Kimberley Land Council Submission to the Joint Select Committee on Northern Australia Green Paper on Developing Northern Australia KLC Submission 1 The Kimberley Land Council (KLC) represents Traditional Owners in the Kimberley region of Western Australia and is the Native Title Representative Body for the Kimberley. The KLC was established in 1978 and its organisational goals are to assist Kimberley Aboriginal people in getting country back, caring for country, and securing the future. 2 The KLC’s submission in response to the Green Paper on Developing Northern Australia (Green Paper) focuses on one major theme, Indigenous economic development, and identifies how this theme can be addressed by the six broad policy directions identified in the Green Paper. The KLC submission also recommends that this theme be adopted in the White Paper through an implementation plan. Major Theme: Indigenous Economic Development 3 Indigenous economic development is a major challenge facing the current generation. Indigenous Australians possess vast and unique assets which have the potential to assist individuals and entire communities in overcoming social and economic disadvantage. Accessing the commercial potential of these assets requires the support of government and partnerships with private enterprise. The support of government can come largely in the form of the right regulatory settings and policy directions, while linkages with private commercial enterprises will strengthen and grow if these settings are right. 4 The theme of Indigenous economic development was addressed in the KLC’s previous submission on the Terms of Reference for the White Paper which identified the following key themes: Kimberley Land Council: Submission on Northern Australia Green Paper 1 (a) Indigenous people are a major constituency in northern Australia. Addressing current economic and social disadvantage is a social, ethical and economic imperative, as northern Australia cannot achieve its full economic potential while such a large part of the population lags behind in education, health, housing, employment, and general wellbeing and life outcomes. (b) Indigenous people are significant land owners in northern Australia. These land interests are held in a number of ways, including freehold, leasehold, reserves and native title. Land is a primary economic asset and must be able to be utilised by its owners so that they can enjoy its full benefits. (c) Native title is a valuable property interest, and native title holders should be able to use that property interest for commercial purposes. A significant impediment to realising the economic potential in land subject to native title rights and interests is the unwillingness of third parties (commercial lenders, joint venturers and government entities) to invest in enterprises on native title lands. This impediment needs to be overcome, and can be overcome, without compromising the integrity of the underlying communal interests in native title lands. (d) Economic development should be proactive, regional and strategic and should draw on existing social, cultural and physical infrastructure. Existing regulatory arrangements should also be used in innovative ways to provide new pathways for commercial activities without introducing unnecessary uncertainty associated with major regulatory changes. To this end, the KLC proposes: (i) proactive strategic regional development, with a central role for Traditional Owners in the promotion of their economic, social and cultural assets; and (ii) the Kimberley be considered as a trial site for a strategic regional assessment of economic and social development, with Traditional Owners supported to participate and produce concrete outcomes such as ILUAs and associated marketable land use proposals. (e) Access to and utilisation of the property of Traditional Owners (land, cultural assets, and water) should be guided by the principles in the United Nations Declaration on the Rights of Indigenous People (UNDRIP). Culturally Kimberley Land Council: Submission on Northern Australia Green Paper 2 appropriate governance which recognises and incorporates the strong decision making processes of Traditional Owners should also be incorporated into project development to meet the best practice standards identified by the Harvard Project1. 5 These submissions made by the KLC in response to the Terms of Reference are maintained and underlie the following proposal which addresses the major theme of Indigenous economic development. Addressing the Policy Directions 6 The Green Paper identifies six policy directions that will be pursued in the White Paper. A number of proposals for how these policy directions can positively impact on Indigenous advancement and economic development are set out below. Delivering Economic Infrastructure 7 The major economic infrastructure needs of northern Australia should be addressed in the future by: 8 (a) planning and prioritisation to identify needs and best use of finite resources; (b) including major and minor infrastructure needs; and (c) addressing community needs. Traditional Owners will be major participants in identifying, designing and delivering the infrastructure needs of northern Australia because: (a) Traditional Owners hold detailed knowledge of geographic and climatic conditions that should be drawn on to identify needs and design infrastructure solutions; and (b) Traditional Owners are major property owners in Northern Australia. Their land, water and cultural heritage assets will be affected by major and minor infrastructure works. 9 Best practice requires co-operative participation of Traditional Owner communities to identify needs, design solutions, and ensure cost-effective project delivery. 1 The Harvard Project on American Indian Economic Development (2010). http://hpaied.org/abouthpaied/overview Kimberley Land Council: Submission on Northern Australia Green Paper 3 Improving Land Use and Access 10 Traditional Owners hold significant land assets in northern Australia and want to utilise these assets for their own commercial purposes. Accessing and utilising land assets does not require compromises to native title and cultural heritage interests. In fact, Traditional Owners will be the primary beneficiaries of more effective land use and access measures if these measures include recognition of and respect for Traditional Owner interests. 11 The KLC recommends the following measures for better land use and land access without compromising the interests of Traditional Owners. (a) Regulatory settings and policy directions from government that support Traditional Owners developing their assets by themselves, with government, or in partnership with private enterprise. These settings and directions should: (i) build on, but not undermine, hard-won property interests; (ii) recognise that Traditional Owners want to participate in, control, and be part of their own economic and social future and not require Traditional Owners to consider unacceptable compromise; and (iii) recognise and utilise the significant and unique assets that are held by Traditional Owners. (b) Rather than developing new regulatory measures, innovative use of existing land planning and development tools should be supported and developed at trial sites where Traditional Owners fully participate in and advantage the project. For example, proactive strategic land use planning and alternative process ILUAs or area agreement ILUAs could be used by Traditional Owners to develop and promote marketable land use proposals. (c) Better information on native title is required to allow government, private enterprise, and Traditional Owners to realise the economic potential of this asset. This should include information such as the following. (i) Native title can support economic enterprises through appropriate commercial arrangements such as leases or ILUAs; (ii) native title is an asset not a risk; and Kimberley Land Council: Submission on Northern Australia Green Paper 4 (iii) economic development on native title lands can include proactive development by Traditional Owners, not merely reactive development in response to future act notices. Improving Water Access and Management 12 Water use planning and infrastructure design should ensure: (a) planners understand competing interests in water including native title rights and interests; (b) the need to maintain cultural flows; and (c) incorporation of the significant knowledge of Traditional Owners in resource identification, planning and allocation, for example Traditional Owners possess extensive knowledge of ground water flows that can inform and assist these processes. 13 Better utilisation of water resources should also prioritise low-cost measures that maximise efficient use of existing infrastructure. For example, minor works within existing irrigation programs that improve water use efficiency by covering open drains and channels should be supported over new high-cost infrastructure projects. Smaller scale projects have the advantage of being more likely to draw on the local labour force while major infrastructure projects often require specialist skills not available in the local community, involve long project development lead times, and have multiple levels of project approval. Smaller scale projects are also more likely to benefit Traditional Owners through smaller scale tenders and jobs for local workers. Promoting Trade and Investment and Strengthening the Business Environment 14 Indigenous enterprise development is currently negatively affected by limited access to private capital. This can be improved through better access to information and regulatory settings which support and promote investment in Indigenous businesses. These measures and settings should include: (a) taxation arrangements that encourage investment in Indigenous enterprise, with added incentives for investment in remote areas; Kimberley Land Council: Submission on Northern Australia Green Paper 5 (b) government support through assurances or guarantees for investment in projects on native title lands to provide a surety for private investors, banks and other lenders, and to provide a window for investors to become more familiar with these types of projects; and (c) regulatory streamlining for projects that include Traditional Owner participation at key stages such as site selection, project design, and impact management. Fostering Education, Research and Innovation 15 Traditional Owners possess access to and ownership of unique assets. These assets include land, biological knowledge, and cultural heritage. Uniqueness can add a premium to value if it is managed appropriately. Research and innovation should support Indigenous economic development through: (a) identifying available assets, including uniqueness and associated premium values; (b) identifying emerging markets and access to markets, in particular growing markets in Asia and the Pacific which are increasingly affluent and geographically proximate; and (c) designing strategies to unlock assets and access markets in a sustainable way, with a focus on delivering remote area employment and enterprise development. Enhancing Governance 16 The Green Paper recognises the need for effective and efficient governance which includes community participation and supports increased institutional capacity for local organisations. Policy settings for Indigenous economic development should: (a) identify relevant institutions, in particular prescribed bodies corporate (PBCs) and registered native title bodies corporate (RNTBCs); (b) draw on the inherent strengths within cultural decision making and communal governance processes, rather than working against these existing processes; (c) incorporate the fundamental principles recognised in the UNDRIP in particular the principles of self-determination and free, prior and informed consent; and Kimberley Land Council: Submission on Northern Australia Green Paper 6 (d) incorporate best practice principles of culturally appropriate governance identified in the research undertaken by the Harvard Project. Implementation Plan for Indigenous Economic Development 17 The six policy directions identified in the Green Paper can provide a new direction for Government policy on Indigenous economic development, particularly in remote areas, which draws on existing assets and regulatory arrangements and involves minimal cost impact for Government. The White Paper on Northern Australia should include an implementation plan for Indigenous economic development with the following policy settings. Deliver Economic Infrastructure Enhance Governance Access and utilise Traditional Owner knowledge, capacity and assets. Proactive cooperative needsbased planning. Recognise relevant organisations (PBCs, RNTBCs) Incorporate key principles of UNDRIP and best practice from Harvard Project Theme: Indigenous Economic Development Foster Education, Research and Innovation Innovation to realise commercial value of and access to assets Premium on uniqueness Promote Trade and Investment Policy settings to support investment of private capital Regulatory streamlining for benchmark projects Improve Land Use & Access Native title recognised as a significant asset available for commercial development Economic development without compromising cultural and communal interests Improve Water Access & Management Better use of existing resources and infrastructure Incorporate Traditional Owner assets and interests in resource use planning Kimberley Land Council: Submission on Northern Australia Green Paper 7 18 The KLC proposes that the Implementation Plan for Indigenous Economic Development include a trial project in the Kimberley. The trial project should provide for: (a) strategic regional land use planning; Example: Development of the Canning Basin gas reserves should be guided by forward planning informed by a regional engagement process to identify co-existing interests, potential impacts and externalities, and how best to strategically utilise the resources of the region. Regional engagement should be modelled on the Traditional Owner consultation processes for the Browse Liquefied Natural Gas Hub Precinct and the National Heritage Assessment of the West Kimberley. (b) ecologically, socially and culturally sustainable development; Example: Irrigated agricultural development along the Fitzroy River should be based on mosaic land uses which can be developed and maintained by local communities, are a long term sustainable land use, and are consistent with cultural values and the West Kimberley National Heritage Listing. (c) consideration of innovative proposals for business development and land use that are particularly suited to remote area enterprise development; and Example: Cultural enterprise economies are economic activities which involve the commercial utilisation of cultural assets. This provides an economic benefit for the participants while at the same time supporting the maintenance and strengthening of the relevant cultural assets. Carbon farming using traditional fire management of landscapes is an example of cultural enterprise economic activity. Kimberley Land Council: Submission on Northern Australia Green Paper 8 (d) best practice engagement of Traditional Owners and their representative organisations which is supportive of culturally appropriate governance and decision making, consistent with the principles in the UNDRIP, and produces sustainable supported outcomes. Conclusion 19 The KLC’s submission in response to the Green Paper identifies how the six policy directions set out in the Green Paper can be utilised for the theme of Indigenous Economic Development. There are a range of development activities that fit within these policy directions, and the KLC submission identifies how these can be supported: 20 (a) utilising existing and available assets; (b) as a low cost solution for Government; and (c) with regulatory settings that encourage participation by private investors. The KLC submits that an Implementation Plan for Indigenous Economic Development should be included in the White Paper, and a trial project for the Implementation Plan should be run in the Kimberley. 21 The KLC also submits that the proposals put forward in this submission are consistent with the following criteria for Government action identified in the Green Paper. 22 Focus on economic development, trade and investment and jobs, with appropriate social, environmental and biosecurity safeguards Create the right climate to maximise investment and innovation, avoiding prescriptive or interventionist approaches Remain consistent with national approaches and deliver benefits to other parts of Australia Seek to advance low or no cost solutions given the current tight fiscal environment, and facilitate private sector funding wherever possible Respect and recognise the roles and responsibilities of state and territory governments. Thank you for your consideration of this submission. Any inquiries in relation to the submission should be directed to Mr Nolan Hunter, Kimberley Land Council CEO. Kimberley Land Council: Submission on Northern Australia Green Paper 9