11 May 1999

Budget gets two and a half out of four - an advance on last year
The advances for Indigenous Australians in the 1999-2000 Budget are small
but nonetheless welcome, the ATSIC Chairman, Gatjil Djerrkura, said tonight.
"We haven't had a chance to look closely at the announcements, so more
detailed comment must wait," Mr Djerrkura said.
"But the new funding in employment and health will certainly help ease the
burden of disadvantage in some of our communities.  And the re-distribution
of resources in the education portfolio should assist in improving
educational outcomes in Indigenous communities, despite the Abstudy cuts
late last year.
"It's worth noting that this is the first occasion since 1985 that Cabinet
has considered and approved initiatives aimed at improving Indigenous
employment.
"After four years under this government, it's time to assess results rather
than dollars.
"Looking forward, I believe there are encouraging signs for ATSIC of
productive partnerships with Ministers Reith, Wooldridge and Kemp.
"I note that ATSIC's 1999-2000 allocation of $941.387 million is consistent
with the government's 1997 commitment to guarantee our budget for four
years.
"However, we are still hampered by the cuts of $470 million over four years
imposed in 1996.  Those cuts left ATSIC with very limited capability to
respond to the four priority areas set by the government - housing,
employment, health and education.
"It's disappointing that there will be no new funding for ATSIC's successful
housing and infrastructure program - the subject of a favourable, but
largely overlooked, report from the Australian National Audit Office tabled
yesterday.
"We have the evidence of our achievements, we can deliver the results.  But
our current resources are totally committed into the new millennium.
"It's also disappointing that ATSIC's Community Development Employment
Projects scheme (CDEP) - the work-for-the-dole program that currently
involves over 32 000 Indigenous people - will receive only enough additional
funding to allow for 'natural growth' at the rate of 50 new places per
month.  Yet there is an overwhelming demand from communities for new CDEP
schemes so that people can gain employable skills."
Mr Djerrkura said the good news on employment is in the range of initiatives
announced by the Minister, Peter Reith.
"They have my complete support because they focus on the growth of
Indigenous employment and small business," Mr Djerrkura said.
The main features of the employment initiatives include:

.../2
*       re-introduction of wages assistance for long term Indigenous
unemployed, targeted primarily at the private sector;
*       incentives for CDEP organisations that move people to unsubsidised
employment;
*       a "CEOs for Indigenous Employment" initiative, aiming for 1 000
placements per year;
*       structured training in the private sector and in community-based
employment in rural/remote areas;
*       a National Cadetship Program targeting the private sector;
*       a Voluntary Service to Indigenous Communities Foundation providing
mentoring and other business support to Indigenous communities and
individuals; and
*       a public awareness campaign to change attitudes towards Indigenous
employment.
"On health issues, the Memorandum of Understanding on Aboriginal Health
between ATSIC and the Minister for Health and Family Services has proved
rewarding," Mr Djerrkura said.
"Recent research has demonstrated that, despite a much higher burden of
ill-health, total spending by and for Aboriginal and Torres Strait Islanders
on health, per person, was only about eight per cent higher than that for or
by other Australians.  The difference is linked to increased accountability
requirements on Aboriginal Medical Services.
"I'm pleased that under Dr Wooldridge funding for primary health care for
Indigenous people will increase by $6.794 million in 1999-2000, rising to
$33.519 million in 2002-03."
In addition, Cabinet has increased funding for the ATSIC/Army Community
Assistance Program by providing the Department of Health and Aged Care with
an extra $5 million in 1999-2000, rising to $5.280 million in 2002-03.
ATSIC will match this with a further $20 million.  The Australian Army will
provide personnel, expertise and the use of heavy equipment.


Media contacts:         Martin Freckmann                018 631 045
                                Brian Johnstone         0419 010 687


Craig Sproule
Craig Sproule
Office of Public Affairs
Ph: 02 6289 3450
Fax: 02 6282 2854

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