Chapter 8
The Operation of the ILC and the Land Fund - s.206(d)(vii)
The Land Fund
8.1 The Land Fund was originally established in recognition of the fact
that many indigenous people would be unable to benefit from the Mabo (No
2) decision; in various circumstances they could no longer establish their
native title. Accordingly, in the Second Reading speech of the ATSIC Amendment
Bill (to establish, in part, the new Land Fund) Prime Minister Keating
described the purpose of the Land Fund and the Indigenous Land Corporation
(ILC) as:
… to enable indigenous people to acquire land and to manage and
maintain it in a sustainable way to provide economic, social and cultural
benefits for themselves and for future generations of their peoples.
[1]
8.2 An amount of $200 million had been appropriated to the (original)
Land Fund in the 1994-95 Budget. This allocation was administered by the
Department of Prime Minister and Cabinet. The second allocation to the
Fund (this time to the new Fund) occurred in the following financial year,
on 4 July 1995. This amount represented the first of nine indexed annual
allocations of $121 million from 1995-96 through to 2003-04. Each year
the amount is to be indexed to maintain value in 1994-95 dollar terms.
The bulk of this allocation is retained in the Fund to build the capital
base.
8.3 Amounts are drawn down each year to the ILC for the purchase of land
and the management of indigenous-held land. The first amount ($25 million)
was drawn down to the ILC in June 1995. Notably, in 1995-96 and 1996-97,
the ILC shared the total drawdown (of some $45-46 million) with ATSIC.
In agreement with the ILC, ATSIC retained some land management responsibilities
under its Land Acquisition and Maintenance Program (LAMP) until 1 July
1997.
8.4 Allocations by the Commonwealth to the Land Fund will cease in June
2004 when it is expected that the Fund will be self-sustaining. The target
figure for the Fund is specified in Part 4A of the ATSIC Act, and is approximately
$1106 million. (There is provision in the ATSIC Act (s.193AA(1)) for a
one-off allocation to the Fund in June 2004 should it fail to reach the
target figure.) Amounts will continue to be drawn down to the ILC indefinitely.
The ILC
Establishment
8.5 The ILC is an independent statutory authority that commenced operation
on 1 June 1995, having been established under s.191A of the ATSIC Act.
Its role is to assist indigenous Australians to acquire and manage land
in a sustainable way to obtain economic, environmental, social and cultural
benefits pursuant to s.191B. Funding for operations of the ILC is provided
from the Land Fund pursuant to Division 10 of the ATSIC Act.
8.6 The ILC Head Office is based in Adelaide. Land acquisition and land
management staff are also based at the ILC's three divisional offices
in Brisbane, Adelaide and Perth. At 30 June 1998 the ILC employed 35 staff.
Functions
8.7 The ILC has land acquisition functions pursuant to s.191D of the
ATSIC Act, which include:
- purchasing land for the purpose of making land grants to Aboriginal
and Torres Strait Islander corporations;
- granting land so acquired to Aboriginal or Torres Strait Islander
corporations;
- granting money to Aboriginal or Torres Strait Islander corporations
to acquire land; and
- acting as guarantor for loans to Aboriginal or Torres Strait Islander
corporations so that they may acquire land. [2]
8.8 The ILC gives priority to acquiring land which has cultural significance
for indigenous peoples. [3] Both the ILC's National
Strategy and Guidelines commit the authority to the acquisition of land
for indigenous people who are unlikely to be recognised as native title
holders or to have other legislative mechanisms for land acquisition.
[4] The ILC's Annual Report 1997-98 states:
The ILC has received more than 350 specific proposals to purchase land.
The ILC Board has considered and approved the purchase of 77 properties,
while the remainder are at various stages in the assessment process.
Land has been purchased strategically in each State and in the Northern
Territory. In just over two years, the ILC has acquired 45 parcels of
land. [5]
8.9 The ILC has purchased a range of tenures, including a variety of
pastoral leaseholds; the majority of properties purchased were freehold.
In conformity with ILC policy, all purchases were achieved at or near
the independent market valuation. The majority was purchased below the
valuation price.
8.10 The ILC divests properties it has purchased to Aboriginal or Torres
Strait Islander corporations representing, as far as possible, the traditional
owners of the land. The ILC policy is to divest title within 12 months,
although this is not always possible; the ILC is not permitted to divest
title to individuals.
Land Management
8.11 Pursuant to s.191E of the ATSIC Act, the ILC's land management functions
include:
- undertaking or arranging for land management activities in relation
to indigenous held land under agreement with landholders;
- making grants of money for land management activities on indigenous
held land;
- making loans for land management activities on indigenous held land;
and
- guaranteeing loans made for land management activities on indigenous
held land. [6]
8.12 On 1 July 1997 the Indigenous Land Corporation (ILC) took over sole
responsibility for management of indigenous held land; a responsibility
that had previously been shared with ATSIC. The land management functions
of the ILC, prescribed by s.191E of the ATSIC Act, are designed to ensure
that the ILC develops a strategic approach to assisting indigenous land
managers to manage their land in sustainable ways. The ILC is now responsible
for the management of land historically held by or on behalf of indigenous
people, as well as land acquired by the ILC. [7]
8.13 The ILC's policy on land management is based on building partnerships
with indigenous landowners and other Commonwealth and State agencies with
land management responsibilities.
8.14 The policy for the transition period over the two years from July
1997 was outlined in the Guide to the First Land Management Policy 1997-1999
(FLMP). The ILC also sought information from indigenous landowners through
the National Land Use/Land Management Survey in order to help develop
a National Land Management Response based on a strategic approach to sustainable
management of indigenous-held land. The FLMP was due to end on 30 June
1999. A new policy will be implemented based on the results of the National
Land Use/Land Management Survey and the ILC's consultations.
8.15 The responsibility for land management involves considerable challenges
for the ILC. In the ILC's Annual Report 1997-98, David Ross stated:
Much has been made of the large areas of land held by indigenous people
in remote areas of Australia, but the land degradation, environmental
problems, and difficulties faced by Aboriginal landowners trying to
sustain enterprises on marginal land are often conveniently overlooked
by those who oppose efforts to redress indigenous dispossession, or
who seek to score cheap political points.
Indigenous landowners must have equitable access to the resources available
to address these problems, whether provided by the ILC or by `mainstream'
agencies. The ILC has therefore placed a high priority on coordination
with government departments and agencies, conservation organisations
and indigenous organisations to make sure that funds and expertise are
used to maximum effect.
A particular challenge for the ILC is the management of indigenous-held
pastoral land and other land-based rural enterprises. Many of these
pastoral operations are now, at best, marginal and the ILC cannot continue
the past practice of providing funding to keep non-viable properties
running. A thorough assessment of these properties is now being conducted.
Those that can become commercially viable will be given the assistance
they need to become self-sufficient and where this is not possible,
the ILC will help landowners to research and develop alternative land
uses. The ILC is also looking to address commercial needs by establishing
a new subsidiary which will focus specifically on the skills and expertise
needed to support indigenous land-based enterprises. [8]
8.16 The ILC is required to give priority to adopting sound management
practices in regard to the land and environment and making grants of money
only where there is no practical alternative. It is also required to involve
indigenous landholders directly in land management activities. [9]
The Committee's Duty
8.17 In the conduct of the current inquiry, and pursuant to s.206(d)(vii),
the Committee is required to inquire into, and report on, the operation
of the Indigenous Land Corporation and the Land Fund.
Footnotes
[1] House of Representatives Hansard 28 February
1995, p.1108.
[2] Indigenous Land Corporation Annual
Report 1997-98, p.12.
[3] National Indigenous Land Strategy 1996-2001
ILC 1996, p.5.
[4] National Indigenous Land Strategy 1996-2001
ILC 1996, pp.5,13,14; Indigenous Land Corporation Guidelines ILC
August 1996, p.17.
[5] Indigenous Land Corporation Annual Report
1997-98 op.cit., p.7.
[6] Indigenous Land Corporation Annual Report
1997-98 op.cit., p.13.
[7] Indigenous Land Corporation Annual Report
1997-98 op.cit., p.29.
[8] Indigenous Land Corporation Annual Report
1997-98 op.cit., pp.7, 8.
[9] Indigenous Land Corporation Annual Report
1997-98 op.cit., p.13.
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