Stakeholders

IBA series of business events

IBA conducts Business Briefings to advance strategic discussions between Indigenous organisations, business leaders and industry representatives, government agencies and key information providers. Business Briefings provide an avenue to disseminate strategic information and to advance business and industry ideas and platforms in ways that specifically advance Indigenous economic development.

During 2008–09, IBA conducted the following Business Briefings:

• What the global economic crisis means for Australia’s Indigenous businesses and organisations (Sydney, 25 November 2008)
• An update on the global economic crisis and opportunities in the carbon economy (Coffs Harbour, 21 April 2009).

Three separate meetings with Local Aboriginal Land Councils in NSW were held to discuss land use strategies.

As well as providing an avenue for Indigenous organisations and business leaders to make important contacts, to identify business opportunities for their organisations and communities, and to increase their knowledge and awareness of government policy, these forums also provided an avenue for Indigenous organisations to canvass with IBA opportunities for assistance in capacity building and in exploring joint venture opportunities.

Through these forums, IBA has engaged with numerous Indigenous organisations and industry representatives, including:

• Aboriginal Development Benefit Trust Pty Ltd
• Argyle Diamonds
• Australian Institute of Company Directors
• BDO Kendalls
• BHP Billiton Iron Ore Pty Ltd
• BP Australia
• Commonwealth Scientific and Industrial Research Organisation
• Department of Climate Change
• Department of the Environment, Water, Heritage and the Arts
• Downer EDI
• FMG (Fortescue Metals Group)
• Larrakia Development Corporation
• Leedal Pty Ltd
• Leighton Holdings
• Macquarie Bank
• NSW Aboriginal Land Council and local land councils
• Shearwater Capital Group
• Sodexo
• UBS
• Wesfarmers Ltd
• Westpac Banking Corporation.

Sydney Business Briefing panelists (L–R): Mr Darryl Pike (Buiness Consultant), Mr Mark Rider (Chief Economist UBS), Ms Bernie Connolly (Director UBS), and Mr Greg Pawson (General Manager Commercial Banking Westpac)

Stakeholder management

In 2008–09, IBA began to develop a stakeholder management plan to enable a strategic and integrated approach to stakeholder identification, engagement and management. An important element of the plan is the development of a stakeholder management database, designed to hold contact details and strategic information about IBA’s key external stakeholders. The database will give IBA a central point for intelligence gathering and coordination for dealing with stakeholders. It will also allow it to actively manage its relationships with stakeholders.

Industry partners

IBA values its relationship with the private sector and continues to nurture these relationships. Its philosophy is that it is good business to do business with Indigenous Australians and in that way all participants achieve value.

IBA’s enabling legislation requires it to operate in accordance with sound business principles. Large corporations can therefore engage in commercial discussions with IBA secure in the knowledge that it understands the realities of being in business and investing for growth and profits.

Financial institutions: IBA continued to develop relationships with private sector lenders to encourage direct lending to Indigenous business and home loan applicants. To free up IBA capital for new business and home lending, IBA also developed pathways for existing IBA clients to transition to private lenders. In 2007–08, IBA worked with the National Indigenous Money Management Agenda, a forum convened by Reconciliation Australia to bring together private sector lenders, Indigenous organisations and government agencies; in 2008–09, IBA continued this work with the Indigenous Financial Services Network. The forum has provided a solid foundation for partnership and product development in 2009–10 and should contribute to reducing the home loan waiting list.

The successful partnership between IBA and the National Australia Bank (NAB) continued in 2008–09 and resulted in increased business support for small Indigenous businesses. Under the Indigenous Entrepreneurs Program, IBA provides clients with support for business planning, business development advice and mentoring, while NAB provides business loans (microfinance) of between $500 and $20,000. The loans are provided on an unsecured basis, at commercial interest rates, for terms of up to three years.

In media releases, NAB executives have indicated their support for the program and acknowledged the importance of IBA’s support role:

‘We know the best way to support Aboriginal and Torres Strait Islander people in business is through an established organisation which actively promotes and engages Indigenous entrepreneurs like IBA … Businesses which have already gained funding via the [Indigenous Entrepreneurs] Program include a bush foods cafe in Sydney, a textile designer in Cairns and a kangaroo shooter in South Australia.’
(Andrew Searle, NAB regional executive, quoted in the Blacktown Sun, 8 May 2009)

‘The Indigenous Entrepreneurs Program was created by NAB and Indigenous Business Australia and combines NAB’s award-winning micro-finance loans with expert business support from IBA mentors.’ (Adam Howard, NAB regional executive, quoted in The West Australian, 22 June 2009)

The DRIIVE consortium: In 2008–09, IBA formed a consortium with Leighton Contractors Pty Ltd, BlueScope Steel Limited and Sinclair Knight Merz. The consortium, known as DRIIVE (Delivering Regional Innovative and Indigenous Vibrant Economies), is aimed at securing contracts to deliver residential, commercial and civil construction projects in regional and remote locations in a way that maximises skills development, employment and economic development for regional economies. Focusing initially on Western Australia, the venture expects to have a national presence.

DRIIVE came about in response to IBA’s work in the construction industry over the past two years and through a realisation of the need to provide a strong commercial framework for longer-term large-scale construction activity that achieves Indigenous employment and economic development outcomes in regional and remote Australia.

The consortium represents a coalition of industry leaders capable of delivering any type of construction project. IBA and its consortium partners are committed to DRIIVE’s objectives. The consortium represents a substantial opportunity to provide sustainable employment and enterprise development in the communities in which it works.

Government

In 2008–09, IBA continued to work closely with Commonwealth, state and territory, and local government departments to increase opportunities for Indigenous economic development. IBA’s collaborative approach aims to maximise Indigenous economic development outcomes from government investment, avoid duplication and ensure alignment of IBA activities with other initiatives that support sustainable long-term Indigenous development.

IBA also supports the three levels of government by providing advice and expertise on Indigenous economic development and has contributed to the development of Commonwealth and state and territory Indigenous economic development strategies.

Throughout 2008–09, IBA continued to work closely with FaHCSIA in delivering its programs aimed at furthering Indigenous economic development, such as the HOIL Program. FaHCSIA delivers complementary assistance that supports IBA in delivering the loan product that enables home ownership on Indigenous land. IBA provides support and advice to FaHCSIA in relation to land tenure and policy development considerations.

IBA continued to build on its partnership with the Department of Education, Employment and Workplace Relations (DEEWR) on Indigenous economic development projects in remote locations in Australia. Projects included the funding of an economic development officer position in Galiwin’ku and the examination of commercial models for Indigenous land and sea rangers, commencing in the Kimberley.

At the end of June 2009, IBA and DEEWR signed funding agreements to expand the five-step, grassroots Indigenous small business development model project piloted in Galiwin’ku, in north-east Arnhem Land, to five new communities and regional centres. As the project expands, IBA and DEEWR regional staff will work closely together to ensure that the approach is tailored to each region to achieve maximum Indigenous economic development outcomes.

Collaborative work and coordination at the regional and state level is facilitated by IBA’s state coordinators. They provide local intelligence and access to established networks, particularly state government ministers, departmental officials and key Indigenous groups; they identify opportunities and proposals; and they provide a coordinated management approach to key state projects.

‘This approach is about working from the ground up, with people’s own aspirations and dreams… The most satisfying thing for me has been seeing people start to participate in the economy and take control of their own financial future.’
(Colin Tidswell, economic development consultant, Darwin)

Government submissions

In 2008–09, IBA provided responses to the following government and parliamentary committee requests for submissions.

• Australian Government’s Native Title Discussion Paper. IBA’s submission set out its views on the assistance in governance and commercial development needed by Indigenous organisations in negotiations on land use, rent or royalties.
• South Australian Government’s review of the South Australian Aboriginal Lands Trust Act 1966. IBA’s submission identified the key requirements for land tenure to permit home ownership and commercial development by Indigenous people.
• House of Representatives Standing Committee on Aboriginal and Torres Strait Islander Affairs inquiry into the development of Indigenous enterprises. IBA’s submission indicated that while much has been done to support Indigenous enterprise development, much still needs to be done, particularly around private investment, business support, and skills development.
• House of Representatives Standing Committee on Aboriginal and Torres Strait Islander Affairs inquiry into community stores in remote Aboriginal and Torres Strait Islander communities. IBA’s submission reflected on IBA’s experience over the course of establishing its Outback Stores subsidiary.
• Australian Government’s Carbon Pollution Reduction Scheme Green Paper. IBA’s submission emphasised the need for the scheme to take into account the impacts of climate change and carbon pricing on Indigenous Australians while at the same time maximising the potential opportunities for their economic inclusion as a result of the scheme.