| 4. In which ways is the initiative creative and innovative?
1. Prioritising Indigenous employment and training through the use of tailored Key Result Areas, with incentivised contract payments. Local Indigenous job seekers are, for the first time, carrying out road construction on the Peninsula Developmental Road (PDR) while gaining certified on-the-job training.
2. Partnering with Cape York Land Council Aboriginal Corporation and Traditional Owners (TOs) to create the PDR Priority Agreement (PPA), and Indigenous Land Use Agreement (ILUA). The first of their kind in Queensland, they allow TMR to deliver PDR roadworks more easily in full compliance of Native Title and cultural heritage legislation. The agreements mandate opportunities for TOs to work ‘on country’. The ILUA also provides for workshops for Indigenous businesses, and high school and tertiary scholarships.
3. Awarding contracts to maximise opportunities for Indigenous businesses. In 2016, TMR facilitated a sub-contractor relationship of two inexperienced Indigenous contractors, to successfully deliver a road sealing project on the PDR.
4. The Memorandum of Understanding between TMR and Hope Vale Aboriginal Shire Council (HVASC) is resulting in valuable training opportunities for HVASC’s crew and sub-contractor work for ex-crew.
5. Community infrastructure projects are being delivered in Indigenous communities by Indigenous Councils / residents thereby generating employment and improving living conditions.
| 5. Who implemented the initiative and what is the size of the population affected by this initiative?
The Queensland Department of Transport and Main Roads (TMR) is responsible for the design, delivery and administration of the Cape York Region Package (CYRP).
Peninsula Developmental Road (PDR) works:
Members of the CYRP Project Team regularly meet with the Principal Contractors to discuss progress against the Key Result Areas. TMR works alongside Cape York Land Council Aboriginal Corporation to ensure the correct Traditional Owners (TOs) are utilised as Cultural Heritage Monitors / Surveyors, and the Queensland Department of Aboriginal and Torres Strait Islander Partnerships to validate Indigenous businesses.
Endeavour Valley Road (EVR) works:
TMR has signed a Memorandum of Understanding with the Hope Vale Aboriginal Shire Council (HVASC) for the provision of road construction and maintenance services to assist in the delivery of the project on the EVR. TMR’s RoadTek unit mentors the HVASC construction crew.
Community infrastructure works:
The community infrastructure works are facilitated by TMR (road and transport infrastructure) and delivered by eight Aboriginal Local Government Authorities within their own communities.
The scope of the CYRP is immense and at a conservative approximation it is benefitting:
• Numerous Indigenous businesses and people who have gained training / employment opportunities.
• The Traditional Owners whose work, through the PDR Priority Agreement, is providing spiritual, physical, social and cultural connection to their country.
• Young Indigenous people through the high school and tertiary scholarships being funded by TMR.
• Nine Indigenous communities in total – through improved community infrastructure and/or access, and employment opportunities.
• Some 18,000 residents of Cape York Peninsula, approximately 60% of whom identify as Indigenous, as well as tourists, freight operators, government service providers, cattle station owners, and mining giant Rio Tinto, through safer, improved travelling conditions on the PDR, and reductions in cost to transport goods and services.
| 6. How was the strategy implemented and what resources were mobilized?
On 16 January 2014, the Australian Government announced $210 million for improved infrastructure to enhance Cape York’s economy. The Queensland Government raised the total funding figure to $260.5 million. The resulting Cape York Region Package (CYRP) program has had variable TMR staffing levels, supplemented by contractors and specialist consultants as needed. In addition, many hours have been contributed by officers of Cape York Land Council Aboriginal Corporation (CYLC), Traditional Owners (TOs) and senior Department of Transport and Main Roads (TMR) officers, to develop and implement the unique Peninsula Developmental Road (PDR) Priority Agreement (PPA) and PDR Indigenous Land Use Agreement (ILUA). The $260.5 million includes technical (eg. survey, design, construction, cultural heritage) and staffing costs.
$200 million to seal priority sections of the PDR:
Eighteen sections of the PDR were chosen for sealing including because they were the most cost-effective, would reduce the duration of flood-related closures and high annual maintenance costs, and improve safety and overtaking opportunities.
A key desired outcome of the CYRP is to improve social outcomes for Indigenous, and other communities, in Cape York. To this end, three tailored Key Result Areas (KRA), with incentivised contract payments, were developed and used for the major 2015 project. The results were so successful, they are continuing to be used for the CYRP’s duration, and the Australian Government is considering trialling their use on other road construction programs.
Prior to the 2015 / 2016 / 2017 construction seasons, the CYRP project team has organised a ‘meet and greet’ session in Cape York, enabling potential contractors and Indigenous and/or Cape York businesses, to discuss work opportunities.
Progress against the KRAs is recorded monthly on an Excel database, with the final results evaluated at the end of each construction season. Supporting Document One includes information about the outstanding Indigenous-related results achieved through the KRAs in 2015. Information about the 2016 KRA results can be made available. In early 2016 and early 2017 officers from relevant Queensland and Australian Government agencies met to review learnings from the contract models used. The KRA results for 2015 and 2016 have been evaluated and used to inform the 2017 KRAs and monetary incentives.
On 6 February 2015, a United Number 1 Claim over Cape York was registered by the National Native Title Tribunal (NNTT). Senior TMR officers began discussions with the CYLC, which represents the TOs for the claim. The resulting PPA was negotiated and signed in July 2015. The PPA mandates TOs to work ‘on country’ carrying out cultural heritage surveying and monitoring. To date, some 6,316 hours have been accumulated, and Indigenous artefacts identified and preserved. The PPA allowed roadworks on the PDR to continue while TMR and CYLC negotiated the PDR ILUA. In October 2016, in a first for Queensland, the TOs and named Applicants for the claim authorised the ILUA, and it has been lodged with the NNTT for registration.
$10 million for sealing works on the Endeavour Valley Road (EVR) through to Hope Vale
In September 2014, the EVR Memorandum of Understanding was signed between Hope Vale Aboriginal Shire Council (HVASC) and TMR. The sealing works began in 2014, with over 7km of the road leading to Hope Vale now sealed through this partnership. The PDR KRAs have been used to measure the results, enabling consistent measurement across the two CYRP components.
$50.5 million for Community Works
The Mayors of eight Indigenous communities consulted their community, council members and management, over five months, to determine the priority projects. These projects are in various stages of delivery, with Councils required to report on their progress to the CYRP Project Team.
| 7. Who were the stakeholders involved in the design of the initiative and in its implementation?
In 2014, Department of Transport and Main Roads (TMR) officers compared road upgrade options and infrastructure scenarios for the use of the $260.5 million. The result: funding was approved to seal an initial eleven road sealing projects on the Peninsula Developmental Road (PDR).
TMR officers acted on the challenge to positively influence the economic and employment prospects of Indigenous people and businesses, and other Cape York businesses through the PDR works. TMR has achieved this through the development of three Key Result Areas (KRA) with monetarised incentives, and the use of various procurement delivery models. TMR acted in consultation with a range of government partners on this approach:
• Federal Department of Infrastructure and Regional Development
• Federal Department of Prime Minister and Cabinet
• Queensland Treasury
• Queensland Department of Aboriginal and Torres Strait Islander Partnerships
• Queensland Department of Local Government, Infrastructure and Planning (DLGIP).
In 2015 and 2016, four private sector Principal Contractors, including an Indigenous-owned business local to Cape York, and TMR’s commercial arm, RoadTek, delivered the eleven projects, with the aid of Indigenous and Cape York-based workers and sub-contractors. In 2017 and 2018, seven more projects are being delivered.
Training and employment organisations have worked with the project delivery teams to provide suitable training for new entrant Indigenous and non-Indigenous trainees, in order to ensure they are securing qualifications that will assist them in obtaining secure, sustainable employment.
The Endeavour Valley Road works began as a separate initiative to the CYRP, with discussions between Hope Vale Aboriginal Shire Council (HVASC) and TMR leading to the signing of a Memorandum of Understanding in September 2014. The project is being implemented by RoadTek, with HVASC as a sub-contractor.
Indigenous councils and TMR are partners in implementing the community works.
| 8. What were the most successful outputs and why was the initiative effective?
Sustainable Developmental Goals - Decent work and economic growth; and Industry, Innovation and Infrastructure
1. The Cape York Region Package (CYRP) is promoting inclusive and sustainable economic growth through the successful use of innovative Key Result Areas (KRA) with monetarised incentives, to maximise employment, education and training opportunities for local Indigenous people and Cape York businesses. Quality employment and education opportunities in turn create improved social outcomes.
In 2015 and 2016, the targets for ‘KRA 1 - Indigenous and non-Indigenous Training and Upskilling’ and for ‘KRA 2 - Implementation of the Indigenous Economic Opportunities Plan’, were exceeded. See Supporting Document One.
2. Local Indigenous job seekers are, for the first time, carrying out road construction on the PDR while gaining certified on-the-job training, and Indigenous businesses are being afforded unprecedented opportunities.
On 30 November 2016*:
• 77 Indigenous workers, including 31 trainees, were employed = 28% of the workforce.
• 18 Indigenous businesses / Joint Ventures were engaged.
In 2015, at the peak period of construction*:
• 80+ Indigenous workers, including 22+ trainees, were employed = “Almost 30 per cent of the contract work awarded to the upgrade has gone to local Indigenous-owned contractors.” The Australian, 2 February 2016.
• 15 Indigenous businesses were engaged.
* The amount of people employed at a point in time depends on the type of work and stage of construction.
3. In 2015, TMR partnered with Indigenous Traditional Owners (TOs) through the PDR Priority Agreement (PPA) to achieve economic outcomes for Indigenous people. The PPA has been the catalyst for TOs to work ‘on country’ with 6316 working hours recorded in 2015 and 2016 for cultural heritage activities. In May 2016, the significance of the PPA, in helping to ‘Close the Gap’ through training and employment opportunities, was recognised with the Queensland Premier’s Reconciliation Award (Partnership Category).
4. The CYRP is building vital infrastructure. The sealing works on the Endeavour Valley Road are improving freight haulage for Hope Vale’s banana industry. The sealing works on the PDR are improving all weather access to Cape York, and paving the way for a year-round economy. By June 2019, the amount of seal will have increased from 28% (147km) to 60% (318km).
5. Community infrastructure, including improved road access, is being built in eight Indigenous communities, meaning jobs for local people and improved living conditions.
| 9. What were the main obstacles encountered and how were they overcome?
1. In 2015, the target for Key Result Area (KRA) 2 was exceeded by over 1600%. Following a multi-government agency review on a ‘without precedent basis’ the KRA 2 for the 2016 PDR projects was adjusted upwards with the target rising from 1.5% to 15% of the Contract Direct Cost Amount. This was done to ensure the lead companies contracted to deliver the PDR road sealing projects continued to strive to employ as many Indigenous businesses as possible. This has proved successful with an increase of 1.5% in 2016.
2. Indigenous businesses are able to register their details on Queensland’s ‘Black Business Finder”. With the growing opportunities for Indigenous businesses in 2015 and 2016, there were claims that some non-Indigenous businesses were claiming to be Indigenous in order to gain work. In response, the Department of Transport and Main Roads (TMR) is working with the Department of Aboriginal and Torres Strait Islander Partnerships to investigate the claims and ensure legitimate Indigenous businesses are being engaged.
3. 2015 proved a year of firsts with the development and signing of the PDR Priority Agreement (PPA), and the formulation and implementation of untried KRAs. In response to some scepticism and misinformation, in late 2015 TMR produced and widely distributed a range of fact sheets, including via http://www.tmr.qld.gov.au/Projects/Name/C/Cape-York-Region-Package-Peninsula-Developmental-Road. They explained the need for the PPA and the KRAs. In 2016, TMR held a series of industry and community briefings in Cape York and Cairns, to talk about the 2015 results and learnings, and the year of construction ahead. Similar briefings are scheduled for 2017 and further fact sheets are being developed.
“The feedback has been positive and full of praise for the way that TMR has conducted the information sessions.” Andrew Clarkson l Senior Advisor l Department of Prime Minister and Cabinet (June 2016).