INQUIRY INTO MICROECONOMIC REFORM IN WESTERN AUSTRALIA

Transcription

1 Gvemment f Western Australia Department f Abriginal Affairs ENQUIRIES: Peter Dnvan- Ph (08) OURREF: 13/0646 YOURREF: D Lyndn Rwe Chairpersn Ecnmic Regulatin Authrity PO Bx 8469 PERTH BC WA 6849 Dear Mr Rwe INQUIRY INTO MICROECONOMIC REFORM IN WESTERN AUSTRALIA Thank yu fr the invitatin t prvide a submissin t the Inquiry int Micrecnmic Refrm in Western Australia. Please find enclsed a submissin n behalf f the Department f Abriginal Affairs (DAA) cnceming micrecnmic refrm. DAA welcmes the pprtunity fr refrms that have the ptential t imprve the future ecnmic pprtunities fr Abriginal peple in Westem Australia. Yurs sincerely Cliff Weeks DIRECTOR GENERAL ^ September 2013 Enc. Grund Flr. 151 Ryal Street, East Perth, Westem Australia, 6004 PO bx East Perth. Westem Australia, 6892 Telephne Facsimile (08)

2 Submissin t the Inquiry int Micrecnmic Refrm in Western Australia by the Ecnmic Regulatin Authrity By Western Australian Department f Abriginal Affairs September 2013

3 Ecnmic Regulatin Authrity Inquiry int Micrecnmic Refrm Submissin Department f Abriginal Affairs Backgrund Abriginal peple in Western Australia cmprise apprximately 2.3 % f the State's ttal ppulatin, have under their cntrl an estimated 11% f the State's land area thrugh the Abriginal Land Trust and receive significant supprting utlays frm the State Gvernment each year. Yet a significant number f Abriginal peple in general exist and perate n the margins f the State's ecnmy. Abriginal peple generally are under-represented in the wrkfrce, have lw educatinal utcmes and are verrepresented in the health care, child supprt and justice systems. Much f the disadvantage that exists in the State's Abriginal ppulatin is als becming apparent in an expanding underclass that is emerging at the bttm f the State's mainstream ecnmy. In general marginalised peple d nt have the means t ecnmically prsper thrugh their wn cmpetitive achievements that are independent f the scial welfare system. Outlined belw are a range f suggested areas that are wrthy f further investigatin as ecnmic refrm measures that might assist Abriginal peple t participate mre fully in the State's ecnmic systems. Specific Areas f Investigatin > Tax incentives t encurage and supprt the establishment f jint ventures between a capacity partner with an Abriginal rganisatin r an Abriginal wned business, in particular in rural and remte areas. Fr example, in the cntext f the recent Federal electin campaign the cnsideratin f a targeted lwer cmpany tax rate as an incentive t expand the Nrthern Territry's ecnmy was raised. > Mre systematic apprach t expand pprtunities and encurage a larger pl f Abriginal peple in remte cmmunities t undertake lead-in emplyment in baseline psitins, e.g. teachers' aids, nursing aids, cmmunity health wrkers, that leads t frmal training thrugh a mnitr system t becme qualified teachers, nurses etc. This apprach wuld make a significant cntributin twards prviding in time a qualified Abriginal wrkfrce t staff remte Abriginal schls, clinics etc. > Incentives in the frm f tax cncessins r ther incentives t encurage and assist emplyers t utilise Abriginal labur surced thrugh remte Abriginal Cmmunities, e.g. prvide an ff-set t the csts f establishing fly-in / fly-ut r drive-in / drive-ut emplyment pathways.

4 > Use an expanded sprting academy apprach, particularly fr Abriginal girls and linked t the TAFE system, t undertake innvative and applied vcatinal training pprtunities t wrk in such areas as cmmerce and business. > While the attitude f lcal gvernment authrities (LGA) t small business vary accrding t lcatin, significant imprvements culd be made thrugh research n the variety f regulatins and cnditins present in LGA areas with the intentin f identifying psitive net benefits and a mre unifrm and cnsistent apprach. Many LGA's regulatins can be cnsidered prhibitive t the establishment f micr and small businesses. Often there appears t be little flexibility, practicality and innvatin twards encuraging small business start-ups. Fr example, LGA regulatins frequently restrict, thrugh zning regulatins, start-up businesses frm develping in specific lcatins. A mre flexible apprach frm many LGAs wuld help supprt small business in their start-up phase, t ptimise their expsure t custmers and help reduce csts, by allwing start-up businesses t better utilise existing Infrastructure and buildings. The fllwing are prvided as examples f the limitatins that may be impsed: By-Laws that d nt allw hme based businesses t cmmence and perate citing cncerns ver pedestrian traffic, Zning that nly allws businesses t perate frm cmmercial znes, but prvides limited lcatins in these znes, As a cnsequence rent charged n available space is at a premium and therefre ften unaffrdable t a small business start-up. Prhibitive regulatins that d nt allw the placement f signage, including n private prperty (e.g. a hme fence), Regulatin preventing a business t start-up until it fits int the apprpriate lcal gvernment business categry, Cmplicatins with insurance r public liability. > Mre pliant regulatins t allw unemplyed peple t take up emplyment pprtunities withut the risk f lsing their scial husing in thse reginal areas where husing is at a premium, exceedingly expensive and there is n affrdable rental market. Cnsideratin t be given t a transitin prgram that prvides a flexible apprach t prvide a level f balance between incremental increases in incme and a reductin in rental assistance. The same regulatins wrk against peple wanting t start micr r small businesses while living in gvernment subsidised husing. Many peple cntinue t live n scial welfare in subsidised gvernment husing, because any Increase in net incme ften means they have t vacate scial husing. > Prvide avenues and incentives fr Abriginal yuth (bys and girls) in their high schl years t undertake "junir" type emplyment placements with the supprt f a "schl r TAFE withut walls".

5 > Prvide access t small lw cst repayment f principle nly business lans t Abriginal wmen t cmmence cttage style businesses, e.g. sewing services, fd services, cleaning service, etc. Prvide an avenue f frmal "schl withut walls" instructin t help mentr participants. (Schl withut walls - a nn-traditinal educatin prgram that uses cmmunity facilities as learning resurces). In many Instances Abriginal wmen, including grandmthers prvide the leadership and discipline t the develpment and learning f the children within the cmmunity. > Ecnmic drivers in regins are nt always cnnected t the lcal skills r capacity f small business. This can result in Industry unlcking ecnmic gains frm regins withut cnsidered lng-term investment back int the fundatins f the lcal ecnmy. Big business/gvernment has been reasnably successful In making ecnmic participatin pprtunities available, but is nt as active in develping, and measuring, strategies that ensure lcal participatin. This can result in lcal business nt being included in ecnmic prgress. There are a number f examples where cmpanies and gvernment pint t the business pprtunities that large investment will make t lcal cmmunities, but the reality is, small business typically des nt meet the pre-requisite criteria necessary t be engaged by these prjects/investments. In sme instances It Is recgnised that while 'utsiders' are benefitting; lcals can be excluded frm the wealth creatin pprtunities while ften being subjected t increases in lcal csts.