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Monday 2 November 2002, Media Release

NSWALC CLARIFIES FINANCIAL POSITION

The NSW Aboriginal Land Council (NSWALC) has moved to clarify its financial position following reports in the Sydney Morning Herald this morning.

Chairperson Les Trindall said that while the NSW Aboriginal Land Council was suffering financially due to the downturn of financial markets following September 11, NSWALC's capital base was still above its statutory minimum.

"Our investment portfolio returned only 2 per cent in the last financial year, compared with 6.7 per cent and 6.5 per cent in previous years," Chairperson Trindall said.

Despite this fall in the return, NSWALC's investment portfolio emerged as the third top performer (for period ending 31st August 2002) in a recent survey of Australian's balanced and growth funds by Mercer Investment Consulting. In fact, NSWALC's fund was one of only three of 41 surveyed to make a profit for the 12 months ending on 31st August, 2002.

Chairperson Trindall said the NSWALC had already taken decisive steps to address many of the past financial problems raised in the reports, such as the losses sustained through the mortgage loans scheme and the rural properties portfolio.

"We have implemented a program to complete projects and to recover outstanding debts where possible. For example, NSWALC is completing a development in Wollongong which halted when the developer, Kestral, went into receivership. Due to this action, NSWALC is now expected to recover the original debt plus recovering additional expenses associated with its completion," Chairperson Trindall said.

"In regards to the rural properties, an independent review of rural properties was commissioned by NSWALC last year to tackle losses incurred on those properties. The recommendations of this review have been implemented, with Riverina Financial and Rural Management (FARM) being appointed to implement a strategic plan for the properties and work with property managers to standardise reporting procedures."

Following the poor return on investments this year, NSWALC has also put measures in place to severely cut expenditure both within administration and by the Council. For some time, it has also been considering options for a restructure of administration and a staffing review in order to save money and provide better coordinated resources and services delivery to the Regional and Local Aboriginal Land Councils. Former financial practices, such as loaning money for mortgages outside of Land Council network, have been discontinued.

The NSWALC also moved to defend the Minister for Aboriginal Affairs against allegations that the Minister failed to prevent mismanagement and stop financial losses.

"Council has also been working with the Minister for Aboriginal Affairs, ICAC, the Ombudsman and the Auditor General since 1996 on amendments to the NSW Aboriginal Land Rights Act which came into affect on October 25th this year.

"The amendments will go a long way to ensure the NSWALC is more accountable and transparent. They include the adoption of a "Councillor's Code of Conduct" to ensure greater transparency and accountability in terms of Councillor's spending. They also include changes to reporting requirements by the Local Aboriginal Land Councils which will enforce the delivery of quarterly financial reports."

Concerning the housing problems at La Perouse, Chairperson Trindall said the problems faced by the La Perouse LALC were an unfortunate outcome of the independence of the 120 Local Aboriginal Land Councils.

"Although we often work with ATSIC and other agencies to provide Aboriginal housing, it is not our key responsibility. However, I have undertaken to meet with ATSIC as soon as possible to come up with a resolution for this issue."

Mr Trindall said he was optimistic that service delivery issues such as the housing shortage at La Perouse would benefit greatly from the new cooperation between the NSWALC, NSW Government and ATSIC which has followed the signing of the Service Delivery Agreement in October this year.

The article on the front page of the Sydney Morning Herald quoted Treasurer Robert Lester as saying that some years ago the Council had anticipated that the investment fund would now be around $800 million. Cr Lester said today that his comment was taken out of context. The figure of $800 million referred to what Councillors estimated that the investment fund could have been if investments had not be restrained by legislation from 1983 to 1997, when the Trustee's Act was changed and NSWALC was given more scope for its investments.

"Concerning references to infighting on the Council, we, like any political organisation, such as Local Government or any board, have differences of opinion and factional splits. While this is a necessary part of the democratic process, we are eager to reconcile our differences and work together towards a better future for our people in NSW," Chairperson Trindall concluded.