In a recent opinion piece in the Australian Financial
Review, (Native Title needs reforming or
more indigenous opportunities will be lost; link
here) Senator Dean
Smith from Western Australia, provided an exquisite example of political
positioning masquerading as policy analysis.
Ostensibly, Senator Smith was making the case for review
of the role and responsibilities of native title representative bodies (which
represent native title holders in claims) and prescribed bodies corporate
(which formally hold title on behalf of native title holders). Yet the
subliminal message was that native title was a potential impediment to economic
development, that this was the result of poor levels of governance and
transparency within Aboriginal organisations, and by implication that it was up
to Indigenous people to fix it.
Thus the article argues that the complexity of Aboriginal
land ownership and the necessity for negotiation creates a system which ‘can
become extremely costly and complicated’; that this can lead to ‘adversarial
and opportunistic practices focussed on short term revenue raising’ in the name
of claimants and native title holders; and that often ‘the lion’s share of
revenue goes not to the traditional owners but the Native Title representative
bodies and other native title business brokers’.
Then Senator Smith pivots to a recent ANAO audit of the
Northern Land Council (NLC) which fulfils a number of roles including that of a
native title representative body in the NT. Senator Smith shares the following
quotation:
The
report identified a ‘fundamental breakdown in in the governance framework at
the NLC, resulting in serious failings in almost all aspects of the council’s
administration’, including weaknesses in the NLC’s financial management,
reporting ad internal management measures.
Senator Smith did qualify his point by adding the
following paragraph:
Positively,
the report did identify a commitment on the part of the NLC to implementing ‘a
wide-ranging reform agenda covering almost all aspects of the governance and
administration of the council’.
Senator Smith then moves from the value laden and far
from neutral heading ‘Opportunism rife’ to his more direct conclusion: ‘Lost
Opportunities’.
He argues for review of the roles and responsibilities of
native title bodies to improve their levels of governance and transparency, arguing
they disadvantage both Indigenous citizens and the wider community. In Senator
Smith’s view, the expansion of the Ord River Scheme and the northern cattle
herd, the development of the Canning Basin onshore gas reserves, and tourism
generally represent opportunities which ‘could easily be lost if we don’t call
out the inefficiencies of a current native title regime that has evolved in a
way that works against the long term community and economic interests of Indigenous
and non-Indigenous Australians’.
So what’s going on here?
First, beneath the surface text which is carefully
nuanced to appear objective, and which includes a number of points which are
well made and with which I agree, there is nevertheless a clear propensity to
attribute primary responsibility for the problems identified and for finding
the solutions to Indigenous people and organisations. The glancing mention of
Fortescue Metals Group as having negotiated in good faith (link
here), the implication that representative bodies and advisers (‘native
title business brokers’) are exploiting traditional owners, the overly
simplistic reference to the ANAO report, and the framing of lost economic
opportunities for the wider community and nation all reinforce this
meta-message.
Second, it is worth noting that Senator Smith has been in
the news lately advocating strongly for parliament to resolve the same sex
marriage deadlock in our political system (link
here, and here).
For a Senator who is a member of the conservative wing of the Liberal Party,
with a constituency being actively courted by Cory Bernardi’s Australian
Conservatives Party and Pauline Hanson’s One Nation Party, it might be timely
to send out a reminder to supporters that his liberal tendencies only extend so
far.
Whether intended or not, the likely impact of the opinion
piece is to provide reassurance to Senator Smith’s core constituency that he
remains a staunch conservative. What it also unfortunately demonstrates is that
allocating blame for complex policy outcomes primarily on Indigenous interests
is alive and well as a political trope in Australia today. The comparative lack
of Indigenous political power in Australian society makes them vulnerable to
gratuitous criticism designed to advance other political agendas.
Third, the corollary of framing the problem as one caused
by Indigenous interests is that alternative analyses are implicitly ignored or
ruled out. In particular, what is the role of the government in ensuring that
institutional frameworks such as in native title are working effectively? This
is the issue which I wish to explore more fully below.
There are two broad arguments advanced by Senator Smith.
First, that native title is not working as well as it could or should. I agree
with the diagnosis, but not with Senator Smith’s analysis of the causes.
Second, the NLC is suffering from a ‘fundamental breakdown’ in governance and
administration. Again, this needs detailed unpicking.
As for the native title issue, my starting point is to
make the obvious point that Senator Smith is a member of a Government which has
been in place for almost four years, yet has delivered very little on native
title. One of the Government’s first moves in this space was to reinstate
provision for funding of non-native title respondents to native title claims (link
here). In June 2015, the Government received a report from the Australian
Law Reform Commission reviewing the Native Title Act (Connection to Country: Review of the Native Title Act 1993; link here); they have
received a report from an expert Panel established by COAG to investigate
Aboriginal Land Administration and Use (link
here). In neither case has any substantive comprehensive reform eventuated.
The recent requirement for urgent reform of the Native title Act to fix the McGlade decision in the Federal court (link
here) merely serves to reinforce the ad hoc and reactive approach of the
current Government to native title issues.
Thus even if one were to accept in full Senator Smith’s
characterisation of the issues to be addressed (I don’t), there are strong
grounds for concluding that the Government has dropped the ball on the native
title reform task. It is particularly telling that Senator Smith’s article
omits all reference to these reviews, and omits all reference to the role and
responsibility of government to ensure that the institutional infrastructure of
society is fit for purpose.
I have previously
commented on native title and land issues in earlier posts (link here
and here),
so will not take this discussion further at this point. My own take on the
strategic challenges facing both policymakers and indigenous interests in the
native title space can be found a recent Discussion Paper on the CAEPR website
(link here).
Turning to the issue of the Northern Land Council (NLC)
and the ANAO audit (link
here) to which Senator Smith referred, and the role of government in
maintaining institutional resilience, there are a number of points to make.
First, a key point to note is that while the NLC is a
native title representative body, it is also (unlike most native title
representative bodies) a Commonwealth statutory corporation subject to the PGPA
Act, with a range of other functions, and governed by its own legislation which
is the responsibility of the Minister for Indigenous Affairs.
Second, the key quotation attributed to the ANAO by
Senator Smith is in fact a finding of a 2013 review by Deloittes into the NLC,
not a 2017 ANAO audit. The implication is that the ‘fundamental’ issues which
Senator Smith infers are of current significance are instead some four years
old.
The Deloittes report was instigated by the NLC and the
Department of Families Housing Community Services and Indigenous Affairs
(FaHCSIA) following a critical Department of Finance Audit of the NLC’s
governance in 2009 (link
here) was followed by a qualified financial statements audit from the ANAO which
identified financial weaknesses, and this led to a Senate Estimates Hearing
which was highly critical of the NLC, and led subsequently to the ANAO audit
referenced by Senator Smith.
Third, the ANAO appear to have adopted a particularly low
key approach to its formal recommendations, as a close reading of the report reveals
numerous adverse findings particularly in relation to PMC oversight, and suggests
that a set of much more robust recommendations, particularly in relation to the
PMC oversight responsibility, was warranted.
Fourth, in relation to the NLC’s functions as a native
title representative body, the ANAO audit notes (at para 2.25) that the
Minister for Indigenous Affairs Senator Scullion wrote to the NLC in May 2016
that he was ‘satisfied that the NLC satisfactorily performs its existing
functions as a representative body under the Act and would be able to continue
to do so’. This directly contradicts the messaging in Senator Smith’s article,
yet was not addressed by Senator Smith.
Fifth, while the audit identifies substantial progress by
the NLC in implementing necessary reforms, it does not provide the NLC with a
clean bill of health. For example, the ANAO note that the NLC’s administrative
arrangements ‘do not yet effectively support the work of the council’ (page 9).
So for example, the ANAO notes (para 3.12) that prior to
February 2016 ‘the NLC executive and senior staff had no visibility of the
organisations allocation of resources and internal budgets (para 3.12); that as
at 1 March 2017, the NLC did not have a procurement policy, and procurement
practice did not meet requirements set out in the Commonwealth Procurement
Rules (para 3.14); that issues with the road worthiness and safety of the NLC’s
vehicle fleet management procedures have been reported since 2011-12, but
remain outstanding as at March 2017 (para 3.18). Apart for the questions which
clearly ought to be directed to the NLC and its leadership, the obvious
questions is: where was the Ministers Department and its oversight function as
these problems emerged? It is not as if they were not warned!
In response to the 2015 issues the Minister requested the
NLC develop a plan that outlines its approach to addressing concerns about its
performance. The ANAO states that ‘while many of the actions in the plan have
been completed and others are underway, the NLC has not provided progress
reports on outcomes against the plan, although agreeing to do so’ (para3.65).
Where was the Department as this emerged?
In Chapter Four of its report, the ANAO consider in
detail the NLC’s planning and budget processes, and in particular examine the
relationship between the NLC and the Minister’s Department in relation to
budget issues.
The ANAO find that there is a need for better alignment
between the NLC’s performance and planning frameworks and the Commonwealth’s
performance framework set out in the PGPA Act 2013. The ANAO examines in some
detail the role of PMC in setting the budgets for the NLC. It recounts in some
detail the process followed in the 2015-16 and 2016-17 budget discussions,
which involved a formal written requirement by the minister to implement a
zero-based review of all budget bids and items. The ANAO notes that PMC held
meetings to discuss the changed approach, and in a telling point, noted that:
No
records of these meetings were kept, and there was no evidence as to the
outcomes of the discussions and if they met their stated aims. There was no
documented advice or guidance provided to Land Councils on the new approach (para
4.21).
In a classic example of audit understatement, the ANAO
conclude:
Broadly,
there are shortcomings in the process for providing funds to the NLC under
s64(1) of the Aboriginal Land Rights Act. There was little evidence that zero
based approach and application of the funding principles had been followed by
the NLC in submitting bids or by PMC in
assessing the bids, and a lack of transparency of the basis for the funding
decisions. (Emphasis added).
It is difficult to interpret or understand this mutual dynamic
of inconsistent formal rhetoric of good budget practice and informal reality of
total lack of process as anything but a cynical ploy to avoid accountability
for decisions. It is inconceivable to me that the department would subvert the
written requirements of the minister without his implicit consent. The ANAO
finding goes to the heart of ministerial responsibility, and (assuming the
minister is not incompetent) leads to the inevitable conclusion that good
process was being deliberately subverted. To what ends we can only guess.
The ANAO went on to footnote the Full Federal Court
decision which overruled the Ministers attempt to overturn a decision made by
his predecessor in relation to a grant to the MJD Foundation (link
here), a clear example of ministerial over-reach consistent with the lack
of transparency in his decision-making around land council budgets and it is
worth noting the billion dollar Indigenous Advancement Strategy program (link
here). As if to reinforce the point to the cognoscenti, the ANAO goes on to
list the advice from PMC over a number of years for more rigorous budget
processes (see paras 4.24-25), advice which appears to have been ignored or
dismissed by the Minister. In reading this report, it needs to be remembered
that the ANAO is not authorised to examine the actions of ministers, and its
remit is focussed on the actions of agencies. It is no surprise then that it appears
to hold back.
So the sixth point to make is that PMC and its
responsible Minister appear to have comprehensively failed to establish and maintain
an effective process of regulatory oversight of the NLC (and by implication)
the other NT land councils. The ANAO specifically note that their report
(footnote 3, page 7) may be relevant to other land councils.
Given the sustained absence of effective regulatory oversight
of statutory corporations by the responsible minister, his or her department,
and the Department of Finance which has responsibility for the PGPA Act 2013,
attempts to criticise the statutory corporation for alleged misdeeds will always
be highly problematic.
Senator Smith’s sideways slap at the NCL based as it was
on a fundamental misreading of the currency and time frames of the issues he
raised, and complete absence of any analysis of the role of the Minister for Indigenous
Affairs in ensuring that agencies such as the NLC in his portfolio are
operating effectively, falls squarely within this set of problematic critiques.
While we should not be surprised when politicians pursue political agendas, it
does seem important that we hold them to a level of accountability in relation
t the factual accuracy of their claims, both in terms of what they say, and
what they omit to say.
Finally, my own take on the rather sorry saga of which
the NLC audit was culmination of almost a decade of poor administrative and
governance performance is that that the cross cultural nature of organisations
such as the NLC and other native title bodies makes them extremely vulnerable
to governance challenges which have the potential to disadvantage their constituents
and Indigenous citizens more broadly. The solutions lie in the promotion and
support of leadership within these organisations by all who engage with them
(whether they are commercial partners, philanthropics, governments or
individuals) and in the establishment by government of robust regulatory and
governance frameworks which adopt high expectations and hold Indigenous organisations
to the highest standards of accountability on a sustained basis. Noel Pearson’s
concept of the ‘soft bigotry of low expectations’ (link
here) is particularly apposite in this context
The paradox of course is that our own political system
appears incapable of holding ministers to account for ongoing and systemic
shortfalls in regulatory performance. I am unaware of any academic or media reporting
of this NLC audit which examines the shortfalls identified on the government
side of the ledger, let alone any concern or criticism of the supposedly
responsible minister for the identified shortfalls of his department.
For those who wish to drive substantive and sustained positive
change for native title outcomes, rather than see native title as an impediment
to economic development and a problem caused by Indigenous citizens, they might
encourage governments to focus on improving the regulatory oversight of native title
bodies, building their capacity, and strengthening the support offered by governments
to ensure native title institutions work effectively and Indigenous organisations
involved contribute to the delivery of sustained outcomes for all Australians.