developing infrastructure and improving herds. This resulted in a collaboration with Indigenous Australians that runs more than 180,000 head of cattle. Under the Board’s vision, Home Valley Station in the East Kimberley was transformed into a high-quality, pastoral-based tourism destination for Australian and International tourists. It now hosts Indigenous pastoral and tourism trainees from across the region and delivers accredited, industry-standard training. Bringing land into production The Board has overseen a range of land management collaborations that are bringing Indigenous-owned properties across Australia back into production and/or enhancing the production on such properties. The ILC’s IPP initiative in the NT, as well as the KIMSS and PIMSS programs in WA, have developed close working relationships with Indigenous landholders, land councils, industry and the WA and NT governments to develop Indigenous pastoral management capacity, provide infrastructure and stock to properties, and produce training and employment outcomes. Over the past 10 years, this work has resulted in more than four million hectares of Indigenous-held land being brought into production. A priority on employment and training In the 2007–2012 NILS, the Board strengthened its priority of creating sustainable employment and facilitating training that leads to employment through its Land Acquisition and Land Management programs. In 2008, the Board approved $8.6m for a three-year training-to-employment strategy across ILC-operated businesses for 300 participants. In 2011, the Board approved an $8.3m three-year extension to the strategy which will target a further 500 Indigenous participants. In 2010–11, the ILC worked with Indigenous communities to provide employment and accredited training for 207 Indigenous trainees, sponsored 618 employment and training events, and provided work experience for 110 Indigenous participants. In 2010–11, ILC-operated businesses employed 135 Indigenous people and also provided 30 job guarantees. Collaborating to achieve significant outcomes Over the past 10 years, the Board placed a high priority on collaborating with other agencies, private industry and NGOs. Today, 70% of all ILC projects involve funding input from others. Collaboration brings in extra resources and expertise which allow individual projects to be tailored to deliver the maximum benefits possible to Indigenous people. Collaboration has been crucial in ensuring projects deliver sustainable outcomes for future generations. A bold vision to create Indigenous enterprises and jobs The ILC’s acquisition of Ayers Rock Resort in 2011 exemplifies the vision and delivery of the Board’s priorities. The acquisition will return 104 km2 of traditional lands to an Indigenous organisation and deliver hundreds of Indigenous employment and training opportunities in an area where there are limited job market opportunities for Indigenous people. The Board has also driven the planning and development of a new world-class eco-tourism development at Mossman Gorge in collaboration with the local Indigenous community. This new enterprise in Far North Queensland will provide 40 full-time jobs and up to 70 jobs in the tourism high season. Similarly, at Gunbalanya in the NT, the Board has put in place a long-term agreement with Traditional Owners and the NLC to create a large-scale integrated cattle business in the community to deliver jobs and training. A new pastoral station has been established and an existing abattoir upgraded to industry standards to supply fresh meat to Indigenous communities as well as the specialty meat market in the NT and on the east coast. The new Warrigundu pastoral business in the NT, established in partnership with Traditional Owners from the nearby Minyerri community, is employing Indigenous workers to turn off cattle for fattening and processing through the new Gunbalanya operation. Chapter 1.2: Governance Overview –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Figure 1: Governance Overview
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– The Board The seven-member Board is the ILC’s primary decision-making body and is responsible for the proper and efficient performance of the functions of the ILC and determines the policy of the ILC. The appointment of ILC Board Directors is the responsibility of the Minister for Families, Housing, Community Services and Indigenous Affairs. The Act requires that the Chairperson and at least four Directors must be Aboriginal persons or Torres Strait Islanders. No change was made to the membership of the ILC Board during the reporting period. The Governance Overview at Figure 1 illustrates how the Board governs proper and effective performance. Key objectives of the framework include: • Achieving the ILC’s objectives as specified in The Aboriginal and Torres Strait Islander Act 2005; • Providing effective and accountable strategic leadership; and • Exercising control over the ILC’s operations, including appropriate risk management strategies. There were seven Board meetings in 2011–12 at which land acquisition and land management proposals were considered and approved, strategic direction and policy were set, and performance and accountability were monitored. The Board is governed by a Code of Conduct, which sets out Board members’ legal, financial, conflict-of-interest responsibilities, and helps them discharge their obligations to the highest standards in accordance with CAC Act. There were no changes in the structure of the Board during the reporting period. Audit and Risk Management Committee The ARMC is a key component of the ILC’s Governance Framework. It reports directly to the full Board, and it is established in accordance with section 32 of the CAC Act. The ARMC facilitates effective and efficient use of resources and achievement of objectives and compliance with legislative requirements by reviewing, monitoring and where necessary recommending improvements to internal controls, financial management and management performance systems. Primary objectives include: • Oversight of the internal and external audit programs; • Risk management including insurance and anti fraud initiatives; • Oversight and monitoring of the ILC’s investment portfolio; • Advisory body on administrative, operational and financial controls; and • Assurance to the Board on the preparation and review of the financial statements. The ARMC accesses independent professional advice as required. The ARMC is chaired by ILC Director David Baffsky. Membership includes the ILC Deputy Chairperson Sam Jeffries and an independent member, Ian Ferrier. Mr Ferrier is one of Australia’s leading chartered accountants and is currently Chairperson of chartered accounting firm BRI Ferrier. Mr Ferrier also chairs the ILC’s internal Risk Management Steering Committee. The ARMC reports to the Board following each meeting. The ARMC met on four occasions during the reporting period. The major activities of the ARMC were: • Reviewing consolidated and subsidiary financial statements and recommending their adoption by the Board; • Monitoring the internal audit function, reports and recommendations; • Monitoring the performance of ILC commercial operations and subsidiaries with a specific focus on commercial viability and sustainability; • Consideration of evaluation activities undertaken; • Review of Governance Framework, including the Board Code of Conduct, and recommending their adoption by the Board; • Review of the ILC’s Corporate Risk Management Plan; • Review of insurance cover and liability limits for the ILC and subsidiaries; • Review of fraud control and awareness policies and practices; and • Revision of business continuity, crisis management and disaster recovery planning. Investment Subcommittee The Investment Subcommittee is chaired by Ian Ferrier and monitors the performance of the ILC’s investment portfolio. Its other members are the ILC’s General Manager and Chief Operating Officer. The subcommittee reports to the ARMC and the Board. During 2010–11, the subcommittee monitored the performance of the investment strategy and liquidity program on an ongoing basis and does not meet formally. Tourism Advisory Committee The Committee, chaired by Director David Baffsky, was established to set a strategic direction for the ILC in economic development, training and employment opportunities for Indigenous people in the tourism industry. Its other members are Chris Fry, Judy Freeman, Glen Miller and Aden Ridgeway. The committee draws on expertise of its members when needed on specific projects and does not hold any formal meetings. The committee was established in response to the ILC Board setting a priority that the pastoral and tourism sectors should be the focus of ILC efforts in areas where other employment prospects were low. As a result, the work of the committee in recent years focussed on developing large-scale tourism projects which could maximise the number and diversity of Indigenous jobs in the tourism industry in rural and regional Australia. This work had a successful culmination in early 2011 when the ILC announced that it had acquired the iconic ARR, ushering in a new era with potential for over 600 Indigenous employment opportunities in Central Australia. In dollar terms, this was the largest land acquisition ever concluded by the ILC. A new subsidiary company, Voyages Indigenous Tourism Australia (VITA), was created with its own board to own and operate ARR. A National Indigenous Training Academy will be established at Yulara to provide accredited industry-standard training. VITA will also take over responsibility for managing and marketing other significant ILC tourism investments at Home Valley Station in the East Kimberley and at Mossman Gorge in Far North Queensland. Following the establishment of VITA, the Tourism Advisory Committee has now completed its Board advisory role. Other tourism highlights during the year were: • The start of construction for the new $20 million Mossman Gorge eco-tourism enterprise. Following all planning and environmental clearances, considerable site work was undertaken and construction began on the new visitor centre which will incorporate a café, interpretive displays, a shop and a transport hub for the 500,000 people who visit the nearby World Heritage-listed Mossman Gorge each year. An Indigenous employment scheme was embedded in the head construction contract. The ILC has involved the Mossman Gorge Aboriginal Community in all aspects of the centre from its design and marketing strategy; to participating in jobs forums; registering for and securing jobs in its construction; and to assist with job interviews for the Mossman Gorge Job Guarantee Program, which guarantees Indigenous people a job at the centre when it opens in early 2012. Forty Indigenous people have registered for the centre’s Job Guarantee Program. Fifteen Indigenous trainees are already working with local private sector companies. • During the year, the ILC awarded its second fully-sponsored Indigenous scholarship to study a Bachelor of Tourism Management at Bond University. The successful candidate for the two-year scholarship, in partnership with Bond University, was Gemma Lloyd, 18, from the northern Wollongong suburb of Otford. After completing her Year 12 studies at PLC Sydney, she relocated to Queensland’s Gold Coast to commence her studies in January 2011. A feature of the Bond University’s Tourism and Hotel Management Program is a compulsory requirement for each student to complement their academic learning with at least 400 hours of relevant work experience. To that end, Gemma secured a cadetship at the Holiday Inn, a leading international hotel in Surfers Paradise. Using her weekends and off-campus days, Gemma is working as a paid employee for 20 hours per week, training in front desk operations, concierge, rooms division, housekeeping and food and beverage. Business, Employment and Training Committee (BETC) The BETC has a diverse role in overseeing the management of the ILC’s pastoral businesses and training and employment activities on those businesses. Director Kevin Driscoll chairs the committee. Other members during the year were Directors David Baffsky, Sam Jeffries, Max Gorringe and Ian Trust. The BETC is responsible for: • Overseeing the operation, administration and training activities of ILC-owned pastoral businesses and subsidiaries; • Monitoring financial performance of ILC-owned pastoral businesses and subsidiaries; • Endorsing budgets for ILC-owned pastoral businesses and subsidiaries; and • Advising the Board on pastoral business-related matters. The BETC has developed a strategic approach to ensure Indigenous training and employment projects on ILC-owned pastoral businesses are integrated into the day-to-day activities of the businesses. Key areas of focus in 2010–11 were: • Overseeing the ILC’s three-year $6.4m Employment Focussed Training Initiative on ILC Business properties; and • Overseeing continuing improvements in the quality of the cattle herd on ILC-owned businesses. Subsidiaries In accordance with section 191G of the Act, the ILC may make arrangements with subsidiaries to perform functions of the ILC. As at 30 June 2011, the ILC had five subsidiaries, each with specific roles and responsibilities (Figure 2). In 2010–11, with the acquisition of ARR, the ILC established a new subsidiary, Voyages Indigenous Tourism Australia, and acquired the responsibility for another, the Mutijulu Foundation. Voyages Indigenous Tourism Australia Pty Ltd was established to own and operate ARR (refer page 46 for more information about this acquisition and project). The Mutijulu Foundation was inherited by the ILC through the acquisition of Ayers Rock Resort. The Mutitjulu Trust is a discretionary trust with a corporate trustee. The corporate trustee is Mutijulu Foundation which is a company limited by guarantee. The purpose of the foundation is to relieve poverty, advance education and improve the health for Indigenous Australians, but particularly those that reside at Mutijulu. Trust funds are used for projects that improve health services and equipment, offer training programs that lead to long-term employment opportunities and provide education programs for children attending community schools. Funds are raised from tax deductible contributions from a variety of sources, including contributions from guests at the resort. NCIE Ltd manages and promotes the activities of the NCIE in Redfern NSW on behalf of the ILC. The NCIE aims to provide direct relief to Indigenous Australians who are suffering disadvantage such as poverty, sickness, distress, misfortune, helplessness or social dislocation. It does so through providing facilities and programs that relate to education, physical development and hostel accommodation (refer page 86 for details and outcomes of this project). National Indigenous Pastoral Enterprises Pty Ltd is an employment company that engages staff working for agricultural businesses operated by the ILC. Land Enterprise Australia Pty Ltd had no activity in 2010–11. –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
Indigenous Land Corporation ABN 59 912 679 254
National Centre of Indigenous Excellence Ltd ABN 98 133 644 578 Oversees the operation of the NCIE and its achievement of Indigenous benefits. Voyages Indigenous Tourism Australia Pty Ltd ABN 52 146 482 591 Role Operates Ayers Rock Resort (ARR) for the achievement of Indigenous benefits. Mutijulu Foundation ABN 57 100 482 924 Trustee for the Mutijulu Foundation Trust, which was established as a charitable trust for the benefit of identified Aboriginal communities. National Indigenous Pastoral Enterprises Pty Ltd ABN 28 108 266 548 Employment subsidiary only. Land Enterprise Australia Pty Ltd ABN 32 084 704 423 Not currently an operating subsidiary. ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Chapter 1.3 – Governing Legislation Purpose
The ILC is an independent Australian Government statutory authority established under the Aboriginal and Torres Strait Islander Act 2005 (the Act) to assist Indigenous people to acquire and manage land to achieve economic, environmental, social and cultural benefits. Enabling Legislation The ILC was established in 1995 and formed part of the Australian Parliament’s response to the Mabo decision. The Land Fund and Indigenous Land Corporation (ATSIC Amendment) Act 1995 was passed on 1 June 1995 and the ILC now operates under the subsequently enacted Aboriginal and Torres Strait Islander Act 2005 (the Act). Responsible Minister The Minister for Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) the Hon Jenny Macklin MP is the portfolio minister responsible for the ILC. She is the primary parliamentary spokesperson on matters associated with the ILC. The ILC is required by the CAC Act to inform the Minister of any events of significance, such as the establishment of a new company. The ILC is also required to keep the Minister informed of its operations and provide the Minister and the Minister for Finance and Deregulation with reports, documents and information in relation to the operations of the ILC as required from time to time. Chapter 1.4 – Strategy Overview Our Priorities The ILC is committed to achieving our goal of providing sustainable benefits for Indigenous people through land acquisition and management. We focus on three priority outcomes: • Access to and protection of cultural and environmental values; • Socio-economic development; and • Access to education.
––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Purpose Deliver economic, environmental, social and cultural benefits to Indigenous people through the acquisition and management of land Priority Outcomes Access to and protection of cultural and environmental values Socio-economic development Access to education Progress indicators • Employment participation • Training participation • Expansion of the Indigenous estate • Access to country • Access to education • Generation of new and/or increased income • Indigenous business creation and development • Participation in social and community activities • Access to a social service • Maintenance or revitalisation of culture • Improved management and development of Indigenous-held land • Access to and/or protection of culturally significant sites • Protection or restoration of environmental heritage values Output Assistance with the acquisition and management of land ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Guiding documents National Indigenous Land Strategy 2007–12 (NILS) The NILS is the ILC’s key policy document. It describes priorities and strategies set by the Board, program structures, and key principles and policies that frame these programs. In February 2011, the Board revised the NILS which was tabled in Parliament by the Minister on 21 June 2011. Regional Indigenous Land Strategies (RILS) Aligned with the principles of the NILS 2007–2012, RILS are a series of seven documents that provide regional context and information relating to the six states and the Northern Territory (the ACT is included with NSW). The RILS include data on population characteristics, land-based industries, Indigenous land holdings and legislation, used to assist decision making at the regional level. Program overview Aligned with its legislative functions, the ILC assists Indigenous people with land acquisition and land management (Figure 4). Projects are developed: • Through land acquisition and land management programs by annual calls for applications; • Initiating strategic, collaborative projects with agencies and partners that target education, training and employment outcomes; and • Operating viable agricultural and tourism business to deliver training and employment opportunities for Indigenous people. The ILC assesses proposed projects to ensure that: • Achievable and sustainable benefits will be delivered to Indigenous people; • The applicant / landholder has or will have the capacity to manage the land and proposed land use; • The land use will be viable and sustainable; • There is a clear plan and primary purpose for use of the land; • The land is suitable for the proposed land use; and • Sound business and environmental practices will be followed. Land Acquisition The Land Acquisition Program acquires and grants land to Indigenous corporations. It seeks to build and secure a sustainable land base for Indigenous people that delivers ongoing Indigenous benefits. There are two categories under which Indigenous corporations can apply for assistance: • Cultural and Environmental acquisitions, which provide access to and protection of land with significant cultural and/or environmental values; and • Socio-economic Development acquisitions, which provide social and/or economic benefits to Indigenous people, with priority given to projects that provide sustainable employment and training. The ILC often leases the acquired property to an appropriate Indigenous corporation to allow it to demonstrate effective management and use of the property, achievement of Indigenous benefits and sound governance. Once this occurs, the property is granted to the Indigenous corporation, with conditions requiring the title-holding body to report to the ILC for five years. If the title-holding body fails to effectively manage the property or deliver Indigenous benefits, the ILC can terminate the lease and, if Indigenous benefits are not achievable, sell the property. Land Management The Land Management Program assists Indigenous landholders and organisations with the sustainable management and development of Indigenous-held land. There are two categories under which Indigenous landholders and organisations can apply for assistance: • Property-based projects, which focus on improving land condition, developing infrastructure, and assisting with land management activities; and • Property management planning projects, which assist Indigenous landholders to develop a plan for managing and using their property. Agreements are made between the ILC and successful applicants, where the ILC will either grant funds for the applicant to carry out the agreed works or directly contract the assistance. The ILC also assists with addressing urgent health and safety issues on Indigenous-held land where people or assets are at risk. Regional Land Management Projects The ILC initiates or contributes to regional land management projects, in collaboration with other agencies and industry partners, to support Indigenous landholders to manage and develop their land. These projects generally deliver capacity building and develop infrastucture to viable businesses. ILC Businesses The ILC establishes and operates commercial businesses on ILC-held properties, and Indigenous-held properties where landholders have sought the ILC’s assistance to develop viable and sustainable businesses. ILC businesses are operated in the pastoral and tourism industries to provide accredited training and support sustainable employment to Indigenous people, bring Indigenous-held land back into production, create sustainable Indigenous enterprises and develop the capacity of Indigenous landowners.
–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Land Acquisition Cultural and Environmental acquisitions* Socio-economic Development acquisitions*
Establishment of student hostels ILC Businesses
Property-based projects* (includes urgent health and safety assistance) Property Management Planning projects* Regional Land Management Projects *Indigenous organisations and landholders may apply for ILC assistance under these categories. –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Chapter 1.5 – Financial Overview The Aboriginal and Torres Strait Islander Land Account The ILC is not budget-funded. Its primary source of funding comes from the Aboriginal and Torres Strait Islander Land Account (Land Account). The Land Account was established in 1995 with the intention of providing a secure stream of income to the ILC in perpetuity. The Land Account is a Special Account as provided for by section 20(1) of the Financial Management and Accountability Act 1997 (FMA Act). The FMA Act restricts the Land Account to investing in authorised investments, which are: • Securities of the Commonwealth or of a state or territory; • Securities guaranteed by the Commonwealth, a state or territory; • A deposit with a bank, including a deposit evidenced by a certificate of deposit; and • Any other form of investment prescribed by the regulation. Land Account financial overview The Land Account and its investments are administered by FaHCSIA under delegation from the Minister for Finance and Deregulation. Between 1995 and 2004, the Australian Government made an annual appropriation of $121m (indexed to 1994 values) to the Land Account. The Land Account was to be built up to become a self-sustaining capital fund by 30 June 2004. Approximately 63% of the annual appropriation was retained in the Land Account. The remaining 37% ($45m indexed annually) was directed to the ILC for the performance of its statutory functions. At the beginning of 2004–05, appropriations to the Land Account concluded and the ILC began to be entitled to payments from the investment returns of the Land Account. Funding received from the Land Account since 1 July 2004 is set out in Table 1. An amendment to the Act in June 2010 provided a minimum guaranteed annual payment of $45m from 1 July 2010, which will be indexed in later years to the Consumer Price Index. The amendment provides for additional payments to be made to the ILC where the actual capital value of the Land Account exceeds the real capital value of the account. The additional amount to be paid is the excess above the real capital value. Table 1: Funding Received from the Land Account Since 1 July 2004.
Land Account Consultative Forum The Minister for FaHCSIA is responsible for convening meetings of the Consultative Forum on the investments of the Land Account pursuant to section 193G of the Act. The Forum enables nominated ILC Directors and other ministerial appointees to express their views and provide advice about the investment policy to the delegate of the Minister for Finance and Deregulation. The Forum met four times during the year. The ILC was represented by the ILC‘s Chairperson and Director David Baffsky. The ILC’s General Manager and Chief Operating Officer also attended these meetings as observers. The major focus of the meetings was the presentation of the financial statements for the year ended 30 June 2011, appointment of an independent consultant to advise on the investment strategy of the Land Account and consideration of the consultant’s recommendations. Overview of Financial Results In accordance with the Australian Government’s budget estimates framework, the ILC prepares budget estimates in May of each year for the coming financial year and three future years. The most significant financial transaction for the reporting period was the purchase of ARR. Under section 191H of the Act, the ILC can invest money of the ILC. The ILC had $80m invested at 30 June 2011 (2009–10: $154m). As a result of receiving no income for the Land Account in 2009–10, and the purchase of ARR, the ILC’s investment funds were used to fund its functional and operational expenditure. Under its legislation, the ILC acquires land for granting an interest in that land to an Aboriginal or Torres Strait Islander corporation. At 30 June 2011, the ILC held properties at a value of $213.3m (excluding ARR). While the ILC holds properties, it is responsible for maintenance and statutory costs. The ILC also holds properties for grant that have a significant amount of livestock on them. At 30 June 2011, the ILC held 103,866 head of livestock at a value of $36.1m. In accordance with Australian Accounting Standards, the ILC values the livestock on a market-to-market basis. Accordingly, the positive change in the market value of livestock in any given period is recognised as a gain, while negative movement is recognised as an expense in the Income Statement. Transfers between properties do not create actual profits or losses. The suspension of live exports to Indonesia had a small impact on the value of livestock at 30 June 2011 (see Part 2 for commentary on ILC-operated business operations). In addition to direct spending on land acquisition and land management, the ILC incurs travel and staff costs related to: • Conducting community consultation; • Managing land held pending grant; • Monitoring activities occurring under land acquisition and land management functions; • Providing management and administrative support to commercial businesses run on ILC-held properties; and • Evaluating programs or opportunities. The ILC experiences variances between budget estimates and actual performance due to some or all of the following: • Actual timing of implementation of projects considered and approved in the current financial year; • Interest received from investments – from those investment funds invested in cash and fixed interest; • The operating results of ILC business activities; and • The change in market value of livestock – the ILC’s livestock is valued on a mark-to-market basis and therefore subject to livestock market movements from one reporting period to another. These changes are non-cash adjustments. Total resourcing for the agency represents the funds available to the ILC to carry out its legislated functions. Indigenous trainees mustering cattle on Roebuck Plains Station. Table 2: Agency Resource Statement for 2010–11
All figures are GST exclusive CRF – Consolidated Revenue Fund The Indigenous Land Corporation is not directly appropriated as it is a CAC Act body. Its main source of recurring income is the realised real return from the Aboriginal and Torres Strait Islander Land Account administered by the Department of Families, Housing, Community and Indigenous Affairs.
Outcome 1: Enhanced socio-economic development, maintenance of cultural identity and protection of the environment by Indigenous Australians through land acquisition and management
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