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CHAPTER 1
INTRODUCTION
Terms of Reference
1.1
The Senate referred the following matter to the Senate Standing
Committee on Community Affairs on 15 September 2008:
The levels of Federal and Northern Territory Government
expenditure on Indigenous affairs and social services in the Northern
Territory, including expenditure on services for families, children and people
with disabilities in the Northern Territory, with particular reference to:
(a) the
level of service delivery and of outcomes achieved in Indigenous communities in
the Northern Territory in relation to the expenditure of both Federal and
Northern Territory monies; and
(b) whether
the Northern Territory Government’s expenditure of goods and services tax
receipts accurately reflects the Commonwealth Grants Commission’s funding
formula for the expenditure of such receipts by program, by location, and by
intended service recipient for meeting disadvantage and regional need.
Background
1.2
The terms of reference reflect claims made by the President of the
Northern Territory Council of Social Services (NTCOSS) and others that
successive NT Governments have been “misspending” billions of dollars in
Commonwealth funding allocated to the Northern Territory through the
Commonwealth Grants commission process.
1.3
As Mr Hansen, the President of NTCOSS makes clear in an interview with
the ABC, he does not suggest that any dishonesty or corruption is involved but
rather that money allocated to the Territory reflecting its high indigenous
population, the low living standards of that population and the additional cost
that remoteness imposes on the provision of services, have not been spent to
address those issues.[1]
1.4
The committee’s report considers the matters raised in its terms of
reference in reverse order. It is important that readers have a clear grasp of
the Commonwealth Grants Commission’s (CGC) processes and the basis on which
Goods and Services Tax revenues (and some other funding) are distributed and
the magnitude of funds available to the Northern Territory before considering
how that revenue is spent. Thus Chapter 2 examines the processes of the
Commonwealth Grants Commission, the methods used to determine the allocation of
revenue to each State and Territory and the specific outcome for the Northern
Territory.
1.5
Chapter 3 examines recent Northern Territory budgets and summarises actual
levels of expenditure on services to the indigenous population. The committee
is aware that this is a very thoroughly traversed area and has relied on
existing research. It is also sensitive to the responsibilities of the Senate
Select Committee on Regional and Remote Indigenous Communities. Chapter 4
considers recent changes in the administration of Indigenous affairs which are
directed to the issues raised by this inquiry.
Conduct of the Inquiry
1.6
The committee is required to report to the Senate by 4 December 2008.
1.7
Advertisements seeking submissions were placed in the national media and
interested parties were also contacted directly and invited to contribute to
the inquiry. A list of those who made submissions to the committee is attached
to this report at Appendix 1. Two public hearings were conducted: in Darwin on
30 October and in Canberra on 11 November 2008. A list of witnesses who
appeared at the committee's hearings is at Appendix 2.
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