Indigenous employment: A vision for the future Leon Morris Director

1. CDU SYMPOSIUM A Skilled Workforce for Regional and Remote Australia: Keeping, Attracting, Training • Indigenous employment: • A vision for the future • Leon Morris • Director • Indigenous Economic Development • Department of Business, Economic and Regional Development • Northern Territory Government • 28 September 2007

2. CDU SYMPOSIUM A Skilled Workforce for Regional and Remote Australia: Keeping, Attracting, Training • Disclaimer • These are personal views informed by my role as Director, Indigenous Economic Development, • but can not be considered as Government policy

3. THE CHALLENGE • Finding productive economic activity for 28,641 Indigenous people of working age (15-64) in the NT. • NT Urban: 8,498 • (11,249 Indigenous people of working age, of which 2,751 are employed) • NT Remote: 20143 • (22,055 Indigenous people of working age, of which 1,912 are employed)

4. THE RESPONSE • No one size fits all response • Starting point is to: • Recognise and acknowledge difference • Build Choices and opportunities

5. PRESENTATION OUTLINE • 7 Recommended Approaches: • Mainstream urban employment • Mainstream regional/remote employment • Indigenous Outcomes from Government procurement • Build local economies through engagement with private sector • Build “Indigenised” businesses • Rethink labour • Provide support mechanisms to development

6. WE WILL NEED TO • Work in partnerships • Listen to understand (2-way) • Build on strengths • Foster role models • Celebrate success • Be prepared to take risks (and fail) • Learn from success and failure • Be flexible

7. RECOMMENDED APPROACH #1 Mainstream Urban Employment 1 • Skill shortages in a thriving economy creates many opportunities • a) Target retail and service industries: • Accor model: industry open days; cohorts of trainees; cross-cultural understanding; direct path to real jobs through linked employers • b) Target private sector construction training and employment • Build on existing partnerships eg TCA, LDC, NLC; build small business models eg Saltwater Constructions; School based apprenticeships

8. RECOMMENDED APPROACH #1. Mainstream Urban Employment 1 • c) Target professional training and recruitment • Build on NTPS recruitment successes; Leadership and support programs (CDU+BIITE); Schools guidance counselling • d) Target small business support and development • Foster entrepreneurial culture; Support and mentoring at all stages of business development; Streamline government support programs; Target projects with market viability

9. 2 RECOMMENDED APPROACH #2. Mainstream Regional/Remote Employment • Target mining and resource sector • Build on employment strategy success stories (principal and sub-contractors) eg Gemco, Newmont, Rio Tinto etc • Support capacity to deliver sub-contracts eg cleaning, catering, rehab, transport etc • b) Target pastoral industry workforce requirements • Buildon IPP employment strategy • Support capacity to deliver sub-contracts eg fencing, mustering etc

10. 2 RECOMMENDED APPROACH #2. Mainstream Regional/Remote Employment • c) Target Government jobs • Actively support job creation in remote Government service delivery • Build on CDEP to real jobs transition strategy • Map and support pathways to administration and management roles through entry-level jobs • d) Target Stores employment • Build on ALPA, Outback Stores and Fred Hollows models • Community Stores licensing assessment to include Indigenous employment strategies

11. 3 RECOMMENDED APPROACH #3. Require Indigenous Outcomes from Government Procurement • Target Construction and Civil works • Adopt emerging framework approaches • Agreed Objectives • Guiding Principles • Support mechanisms • Mechanisms to ensure outcomes

12. 3 RECOMMENDED APPROACH #3. Require Indigenous Outcomes from Government Procurement • Framework Approach • Identification and Co-ordination: Identification of opportunities at all stages of the production chain • Planning: Government resources for research, planning, development and support

13. 3 RECOMMENDED APPROACH #3. Require Indigenous Outcomes from Government Procurement • Framework Approach • Implementation: •  Indigenous outcomes as an essential element of the contract and procurement • Training linked to job outcomes • Backwards Mapping: identify jobs and define skill sets; conduct skill audits; tailor training to meet the skill gap; transition to work; mentoring and support • Evaluation and Reporting

14. 4 RECOMMENDED APPROACH #4 Build local economies through engagement with private sector • Understand impediments to private sector investment • High risk, low returns, infrastructure limitations, management, skill and workforce limitations • Understand Indigenous aspirations • Motivations and desired outcomes

15. 4 RECOMMENDED APPROACH #4 Build local economies through engagement with private sector • Business modelling • Cottage industry model (Gunya Australia) • Determine viability of small business based on expendable community income, external income and market opportunity • Understand impacts of welfare reform and multipliers (eg CDEP to jobs) • Develop appropriate business models – Outback Stores management model, franchises etc

16. 4 RECOMMENDED APPROACH #4 Build local economies through engagement with private sector • Incentives regime • Tax incentives for investment (Gunya) • Tax incentives for sub-contracting (Longes) • Government infrastructure provision to support trading – eg transport and power

17. 5 RECOMMENDED APPROACH #5 Build “Indigenised” businesses • New and innovative approaches based on: • Competitive advantage in land and waters • Competitive advantage in knowledge (IP) • High motivation to engage

18. 5 RECOMMENDED APPROACH #5 Build “Indigenised” businesses • Knowledge Sector • Market research projects; Knowledge consultants; Interpreters; Cross-cultural consultants • Tourism • Build on east Arnhemtourism hub model

19. 5 RECOMMENDED APPROACH #5 Build “Indigenised” businesses • Natural Resource Management • Contract services – Payment for environmental services, quarantine, bio-security, feral management etc; Carbon abatement and environmental offsets (including eco-trust models); Related business opportuties eg horticulture, aquaculture, tourism • Requires NRM brokerage model to maximise income streams; ensure professional delivery; ensure training and support in place

20. 5 RECOMMENDED APPROACH #5 Build “Indigenised” businesses • Arts • Develop music industry employment strategy • Increase marketing capacity of arts centres and individual artists to maximise income from fine art, niche and memento markets • Financial and investment advice for high income artists

21. 6 RECOMMENDED APPROACH #6 Rethink Labour • Explore alternate labour practices – part-time, consultancies, labour pools • Accept seasonal basis of some employment activity • Explore mixed or multi-sector activity – suites of employment and activity

22. 6 RECOMMENDED APPROACH #6 Rethink Labour • Acknowledge economic value in social and cultural practice – building functional societies underpins economic activity • Post CDEP: Provide meaningful activities for activity testing income support payments

23. RECOMMENDED APPROACH #7 Support Mechanisms 7 • Closing the Gap – build on multi-faceted approach to generational change • Infrastructure investment – transport, power, water , communications • Research • Understand Indigenous aspirations and • private sector motivations and impediments • Data collection • Literacy - economic, financial and English

24. WE WILL NEED TO • Work in partnerships • Listen to understand (2-way) • Build on strengths • Foster role models • Celebrate success • Be prepared to take risks (and fail) • Learn from success and failure • Be flexible