This new initiative will provide an integrated package of interventions rolled out over four years to target core problems in the Indigenous corporate sector, in high need remote regions and key regional/urban Indigenous communities. The integrated package of assistance to Indigenous corporations involves the following:
- Delivering an intensive training program in good corporate governance targeted at the neediest regions. Training will focus on Board members, key staff of corporations, young people, women, non-English speaking Indigenous people, community leaders and graduates from the Australian Government funded Indigenous leadership development programme;
- Developing new constitutions for non-viable Indigenous corporations, particularly those delivering essential services or managing essential assets such as municipal service providers;
- Establishing a register of disqualified directors and senior staff that will prevent people on the register from operating in any corporations; and
- Establishing a specialist recruitment service for use by Indigenous corporations.
The Office of the Registrar of Aboriginal Corporations (ORAC) regulates about 2,500 Indigenous corporations. The corporations range in size and functions. Most of them operate in remote Australia. Corporate compliance is often poor due to limited capacity within corporations and communities and sometimes because of corruption. Overcoming these core problems will improve the stability and servicing of Indigenous communities and the return on investment in those communities. ORAC administers legislation that can respond with capacity building initiatives and strong regulatory actions. The measure will strengthen ORAC's ability to intervene.
1 July 2006
Total Financial Impact on FaCSIA
$28.1 million over four years