Report on Establishing the Aboriginal and Torres Strait Islander Healing Foundation - Voices from the Campfires 

• 3.1 Establishment
• 3.2 Scope
• 3.3 Independence
• 3.3.1 Statutory bodies
• 3.3.2 Public companies limited by guarantee
• 3.4 Implementation
• 3.4.1 Selection of the inaugural Board
• 3.4.2 Responsibilities of the inaugural Board

David Cole, 'Healing is a movement'

3.1 Establishment

While the Apology and its acknowledgment of the legacy of colonisation, forced removals and other past government policies was an important first step on the road to healing, it must now be followed by concrete policy responses - including the provision of culturallyappropriate healing services to assist Aboriginal and Torres Strait Islander people to begin the process of recovering from trauma.

There is an overwhelming need among Aboriginal and Torres Strait Islander people for services that are designed and run by communities to address the underlying causes of dysfunction in a manner that is holistic, safe and culturally appropriate. The international experience shows the effectiveness of this approach and its potential cost benefits.

Recommendation one

That an independent, national Aboriginal and Torres Strait Islander Healing Foundation be established to address the transgenerational cycle of trauma and grief in Aboriginal and Torres Strait Islander communities as a result of colonisation, forced removals and other past government policies.

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3.2 Scope

Participants agreed that the Foundation should have three broad roles: supporting grassroots healing initiatives by providing funding and workforce development; health promotion, education and skills training in the prevention and treatment of trauma; and evaluating and documenting best practise in healing.

However, participants also made a number of suggestions that must lie outside the Foundation's scope. For example, while policy development in relation to addressing racism and reconciliation is important to healing, in the opinion of the Team it would be best provided in partnership with the new National Representative Body (once established), other peak bodies and all levels of government. Another frequent suggestion, capital funding for a national network of healing centres, will not be achievable with the Foundation's current funding allocation.

The Foundation will not be able to be all things to all people and its inaugural Board will need to make strategic choices about what is achievable. For example, the inaugural Board must review the service landscape to avoid duplication and will need to build partnerships with other organisations to draw on their research projects to build its own evidence base with minimal financial outlay.

Recommendation two

That the Foundation identify and support Aboriginal and Torres Strait Islander healing initiatives, at the community level and in response to community needs, by providing funding and workforce development.

Recommendation three

That the Foundation conduct health promotion and public education activities in relation to Aboriginal and Torres Strait Islander healing, including skills training in the prevention and treatment of trauma.

Recommendation four

That the Foundation contribute to an evidence base for Aboriginal Torres Strait Islander healing through community -driven and culturally -appropriate research and evaluation.

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3.3 Independence

The overwhelming preference of participants was for the Foundation to be fully independent from government. In deciding the best way to achieve this, the Team considered the relative merits of establishing the Foundation as a statutory authority and as a public company limited by guarantee.

3.3.1 Statutory bodies

There are two types of statutory bodies: prescribed agencies under the Financial Management and Accountability Act 1997 (Cwlth) (FMA Act) or statutory authorities under the Commonwealth Authorities and Companies Act 1997 (CAC Act). Statutory bodies require enabling legislation.

FMA Act authorities are financially part of the Commonwealth and hold public money that can only be spent under the authority of an appropriation from the Australian Parliament. Some FMA Act authorities, such as the Australian National Audit Office, the Australian Competition and Consumer Commission and the Australian Human Rights Commission are statutorily independent bodies. This means they are only subject to limited government oversight in the daily performance of their roles.

In contrast, CAC Act authorities are legally and financially separate from the Commonwealth. The level of government control over Commonwealth authorities depends on the individual authority's enabling legislation. CAC Act authorities are financially more independent than FMA Act authorities; however, ministerial powers of direction can apply to these bodies. Examples of CAC Act authorities within the FaHCSIA portfolio are the four Northern Territory land councils, the Indigenous Land Corporation, Indigenous Business Australia and the Torres Strait Regional Authority.

Advantages of establishing the Foundation as a statutory body

• It would have ongoing access to government resources
• It would be more likely to be able to influence government.

Disadvantages of establishing the Foundation as a statutory body

• It would not be independent
• It would therefore be highly unlikely to have community support
• It would also be difficult to attach philanthropic funding
• It is unlikely that its enabling legislation could be drafted and passed by Parliament by 1 January 2010.

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3.3.2 Public companies limited by guarantee

Not -for -profit organisations are usually registered as public companies limited by guarantee. Companies are legal entities that are distinct from their members and can hold property, sue and be sued. Limited by guarantee means the liability of the company's members is limited to the amount the members undertake to contribute to the property of the company if it is wound up and its assets are not sufficient to meet its liabilities. Public companies are registered under the Corporations Act 2001 (Cwlth) (Corporations Act) and can operate across Australia; examples are Reconciliation Australia, Indigenous Community Volunteers and beyondblue.

Some companies come under the CAC Act as well as the Corporations Act and are called Commonwealth companies. A company becomes a Commonwealth company when the Commonwealth controls the company. This happens when the Commonwealth controls the casting of the majority of votes that might be cast at a general meeting of the company or if the Commonwealth can appoint or remove all, or the majority, of the directors of the company; an example is Aboriginal Hostels Limited.

Advantages of establishing the Foundation as a public company limited by guarantee

• It would be independent and run by Aboriginal and Torres Strait Islander people
• It would therefore have strong community endorsement
• It would also be easier to attract philanthropic funding
• It would not require enabling legislation

Disadvantages of establishing the Foundation as a public company limited by guarantee

• It would potentially have less access to government resources
• It would not have guaranteed influence with government

Based on the strong views of participants that the Foundation should be independent from government, the considered opinion of the Team is that this would be best achieved by establishing the Foundation as an independent public company limited by guarantee. The Foundation should also be funded in such a way to maintain this independence. This could be achieved by providing the Foundation with its funding allocation in full at establishment so that it can achieve self -sustainability through an investment strategy as well as seeking philanthropic partnerships and public benevolent institution and deductible gift recipient status. However, while the Foundation should be independent from government it should publicly report to the Minister responsible for Indigenous affairs in addition to its responsibilities under the Corporations Act.

Recommendation five

That, to ensure the Foundation's independence from government, it be established as an Australian public company limited by guarantee, its funding be provided in full at establishment and it seek public benevolent institution and deductible gift recipient status.

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3.4 Implementation

3.4.1 Selection of the inaugural Board

In accordance with the principles of self -determination, the positive experience of the Aboriginal Healing Foundation in Canada and the overwhelming preference of participants, the Foundation should be run by Aboriginal and Torres Strait Islander people. Not only does this mean the Board should be made up of Aboriginal and Torres Strait Islander people, but also that Aboriginal and Torres Strait Islander people should select the Board.

The Aboriginal and Torres Straight Healing Foundation Development Team recommends incorporating the Foundation as soon as possible and forming an interim Board, made up of no more than four members of that Team, with responsibility for establishing the Foundation. This will allow the interim Board to receive establishment funding from FaHCSIA, which would in turn allow it to act independently - to seek specialist advice, draft establishment documents, promote the Foundation and prepare for its inaugural annual general meeting in December 2009. Interim Board members should be part -time and meet monthly.

An independent selection panel, made up of no more than six well -respected Aboriginal and Torres Strait Islander community members, should be established to carry out an open, national and merit based selection process to appoint the Foundation's nine -member inaugural Board, including a Chair and Deputy Chair, by 1 December 2009. The panel should inform the Minister of the outcome of the selection process before appointing the successful candidates.

Selection criteria should be based on the qualities suggested by participants:

• commitment to healing and traditional and/or western knowledge in relation to healing;
• support from community with the ability to rise above community and organisational politics;
• professionalism and integrity;
• financial management, governance and legal skills;
• ability to work with communities, governments, businesses and philanthropic organisations; and
• respect for the diversity of Aboriginal and Torres Strait Islander people.

While board membership must be open to all Aboriginal and Torres Strait Islander people over the age of 18, consideration should also be given to gender, age and regional diversity and ensuring representation from me^mbers of the Stolen Generations.

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3.4.2 Responsibilities of the inaugural Board

At the Foundation's inaugural annual general meeting, formal responsibility for the Foundation must pass from the interim Board to the inaugural Board. Inaugural Board members should be part -time and meet quarterly, and should be responsible for establishing the Foundation's financial and accommodation arrangements and engaging an administrative staff comprising five full -time employees: a Chief Executive Officer, a finance officer, a communications officer, a research officer and an office manager.

The Board should also seek membership and develop a business plan and a code of conduct for all Foundation employees that takes into account Aboriginal and Torres Strait Islander values and the eight principles of public life developed by the United Kingdom Committee on Standards in Public Life and adapted by the Steering Committee for the Creation of a New National Representative Body (2009) at Appendix F.

The inaugural Board should also appoint four community advisory teams: the first open to non -Indigenous people, supporters and technical advisors; the second to members of the Stolen Generations; the third to Elders; and the fourth to Aboriginal and Torres Strait Islander youth. Members should serve in a voluntary capacity and provide advice to the Foundation as required.

The inaugural Board should allocate the Foundation's funding in the following way: 30 per cent to grant funding for grassroots healing initiatives; 40 per cent to health promotion and public education activities; 20 per cent to research and evaluation; and 10 per cent to administration.

Funding priority should be given to strength -based healing initiatives that are run by Aboriginal and Torres Strait Islander people and deliver holistic and culturally appropriate capacity development, cultural renewal, health promotion and trauma recovery services, as suggested in section 1.2.3. The Foundation should not provide capital funding in its first four years due to its limited resources.

The Foundation's first grant process should begin as soon as possible in the first quarter of 2010 and should be a mix of mechanisms, including submissions, open tenders and direct selection, but each should ensure quality and value for money.

Recommendation six

That the Aboriginal and Torres Strait Islander Healing Foundation Development Team incorporate the Foundation as soon as possible and form an interim Board, made up of no more than four members from that Team, with responsibility for establishing the Foundation, including seeking specialist advice, drafting establishment documents and preparing for its inaugural annual general meeting in December 2009.

Recommendation seven

That an independent selection panel, made up of no more than six well -respected Aboriginal and Torres Strait Islander community members, be established with the responsibility for selecting the nine -member inaugural Board.

Recommendation eight

That the selection panel carry out an open, national and merit -based selection process to appoint the inaugural Board, including a Chair and Deputy Chair, by 1 December 2009.

Recommendation nine

That the selection panel inform the Minister for Families, Housing, Community Services and Indigenous Affairs of the outcome of the selection process before appointing the successful candidates.

Recommendation ten

That formal responsibility for the Foundation pass from the interim Board to the inaugural Board at the Foundation's inaugural annual general meeting in December 2009.