Mr Draper has thrown his support behind a Federal government proposal announced by Indigenous Affairs Minister Nigel Scullion and influenced by a report released by mining magnate Andrew Forrest recently.

Mr Draper said it was a powerful message to have big business involved and Kenjarhy was one of 15 companies present for the announcement with others including Compass and Sofitel.

“What they (Government) have done in the past is not working. Indigenous unemployment is rising as are the issues within communities,” he said.

“This is really about trying to get industry to approach Aboriginal businesses about working with them to look at social inclusion subsidies of industry contracts.

“It will allow Indigenous businesses to employ their own people, as it is a well worn fact that Aboriginal people take pride in working for an Aboriginal business, at commercial rates of pay and not just work for the dole schemes.”

The plan is to significantly increase Indigenous employees in the public sector and increase procurement contracts with Indigenous suppliers by 2020 to three per cent of the government’s $39 billion annual spending.

Indigenous businesses currently secure mush less than one per cent, about $6.2 million of government business and this would increase to $135 million each year based on an average contract value of $90,000. 

“The three per cent of $39 billion is massive,” Mr Draper said.

Mr Draper is a proud Wiradjuri man and said by increasing incentives for mainstream companies to work with Aboriginal businesses, it would reduce unemployment among Aboriginal people. 

He said mainstream industry would also benefit with tenders if they worked with Aboriginal businesses that have a certain percentage of Aboriginal people working for them.

Some big players such as Thiess and Rio Tinto have already taken advantage of existing incentives with Kenjarhy.

“It is about integration, not segregation,” Mr Draper said.

tanya.marschke@fairfaxmedia.com.au