Suppliers and potential suppliers are reporting negative experiences and issues with the Indigenous Procurement Policy, according to a new engagement report, while economic policies – including procurement policies – are being developed without substantive participation from Aboriginal and Torres Strait Islander communities.
Coalition of Peaks – which is made up of more than 80 Aboriginal and Torres Strait Islander community-controlled peak and member organisations – recently released its ‘Informing a partnership on Aboriginal and Torres Strait Islander economic development’ report, following open engagements with over 200 communities and organisations across the country.
The Coalition asked Aboriginal and Torres Strait Islander people what the focus of the Federal Government’s First Nations Economic Partnership should be, including priority areas for action, following the announcement of $16.9 million in funding by the Federal Government to support the Partnership over the next five years.
Announced by Anthony Albanese at the 2024 Garma Festival, the Partnership will be formed between the Australian Government, Aboriginal community-controlled organisations (ACCOs), the Coalition of Peaks and other representatives.
Three-fifths (60 percent) of survey respondents said they had experience with the Indigenous Procurement Policy, with the majority reporting a negative experience.
Just under 80 percent said they regularly engage with government agencies in their work – mostly with the National Indigenous Australians Agency.
Participants in workshops and one-on-one sessions further reported that the data and evidence on the number of businesses owned and operated by Aboriginal and Torres Strait Islander people is often poor quality and out of date, while procurement policies were seen to favour larger enterprises over small-to-medium businesses.
In a similar vein, procurement policies were said to be “pulling from the top” (supporting businesses that are well established) when there is scope for them to be a key support for emerging First Nations enterprises.
“Government needs to change the way government does business with Aboriginal and Torres Strait Islander people and organisations,” said one engagement participant.
The issue of companies tendering for public infrastructure projects by making a commitment to employ young Aboriginal and Torres Strait Islander people as apprentices was also raised, with these projects often concluding before the apprenticeships are complete, thus resulting in no qualifications.
To remedy these issues, the report suggests the Partnership should leverage skills and resources to start and sustain Aboriginal and Torres Strait Islander businesses, including ways to enhance inclusive procurement practices to ensure benefits are flowing to communities.
Participants discussed capacity building in procurement processes and improving or tightening procurement policies to counter ‘black cladding’, which the Government has since addressed with the introduction of new reforms.
The report concluded that Aboriginal and Torres Strait Islander people consider economic development to be a priority. However, there is a strong shared view that current economic development is disconnected, underfunded and doesn’t support Aboriginal and Torres Strait Islander families and communities to thrive.
Coalition of Peaks will now work with the Commonwealth Government on the first draft of an agreement, using the findings and key messages outlined in the report to shape the First Nations Economic Partnership.
Lead Convenor of the Coalition of Peaks, Pat Turner AM, said to accelerate economic development and wealth creation, Australia must have the right building blocks in place.
“Aboriginal and Torres Strait Islander economic development is not separate from Australia’s economy, it strengthens it. From land and water management to cultural tourism and small business innovation, our economic contributions create jobs, drive investment and generate new industries that benefit all Australians,” she said.
“This new partnership is a turning point. It is a recognition that Aboriginal and Torres Strait Islander people must have control over our economic futures.”
