Introduction

The start of the new millennium is an historic opportunity for Australia, as a nation, to achieve reconciliation with its original inhabitants, the Aboriginal and Torres Strait Islander peoples. In the 211 years since colonisation Australia's indigenous people have endured tremendous hardships and continue to be both socially and economically disadvantaged. Recognising the injustices of the past and addressing the results of those injustices is essential to the reconciliation process.  The Government has asked the Council for Aboriginal Reconciliation to develop a national document of reconciliation, which will recognise the prior occupation of the continent by indigenous people and their place in the Australian community. Governments, however, can only do so much and ultimately it is up to individual citizens to make reconciliation succeed. Australia is a very diverse nation with people from over 200 different national backgrounds now calling it home, and they must try to understand one another's culture and history. Without that understanding Australia cannot continue to grow as a strong, proud nation able to grasp the opportunities and challenges of the new millennium. The Liberal-National Party Coalition Government, of which I am a member, was re-elected for a second three-year term in October last year, and we have made reconciliation a priority for this new term. As Minister for Aboriginal and Torres Strait Islander Affairs I am strongly committed to reconciliation and I believe an essential part of the process is addressing the appalling problems of disadvantage faced by many of Australia's indigenous people. We must provide equality of opportunity for all Australians no matter their racial, ethnic or religious background.  It is for this reason the Australian Government is continuing to pursue better outcomes for indigenous Australians by focussing on the key areas of health, housing, education, employment and economic development.

A New Approach
To explain the Coalition Government's approach it is important to go back to March 1996 when we were elected after 13 years of continuous Labor Party Government. We found that the previous government had allocated sufficient money to indigenous affairs but the outcomes from that expenditure were very poor. Labor administrations spent about $16 billion on indigenous affairs during their 13 years of government which is a considerable amount considering that the indigenous population at the time was 260,000 people (now 386,000). Despite this level of expenditure, conditions for indigenous Australians did not markedly improve. When we were elected to office Australians, both indigenous and non-indigenous, complained about what they saw as the wastage of those past 13 years and demanded better outcomes.  We adopted a new outcome-driven approach but have been criticised. In fact there is much misinformation being spread by some. It has been claimed, for example, that we have cut indigenous expenditure when, in fact, we have increased it. The current Coalition Government will actually spend almost $700 million more in real terms on indigenous-specific programmes during its first four years in office than was spent in the last four years of the previous Labor Government. This year alone the Government is spending $1.89 billion on indigenous-specific programmes, which is more than any previous government has spent in a single year.  Interestingly community people, the indigenous men, women and children I meet in communities around the country, often congratulate me on the Government's approach.  Despite this community support criticism from some quarters continues both nationally and internationally. I make the observation that most of those who criticise were appointed under the previous government and seem determined to oppose any change in the way indigenous affairs is approached. 

The philosophy behind the Coalition Government's approach is that while people remain dependent on welfare, their future is limited. Sadly that is the situation we inherited when we came to office with 60 percent of indigenous Australians partially dependent on welfare and over 50 percent totally dependent. I firmly believe that indigenous Australians must be given the opportunity to control their destiny and to do that they must be assisted to attain economic independence. That is why the Government is putting a lot of effort and resources into economic development programmes. We are, for example, in the process of establishing Indigenous Business Australia – a new organisation that will generate jobs and create business opportunities. Education and meaningful employment will also help break the poverty cycle by freeing many indigenous people from the shackles of welfare. The success of this approach can be seen from the fact that when we came to office there were just 800 indigenous trainees or apprentices, now there are over 6,000.  Another of the Government's key initiatives, and one that was criticized when it was introduced, was to send the Australian Army into remote communities where there was drastic need for improvements in basic living conditions. The army assisted in the provision of sewerage, clean drinking water, electricity, roads, landing strips, garbage dumps and importantly, housing. This is a five year, $50 million programme.  It is providing immediate, practical "on the ground" results and on-going education and training to community residents. It has been warmly welcomed by those communities.   About 30 percent of indigenous Australians live in remote areas, thousands of miles from major centres.

Housing
Decent housing is the basis of good environmental health and the Government is determined to see significant improvements in outcomes for indigenous Australians. Just under $3 billion has been spent over the last 10 years on indigenous housing yet many people still live in appalling conditions.  There are around 28,000 government-funded indigenous houses in Australia. About 12,000 are in remote and isolated locations. Presently 1,100 to 1,200 new homes are being built each year. Home ownership among indigenous Australians is only 33 percent compared with 71 percent in the wider community. About 65 percent of indigenous households are rented dwellings with 38 percent in public rental housing compared with nearly five percent for the total population. In remote areas 77 percent of all indigenous households are rented dwellings.  A large number of people live in improvised dwellings in remote and isolated areas and this could account for many of the remaining 23 percent who are not in rental accommodation.
Since 1990 the Aboriginal and Torres Strait Islander Affairs Commission (ATSIC) has been mainly responsible for managing Commonwealth indigenous-housing funds.  ATSIC is a Commonwealth Government agency that acts independently of government but is the Government's principal source of indigenous advice. It administers a diverse range of Commonwealth programmes for Indigenous Australians and is overseen by an elected indigenous Board.  The other Commonwealth funding source for housing has been the Department of Family and Community Services which has, between 1990-91 to 1997-98, provided  $91 million every year to the States and Territories through the Aboriginal Rental Housing Programme. The State and Territory contribution to Indigenous Housing over the past decade was $130 million. During that same time ATSIC spent $544 million on the construction or purchase of houses. Another $88 million was spent on upgrading or renovating houses and $522 million was spent on capital costs of housing-related infrastructure such as the provision of water, electricity and sewerage facilities.  About $386 million was spent on recurrent costs of maintaining housing and infrastructure and municipal services while $14 million was spent on research and programme support activities such as the Housing/Infrastructure Needs Survey and Centre for Appropriate Technology. These are impressive spending figures considering indigenous people make up only two percent of the Australian population.  However despite that level of expenditure, housing outcomes have not been good. Homelessness among indigenous families is 20 times more common than in the wider community and overcrowding four times more common. 40 percent of indigenous housing in remote areas is uninhabitable. This severely impacts on the health of indigenous people, especially children.

ATSIC has tried to address these problems but has met with limited success. This has been partly because ATSIC funding has been provided on an historical basis rather than on a needs basis. There has been a substantial problem with rent collection (or lack there of) and subsequently poor maintenance of existing housing stock. Tragically almost half of all remote houses are uninhabitable. Economic modelling by the Northern Territory Government and ATSIC data reveals about 40 percent of houses owned or administered by indigenous community housing organisations require either major repairs or replacement. Indigenous houses in remote areas often become uninhabitable in less than eight years. The shortage of adequate houses in these areas has resulted in the severe overcrowding mentioned earlier.  The Indigenous community housing effort is too fragmented and badly needs to shift to an outcome focus. The Government is looking at a number of proposals to improve outcomes. The important thing is to achieve better outcomes while maintaining indigenous involvement and direction in programme delivery. It is worth noting that back in 1994 the then Labor Government took indigenous health management off ATSIC because of poor outcomes. Today indigenous health, through the National Aboriginal Community Controlled Health Organisation (NACCHO), remains under indigenous direction although not under ATSIC control.

Time to Evaluate
It defies logic to suggest that improved outcomes can be achieved while continuing to run programmes that have a record of poor results or failure. Both the Coalition Government and the previous Labor Government have put enormous resources into addressing indigenous disadvantage.  Over the past 10 years the Commonwealth has provided $15.3 billion in indigenous-specific funding.  In addition to the $3 billion provided for indigenous housing and infrastructure, $3.5 billion has been spent on indigenous employment, education and training, another $1 billion has been spent on indigenous health and $350 million on indigenous legal aid. Over $210 million has been provided for native title and land claims and $33 million was spent on the Royal Commission into Aboriginal Deaths in Custody.

Significant funding has been provided over the past decade. The problems of indigenous disadvantage, which continue today, are not the result of a lack of government resources. Once it is accepted that the level of government funding is adequate but outcomes have been poor, you have to look at who has had responsibility for these programmes.  Housing and infrastructure is a good example because it is an area of great need.  As already mentioned, the Commonwealth provides around $210 million a year to ATSIC and a further $90 million to the states and territories for indigenous housing. ATSIC and the indigenous-controlled housing organizations it funds operate independently of government and have administered most of the housing and infrastructure money over the past decade. Despite that, the Australian Government is continually criticised for those housing failures. The current Government takes the view that if it is going to be held responsible for failures in these areas then it has every right to insist on greater input in the provision of programmes and the outcomes that flow from them.

Conclusion
As Minister, and with the full backing of the Government, I intend to achieve better outcomes for indigenous people.  Housing is an area that needs reform. I am very serious about exploring new ideas that will assist and encourage indigenous Australians to participate in the economic and social life of the nation and to enjoy the benefits that flow from that involvement.  We have to find ways to deliver better outcomes that include improved health, adequate housing, education and employment opportunities and economic development. For 22 years we have had a voluntary work for the dole scheme (Community Development Employment Projects) where indigenous people work on community projects and in return receive unemployment benefits as well as valuable education and training.  This has been an outstanding success.  Our aim is to repeat this success in the provision of housing.