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How Indigenous Australians and Defence can join forces to help close the gap

By PwC Indigenous Consulting

March 1, 2022

During the recent anniversary of Australia’s National Apology to First Nations people, Aboriginal and Torres Strait Islanders serving in the Australian Defence Force (ADF) were – quite rightly – recognised and thanked for keeping our nation safe. At the same time as they’re defending and protecting our sovereignty, Indigenous Australians participating in the defence industry (whether as ADF members or otherwise) are actively working towards Closing the Gap.

The defence sector presents a huge opportunity for Indigenous participation (including Indigenous entrepreneurship) supporting First Nations people to realise their ambitions for self-determination. We’ve seen this in the runaway success of the Indigenous Procurement Policy (IPP) in Defence.

To explain: the IPP is designed to stimulate Indigenous business development via the award of Commonwealth government contracts. Each federal government portfolio faces annual targets for the number and value of contracts awarded to Indigenous businesses. The latest government data shows the Department of Defence far exceeded its targets for Indigenous contracts, awarding 6,476 contracts to Indigenous businesses in 2020-21 (from a target of 676).

In fact, Defence contracts represented a staggering 60% of all new government contracts awarded to Indigenous businesses during this period. And while there’s scope to consolidate the policy, and boost quality alongside volume, Defence contracts to Indigenous businesses were worth $610 million in 2020-21 (target: $110 million).

And all while maintaining Australia’s national security.

It’s a win-win proposition.

Why are the opportunities so significant right now?

Indigenous participation in the defence sector is nothing new. First Nations people have served in various forms of colonial, imperial or other kind of armed or military force since the 1860s (possibly earlier), and in every subsequent operational engagement that Australia has been involved in. (This, despite Indigenous veterans not leading the national Anzac Day march until 2017, and Indigenous Australians still not being recognised in the Australian Constitution until 1967.)

The opportunities for Indigenous businesses are particularly significant right now as the Australian Government intends to invest $270 billion over the coming decade to boost defence capabilities. This spending aims to ensure, and secure, Australia’s national interest both domestically and internationally, particularly in response to the continually changing and contentious geo-political environment in, and around, the Indo-Pacific region.

The 10-year investment in Defence capability (in alignment with the 2020 Defence Strategic Update and the Force Structure Plans) provides a ‘once in a generation’ program of opportunity for Indigenous business to participate economically in the defence industry sector. In short: Indigenous participation in Defence means higher employment rates, improved living standards and better health outcomes among First Nations’ Australians.

This is true not only for those directly employed or contracted, but also for their families:

  • Working parents become role models for their children.
  • Extended families have better access to essential services.
  • Subsequent generations enjoy improved education and employment prospects.

Because of its size, Defence is well placed to contribute to inter-generational wealth among Indigenous Australians, and to make significant impacts across all of the 17 targets outlined in the National Agreement on Closing the Gap (2020).

Investing in Indigenous participation will also create local industry capability and drive supplier diversity. By using the Supply Nation business directory, for example, the Defence industry can guarantee its engaging with Indigenous-owned businesses, boosting home-grown know-how and improving national security by bringing supply chains onshore. Defence will also reap the benefits associated with a more diverse range of suppliers. (Namely, more sustainable, flexible, and innovative supply chains.)

For an industry whose aim is to protect and defend our national sovereignty, improving security and boosting industry capabilities seems like a no-brainer.

Right now, there is an enormous opportunity to enable greater Indigenous participation, entrepreneurship, and self-determination, while simultaneously boosting Australia’s defence capabilities. Afterall, who better to play a role in protecting one of the oldest landscapes in the world (and the world’s oldest continuing culture) than Australia’s Traditional Owners?

Defence is not just the government’s business – it’s everyone’s business. In the same way that the wellbeing of First Nations people is everyone’s business. By supporting Indigenous participation in Australia’s defence sector, we can work towards both things simultaneously.

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