Jim Molan (NSW, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Indigenous Affairs, Senator Scullion. Can the minister update the Senate on what the coalition government is doing to turbocharge the Indigenous business sector? How is this leading to more jobs and economic growth for Indigenous people?

Nigel Scullion (NT, Country Liberal Party, Minister for Indigenous Affairs) Share this | Link to this | Hansard source

I thank the senator for that question. One of the most encouraging parts of Closing the Gap last week was the launch of the Indigenous business sector policy by the Prime Minister. The Indigenous Business Sector Strategy is, in fact, the first comprehensive roadmap for the sector. It has become necessary because of the impact of government policies on small businesses across the country. Success isn't a bad problem to have, but, when you get so many businesses moving ahead, you do need to have additional policies to assist.

The most recent census showed a 30 per cent increase in the number of Indigenous businesses since the previous census. This hasn't happened by accident. The government understands that, if Indigenous businesses are to succeed, we need to address their impediments to growth. Historically, this has been undercapitalisation. The Indigenous Procurement Policy was one of our answers to this. As we know, this has been a phenomenal success since we introduced it in 2015. Indigenous businesses have won, on a value-for-money basis, over a billion dollars in contracts. I'd like to take this opportunity to congratulate the thousand Indigenous businesses across the country that have taken advantage of the opportunities we've created. This is, in fact, their achievement.

The massive growth in the sector means that we need to ensure there are the support services in place for the sector to continue to grow. Even though there has been an exponential growth in the number of Indigenous Australians in business, this is still well below parity rates. If we can close this gap in economic participation then, modelling by Deloitte Access Economics shows, the economy will be $24 billion better off, through increased tax receipts and decreased welfare payments.

So the new support services and the Indigenous Business Sector Strategy have been codesigned with the sector. That's how we do business—through codesign with the sector. It will ensure that the sector has the supports it needs to continue to grow and contribute to the Australian economy over the next decade.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Molan, a supplementary question.

Jim Molan (NSW, Liberal Party) Share this | Link to this | Hansard source

How is the government ensuring that Indigenous businesses have an opportunity to be part of the massive $5.3 billion Western Sydney Airport development and the visionary Western Sydney City Deal?

Nigel Scullion (NT, Country Liberal Party, Minister for Indigenous Affairs) Share this | Link to this | Hansard source

Apart from the fact that it is this government that is actually delivering these historical and truly nation-building pieces of infrastructure, we're also extremely serious about ensuring that the First Australians have every opportunity to be part of these visionary projects. I'm proud that, as a part of the Western Sydney Airport development, there will be a 2.4 per cent Indigenous employment target and a three per cent Indigenous procurement target. These are not aspirations; these are contractual obligations. This will mean Indigenous Australians will be front and centre at the new works for a City Deal project such as the north-south rail link, the new aerotropolis and the $150 million Western Parkland City Liveability Program. We're also establishing what will be the first Indigenous business employment hub in Western Sydney in partnership with the New South Wales Aboriginal Land Council. It will be a one-stop-shop for all new services in the Indigenous Business Sector Strategy. I'd like to take this opportunity to acknowledge Mr Roy Ah-See and his leadership and the chair of the land council. (Time expired)

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Molan, a final supplementary question.

Jim Molan (NSW, Liberal Party) Share this | Link to this | Hansard source

How do the coalition government's Indigenous economic and development policies compare with other policies that have been tried and failed before?

Nigel Scullion (NT, Country Liberal Party, Minister for Indigenous Affairs) Share this | Link to this | Hansard source

Again, I thank Senator Molan for the question. I have to say that Indigenous businesses were all but locked out of Commonwealth contracts when we came to government in 2013. Under the former policies, there were 30 Indigenous businesses—that's right, 30—winning a grand total of $6.2 million in contracts in 2012-13. The former Indigenous Opportunities Policy was hopelessly designed. It was all about red tape. It was unenforced and, unsurprisingly, achieved absolutely nothing. We took a different approach, reflecting on this side of the chamber's background of actually creating jobs and running small businesses. So we set a KPI for each departmental secretary, just like you would do in the private sector, with a quite simple, easily understood target. It would be published at the end of every year. It has worked: over a billion dollars in contracts compared with $6.2 million. We have shaken government procurement officers out of the business-as-usual process and require them to take a look at contracting with an Indigenous business.