Posts

Ineffective Use of Funds and Procurement Practices by the NIAA

,

During this Senate Estimate session, I inquired about the amount the National Indigenous Australians Agency (NIAA) spent on the unsuccessful Voice Referendum.  The figure was not available. I questioned whether that expenditure might have been more effectively used if directed straight to the communities and expressed concern about the efficacy of the spending.

I highlighted the substantial amounts spent on procurement, noting that Barbara Constructions received $613 million over an eight-year period, while Evolve FM was allocated nearly $497 million. Additionally, Price Waterhouse Coopers, disgraced consultants, received around $50 million.I asked for the total amount spent by the NIAA during that period, which was, of course, taken on notice. I also questioned why, despite billions being spent on NIAA programs, the gap was not being closed. It was reported that $9.5 billion had been spent on procurement. 

I asked whether there was any consideration being given to providing funds directly to communities, bypassing agencies that are not delivering effective results, and offering communities greater autonomy. I did not receive a direct answer to this query.

Transcript

Senator ROBERTS: Thank you, Chair. How much money did the NIAA spend on the doomed voice referendum?  

Dr Gordon: Good afternoon, Senator Roberts, I don’t have that exact figure with me, but we’ll be able to get that quickly this afternoon to you. 

Senator ROBERTS: If not, I’ll put it on notice. What difference would that money have made if provided directly to local Aboriginal communities to spend on their decisions and actually make a difference?  

Ms Guivarra:  Senator, although we don’t have the figures with us, you may be aware from previous testimony at other hearings that the majority of the expenditure on the referendum was actually with the Australian Electoral Commission. NIAA received a very small proportion of funding for issues associated with the referendum working group meetings and a civics and awareness campaign. Really, as I said, it was a very small proportion of the overall expenditure on the referendum.  

Senator ROBERTS: My concerns are not only with the amount of money spent but with the effectiveness of it. That’s why I asked the question about whether it would be better spent with the communities. Let’s continue. Looking at NIAA figures obtained through freedom of information—seeking moneys that NIAA spent—why are such large amounts provided to particular contractors? Barpa Construction Services has received almost $613 million.  

Ms Guivarra:  Senator, are you referring to overall expenditure under the Indigenous Advancement Strategy, not related to the referendum?  

Senator ROBERTS: No, overall money that NIAA has spent. I think the previous man said something like 1,200 grants or 2,000 grants.  

Mr Dexter: Senator, I think you might be referring to some information that was released under FOI to do with the Indigenous Procurement Policy over the last several months. The Indigenous Procurement Policy is a whole-of-Commonwealth policy that provides preferential procurement practices for registered Indigenous businesses. Barpa Construction did ring a bell with me as one of the businesses that were released as receiving a certain amount of money.  

Senator ROBERTS: $613 million, I’m told.  

Mr Dexter: I believe that was an amount that Barpa has received through the Indigenous Procurement Policy, which is not necessarily—in fact it’s Indigenous Advancement Strategy money. It’s a collection. The Indigenous Procurement Policy and the reporting under it is a collection of all of the contracts that organisation has received through the Indigenous Procurement Policy.  

Senator ROBERTS: Do you know what they were paid for? If it’s outside your accountability, that’s fine.  

Mr Dexter: No, Senator, I wouldn’t know. That that would need to be directed to the agency that engaged them.  

Senator ROBERTS: What about Evolve FM Proprietary Limited, which received almost $497 million?  

Mr Dexter: That would be in the same category, Senator. There were a number of FOI requests that were made recently which were asking for the aggregate amounts that Indigenous businesses had received through the Indigenous Procurement Policy over the life of the policy. The Indigenous Procurement Policy is a policy that’s been in place since 2015. It’s resulted in about $9.5 billion going to Indigenous businesses over that period of time. I think one of the questions that we got under the FOI was: ‘What are the top 100 businesses that have received money through that policy?’ Evolve and Barpa were both on that list.  

Senator ROBERTS: What about PricewaterhouseCoopers, disgraced consultants, who’ve received almost $50 million?  

Mr Dexter: I’d need to check, Senator, but I would hazard a guess that it was not PricewaterhouseCoopers itself but rather PwC’s Indigenous Consulting, which is a separate entity.  

Senator ROBERTS: Could you check on both those items, please.  

Mr Dexter: I’d be happy to take that on notice.  

Senator ROBERTS: What was the total amount of NIAA money spent over the eight-year period to companies providing contract services?  

Ms Guivarra:  We’ll have to get some other colleagues up for that, Senator.  

Ms Broun: Senator, could you repeat that question?  

Senator ROBERTS: What was the total amount that NIAA spent over that eight-year period to companies providing contract services? That’s the eight years to January 2024. Ms Jackson: I don’t know if we’ve got the eight-year amounts with us. We’d have the last couple of years, which we can go into if you like, but otherwise we can take it on notice. 

Senator ROBERTS: Take it on notice, thank you. Presumably it’s several millions of dollars or hundreds of millions of dollars. With that kind of money and other moneys being injected into Aboriginal wellbeing, why is the gap not being closed?  

Ms Broun: Senator, clearly the evidence is that there are gaps in outcomes for First Nations people. Closing the Gap is designed and has been designed with our partners, particularly the Coalition of Peaks but all states and territories, to address those gaps. I’m a bit confused by your question in terms of ‘there’s some spending here, so that would have changed the outcomes over there’, because obviously there are different outcomes depending on different areas of government as well. I’d like to be a bit more specific about your question.  

Senator ROBERTS: I’m concerned that there’s a huge amount of money being spent, and it’s going through agencies, but it’s not closing the gap. Why isn’t it closing the gap?  

Ms Guivarra:  Senator, the majority of your questions are related to what we’ve done under the Indigenous Procurement Policy. The original intention of the Indigenous Procurement Policy obviously was to support Indigenous businesses, because we know that in fact Indigenous businesses also have a higher employment rate for Indigenous people as well, First Nations people. As Mr Dexter has said, we’ve had a lot of success with that— over 65,000 contracts with a total value of $9.5 billion worth of business going to First Nations businesses as a result of that Indigenous Procurement Policy.  

Ms Broun: You may be aware that in fact the assistant minister launched a review of the Indigenous Procurement Policy back in December. We opened up a consultation process for that review. It closed, I think, around March of this year. We’re going to take the learnings from all of that and see what further improvements we can make to continue what, I think, has been a success story just in relation to the generation of Indigenous business and creation of Indigenous employment.  

CHAIR: Last question, Senator Roberts.  

Senator ROBERTS: You’re telling me there’s been a review of money given to Indigenous businesses. What I would like to know is: is there a review being conducted, or any idea of a review to be conducted, on spending of all kinds? Could that money instead be going directly to the communities to develop accountability and autonomy? Communities are screaming out for autonomy.  

Ms Guivarra:  Senator, as I indicated, in fact this review and consultation was really to see how we can further strengthen the Indigenous Procurement Policy because, as I mentioned, it has been very successful in awarding business to First Nations businesses and creating employment opportunities for First Nations people.  

Senator ROBERTS: Thank you. I acknowledged that and said: can you extend it to a review of all spending? And specifically can you send the money directly to the communities and bypass the agencies?  

Ms Guivarra:  The money associated with the Indigenous Procurement Policy is basically services contracted across all of government. Then it’s for each agency to decide whether they’re seeking to procure services from businesses, including First Nations businesses. The Indigenous Procurement Policy has a mandatory set-aside for First Nations businesses as part of that policy, which applies across government agencies. There has been interest in the community more broadly about what can be done to further to enhance that particular policy, and that’s the purpose of the review.  

CHAIR: Last question, Senator Roberts.  

Senator ROBERTS: Chair, I acknowledged that twice. But what I’d like to know is: is there any consideration being given to reviewing expenditure across NIAA, not just on procurement?  

Ms Broun: Senator, obviously spending on Indigenous outcomes—and this is why we have cross-portfolio here—cuts across all of government to deliver outcomes in specific portfolio areas and specific policy areas. In NIAA we have the IAS, a large part of which has been employment services. Another part is ranger services. To your point, that goes particularly to communities on the ground, so it is focused on those sorts of things. Then there are a whole range of other programs that are supplementary to mainstream funding. But these are services that citizens are entitled to. It depends how you quantify the spending, but the different programs are there to deliver different outcomes for Indigenous people. We could go into the programs that are specifically designed with community and go directly to community, because there are a lot of those sorts of programs as well. They’re not all being delivered through departments, but on the ground as well.  

Senator ROBERTS: Thank you. We’ll continue this in the future.  


/by

Billions Spent and “Closing the Gap” Remains. Why?

,

At the recent Senate Estimates, I asked Senator McCarthy about her knowledge of the extensive achievements of Indigenous peoples, to which she affirmed her awareness. However, she was unable to explain why the gap remained despite the billions of dollars being spent to achieve this. Senator McCarthy declined to commit to an audit, despite it being evident that the numerous Indigenous agencies were the cause not the solution to the issue.

Senator McCarthy showed no interest in discussing the substantial funds spent by the NIAA in contracts that seemed to make some individuals wealthy yet did not assist in closing the gap efforts. Once more, I called for a proper and thorough audit and review of the massive spending that failed to improve the quality of life for Aboriginal communities.

I reiterated the necessity for funds to be directly paid to communities, bypassing agencies that have essentially become part of the Aboriginal industry, draining much needed resources from Aboriginal communities.

Transcript | Session 1

Senator ROBERTS: Minister, do you agree with the reality that Aboriginals and Torres Strait Islanders are hugely talented? They are top in NRL, AFL, arts, business, science and sports; and, in politics, there is a higher proportion of Aboriginals in federal parliament than across Australia.

Senator McCarthy: I do.

Senator ROBERTS: I thought you would; I was hoping you would. I have driven to all Cape York communities twice, and some three times. I’ve flown or boated into Torres Strait Island communities. Minister, do you agree that people in communities care for each other?

Senator McCarthy: I do. Chair, could I ask about the relevance of this to the budget questioning?

Senator ROBERTS: I am getting to that now. Thank you, Minister. An overwhelming majority of Australians in every jurisdiction, except this Australian Capital Territory ivory tower, disconnected as it is from Australians, voted in the Voice referendum that Aboriginals and islanders already have plenty of voices, in addition to the voices of the fine Aboriginal senators in this room. I note that all of them are women.

CHAIR: Senator Roberts, I am struggling to identify the relevance of this question to estimates.

Senator ROBERTS: Aboriginals and islanders have many other voices. Minister, these include registered Aboriginal and Torres Strait Islander corporations, 3,521, including 243 native title bodies; 12,966 charities and not-for-profit commissions providing aid to Aboriginals; land councils, 48, not including state land councils; regional councils, 35; Aboriginal—

CHAIR: Senator Roberts, you will need to come to a question because you have gone through so much information and opinion that it will be impossible to discern what the question is. Refrain from making a lengthy statement with excessive commentary, and try and put your question. Thank you, Senator Roberts.

Senator ROBERTS: Minister, can you consider the possibility that this morass of bodies, often with overlapping, disjointed responsibility, is part of the core problem, not the solution?

Senator McCarthy: No, I don’t, Senator Roberts.

Senator ROBERTS: I hope you agree that patronising paternalism and top-down approaches fail to get buy-in of people on the ground, Minister. Isn’t that why such approaches fail, top-down?

Senator McCarthy: I will say that your question is quite patronising and top-down, Senator Roberts.

Senator ROBERTS: Failing to get buy-in, top-down approaches fail to get accountability. Is that correct?

Senator McCarthy: I’ve answered your question. Your questions are very patronising. There is no question here that is related to the budget, Chair.

Senator ROBERTS: The Closing the Gap annual report is very clear. There is the total failure in closing the gap, with only four of 17 targets being met, or goals achieved, and some actually worsening. I’m sure you would acknowledge that symbolic gestures and overreach promises have not achieved better outcomes for Aboriginals and Torres Strait Islanders.

Senator McCarthy: I reject the assertion that symbolism is not important, Senator Roberts. I come from a very strong people, of the Yanyuwa Garrwa people. We’re enormously proud not only of our language but of our history and our current status as artists, dancers and singers. In fact, we have the Malandarri Festival coming up. We celebrate culture and symbolism every day, every year; so I reject your question.

Senator ROBERTS: Perhaps I didn’t explain my question clearly enough.

CHAIR: Senator Roberts, I couldn’t discern a question, apart from the commentary in it. Please come to your question.

Senator ROBERTS: My question was about acknowledging that symbolic gestures are not closing the gap. When I have travelled across communities in Far North Queensland and in the Northern Territory, listening to local Aboriginal people, I found that they know the solution. I was told that there are many people who relied on keeping the gap wide because those people were working the system and their livelihood depended on the ongoing failure of Closing the Gap programs. I recall a Badu Island councillor—I might have told you this before, Minister—who told us that the Closing the Gap campaign ensures that money continues to go into the pockets of consultants, activists, lawyers, bureaucrats, contractors, politicians, academics and advocates, rorting the system of Aboriginal welfare grants and programs to entrench the gap. This hurts the people in the communities. That’s my real concern here—the people in the communities. The Aboriginal industry depends on the gap being maintained, not closed. Minister, are you aware of this?

Senator McCarthy: Senator Roberts, I will say this to you: the whole point behind Closing the Gap is so that the Australian parliament and the Australian community can be aware of the discrepancies between the life expectancy of First Nations people and non-Indigenous Australians, and the unemployment gap, the education gap and the employment gap. That is the whole point of Closing the Gap. There are many levels and many layers of that. The important one that you are a part of is the institution that you are sitting in right now, and that is to hold to account whether Closing the Gap is working or not and whether the gaps can be filled in different ways. Your representation of Queensland as a senator is part of that. Your questions in this Senate estimates hearing to the relevant departments are absolutely critical. I reject outright that Closing the Gap in itself, in terms of our work with the peak organisations, is irrelevant. It is very relevant. It is an imperfect structure, but it is one that is trying to do its best in terms of trying to improve the lives of First Nations people in our country in a collective and transparent way, and it is one that is held highly by this institution called the Australian parliament.

Senator ROBERTS: Minister, I treat my constituents the same, regardless of their background. I listen to them. Many people of Aboriginal descent are telling me that the system is failing; that the Closing the Gap system, the morass of agencies, is actually hindering the closing of the gap.

Senator McCarthy: Senator, you are here at Senate estimates to ask those very agencies those very questions. You may have an opinion dedicated—

Senator ROBERTS: No, it’s not my opinion; I’m telling you my constituents’ opinions.

Senator McCarthy: You may have a view as a result of your constituents, but your question as to what is happening can go directly to an agency. What is the question that constituent is asking you to ask?

Senator ROBERTS: Minister, this government has continually refused to authorise an audit of government spending in this sector. The morass of agencies is doing more damage than—

Senator McCarthy: So those are the words of your constituent: the ‘morass’ and the ‘damage’?

Senator ROBERTS: What is being hidden? Why won’t you conduct an audit of these agencies to help the people in the communities?

Senator McCarthy: We have the Australian National Audit Office. In this institution, high levels of audits are constantly taking place. This Senate estimates process, whether you understand it or not, is another form, and a very important form, of transparency and accountability. You have every agency before you. The minister is trying not to speak to enable you the opportunity to directly ask the questions of the agencies. You have the power to represent your constituency and, Senator Roberts, in the couple of minutes in which you are asking these questions, you are failing to do that.

Senator ROBERTS: That may be your opinion, Minister. Let me tell you that in my questioning of the Australian National Audit Office, they don’t do specific audits; they do overall audits of processes, and that’s it.

CHAIR: Senator Roberts, come to your question.

Senator ROBERTS: I am just answering the minister. Will this government accept the recommendations of the Productivity Commission to move away from bureaucracy at a high level; in other words, from making uninformed decisions from an ivory tower, and do an audit?

Senator McCarthy: It depends on the Productivity Commission report you are referring to, Senator Roberts. The Productivity Commission is there to give advice on how processes occur. The most recent productivity commission that I recall was on a First Nations area and collaboration, and the voices of First Nations people that need to be heard. The Australian people rejected that at the referendum. We have to ensure that the status quo is better.

Senator ROBERTS: When will this group accept the advice from grassroots Indigenous groups such as Western Australia’s Empowered Communities and its chair Mr Ian Trust as to what works and what does not work based on real life experiences and successes? When will it get away from the top-down, patronising, paternalistic approach of so many agencies and get down to what people need?

CHAIR: Senator Roberts, you are putting lengthy statements and commentary into questions.

Senator ROBERTS: When will you start addressing the needs of people in the communities?

Senator McCarthy: Senator Roberts, you said as much in your preamble. You have a responsibility to ask questions of the agencies here—

Senator ROBERTS: And the government.

Senator McCarthy: And the government. You used the example of an individual from far Western Australia, but you didn’t state the purpose behind what they raised. Senator, if you really wanted to improve the lives of First Nations people you would ask questions diligently, and you would do so with the agencies that are relevant to that question.

CHAIR: Thank you, Senator Roberts.

Senator ROBERTS: I have faith; why doesn’t the government have faith in Aboriginal—

Transcript | Session 2

Senator ROBERTS: Thank you, Chair. How much money did the NIAA spend on the doomed voice referendum?

Dr Gordon: Good afternoon, Senator Roberts, I don’t have that exact figure with me, but we’ll be able to get that quickly this afternoon to you.

Senator ROBERTS: If not, I’ll put it on notice. What difference would that money have made if provided directly to local Aboriginal communities to spend on their decisions and actually make a difference?

Ms Guivarra: Senator, although we don’t have the figures with us, you may be aware from previous testimony at other hearings that the majority of the expenditure on the referendum was actually with the Australian Electoral Commission. NIAA received a very small proportion of funding for issues associated with the referendum working group meetings and a civics and awareness campaign. Really, as I said, it was a very small proportion of the overall expenditure on the referendum.

Senator ROBERTS: My concerns are not only with the amount of money spent but with the effectiveness of it. That’s why I asked the question about whether it would be better spent with the communities. Let’s continue. Looking at NIAA figures obtained through freedom of information—seeking moneys that NIAA spent—why are such large amounts provided to particular contractors? Barpa Construction Services has received almost $613 million.

Ms Guivarra: Senator, are you referring to overall expenditure under the Indigenous Advancement Strategy, not related to the referendum?

Senator ROBERTS: No, overall money that NIAA has spent. I think the previous man said something like 1,200 grants or 2,000 grants.

Mr Dexter: Senator, I think you might be referring to some information that was released under FOI to do with the Indigenous Procurement Policy over the last several months. The Indigenous Procurement Policy is a whole-of-Commonwealth policy that provides preferential procurement practices for registered Indigenous businesses. Barpa Construction did ring a bell with me as one of the businesses that were released as receiving a certain amount of money.

Senator ROBERTS: $613 million, I’m told.

Mr Dexter: I believe that was an amount that Barpa has received through the Indigenous Procurement Policy, which is not necessarily—in fact it’s Indigenous Advancement Strategy money. It’s a collection. The Indigenous Procurement Policy and the reporting under it is a collection of all of the contracts that organisation has received through the Indigenous Procurement Policy.

Senator ROBERTS: Do you know what they were paid for? If it’s outside your accountability, that’s fine.

Mr Dexter: No, Senator, I wouldn’t know. That that would need to be directed to the agency that engaged them.

Senator ROBERTS: What about Evolve FM Proprietary Limited, which received almost $497 million?

Mr Dexter: That would be in the same category, Senator. There were a number of FOI requests that were made recently which were asking for the aggregate amounts that Indigenous businesses had received through the Indigenous Procurement Policy over the life of the policy. The Indigenous Procurement Policy is a policy that’s been in place since 2015. It’s resulted in about $9.5 billion going to Indigenous businesses over that period of time. I think one of the questions that we got under the FOI was: ‘What are the top 100 businesses that have received money through that policy?’ Evolve and Barpa were both on that list.

Senator ROBERTS: What about PricewaterhouseCoopers, disgraced consultants, who’ve received almost $50 million?

Mr Dexter: I’d need to check, Senator, but I would hazard a guess that it was not PricewaterhouseCoopers itself but rather PwC’s Indigenous Consulting, which is a separate entity.

Senator ROBERTS: Could you check on both those items, please.

Mr Dexter: I’d be happy to take that on notice.

Senator ROBERTS: What was the total amount of NIAA money spent over the eight-year period to companies providing contract services?

Ms Guivarra: We’ll have to get some other colleagues up for that, Senator.

Ms Broun: Senator, could you repeat that question?

Senator ROBERTS: What was the total amount that NIAA spent over that eight-year period to companies providing contract services? That’s the eight years to January 2024.

Ms Jackson: I don’t know if we’ve got the eight-year amounts with us. We’d have the last couple of years, which we can go into if you like, but otherwise we can take it on notice.

Senator ROBERTS: Take it on notice, thank you. Presumably it’s several millions of dollars or hundreds of millions of dollars. With that kind of money and other moneys being injected into Aboriginal wellbeing, why is the gap not being closed?

Ms Broun: Senator, clearly the evidence is that there are gaps in outcomes for First Nations people. Closing the Gap is designed and has been designed with our partners, particularly the Coalition of Peaks but all states and territories, to address those gaps. I’m a bit confused by your question in terms of ‘there’s some spending here, so that would have changed the outcomes over there’, because obviously there are different outcomes depending on different areas of government as well. I’d like to be a bit more specific about your question.

Senator ROBERTS: I’m concerned that there’s a huge amount of money being spent, and it’s going through agencies, but it’s not closing the gap. Why isn’t it closing the gap?

Ms Guivarra: Senator, the majority of your questions are related to what we’ve done under the Indigenous Procurement Policy. The original intention of the Indigenous Procurement Policy obviously was to support Indigenous businesses, because we know that in fact Indigenous businesses also have a higher employment rate for Indigenous people as well, First Nations people. As Mr Dexter has said, we’ve had a lot of success with that—over 65,000 contracts with a total value of $9.5 billion worth of business going to First Nations businesses as a result of that Indigenous Procurement Policy.

Ms Broun: You may be aware that in fact the assistant minister launched a review of the Indigenous Procurement Policy back in December. We opened up a consultation process for that review. It closed, I think, around March of this year. We’re going to take the learnings from all of that and see what further improvements we can make to continue what, I think, has been a success story just in relation to the generation of Indigenous business and creation of Indigenous employment.

CHAIR: Last question, Senator Roberts.

Senator ROBERTS: You’re telling me there’s been a review of money given to Indigenous businesses. What I would like to know is: is there a review being conducted, or any idea of a review to be conducted, on spending of all kinds? Could that money instead be going directly to the communities to develop accountability and autonomy? Communities are screaming out for autonomy.

Ms Guivarra: Senator, as I indicated, in fact this review and consultation was really to see how we can further strengthen the Indigenous Procurement Policy because, as I mentioned, it has been very successful in awarding business to First Nations businesses and creating employment opportunities for First Nations people.

Senator ROBERTS: Thank you. I acknowledged that and said: can you extend it to a review of all spending? And specifically can you send the money directly to the communities and bypass the agencies?

Ms Guivarra: The money associated with the Indigenous Procurement Policy is basically services contracted across all of government. Then it’s for each agency to decide whether they’re seeking to procure services from businesses, including First Nations businesses. The Indigenous Procurement Policy has a mandatory set-aside for First Nations businesses as part of that policy, which applies across government agencies. There has been interest in the community more broadly about what can be done to further to enhance that particular policy, and that’s the purpose of the review.

CHAIR: Last question, Senator Roberts.

Senator ROBERTS: Chair, I acknowledged that twice. But what I’d like to know is: is there any consideration being given to reviewing expenditure across NIAA, not just on procurement?

Ms Broun: Senator, obviously spending on Indigenous outcomes—and this is why we have cross-portfolio here—cuts across all of government to deliver outcomes in specific portfolio areas and specific policy areas. In NIAA we have the IAS, a large part of which has been employment services. Another part is ranger services. To your point, that goes particularly to communities on the ground, so it is focused on those sorts of things. Then there are a whole range of other programs that are supplementary to mainstream funding. But these are services that citizens are entitled to. It depends how you quantify the spending, but the different programs are there to deliver different outcomes for Indigenous people. We could go into the programs that are specifically designed with community and go directly to community, because there are a lot of those sorts of programs as well. They’re not all being delivered through departments, but on the ground as well.

Senator ROBERTS: Thank you. We’ll continue this in the future.

/by