Department of State Development, $644,298,000

Administered Items for the Department of State Development, $7,665,000

Membership:

Dr McFetridge substituted for Mr Whetstone.

Ms Redmond substituted for Mr Pederick.

Mr Treloar substituted for Mr Griffiths.

Minister:

Hon. I.K. Hunter, Minister for Sustainability, Environment and Conservation, Minister for Water and the River Murray, Minister for Aboriginal Affairs and Reconciliation.

Departmental Advisers:

Mr R. Garrand, Chief Executive, Department of State Development.

Ms N. Saunders, Executive Director, Aboriginal Affairs and Reconciliation Division, Department of State Development.

Ms F. Ward, Director, Aboriginal Affairs and Reconciliation Division, Department of State Development.

Ms S. Bartlett, Manager, Aboriginal Affairs and Reconciliation Division, Department of State Development.

Ms A. Reid, Executive Director, Arts and Cultural Affairs, Department of State Development.

Mr T. Mooney, Chief of Staff.

Mr S. Webster, Ministerial Adviser.

The CHAIR: I declare the proposed payments open for examination and refer members to Agency Statements, Volume 4. Would the minister like to make an opening statement?

The Hon. I.K. HUNTER: The past 12 months have been very productive and have set an important direction for future work in Aboriginal affairs. There was an enormous amount of goodwill to support the future aspirations of Aboriginal people in our state, and the government is firmly committed to working within the reconciliation framework and supports genuine partnerships with Aboriginal people and decision-making and genuine participation of Aboriginal people in all areas of life.

This commitment to engagement and reconciliation is reflected in all our work, including our major ongoing projects, such as the development of the Aboriginal Regional Authority model, new legislation that will deliver an engagement framework between the government and the Aboriginal communities, co-designing a new governance, nation rebuilding, training and leadership program, and implementation of the new Aboriginal Lands Trust Act 2013.

We have made great progress in reconciliation over the past few years. We—all of us—have amended the state's constitution to recognise our first peoples. We are establishing a whole-of-government process to develop reconciliation action plans (or RAPs as they are more commonly known). We proudly unveiled the Aboriginal and Torres Strait Islander War Memorial at the Torrens Parade Ground on Sunday 10 November last year, the first of its kind in the country.

We have also worked closely with various Aboriginal communities and areas of governance and community partnerships. For example, Aboriginal Affairs and Reconciliation, together with the APY Executive and the commonwealth government, led the development of the APY lands Regional Partnership Agreement. This will strengthen regional governments to the recreation of a regional partnership authority and will play a central role in the key APY lands projects such as the $106 million main access road upgrade over the coming years.

We have also entered the second phase of the Aboriginal regional authority project in four test locations around the state, those being Adelaide, Port Augusta, Yorke Peninsula and the lower Murray. This will further develop a regional authority policy and a model to increase the capacity of Aboriginal communities to manage their own affairs in a transparent and accountable manner.

The government has also undertaken a significant legislative reform program. For example, the new Aboriginal Lands Trust Act came into effect on 1 July 2014, enabling the Aboriginal Lands Trust to acquire, hold and deal with land for the enduring benefit of Aboriginal South Australians. There is ongoing work on the review of the APY Land Rights Act 1981 that has focused on specific governance and accountability issues. We have devoted time and resources to Aboriginal economic participation, and this will only become more focused now that Aboriginal Affairs and Reconciliation has moved as an agency into the Department of State Development.

In 2014 AARD has been working with other state government agencies to develop a South Australian government Aboriginal business procurement policy. This model is currently being tested and will enable government agencies to purchase goods and services up to the value of about $220,000 from a registered Aboriginal business. In the coming year we will deliver on our recent election commitments, which include new initiatives worth up to $1.5 million, of supporting Aboriginal businesses and Aboriginal jobs growth in communities.

These are all important steps and we can already see important improvements in educational outcomes for Aboriginal students, such as our nation-leading school retention and completion rates. Improvements in education will have a flow-on effect in other areas, including employment, economic development and home ownership, but this will take time and requires a long-term commitment. To ensure this happens, we will continue to work cooperatively with the commonwealth and local governments, as well as a wide range of service delivery and advocacy bodies. Most importantly, we will continue to work in partnership and in the spirit of reconciliation with all Aboriginal South Australians.

I would like to commend and thank the staff in Aboriginal affairs and reconciliation for their ongoing commitment, hard work and dedication in a very difficult area, but one which they show absolute commitment to.

The CHAIR: Does the shadow minister have an opening statement or shall we go straight to questions?

Dr McFETRIDGE: I will make a very brief comment to say that minister Hunter is the fifth minister I have had the privilege of working with in this place: the late Terry Roberts, the Hon. Jay Weatherill, Grace Portolesi, the member for Colton, Paul Caica, and now minister Hunter. It is an interesting portfolio and one where I have always tried to be as bipartisan as you possibly can. That is not to say there are not issues, and we will explore some of those issues today.

With that—I think it is almost an omnibus reference here—I refer to page 109-110 of Budget Paper 4, Volume 4, Aboriginal Affairs and Reconciliation. The new ALT Board was gazetted recently. What funding, if any, has been allocated to support the proposed changes to the Aboriginal Lands Trust and the implementation of new governance arrangements?

The Hon. I.K. HUNTER: I thank the member for Morphett for his question. Can I also say for the record that it has been a great pleasure working with him and other members of the parliament on a multiparty basis. This is a very important policy area, where in fact I have enjoyed good support right across the parliament, not just bipartisan, but across the crossbenches as well. I think that is fundamentally a very important attribute of our work as parliamentarians in this very important policy area.

The Aboriginal Lands Trust Bill 2013 was passed by parliament on 27 November 2013, and the Governor in Executive Council gave assent in December. The new act is a result of a review of the Aboriginal Lands Trust Act that began in 2008 and was the subject of three rounds of statewide public consultations. There are a number of breakdowns in terms of the funding. In 2012-13 and 2013-14, $580,000 was applied to the Aboriginal Lands Trust Act to administer the act and $550,000 will be applied for assisting with transitional matters to the new board structure.

Dr McFETRIDGE: Has money been set aside to meet all the costs associated with the changes?

The Hon. I.K. HUNTER: As I said, that $550,000 is there to meet any transitional matter that arises. Money has been provided in the past, for example, funding the good order audit. I believe that in 2012-13 that funding was in the order of $200,000, but the $550,000 for 2013-14 and the $500,000 for the following financial year 2014-15 are allocated to assist with transitional matters that arise.

Dr McFETRIDGE: What do we get for our dollar there with the transition?

The Hon. I.K. HUNTER: For those amounts?

Dr McFETRIDGE: Yes.

The Hon. I.K. HUNTER: I am advised that that money will be used for a number of purposes, partly for the setting up for the new commercial advisory committee which will work with the ALT. There is a new financial officer being employed and there is a new CE position being created which will replace essentially the old general manager's position.

Dr McFETRIDGE: Correct me if I am wrong but I think the last annual report was the 2011-12 report. Why has there been a delay in releasing annual reports, particularly when the Auditor-General has signed off on reported figures in July 2013 I think for the 2013-14 report?

The Hon. I.K. HUNTER: I am advised that historically the provision of audited reports has been delayed by at least 12 months. I understand—I have been advised—that they have just completed the 2012-13 report and it is on its way to me. Part of the funding for the new financial officer is to assist them in making sure that we get the reports in a timely fashion but, given that they have just finished 2012-13, they have caught up over the historic delays that have been in place for a number of years, and they need to be commended for that.

Dr McFETRIDGE: Same reference and same topic. I understand that the Auditor-General was very concerned that there were a number of leases and subleases of vested land which have been entered into during the financial year without the consent of you, the minister, which is in contravention of the ALT Act. Is that true?

The Hon. I.K. HUNTER: My advice is yes; however, the ALT has been working through those processes and has submitted those leases and subleases to me and I have signed off and approved them in recent times.

Dr McFETRIDGE: And that obviously will not happen again?

The Hon. I.K. HUNTER: We can only hope, and with the provision of a new financial officer and a new CE, I share your optimism.

Dr McFETRIDGE: Same reference minister, under sections 21 and 23 of the Aboriginal Heritage Act you have the power to delegate your authority. How many times have you delegated that authority in the last 12 months, or in your time as minister, which might be easier?

The Hon. I.K. HUNTER: There has been a significant increase in the number of inquiries regarding Aboriginal affairs and reconciliation records of Aboriginal heritage. I will just give you a picture: in 2009-10 we had 800, in 2011 we had 2,400 going up to 2,500 in 2012-13, and approximately 3,200 in 2013-14, from members of the mining industry, developers, landowners, planning exploration, mining development or sale of land. An increase of this scale indicates that efforts to alert mining companies, government agencies, local government, developers and property owners to the importance of inquiring about Aboriginal heritage before undertaking ground-disturbing activities is having an impact. That is a good thing.

In terms of specific delegations, assessment of applications for ministerial delegations under section 6(1) of the Aboriginal Heritage Act resulted in delegations to the Ngadjuri Nation Aboriginal Corporation and the Yandruwandha Yawarrawarrka Traditional Land Owners Aboriginal Corporation (in future to be known as YYTLOAC). Delegate induction sessions were developed and delivered to the directors of the NNAC and the YYTLOAC and a comprehensive guide for delegates developed.

Consultation with Kaurna and Ramindjeri communities resulted in two section 23 authorisations being granted for projects in the Adelaide metropolitan area. A legislative awareness presentation was prepared and delivered to one of those proponents. The second proponent will receive its legislative awareness presentation in early August.

Dr McFETRIDGE: Amongst all the acronyms, is there one particular delegation of your powers that covers parts of the Barossa Valley, and are there any concerns there?

The Hon. I.K. HUNTER: Not one that I can recall giving. I will take advice on that and get back to you before the end of the session.

Dr McFETRIDGE: Same budget reference, page 109, but also dot point 2 in the financial commentary, the administration of the APY act. Under the act, the minutes are supposed to be made available to Anangu and others who want to read them but, I think nearly two years later, we are still missing minutes of five or six meetings between February 2011 and August 2012. The minutes are not up on the website, and that has been a cause of concern. It has also been alleged to me that the lawyers then acting for APY, McCulloch Robertson in Brisbane, may have copies of these minutes but are not releasing them. Have you any explanation as to why those minutes may be missing as required under the act? Have you been informed about that?

The Hon. I.K. HUNTER: The release of the minutes is a matter for the APY Executive. It is not something I can direct them on. Whilst we might all prefer those things to be preferably filed and publicly available, I cannot comment on decisions of the APY Executive and the availability of minutes.

Dr McFETRIDGE: But if, under the act, they are obliged to do that, shouldn't your officers, on your behalf, ensure that those minutes are made available?

The Hon. I.K. HUNTER: It is not the responsibility of my office to—

Dr McFETRIDGE: It would be a concern, though, wouldn't it, minister?

The Hon. I.K. HUNTER: It is not the responsibility of my office to be administering the circulation of minutes from the APY Executive. Over a number of years now, the state government, through AARD, has provided support to improve governance and financial management on Anangu, Pitjantjatjara and Yankunytjatjara land. From a budget perspective, the state government, through the annual land rights funding agreement with the APY, increased its funding allocation with a one-off $564,000 in 2013-14 to assist with their changed management process and delivering on their legislative requirements, and to ensure appropriate internal management, financial systems and controls were in place to improve corporate governance and accountability. In 2014-15, the funding allocation will be $1.292 million.

To improve financial accountability, the state government has provided additional funding of $123,000 to enable APY to recruit an experienced and well qualified financial coordinator operating out of the APY's office in Umuwa. The financial coordinator provides APY monthly income and expenditure reports under the terms and conditions of the funding agreement and the financial accounts. That is where we have been directing our priorities, in improving governance and improving financial accountability. In terms of minutes, I can only say to you that is a matter for the APY Executive. They make decisions which I cannot direct them on.

Dr McFETRIDGE: On their obligations to report, though, they are obliged to provide precise annual reports. On that matter, between 30 June 2009 and 30 June 2012, there were losses of members' funds of about $3 million and APY had become insolvent to the tune of about $1.39 million as of 30 June 2012. Are you aware of that, or are former ministers aware of that, and what advice have you been given to make sure that does not happen again?

The Hon. I.K. HUNTER: I cannot speak to what other ministers may have known in the past. Improvement in the APY's financial management is further demonstrated by the information provided in the 2012-13 audit report. The report indicates that APY has significantly improved its financial position. The balance sheet at 30 June 2013 shows total members' funds of $215,776 compared to a deficit of $220,846 in the previous year. This is a turnaround of $436,622. The financial coordinator is already preparing for the 2013 independent audit of APY's financial accounts and working to a time frame of the end of August 2014 to have the audit completed. It is my expectation, however, as minister, and I expect, of members of the parliament as well, that requirements for reporting under the act and under the proper financial reporting mechanisms will be met by APY.

It is understood that, in the past, there have been some difficulties faced by the APY Executive and so, from time to time, government will provide assistance to make sure that they can meet the reporting requirements we all expect. I am hoping in the longer term we will build the capacity within the APY Executive, as I have talked about with the financial controllers, particularly by supporting personnel who are employed with sufficient financial expertise to give the APY Executive the ability to conduct itself in a manner that we would all expect. We are providing that financial support. As I say, they have made a big improvement in recent times, as indicated in the 2012-13 audit report.

Dr McFETRIDGE: As part of that accounting loss of funds, $500,000 was also paid to, I think, McCullough Robertson, a Brisbane law firm, in the five months prior to March 2012. Also for some reason one of the partners, I think, in the law firm is ensconced as a trustee in the exploration royalties payments and the same law firm sought to transfer $600,000 from APY to the trust controlled by the law firm at about that time. Have you had discussions with this law firm as to their costs and why they want to be in control of the royalties funding? My understanding from the lands committee's visit last week with Mr Gee (member for Napier) is that the royalty payments could be extraordinary if the opportunities come to fruition and are realised.

The Hon. I.K. HUNTER: I understand that these questions do relate to previous budgets, but I think it is an important question and so I will attempt to give you the information I have available. We do understand there was an amount of $500,000 transferred into some sort of account held by lawyers that APY had previously engaged. My understanding is that those lawyers are no longer engaged by APY for day-to-day legal information. I do not have any information about trustee accounts; obviously I would not. They are accounts of the law firm, which I probably would not have access to. As I say, in terms of having the new financial officer on board, clearly changes have been made on APY Executive. There are no longer, as far as I know, transfer payments made to this law firm out of Brisbane and they are not engaged to give advice to APY on a day-to-day basis any longer.

Dr McFETRIDGE: You may not know now, minister, but can you get back to the committee and let us know whether one of those partners or a member of that law firm is a trustee in the royalties trust account?

The Hon. I.K. HUNTER: I thank the member for that question and I will certainly be following up on that.

Dr McFETRIDGE: To me, it is extremely important. Minister, how much other funding does APY get besides the South Australian government and the federal government funding, such as from local government or cattle enterprises? Is the department aware of how much they get?

The Hon. I.K. HUNTER: There are a number of lines of state funding that come to APY from various other sources. I can read those into the record if you like. Administration of Anangu Pitjantjatjara Yankunytjatjara Land Rights Act, provision of land management activities and traditional cultural and heritage matters, $2,004,480; Regional Anangu Services Aboriginal Corporation (RASAC) for office administration budgets for Amata, Indulkana, Mimili, Pipalyatjara and Pukatja,$187,056.

Dr McFETRIDGE: Sorry, they are state government funds?

The Hon. I.K. HUNTER: They are state. In terms of federal, I understand they get $1.1 million in untied funding from the federal government in the last financial year.

Dr McFETRIDGE: Is that a local government?

The Hon. I.K. HUNTER: No.

Dr McFETRIDGE: FAGs.

The Hon. I.K. HUNTER: What grants?

Dr McFETRIDGE: FAGs.

The Hon. I.K. HUNTER: FAGs, yes, I try not to use that term very often. It confuses me terribly, but yes, the honourable member knows exactly what they refer to and there are also sums of money for Landcare grants, but I cannot give the member those figures.

Dr McFETRIDGE: My information is that, including local government funding, virtually the entire funding for land management and cattle money adds up to about $80,000 a month and all of this is not part of a budget approved by the minister and so has been open to enterprise bargaining, shall we say. It would be interesting to see what improvements are going to be made in the financial management of the APY finances?

The Hon. I.K. HUNTER: Indeed, and as I say, the new financial officer position was created to do exactly that.

Ms REDMOND: On that same topic, I know that I asked a question in estimates and you were not the minister, so it may have been last year or the year before, but no further back than that, trying to figure out exactly how much money in total from the three levels of government goes into the APY lands. The response that I was given was that there was then currently being prepared a report on just that issue and therefore there should be somewhere a record of how much money goes in. I am sure the minister has been up there. I spoke to a young police officer last weekend who had just returned and anyone who goes there is absolutely gobsmacked by the level of squalor. Now, when there are many millions of dollars going in to support 2,000 to 2,500 people, they should be living in McMansions with streets paved with gold and yet they are living in complete filth and squalor. Something is going wrong with the system. Could the minister undertake to follow up that answer that I was previously given on how much money in total goes into the APY lands to support those 2,500 people?

The Hon. I.K. HUNTER: I will endeavour to do so.

Dr McFETRIDGE: From memory, I think the Aboriginal lands committee was told in 2009 it was around $200 million. I stand corrected on that though if my memory is wrong. It is a lot of money that goes in. I think the global budget for Aboriginal affairs in South Australia is $1.3 billion.

During the last 12 months you appointed a conciliator for the APY to conciliate disagreements between some traditional owners and the APY Executive. That conciliator, Mr Grant Niemann, called for some reports and information from various people associated with APY. I have been given a copy of one of those submissions and spoken to the person who has given the submission, a former general manager, and I say right from the word go whose honesty and integrity I have no qualms about whatsoever. He has made some fairly damning allegations in this submission just for your information. Can you tell the committee what is happening with the relationship between AARD, APY, the ombudsman and the conciliator at the moment?

Included among the allegations are that APY has been and is currently operating in multiple breaches of the APY Land Rights Act, its own constitution and code of conduct, that this situation has been existing for some time under the oversight responsibility of the state government DPC AARD, and that there is substantial evidence that AARD is complicit in breaches of the act, has systematically maladministered the act, and has deliberately interfered and overstepped its authority with respect to APY. This chap goes on:

This particularly relates to being asleep at the wheel at the annual budgeting process, funding acquittals of all income and expenditure and the oversight through power to require reports and give directions.

He also says here:

AARD has acted obstructively and inappropriately…to undermine the role of general manager and to prevent a rigorous and proper budgetary management process.

Minister, I find it absolutely outrageous if those allegations are even half true. Are you aware of those allegations? If so, what has been done about them?

The Hon. I.K. HUNTER: I am not aware of those allegations, and I would caution the honourable member against dealing with unsubstantiated allegations of this nature.

Dr McFETRIDGE: It is not unsubstantiated; this is first-hand information.

The Hon. I.K. HUNTER: The honourable member has been around long enough to know that unsubstantiated allegations are often made in relation to APY lands by persons who have a particular point of view that they wish to pursue. Often, when investigations are conducted into these allegations, they melt away into insubstantial nothingness.

The problem we have with the APY lands has been consistent over a number of years. People often go up there with an agenda—and I am not ascribing this to any particular person at all—and a way they think things should be conducted and a way they believe government services should be delivered. They do not take into account the realities of day-to-day life on the APY lands and what APY people want in terms of those services and how they are delivered. This often gives rise to conflict and to conflicting points of view about how things should be done. Allegations are then often made, which we endeavour to investigate.

However, as I said, I would treat unsubstantiated allegations with a level of caution until an investigation can be conducted into these matters. As the honourable member knows, investigations are ongoing through the appointment of a conciliator, and I will wait for final information that the conciliator is yet to provide.

Dr McFETRIDGE: I would just like to make sure that the committee completely understands that I have no reason whatsoever to doubt the honesty and integrity of the person who has given me this information. That is why I am alarmed. We need to make sure that the Anangu are benefiting from the funding that we are putting in there. On the same topic, what consultation is carried out with the APY before the budget is set and signed off?

The Hon. I.K. HUNTER: Which budget? The government's budget?

Dr McFETRIDGE: The annual budget, yes.

The Hon. I.K. HUNTER: The government's budget for the APY?

Dr McFETRIDGE: Yes.

The Hon. I.K. HUNTER: I will invite Ms Nerida Saunders to give that response, given that she was responsible for the consultation.

Ms SAUNDERS: I have met with the APY executives and indicated to them what their allocation of budget for the 2014-15 year will be. They are now configuring that budget. That will come back to us, and we will have negotiations around the priority setting. At that stage, hopefully the financial controller position will be in place so that we can ensure the appropriate accountability mechanisms are in place against the KPIs against that funding. Obviously we will then forward that through to the minister for agreement once it has been finalised by APY.

Dr McFETRIDGE: The 2013-14 budget that I have been given information on, that was consulted in the same way?

Ms SAUNDERS: Yes. In the 2013-14 budget you will have identified that there were additional funds allocated to APY, and that was subsequent to the conversations around the difficulties APY were experiencing at that stage in terms of their transitioning and their financial management issues. So yes, it was done in negotiation with the APY, with the general manager.

Dr McFETRIDGE: It is my understanding that it was presented to the executive and they were expected to rubberstamp that 2013-14 budget. I just hope it has improved. Minister, can you tell the committee whether AARD directs specific contracts to go to specific persons or companies?

The Hon. I.K. HUNTER: Can you give me a hint about what sort of contracts in particular?

Dr McFETRIDGE: On the APY lands where there are calls for tenders or contractors. Are there cases where specific tenders would be given to specific contractors? Would your department direct—

The Hon. I.K. HUNTER: Our normal process is to go to an open tender; however, where there are situations where certain requirements need to be met and we have an understanding of what businesses' abilities are to deliver in remote areas, we may go to a limited tender or we may call for quotes. That is our normal business practice, as I understand it. We are, of course, heading down a process now of directing procurement to Aboriginal businesses where we will not need to go through that process if it is under, I think, $220,000 per contract.

Again, we will need to identify that the business provider is registered with one of our regional authorities or somehow or other accredited through one of the land rights organisations, like APY, AMT, and has the capability to deliver the service that we are after and that will not need to go to open tender. That is part of our new procurement policy for small Aboriginal businesses.

Dr McFETRIDGE: So, does AARD handle the tendering or APY handle the tendering for on the lands?

The Hon. I.K. HUNTER: My advice is APY handles tendering on the lands.

Dr McFETRIDGE: So, would AARD then direct APY to—

The Hon. I.K. HUNTER: My advice is that AARD has never directed APY in terms of tender allocation.

Dr McFETRIDGE: None of your officers do that?

The Hon. I.K. HUNTER: My advice is AARD has never directed APY in terms of tender allocations.

Dr McFETRIDGE: Thank you, minister.

Ms REDMOND: Minister, back on the APY, and I do not expect an answer right away, it would be something that would have to be investigated, is it possible for us to get an understanding of what percentage of the Indigenous population of the state lives on the APY lands and what percentage of the budget within Aboriginal affairs and reconciliation is expended there, compared to the percentage elsewhere and the percentage of the budget expended elsewhere?

The Hon. I.K. HUNTER: We can give you that information. I am advised that for 2013-14 47 per cent of the AARD budget is dedicated by APY activity in terms of the number of Aboriginal South Australians on the lands (it is about 3,000 out of a total population of about 34,000 South Australians).

Dr McFETRIDGE: Same budget reference, you could probably flick to page 110, if you want, under APY projects. Minister, can you give the committee an update on the status of the bush tucker gardens at Watarru and Railway Bore?

The Hon. I.K. HUNTER: I can advise that responsibility for food security, I think, has been transferred to the Department for Communities and Social Inclusion; that needs to be asked in their budget lines.

Dr McFETRIDGE: I will ask minister Bettison on Wednesday then. Did DCSI pay for the industrial fence around the Railway Bore garden then?

The Hon. I.K. HUNTER: My advice is there has been no funding allocated by government for the gardens projects up in the lands in the year 2013-14 either by AARD or DECD. That is all the information I have, but $14,000 has been transferred to DECD for the continuation of school gardens on school sites—sorry, I correct myself, $40,000 for maintenance of gardens—

Dr McFETRIDGE: I think the school gardens will have a lot more success than the others, unfortunately with hundreds of thousands of dollars—anyway, we will not go there at the moment. Talking about enterprises on the lands, what is happening with the review of the cattle enterprise? How is that progressing? Who is conducting it and which stakeholders have been interviewed?

The Hon. I.K. HUNTER: On my understanding that is APY Executive business and not aligned with AARD.

Dr McFETRIDGE: So, there have been no discussions, no guidance, no collaboration with AARD on this?

The Hon. I.K. HUNTER: None that I am aware of. My advice is that this is not part of the state government line, but I will ask Ms Ward to give further information about other organisations' involvement with this.

Ms WARD: My understanding is that APY, the general manager, has been consulting with ILC to get some advice around a suitable person for them to engage to lead a review of the program and the coordination. As you would be aware, there was a report in 2010 with the recommendations, and the new general manager thinks that is a reasonable place to start with further implementation and to get cracking on it, really.

Dr McFETRIDGE: Page 110, APY food security reports: has the minister received the third and final food security evaluation report and, if so, what is the current status?

The Hon. I.K. HUNTER: My understanding is that this responsibility has transferred to DCSI but that report should be due at the end of August.

Dr McFETRIDGE: I refer to back-up generators, page 110, under Estimated result, dot point 1. How many generators are being purchased and which stores are getting them?

The Hon. I.K. HUNTER: Back-up generators have now been installed, are fully operational and have been well received in the Indulkana, Kanypi and Amata stores, as well as a temporary Fregon store, which of course was destroyed by fire last year, but there is a back-up generator in the stand-by store. Apparently these generators automatically come online, which is a good thing, if there is a power outage (otherwise why would you have them). They have the capacity to support safe food storage within store fridges and freezers in the event of short-term or long-term power outages. The ownership of the generators and the associated ongoing operation and maintenance costs now rest with the owners of the stores. That is Indulkana, Kanypi, Amata and Fregon.

Dr McFETRIDGE: Do you have an estimation of the ongoing annual costs of maintenance and running, because that will obviously add to their costs, which will then be reflected in food prices.

The Hon. I.K. HUNTER: As I said in my explanation, that has been transferred to the stores' ownership and maintenance.

Dr McFETRIDGE: I refer to page 110, Aboriginal Foundation. What is the Aboriginal Foundation of South Australia and what does it do for members of the committee?

The Hon. I.K. HUNTER: The Aboriginal Foundation of South Australia was formed after the state government responded to a request from the South Australian Native Title Congress to find new ways in which Aboriginal South Australians could better participate in economic development activity. Since its formation the Aboriginal Foundation has brought together a wide range of organisations and people with diverse interests in the private, public and not-for-profit sectors. Its main goal is to create economic opportunities for Aboriginal people.

The board of the foundation comprises representatives from the Aboriginal community and the private sector, and all members provide their skills and services on an honorary basis. The foundation was created for and by Aboriginal people, and its priorities are being driven by native title claimants and local Aboriginal people. It supports Aboriginal people to gain economic self-sufficiency and to participate in the state's economy activity.

To date the foundation has been successful in progressing initiatives relating to the establishment of Aboriginal businesses and employment creation. The foundation has established a partnership with McMahon Services in the creation of Intract Indigenous Contractors, who are dedicated to Aboriginal employment and training in the building services industry.

The foundation has also been exploring possible property redevelopments and purchases in partnership with a number of Aboriginal organisations, and subject to that finalisation they will also provide enhanced income streams for both the foundation and its partners in these projects. The state government has given support to the foundation by providing funding of $530,000 in 2009 and a further $120,000 in 2011. A further $200,000 will be provided by the state government over the next two years to enable the foundation to become self-sufficient.

During this time the Aboriginal Foundation will be focused on supporting key government priorities in Aboriginal affairs. That activity will include:

supporting the work of Aboriginal leaders and the three South Australian Aboriginal statutory landholding authorities;

establishing successful business opportunities for Aboriginal businesses;

working with the private sector to create employment opportunities for Aboriginal young people;

developing a successful young Aboriginal entrepreneurial program; and

supporting regional authorities to develop focused business plans.

Ms REDMOND: Further to that explanation, which sounds terrific, is the minister able to give any indication of who the people are who have so kindly volunteered their services to the foundation? I assume they are people with business backgrounds, but could you perhaps tell us who they might be?

The Hon. I.K. HUNTER: I am advised the chair is Mr Colin Dunsford, the deputy chair is Mr Eddie Fry and their accountant is Dominic Rinaldi—whom I went to school with (although he was a year above me and does not remember me).

Dr McFETRIDGE: The same budget reference: in your answer on the Aboriginal Foundation, you talked about using the Intract Aboriginal contractors. The store at Fregon burnt down, the tenders have gone out and I think they may have closed. Can you announce the winning tenderer, and is it an Aboriginal, or Aboriginal based, organisation?

The Hon. I.K. HUNTER: Intract is the name of the McMahon Services collaboration with the foundation, and I understand those tenders have been led by Mai Wiru and that is not information I have at my fingertips.

Dr McFETRIDGE: Budget Paper 4, Volume 4, page 110, the APY Task Force. Since 2004, the task force has been responsible for allocating approximately $5 million per annum to the services programs on the APY lands. Can you give the budget for 2014-15? Has this money been allocated for specific programs and projects? If so, can you give the committee some overview of these programs and projects?

The Hon. I.K. HUNTER: I can. The APY Lands Task Force program was established in response to the Coroner's findings in 2002 relating to Aboriginal deaths on the APY lands as a result of petrol sniffing. This funding provides for the flexibility to direct resources as required to the highest and most immediate service needs on the APY lands. Since the establishment of the APY Lands Task Force in 2003 and 2004, funding has been provided for the coordination and delivery of environmental health, family, age, disability and youth services across the lands. Funding has also been provided to assist in the operation and ongoing maintenance of swimming pools.

The breakdown of the $6.248 million of state funding is as follows: $1.077 million for Amata wellbeing centre, being coordinated by SA Health; $458,000 for the swimming pool maintenance at Amata, Mimili and Pipalyatjara, coordinated by DECD; $2.355 million for the community services, age, disability, young families, homemaker programs and youth program coordinated by DCSI; $369,000 for Nganampa environmental health program, again coordinated by SA Health; $187,000 for rural transaction centres coordinated by DPC and Service SA; $360,000 for food security strategy and remote service delivery programs through DCSI; $1.193 million for APY discrete projects; and $225,000 for depreciation on staff housing.

Ms REDMOND: On page 109, in the full-time equivalents column at the end of the program summary, it is clear that there has been a reduction in the number of full-time equivalents. There were just shy of 66 full-time equivalents at the end of 2012-13, a budgeted reduction to 43.7 last year, which was not achieved, and the number was 51.2 as the estimated result. In the target for the next year, the budget looks to a 20 per cent further reduction, which I assume is because of across-the-board savings targets and so on. Can the minister give any indication, given that you are employing the new financial person and the new conciliator, where the 20 per cent full-time equivalents are going to be taken from, and what the likely impact of that is?

The Hon. I.K. HUNTER: The Aboriginal Affairs and Reconciliation Division has been allocated the following savings targets: in 2013-14, $654,000, in 2014-15, $934,000, in 2015-16, $308,000. The savings target for 2014-15 was increased by $627,000 as part of the Department of the Premier and Cabinet's allocation of savings in relation to the continuation of the 1 per cent efficiency dividend on net cost of services.

The savings target for the 2014-15 financial year will be primarily achieved by reducing the budget allocation in relation to the remote service delivery program as this national partnership agreement has ceased, and the reallocation of priorities with the APY task force. So the feds have ceased their remote service delivery program and we are taking the opportunity to cease our participation in that as well. That is where the bulk of the savings will be achieved.

Ms REDMOND: Do expect to actually achieve this, noting that you did not get to the target for last year, which was to reduce to 43.7 and you are several full-time equivalents above that, and yet there is a further reduction for this year? You are expecting to achieve that?

The Hon. I.K. HUNTER: My advice is that rather than concentrating on reduction of FTEs, we will be making our savings through a reduction in the budget.

Ms REDMOND: Through—sorry?

The Hon. I.K. HUNTER: Through savings in the budget.

Ms REDMOND: But the budget papers in front of us on page 109 say that it is a 20 per cent reduction in FTEs.

The Hon. I.K. HUNTER: That is in the budgeted amounts. Treasury, however, are concerned about the department or the agency making the savings—the quantum—and so if we go back to Treasury and say we can make these savings in another way, we will negotiate with them over FTEs to weigh that up.

Dr McFETRIDGE: Budget Paper 4, Volume 4, page 109, APY cultural heritage. In relation to their $400,000 four-year program, the government will provide for cultural heritage on the APY lands. What will the money be spent on and what project details has the government been made aware of? Basically, what I really want, minister, is what are the key deliverables, the outcomes and time lines?

The Hon. I.K. HUNTER: At the last election the state government committed funding of $400,000 to the APY Law and Culture Council over the next four years. The 10 member APY Law and Culture Council serves as a sub-committee of the APY Executive and provides cultural guidance that keeps traditional owners at the centre of decision-making on the lands. The APY Law and Culture Council develops the economic and social sustainability of Pitjantjatjara and Yankunytjatjara culture, living cultural traditions, responsibilities, values, beliefs and practices with an emphasis on country.

The council's charter encompasses law, ceremonies, language and family kinship in accordance with Anangu law and customary authority. The funding will ensure that APY Aboriginal men, women and children have an opportunity to provide cultural guidance for all Anangu on the APY lands. The funding will allow the members of the Law and Culture Council to meet more frequently on the APY lands to deliver on the priorities of law and culture.

It will support this council's key priorities which include advocating for acknowledgement, respect and recognition, providing mentoring for Anangu on Pitjantjatjara and Yankunytjatjara people's cultural traditions and organising performances, tours, exhibitions and related activities that demonstrate and celebrate the wealth of the local culture. Annual key performance indicators (financial and non-financial) will be set as part of the four-year funding agreement. Importantly, I have said that that funding will not be used for sitting fees.

Dr McFETRIDGE: Was this all negotiated before the announcement was made?

The Hon. I.K. HUNTER: Requests have been made from time to time for additional funding for these functions. I have not made that funding available in the past, but through our election commitment we have $400,000 to do this now.

Dr McFETRIDGE: Same budget reference, referring to Jawun, who runs this agency and what kind of services does it provide?

The Hon. I.K. HUNTER: The state government has committed $1.025 million over four years to work with Jawun Indigenous Corporate Partnerships to broker partnerships between corporate South Australia and Aboriginal communities. Jawun is a not-for-profit organisation that was established in 2001 in Cape York. The Jawun operating model creates secondment opportunities for employees from the private sector and government to work with Aboriginal communities and organisations to introduce corporate thinking and practices. It gives these communities access to the people and expertise that will ensure they have skills and the capacity to pursue their own reform priorities.

The government believes there is a significant potential for Jawun to expand its corporate secondment program in South Australia to build capacity in Aboriginal organisations and communities. We hope that, with our assistance, we can encourage dialogue amongst Aboriginal communities and Jawun. Where those communities agree to such a course, it would be useful. For example, previously, Westpac senior executives from Adelaide could, in partnership with Jawun, go and volunteer their financial services or expertise to Aboriginal communities in Western Australia and Queensland but not in South Australia. We are hoping through this investment that we can utilise that local expertise here with South Australian Aboriginal communities.

Dr McFETRIDGE: A similar question on Supply Nation. What type of contracts will local Aboriginal enterprises be awarded as part of the $360,000 over four years provided to Supply Nation business broking?

The Hon. I.K. HUNTER: Supply Nation is a national organisation that connects public and private sector organisations with Aboriginal business owners to provide opportunities and assistance to secure government and private contracts. The government is committed to working with Supply Nation to support more Aboriginal businesses in South Australia. To do that, we will be negotiating and funding Supply Nation memberships for key South Australian government agencies and assisting Supply Nation to have an increased presence in South Australia by introducing the organisation to key stakeholders here, including Aboriginal businesses, government agencies and parts of the corporate sector.

This support will be a significant complementary one to the suite of initiatives the government is committed to with the long-term aim of supporting businesses and jobs growth in Aboriginal communities. I have mentioned the procurement policy in passing earlier. That also is part of our armament in this regard. Supply Nation, I think, is a federal government and private enterprise, co-developed organisation, and we want to bring them to South Australia.

Dr McFETRIDGE: Budget Paper 4, Volume 4, page 109, net cost of providing services and supplies. Can the minister outline why expenditure for supplies and services under this program has dropped from $4.287 million in 2013-14 to $3.467 million in 2014-15? As part of the answer, can you tell us why AARD was transferred from DPC to DSD?

The Hon. I.K. HUNTER: The net cost of the program is $12.6 million in terms of the 2014-15 budget estimated results. The $2.2 million reduction in the net cost of services is mainly due to the approved carryover of $1.4 million in expenditure in 2012-13. It is for the demand management energy education program, the infrastructure plan for regional and remote Aboriginal communities, the installation of back-up power generators for community stores, the Aboriginal Heritage Act legislative review project, implementation of savings measures of $0.6 million within AARD.

There is a reduction in 2014 funding of $0.6 million to Anangu Pitjantjatjara Yankunytjatjara Executive due to once-off funding approved for 2013-14. The estimated result in terms of the 2013-14 budget, the increase in the net cost of services in the 2013-14 budget to the 2013-14 estimated result of $0.5 million relates to the carryover of $1.4 million in expenditure in 2012-13 for the demand management energy education program.

In terms of AARD coming into the Department of State Development, in a nutshell it is this. The focus of the government's direction in Aboriginal policy over the last 18 months has been on economic development. In determining where AARD should sit in terms of machinery of government changes, we were faced with the decision of putting it into a service delivery agency, a social welfare agency or an economic agency. I very firmly was of the view that, congruent with all of our policy direction, we should put it into DSD as the premier economic development agency for the state, and I am very pleased to say that members of cabinet endorsed that proposition. All of our efforts will be in terms of economic development for Aboriginal communities in South Australia, be it through governance, business development or employment opportunities. That is, in a nutshell, the reasoning.

Dr McFETRIDGE: I want to thank the minister and his officers. Once again, minister, the time available because of no government questions is appreciated.

Ms REDMOND: Just following on from your response on that last question, minister, in terms of economic development, it has always seemed to me that the precursor to that must be education, and the precursor to education is getting the children to school at all but getting them to school in a healthy state. I am talking particularly about the APY lands and I wonder what programs are being directed at that particular problem.

When I was last up at the APY lands, I was told that by the time the kids reach school—and, of course, a lot of them do not have any English by the time they start school—three-quarters of them have some level of hearing impairment and one-quarter of them require hearing aids, which means they are so far behind the eight ball by the time they start school that they are almost destined never to catch up. While I agree with the idea of economic development being a key to a decent future, it seems to me that, unless we address that very early issue, we are never going to get there.

The Hon. I.K. HUNTER: I am fully in agreement with the member and I thank her for her question. Education is a foundational fundamental that we cannot run away from. Education and training to reducing Aboriginal disadvantage and enabling greater self-governance, self-determination and self-responsibility is fundamental. Again, I guess I am speaking outside of my brief here—this is really a question for the Minister for Education and Child Development—but we have focused on literacy and numeracy in Aboriginal education and working with the communities to lift school attendance. That has been driven, we know, from a commonwealth government perspective as well and we are working hand in hand with the commonwealth in these matters and there has been much progress in our efforts to improve educational outcomes for Aboriginal people.

Coming back to my own responsibilities, this was one of the fundamental requirements that I have set down in terms of regional authorities. I want regional authorities, which is about governance training, lifting the abilities of local communities to participate in the economy to a higher level, but I also want education to be a fundamental part of that. Not only do I want governance training to be done at a certificate level—certificate II or certificate III—I want to see open pathways into higher education for those who want it and that is why we will be involving the university sector in this process of regional authorities. We are going to invite every university in the state to be part of that process, and for those who want to take higher education, I want to have them see that as a real possibility for their lives. We are in total agreement.

The CHAIR: Thank you, minister. There being no further questions, I declare the examination of the proposed payments for the Department of State Development and administered items for the Department of State Development adjourned. Thank you to your advisers and to the committee.

At 16:02 the committee adjourned until Tuesday 22 July 2014 at 10:00.