Local content commitment and the link with indigenous economic development: a case study

Abstract

This extended abstract discusses local content opportunities in economic development for the Aboriginal community. Local content requirements have become a strategic community development consideration during the past few years. This abstract links the topics of local content commitments and indigenous economic development via leveraging relationships with indigenous contractors in Australia. The creation of indigenous businesses that strive to succeed in the market and compete with non-indigenous companies is key in developing sustainable working opportunities for indigenous Australians. Many oil and gas players have publicly committed to contribute to indigenous business participation offering contractual opportunities and designing capacity-building programs and initiatives. The market for indigenous contractors services is, therefore, rapidly growing and presents considerable opportunities for existing and new players providing services to the resources industry in Australia. The specific demand is driven by corporate social responsibility policies and by the limited capacity of suppliers to deliver what is required by large new and expansion projects in the resource (both mining/oil and gas) sectors in Australia to maintain their social licence to operate. We present the results of a survey about policies and practices of some of the leading oil and gas operators in Australia, highlighting best practices in indigenous business engagement. We also analyse (from interviews with indigenous enterprises) barriers and issues encountered so far in indigenous contracting. International examples about the impact that indigenous enterprises can have on local community social and economic development complement the survey. Note: the term indigenous as used in this extended abstract refers to Aboriginal and Torres Strait Islander Australians.