Indigenous business leaders in the Northern Territory say the NT government's newly announced Defence Industry Council represents "another missed opportunity" to strengthen the Territory's defence economy, because of "the continued exclusion of Aboriginal business".
The NT Indigenous Business Network (NTIBN) - the peak body representing Aboriginal enterprises in the Territory - said it is not the first time it has been excluded from a major economic and strategic initiative, despite NTIBN members generating more than $3 billion per annum in economic activity, much of it connected to defence, infrastructure, logistics and services.
"This exclusion reflects a persistent failure by the NT government and Defence NT to meaningfully engage with Aboriginal enterprise as a central pillar of economic development. It also highlights the role of intermediary bodies that publicly claim to represent 'all Territorians' - including industry associations and capability networks - while continuing to participate in governance structures that exclude the peak Aboriginal business body," the Network said in a statement on Wednesday.
Decision 'undermines alignment' with federal procurement framework
NTIBN noted that exclusion of their members from being represented on the Defence Industry Council can not be justified on the basis of "competition".
"NTIBN is not a commercial competitor in defence procurement. It is a sector-building institution that supports certification integrity, capability development, compliance and market readiness for Aboriginal enterprises. Its role is complementary, not duplicative," the Network said.
The Network said treating Aboriginal economic representation as 'competition' reflected a "narrow and outdated" view of industry development which prioritises "institutional turf" over Territory-wide outcomes, and undermines alignment with the Commonwealth's procurement framework.
"The Commonwealth Indigenous Procurement Policy embeds Indigenous participation through mandatory set-asides and participation targets. Defence procurement is structured around these mechanisms. Excluding NTIBN weakens the Territory's ability to meet these requirements and compete nationally," the NTIBN said, noting that major defence infrastructure and capability projects in the Territory are funded by the Commonwealth.
"Projects and proposals that fail to embed Aboriginal enterprise from the outset carry higher risk, lower competitiveness and reduced credibility at the national level... The Territory is uniquely positioned to lead nationally in Indigenous-led defence supply chains. That advantage is being diluted through exclusionary governance practices."
On announcing the new Council, the NT government noted that in the 2023-24 financial year, the defence industry contributed "$11.9 billion in gross value added (GVA) to the economy, according to the Australian Bureau of Statistics, with employment in the sector also growing by a considerable 9.1 per cent".
'Real leadership requires institutional courage'
The NT Indigenous Business Network said if the new Defence Industry Council is "serious about growth, security and capability", it must: "Include NTIBN as the peak Aboriginal business body; Recognise Aboriginal enterprise development as sector infrastructure, not "competition"; Align governance with Commonwealth IPP requirements; Publish measurable Indigenous participation outcomes; and treat Aboriginal business as a strategic asset."
"Real leadership requires institutional courage. The Territory deserves nothing less," they said.
A spokesperson for the Northern Territory government told National Indigenous Times the Defence Industry Council's objective "is to grow defence activity and sustainment in the Territory so that all businesses have the opportunity to participate and benefit".
"Its membership reflects its primary defence-industry advisory function with broader engagement occurring as needed," the government spokesperson said.
