Portfolio Budget Statements 2008-09 

• 1.1 Strategic Direction
• 1.2 Agency Resource Statement
• 1.3 Budget measures

1.1 Strategic Direciton

The Indigenous Land Corporation (ILC) was established by Part 4A of the Aboriginal and Torres Strait Islander Commission Act 1989 [now Aboriginal and Torres Strait Islander Act 2005 (ATSI Act)]. Its purpose is to assist Aboriginal persons and Torres Strait Islanders to acquire and to manage Indigenous-held land so as to provide economic, environmental, social and cultural benefits.

The National Indigenous Land Strategy (NILS) is ILC's major policy statement. It outlines the strategies, policies and priorities which guide ILC's land acquisition and land management functions.

In the NILS 2007-2012 the ILC Board set the following priorities in performing its land acquisition and land management functions:

• creating training and sustainable employment for Indigenous people
• increasing the capacity of Indigenous people to sustainably manage their land
• engaging Indigenous people in viable, land-based enterprises, including tourism and agriculture
• supporting the education of Indigenous youth, including provision of student hostels
• collaborating with other agencies to produce effective outcomes.

ILC has an application process for Indigenous groups to apply for assistance with land acquisition and the management of Indigenous-held land. In 2007–08 ILC moved to an annual call for applications, which will enable better relative assessment of applications and targeting of projects that deliver training and create employment outcomes for Indigenous people.

In 2008–09, ILC will continue strategic land acquisition and land management activities to facilitate economic development outcomes, especially in relation to education, employment and training. A key component of these projects is ILC’s proactive development of high-level collaboration with the Government and state/territory government agencies, private industry, peak Indigenous organisations, communities and the non-government sector. These partnerships attract significant additional financial and human resources to allow long-term, sustainable programs to be developed. Strategic projects will focus on key industries such as pastoralism and tourism.

Through its evaluation framework ILC will monitor projects to ensure that they are sustainable and that real benefits are derived, particularly in employment and training.

ILC is not budget-funded. ILC’s only source of funding is the realised real return from the Aboriginal and Torres Strait Islander Land Account (Land Account) (section 193C(3) of the ATSI Act).

Since 2004–05 (the first year that the Land Account became self-sustaining and non-reliant on Government funding), funding from the Land Account has been irregular and uncertain as a result of the realised real return funding formula. The fluctuations in income to ILC have caused issues in long-term strategic planning and economic development for ILC.

This is a continuing challenge for ILC which has responded by developing budgets for 2008–09 and forward years in which expenditure is projected to be greater than the revenue from the Land Account. These budgets utilise accrued cash reserves in addition to interest and the predicted revenue from the Land Account.

The Government has committed to investigating ways to maximise the returns of the Land Account and to secure a more reliable level of income for ILC. These matters will be considered during 2008.

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1.2 Agency Resource Statement

Table 1.1 shows the total resources from all origins. The table summarises how resources will be applied by outcome and by administered and departmental classification.