Coalition 'concern' at Land Council revamp

THE Coalition has questioned a shake-up at the $1 billion Indigenous Land Corporation.

THE Coalition has questioned a shake-up at the $1 billion Indigenous Land Corporation, including a push to oust chief executive David Galvin and remove two of Australia's most experienced corporate figures from its audit committee.

Opposition spokesman on indigenous affairs Nigel Scullion yesterday expressed concern at the overhaul and asked the government to guarantee the changes would not result in investments that did not provide ongoing jobs for Aborigines.

The ILC is an independent statutory body controlling six million hectares of land valued at more than $1bn and has a charter to create employment and training opportunities, particularly in tourism, for Aborigines.

"I fear that the changes announced to the ILC board may result in a repeat of the $412 million raid on the Aboriginals Benefits Account, which was used as a ministerial slush fund to plug holes in funding arrangements, rather than supporting long-term benefits in Aboriginal communities," Senator Scullion said.

The Australian reported in January that the ABA was being increasingly used to pay for running costs and short-term financial fixes, attracting a warning from the Auditor-General.

"Minister Jenny Macklin must put beyond all doubt that the independent nature of ILC staff appointments will remain unchanged and the prime focus of ILC investment remain on solid business investment principles," Senator Scullion said.

As revealed by The Australian last week, a letter to Mr Galvin indicating the board's preference that his position be terminated was framed as a reflection of the "views of the minister".

Ms Macklin has not seen this correspondence and has confirmed the appointment of the chief executive of the ILC as a statutory authority was a matter for the board.

A spokeswoman for Ms Macklin provided an assurance yesterday that the ILC's role would not change following the appointment of a new board last year and serious concerns from some members on subsidiary indigenous employment groups that the shake-up represented a broader shift in investment priorities to achieve cultural and spiritual outcomes.

Senator Scullion said he was "mystified" at a push to remove the members of the ILC's audit and risk management committee, including two respected Australian business leaders, Ian Ferrier and David Baffsky.

Mr Ferrier, a leading corporate undertaker, is the co-founder and chairman of BRI Ferrier while Mr Baffsky is the honorary chairman of hotel group Accor Asia Pacific and chairman of Ariadne Australia.