Local government is the biggest employer of Aboriginal and Torres Strait Islander people, but the Federal Budget has made it harder to maintain that position according to leading local government research organisation the Australian Centre of Excellence for Local Government (ACELG).
Research by the University of Technology, Sydney-based centre has found 5 per cent of the local government workforce (192,500) is Aboriginal and Torres Strait Islander people. This surpasses both state and territory governments (2 per cent), the federal government (1.5 per cent) and the private sector (1.3 per cent).
ACELG and UTS Centre for Local Government (CLG) Director Professor Roberta Ryan said budget decisions, like the abolition of the COAG Reform Council, have arrived alongside a report by the same body showing Aboriginal and Torres Strait Islander unemployment rising faster than the non-indigenous population.
The Reform Council report says Australia is not on track to halve the gap in employment outcomes by 2018, and in over four years, employment outcomes for Aboriginal and Torres Strait Islander people have not improved in any jurisdiction – in fact, the gap has widened or did not change.
"The budget has missed a significant opportunity to consider Australian local government as a major employer of Aboriginal and Torres Strait Islander people," Associate Professor Ryan said.
"Our research confirms that local governments are particularly important employers in rural and regional areas, yet the sector needs continued support to plan for Aboriginal and Torres Strait Islander employees. An opportunity exists to invest in, educate, and strengthen the capability of the local government workforce to enable this."
More than $534 million in cuts to Aboriginal and Torres Strait Islander government and agency programs are mooted in the 2014-15 Budget. Added to this are planned changes to Newstart such as a six-month waiting period for people under 30 and a shift to the lower Youth Allowance for those under 25.
"Such changes must percolate down to local communities, places and regions," Associate Professor Ryan said.
"On top of this, plans by the government to dissolve the COAG Reform Council make it harder for local governments to contribute to the Aboriginal and Torres Strait Islander employment in the public sector target. It is unclear what mechanisms the federal government has planned in the absence of COAG for facilitating critical intergovernmental dialogue on this important issue.
"ACELG research shows that the economic strength of regions is increased by the capacity of local governments. It's a straightforward equation: Strengthening local government equals strengthening the regions and Aboriginal and Torres Strait Islander communities."
Other research initiatives by ACELG (and partners Local Government Managers Australia) have contributed knowledge to this issue, including the National Workforce Strategy, an Indigenous Employment Position Paper and annual national Local Government Indigenous Employment roundtables.