The Australian
Royalties paid for essentials
 Federal government failure in Kakadu is the real scandal,
 writes GALARRWUY YUNUPINGU
 OPINION /12nov99

 ALTHOUGH Stuart Rintoul (The Australian, Tuesday) is right to
 point out that "Aboriginal people in Kakadu remain among the
 poorest indigenous communities in the country", blaming the
 Gagudju Association and its members for this appalling state of
 affairs is misplaced.

 He claims $46 million has been "squandered" by 300 people over
 20 years. The article and other commentators also infer that
 there has been a disturbing waste of money, primarily due to
 inadequate financial controls, poor financial advice and exploitative
 advisers (most of whom are non-Aboriginal).

 However, the mining royalties provided to Gagudju benefit a much
 larger group than 300. For many years, Gagudju has provided
 essential services to the local community, including housing,
 power, water and health, and built up a range of financial assets,
 some of which, it is sadly true, have not always been well
 managed.

 The emphasis on cash payments to individuals needs to be put
 into perspective. Although $46 million appears to be a
 scandalously large sum of money, the current Gagudju executive
 officer estimates that cash payments to Aborigines amount to
 approximately 20 per cent of the total mining royalty equivalents
 received. This equates to $4.20 per day per person during the
 20-year period.

 The greater scandal is that Aborigines, despite their demonstrable
 poverty, have felt compelled to spend a sizeable portion of their
 money to pay for social services in the absence of adequate
 government provision.

 Mining royalties are no panacea to the appalling social and
 economic conditions of Aboriginal communities. It is not that
 mining royalties are insignificant or that they cannot be used for
 sound long-term investment; it is simply that they are marginal to
 the main game of addressing the critical and immediate needs of
 Aborigines.

 John Reeves QC, in his 1998 review of the Land Rights Act,
 reported that mining royalty equivalents in the Northern Territory
 amounted to $35 million per year, compared with territory and
 Commonwealth government budgets for Aboriginal services,
 estimated at $448 million to $738 million per year. This money is
 not reaching the ground and up to 50 per cent is siphoned off to
 support top-heavy territory government administration.

 In August, the House of Representatives standing committee on
 Aboriginal and Torres Strait Islander affairs, examining the
 recommendations of the Reeves report, pointed out that the
 money paid to royalty associations such as Gagudju – "is
 equivalent, at best, to just over 2 per cent of the annual
 expenditure by the territory and Commonwealth governments on
 programs for Aboriginal people in the territory".

 IT is simply unreasonable to expect royalty associations to
 remedy the failings of governments. The point is not to deny that
 mistakes have been made or to avoid the responsibility and
 opportunity for wise investments by royalty associations.

 Clearly, poor economic management has resulted in past financial
 problems for Gagudju Association Inc.

 Aborigines are responding. The association has been restructured
 and Aboriginal constituents, through the Northern Land Council,
 have called for the tightening of financial control over royalty
 associations under the Aboriginal Land Rights (Northern
 Territory) Act 1976. Naturally Aborigines are concerned to ensure
 any mismanagement in the past is rectified, and new regimes of
 accountability and efficiency are developed.

 Similarly, the problem of binge spending, resulting from occasional
 payments of cash royalties to individuals, has not been swept
 under the carpet. Both the standing committee and the Northern
 Land Council agree that no payments should be made to
 individuals without a specific purpose.

 The challenge in addressing the dirt poor in Aboriginal
 communities is not to demonise the associations receiving
 relatively small levels of funds from the use of their lands for
 mining but to target the inadequacy and mismanagement of
 government programs, which are manifestly and catastrophically
 failing.

 Former senator Bob Collins's report on education in the Northern
 Territory reinforces this point and forecasts a social catastrophe if
 not addressed. The same catastrophe is looming in relation to
 other areas of government service responsibility, such as health,
 housing and employment.

 Meanwhile, Aboriginal royalty associations will continue to earmark
 mining royalty for investment funds. The development of
 economic opportunities and income generation is a priority among
 Aborigines.

 With sound advice and improved financial management, these
 potential streams of income are one way for our people to break
 away from the damaging cycle of welfare dependency.

 Faced, however, with the pressure of seeing local people suffering
 from inadequate citizenship services such as health, housing,
 power, water and education, is it any wonder that limited
 investment funds available to the poorest sector of the nation are
 being diverted towards the provision of facilities and services all
 other Australians take for granted?

 Galarrwuy Yunupingu is the chairman of the Northern Land
 Council.


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