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Tuesday 21 May 2003, Media Release

STATEMENT FROM THE CHAIRPERSON OF THE NSW ABORIGINAL LAND COUNCIL, LES TRINDALL

Due to recent attacks on the NSW Aboriginal Land Council by the press and subsequent rumors and speculation circulating about the financial position of the NSW Aboriginal Land Council, I would like to clarify a number of issues and inform the general public of recent decisions made by the NSW Aboriginal Land Council.

The NSW Aboriginal Land Council met last week to discuss ways to reduce expenditure and changes that must be made to redirect NSWALC's policies and resources to its core functions, which are the support of Local Aboriginal Land Councils and land rights issues.

in line with the downturn in income generated by our Investment Fund, due to the slump in the world markets since September 11.

Consequently, we agreed to begin implementation of the recommendations of an organisational review and cost reduction assessment by Hawkless Consulting. This was commissioned by Council at the end of 2002 to find ways of overcoming problems noted in the Auditor General's reports and to enhance NSWALC's ability to deliver its core functions.

In line with the recommendations of the report, we met with staff today to announce staff cuts in line and Council will be working toward implementing further recommendations concerning the restructure of administration in the months to come.

I would like to reiterate that, contrary to many media reports, our current financial problems are not the result of financial mismanagement of the current Council. The problems we are currently experiencing are directly linked to the downturn in income generated by our Investment Fund, due to the dramatic fall in world financial markets.

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. Our financial advisors, Chiefly Financial Services, surveyed the returns investments of 20 top companies in Australia. NSWALC was one of only three of those 20 companies to make a profit at all. We have done the best we could under the circumstances.

Late last year, we also implemented severe budget restrictions including a hold on all non-essential spending and a staff hiring freeze.

It must be noted that our audit for the 2001-2002 was unqualified. This means our financial administration has complied with the rules and regulations of the NSW Aboriginal Land Rights Act . While the management letter refers to problems areas, we are working hard to address these issues, both internally and with the Minister for Aboriginal Affairs and the Registrar of the NSW Aboriginal Land Rights Act through our Joint Reform Working Group.

It should be noted that the losses of $4.6 million from the mortgage loan scheme, which resulted from Council decisions in the late nineties and were recently mentioned in the Auditor General's management letter as resurfacing problems, have been addressed by Council. The recovery of money through the sale of properties inherited by NSWALC following the failure of some of the developments is being vigorously pursued. For example, the former Kestral building at Wollongong is currently subject to auction.

Concerning issues raised in relation to individual Councillors debts, a policy for the recovery of these monies prior to the upcoming election has been put in place by Council and will be enforced by administration.

Concerning statements made in the press that the budget for the 2002-03 financial year, Council reworked the budget this week and expect the Minister will approve it following receipt of the amended budget next week.

Les Trindall
Chair of the NSW Aboriginal Land Council