Economic vehicle status +

Economic vehicle status is a reform proposed by the National Native Title Council. It would change the way native title money is managed by Prescribed Bodies Corporate (PBCs).

Currently, when native title money is held in a charitable trust, there are limited opportunities to use it for economic development. This is because trustees are generally not interested in the long-term development of communities. Trustees can also choose to wind up the trust and not give the money to native title holders.

Economic vehicle status would mean native title money could be used for broader purposes under more favourable tax conditions. There would be tighter controls on the way PBCs manage funds, and PBCs would have to meet stricter reporting obligations. So, trustees would be held to a higher standard, ensuring native title money was managed in a way that created long-term benefits for native title holders.

These reforms would require changes to the Corporations (Aboriginal and Torres Strait Islander) Act 2006. The regulator of the scheme would be the Office of the Registrar of Indigenous Corporations, which exists within this Act.

Social enterprise +

Social enterprises pursue opportunities for social change and address social needs through entrepreneurial activities. They use an economic model that puts profits towards broader social, economic and cultural goals.

Social enterprises can be a model for Indigenous economic development that is self-directed, uses long-standing community practices, and keeps employment within remote areas. By honouring connection to land, family health and cultural obligations, social enterprise offers a new way of looking at the goals of economic development.

Furthermore, because social enterprises use traditional business ideas to advance social issues, these activities can both fund Indigenous employment in remote areas and provide opportunities for education and training. In this way, social enterprise encompasses not only the creation of jobs and economic wealth, but also, the strengthening of social capital.

Renewable energy developments +

Indigenous community ownership of renewable energy developments has the potential to improve political and economic self-determination, but this has not yet been encouraged through Australian policy. Despite land rights developments since the 1970s, the benefits of industries such as mining are not currently shared equitably with Indigenous owners.

The emerging renewable energy sector presents an opportunity for a distinct break from these past experiences, enabling equitable and beneficial partnership agreements between developers and Traditional Owners.

Renewable energy has a potential lifetime of generations, as opposed to the mere decades of benefits offered by extractive industries. Along with economic benefits lasting well into the future, the creation of renewable energy sources presents opportunities for commercial relationships between business and Traditional Owners, employment in construction, and employment in the maintenance of plants. Renewable energy sources can also ensure low-cost electricity for surrounding communities.

There is a global push for renewable energy companies to share benefits with local communities. This pressure is shifting how commercial agreements are organised with Traditional Owners.

But these changes must be accompanied by legislative reform that prioritises the interests of Traditional Owners. Renewable energy projects do not currently fall under the right to negotiate regime of the Native Title Act 1993 (Cth). Without change, Traditional Owners will have no legal power to stop or alter renewable energy projects.

Carbon farming +

Carbon farming offers another way to support the economic development of Indigenous communities. This practice has emerged as a result of nationwide pressure to reduce Australia’s carbon output.

Carbon farming refers to land management activities that store carbon instead of releasing it into the atmosphere. There are three generally recognised methods:

• agricultural methods that increase soil carbon to counteract methane released by livestock
• vegetation methods that re-grow forests and avoid the clearing of existing forests
• savanna burning which uses fire management to avoid mass carbon release as a result of wildfires.

Carbon farming has the two-fold benefit of increasing regional jobs and reducing carbon emissions. These benefits are particularly important in rural Indigenous communities. The creation of carbon offsets provides these communities with an income, enabling investment in other areas that benefit the community as a whole. Furthermore, Indigenous carbon farming projects improve opportunities for connection to Country and widespread wealth generation.

The Aboriginal Carbon Foundation also considers these projects important in securing employment for people living in remote communities, providing opportunities for career development, reducing welfare dependence and increasing economic independence.

This is supported by Shirodkar et al.’s work around Indigenous businesses, which shows that Indigenous-run organisations are 100 times more likely than non-Indigenous businesses to employ Indigenous workers. As such, Indigenous-run carbon farming projects offer opportunities for Aboriginal and Torres Strait Islander peoples to work on Country and look after Country for future generations.

References and acknowledgements +

Cited on this page:

• Stewart, M. and Tehan, M. with Boulot, E., 2014. ‘Transparency in Resource Agreements with Indigenous People in Australia: Draft report to the extractive industries transparency initiative pilot.’ Melbourne: Melbourne Law School, University of Melbourne.