Friday, 1 July 2016

Moral hazard and police services on Groote Eylandt


This week saw an intriguing joint media release from NT Chief Minister Giles and federal Minister for Indigenous Affairs (and Senator for the NT) Nigel Scullion.

The pair announced funding of $15m for increased police facilities and resources on Groote Eylandt.

Here is the text of the announcement, with emphasis added:

More support for policing on Groote Eylandt

Community safety on Groote Eylandt will be increased through a greater police presence and improved police infrastructure, thanks to a joint investment from the Turnbull Coalition and Giles Country Liberals Governments

Minister for Indigenous Affairs and Country Liberals Northern Territory Senator, Nigel Scullion and I announced a $15 million investment in policing on Groote Eylandt to upgrade local police stations and increase police resources in the region. 

“This investment will upgrade the police stations at Angurugu and Alyangula and support additional police and a new police dog unit," Minister Scullion says. 

“Community safety is one of the key priorities of the Turnbull Coalition in Indigenous Affairs and this funding will ensure police are spending more time in community working with local residents. 

“Importantly, the investment includes funding to support local Aboriginal community police officers to make sure police work in partnership with communities to improve community safety. 

“I would also like to express my appreciation to the Anindilyakwa Land Council Chairman, Mr Tony Wurramarrba, for the significant co-investment that traditional owners have provided for these police facilities.” 

The Northern Territory Government has been working hard to combat crime and improve safety throughout the Territory. Our Remote Policing Model helps to ensure that police operations in remote areas across the NT are well supported and resourced. It's a flexible policing model that maximises community engagement across remote communities, which means we can deploy our resources when and where they are needed most. The funding has been provided out of existing resources from the Indigenous Advancement Strategy.

No-one is going to begrudge the Groote community access to adequate policing resources, and the focus on community safety and community policing is clearly a major priority in anyone’s terms.

There have been ongoing community safety issues on Groote for many years, and NT Governments have not been prepared to stand up to the policy union’s longstanding antipathy to its officers being based, or staying overnight, in the communities of Angurugu and Umbakumba, preferring to reside in the mining town of Alyangula.

Most recently, in November last year a riot involving up to 60 people led to two deaths and six convictions. See press reports here and here and here. The media reported police admitting that four police officers were unable to control the affray. The media reports indicate that a number of the men convicted are from the community of Umbakumba (which is not a beneficiary of the announced funding).

The announcement appeared to coincide with a ceremony on the Island attended by both Ministers to celebrate the renewal of the longstanding manganese mining agreement between local Traditional owners and South 32 which owns the Groote Eylandt Mining Company (GEMCO).

The rights of citizens to safe communities and safe lives are clearly still a very live issue on Groote (and in many other remote communities). Apart from issues of community safety, the communities on Groote (and many others) continue to face significant shortfalls in housing, infrastructure, health services, disability services, and financial literacy. Issues around the robustness of local community governance are a continuing challenge.

The community is also a major node of an insidious neurological disease, the Machado Joseph Disease, which places increased social and health pressures on many families across Groote Eylandt (and beyond). Minister Scullion reversed a $10m grant to the MJD Foundation soon after being appointed as Minister, and is currently appealing a Federal Court decision overturning his decision.

Labor and Coalition Governments have done much in the last decade to invest in major communities such as those on Groote through programs such as National Partnership Agreement on Remote Indigenous Housing, the Stronger Futures National Partnership, and in general purpose funding to the Northern Territory Government from GST revenues. Yet the current Commonwealth Government appears intent on rolling these National Partnership Agreements into recurrent grant programs where they are much more vulnerable to annual savings decisions, and fail to lock in complementary state and territory policy and program contributions.

To their credit, the Groote traditional owners have over the past decade sought to leverage their royalty income through a regional partnership agreement with the NT and Commonwealth Governments which led to a number of joint projects involving contributions of their own mining royalty resources to a range of communal projects, including a contribution of $5m towards the sealing of the road to Umbakumba. Unfortunately, in recent years, governments appear to have backed away from this formal engagement and commitment of resources, presumably because it injected a degree of inflexibility into their newly centralised funding arrangements, and diminishes government capacity to find savings.

So what are the policy issues raised by joint announcement on policing?

The fundamental issue raised is why the Commonwealth must fund facilities which are core responsibilities of the NT Government.

And of course, the decision involves a large dose of what economists term ‘moral hazard’ for the Commonwealth: every time it funds these responsibilities, it sends a signal that the NT Government is not expected to fund this function.

The suggestion in the release that there is a ‘joint investment’ by the two governments appears farfetched given the indication in the last sentence that funding is from the Commonwealth’s Indigenous Advancement Strategy program.

There is no indication of the assessment process adopted in relation to the grant; presumably the federal minister has used his discretion to approve the funding without a comparative assessment of alternative needs and opportunities. The admission that the funding is from within existing appropriations means that it comes at the expense of other Indigenous priorities.

The release is deliberately vague on the breakdown of the financial support, and the timeframe over which the recurrent elements (such as the dog support unit or the employment of local community police) will be offered.

Crucially, the announcement fails to provide any clarity on whether police will be posted 24 hours a day to Angurugu, and by implication, we can assume that they won’t be posted 24 hours a day to Umbakumba. This is the single most important decision government could take to increase community safety on Groote, but it appears that it has been squibbed.

While the announcement thanks the local community for their contribution, it fails to indicate both the source and the quantum of this contribution. While it is commendable that there has been a community contribution, it is surely unprecedented for a local community to have to contribute to its own policing investment. If governments are not prepared to fund adequate levels of policing within their jurisdictions, then they fail a core test of legitimacy.

And of course, the announcement has been made within a week of the federal election. Presumably Minister Scullion made his decision before the caretaker period began and held it over.

Setting aside the politics which so clearly infuses this announcement, it provides a clear cut example of the structural lack of transparency in government decision making in remote communities, at both process and output levels.

And counter-intuitively, the very necessity of Commonwealth and local community funding for what is a core NT Government responsibility provides yet a further example of the chronic underinvestment by responsible governments in their core responsibilities in remote Australia.

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