Indigenous employment: A vision for the future

Leon MorrisDirector

Indigenous Economic DevelopmentDepartment of Business, Economic and Regional Development

Northern Territory Government

28 September 2007

CDU SYMPOSIUMA 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 SYMPOSIUMA 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: 20143(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 employment2. Mainstream regional/remote employment 3. Indigenous Outcomes from Government

procurement4. Build local economies through engagement with

private sector5. Build “Indigenised” businesses6. Rethink labour7. 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 employersb) 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 Employment1

c) Target professional training and recruitmentBuild on NTPS recruitment successes; Leadership and support programs (CDU+BIITE); Schools guidance counselling

d) Target small business support and developmentFoster 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 Employment1

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 aspirationsMotivations 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” businesses5

Knowledge SectorMarket research projects; Knowledge consultants; Interpreters; Cross-cultural consultants

TourismBuild on east Arnhem tourism hub model

RECOMMENDED APPROACH #5 Build “Indigenised” businesses5

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” businesses5

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” businesses5

• 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 Mechanisms7

• 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