ABORIGINAL COMMUNITY ASSISTANCE FUNDING

In reply to Dr McFETRIDGE (Morphett) (12 October 2010).

Ms PORTOLESI (Hartley—Minister for Aboriginal Affairs and Reconciliation, Minister for Multicultural Affairs, Minister for Youth, Minister for Volunteers): Dr McFetridge made reference to the Aboriginal community services assistance funding being reduced from $2.9 million in 2008-09 to $3 in 2009-10.

Aboriginal community essential services assistance is a Grants and Subsidies$ budget line title in the Auditor-General's report that is a consolidation of all grants to Aboriginal communities and organisations for operating and maintaining community infrastructure. These are AARD's infrastructure services grants for providing specific operational services (not community assistance grants).

In 2008-09, AARD entered into a Grant Agreement with Regional Anangu Services (RAS) an external service provider, to manage and operate the power on the APY Lands, including the Central Power Station at Umuwa.

This required RAS to purchase the fuel and employ staff to operate the stations and off-set costs through electricity billing of consumers and claiming Commonwealth fuel rebates. AARD provided supplementary funding of $2 million under this Grant Agreement in 2008-09.

However, in 2009-10 AARD assumed direct responsibility for managing power stations and incurring costs under the expenditure category of Supply Services (reflected on page 968 of the Auditor-General's report which indicate under Community Infrastructure, Supplies and Services has increased from $ million in 2008-09 to $5 million in 2009-10).

Therefore, there has been no reduction in essential services expenditure, rather a reclassification of expenses from Grants to Supplies and Services.