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 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 CDU SYMPOSIUM A Skilled Workforce for Regional and Remote Australia: Keeping, Attracting, Training

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: (22,055 Indigenous people of working age, of which 1,912 are employed) THE CHALLENGE

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

7 Recommended Approaches: 1.Mainstream urban employment 2.Mainstream regional/remote employment 3.Indigenous Outcomes from Government procurement 4.Build local economies through engagement with private sector 5.Build “Indigenised” businesses 6.Rethink labour 7.Provide support mechanisms to development PRESENTATION OUTLINE

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 WE WILL NEED TO

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 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 RECOMMENDED APPROACH #1. Mainstream Urban Employment 1

a) 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 Build on IPP employment strategy Support capacity to deliver sub-contracts eg fencing, mustering etc RECOMMENDED APPROACH #2. Mainstream Regional/Remote Employment 2

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 RECOMMENDED APPROACH #2. Mainstream Regional/Remote Employment 2

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

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 RECOMMENDED APPROACH #3. Require Indigenous Outcomes from Government Procurement 3

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 RECOMMENDED APPROACH #3. Require Indigenous Outcomes from Government Procurement 3

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

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 RECOMMENDED APPROACH #4 Build local economies through engagement with private sector 4

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

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

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

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 RECOMMENDED APPROACH #5 Build “Indigenised” businesses 5

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 RECOMMENDED APPROACH #5 Build “Indigenised” businesses 5

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 RECOMMENDED APPROACH #6 Rethink Labour 6

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 RECOMMENDED APPROACH #6 Rethink Labour 6

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 RECOMMENDED APPROACH #7 Support Mechanisms 7

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 WE WILL NEED TO