Funds begin to flow as Pearson strikes deal on welfare trial

A FUNDING impasse between Queensland and Cape York indigenous leader Noel Pearson has ended.

A FUNDING impasse between Queensland and Cape York indigenous leader Noel Pearson has ended, clearing the way for an extension of his innovative welfare reform trial with peninsula communities.

After meeting Mr Pearson yesterday, state Minister for Aboriginal and Torres Strait Islander and Multicultural Affairs Glen Elmes released $5.65 million in promised funding that had been frozen by the Queensland government.

The state had been seeking additional guarantees on financial accountability from Mr Pearson's Cape York Institute.

This was despite the federal government pumping $11.8m into extending the four-year trial by a further 12 months.

Mr Elmes said he had reached agreement with Mr Pearson on "some changes".

"Community leaders from the four trial communities will be invited to be part of a new advisory board with state and federal government and Cape York Institute representatives to oversee the extension period," he said.

Mr Pearson said the extension would allow the continuation of projects and programs that had proven successful and the introduction of some new health and social programs.

"I am confident that we have the full support of the Newman government for the reform agenda for the indigenous communities," he said.

The trial links welfare payments to school attendance, child safety, tenancy issues and obeying the law. School attendance in the township of Aurukun has increased by 24 per cent, according to a review.