Wednesday, July 22, 2009

Same old same old

Costs erode 70pc of indigenous housing fund


Natasha Robinson | July 23, 2009

Article from: The Australian

NORTHERN Territory government ministers have been warned that the federal government's $673 million remote housing package is likely to deliver as few as 300 houses - less than half the number originally promised.

Figures revealed in a confidential briefing given last week to Territory government ministers and senior bureaucrats showed the Strategic Indigenous Housing and Infrastructure Program was seriously off-track, with up to

70 per cent of allocated public funds swallowed up in indirect costs, including contractors' fees, fees paid to expensive consultants and government administration fees.

A source at the briefing in Darwin last week told The Australian the figures -- which suggested only 30 per cent of the $673m in SIHIP funding would flow to direct costs of refurbishment of housing and the building of new houses -- shocked MPs and bureaucrats.

Fifteen months ago, the federal government announced SIHIP would provide 750 new houses to remote Aboriginal communities in the Territory. So far, not one house has been built.

While bureaucrats consult with indigenous communities on remote housing in the Territory, construction began this week in Woolloongabba in Brisbane -- in Kevin Rudd's electorate -- on the 1000th home built under a $6.4 billion social housing stimulus package expected to provide 20,000 new homes by 2012.

The problems besetting SIHIP come as it was revealed yesterday that NSW Labor senator Ursula Stephens wrote to Indigenous Affairs Minister Jenny Macklin last year warning that no houses would be built under the program until 2011.

The memo, obtained by the National Indigenous Times, warned that SIHIP was open to collusive tendering and potential corruption.

"Those from the construction industry were flabbergasted by the approach -- which they best likened to a 'shoddy defence procurement model'," it said.

"The only winners in such a process are the consultants who form part of the 'alliances', or who draw up the legal arrangements for the procurement process."

The head of SIHIP, Jim Davidson, and the chief executive of NT Housing, David Ritchie, refused requests for an interview.

The Tiwi Islands, 80km north of Darwin, along with Groote and Bickerton islands in the Gulf of Carpentaria and Tennant Creek, 500km north of Alice Springs, had been chosen to receive the first round of SIHIP funding.

The Tiwi Islands, which had been allocated $53m under SIHIP, were set to receive 155 upgrades to existing housing and 29 new houses at a cost of between $404,000 and $674,000 a house.

The town of Nguiu, on one of the Tiwi Islands, Bathurst Island, recently received 25 new houses built using funding from previous indigenous affairs minister Mal Brough.

A local company, Bathurst Island Housing, built eight of those houses at a cost of about $350,000 each. Another company, Sitzler -- one of the companies chosen to form part of the Territory Alliance, the consortium responsible for SIHIP construction at Bathurst Island -- built 12 of the 25 houses.

However, Sitzler's houses, built from virtually identical plans, cost $650,000 each.

Territory Alliance manager Allan Gill said he had no doubt a local firm could build houses under SIHIP for less than the larger companies chosen to form the alliance.

But he said the alliance companies had been awarded the job because they had the required safety accreditation and were capable of building quality housing that would last.

Mr Gill said the profits to be reaped by alliance members were set at less than 20 per cent of the total housing package, and all costings had been independently reviewed.

A spokeswoman for Ms Macklin said the alliance model would be "monitored and evaluated closely".

Her office said the high costs of remote housing construction must be taken into account.


Sunday, July 19, 2009

The Local Road to Recovery

Nicolas Rothwell | July 18, 2009
Article from: The Australian

COMMUNITY-focused and traditional routes offer the ideal means of tackling the lot of indigenous citizens in remote communities.

ON rare, revealing occasions, the scale of Australia's Aboriginal crisis -- and the incapacity of successive governments and bureaucracies to frame or comprehend it, let alone to devise effective responses -- becomes clear.

One such moment came earlier this month at the Darwin meeting of the Council of Australian Governments, which coincided with the release of the grim new Productivity Commission report on indigenous disadvantage. Two years had passed since the launch of the Northern Territory federal intervention and the commission's previous bleak statistical inquiry into the wellbeing of Aborigines.

Little had changed, though there were intriguing clues to the depth of the problems besetting the indigenous landscape. Many of the key social measures were static or showed a worsening trend, even though there had been improvements in the economic indicators for Aboriginal communities.

Employment levels were up but substantiated reports of sexual abuse and neglect hadalso risen between 1999 and 2007 to a level six times the rate recorded in the non-indigenous population.

Kevin Rudd, alighting briefly on the nation's most urgent moral agenda, announced his confidence that the great measures being pursued by his government -- the modified federal intervention, systematic schemes for job creation, the slow-dawning program for new housing in the Territory -- would eventually bring progress.

"A large number of inter-governmental agreements have been signed which go to our common national resolve to act to close the gap as it occurs in the critical areas of disadvantage for indigenous Australians," he said. "Areas such as infant mortality, educational attainment, health outcomes, as well as employment outcomes."

Rudd went on to single out the three large-scale ventures in indigenous social re-engineering under way across the north of Australia -- the new broom in the Northern Territory, the alcohol restrictions in the Kimberley and the Family Responsibilities Commission in Cape York -- as "different forms of intervention", marking a break with the patterns of the past.

This is the new paradigm: observation and consultation, followed by targeted intervention and constraint. It strips away the anarchy of unbounded freedom, the better to build the structures of responsibility. Will it succeed? Bluntly, Rudd went on to say he was committed to the new approach because "everything we've tried in the past hasn't worked". It is being applied with particular commitment to the remote communities of the Aboriginal world, whose members make up less than a quarter of the half-million indigenous population.

The prescription book for this fresh approach is the Productivity Commission report, a work of sweeping scale and ambition that represents the distilled wisdom of the Aboriginal affairs policy establishment. Though few of the politicians and bureaucrats who cite its headline findings will be familiar with the detail of its 700-odd pages, it goes far beyond mere statistics and enshrines a set of core beliefs about how best to achieve development and progress across the indigenous domain. One of its crucial underlying assumptions, shared by many potent Canberra public servants, is the view that the failures of the past were due to insufficient government attention or consultation. On this argument, more, rather than less, outsider involvement and more precise managerial oversight hold out the best promise of a shining future. The commission's report is studded with analysis of "things that work" and it even identifies "success factors". These include co-operative approaches between indigenous people and government, direct community involvement in program design and decision-making, and the nebulous ideal of "good governance" for Aboriginal institutions.

This vogue term, borrowed from Native American sociology, tends, at least in remote areas, to be bestowed on indigenous organisations that administrators find easy to deal with, rather than ones that represent Aboriginal interests well and are popular at a grassroots level.

So strong is the persuasive force of the Productivity Commission's world view, with its dream of perfectly informed surveillance, that the COAG leaders decided to spend an additional $40 million on collecting further statistical information on Aborigines.

Rudd's approach is aimed at strengthening indigenous communities. But can intervention on such a draconian scale, when prolonged, breed strength and resolve?

One of the most significant consequences of the administrative upheavals in remote central and northern Australia is the intensity of the consultation process. It acts as a fiercely disruptive, capacity-sapping force. Few community leaders have time to do anything but discuss their plight with government representatives and program managers. So many programs are being delivered, in so many conflicting ways, that the commonwealth and Northern Territory governments have been forced to appoint co-ordinators of remote area services: a confession of Kafkaesque gridlock.

"People are overused, pulled from pillar to post," says one central Australian leader. "They have no thought in their minds about the future direction, their lives are lived in meetings, constant meetings."

External management on the scale required by the intervention also implies a high degree of control. Indeed, the draining away of autonomy and authority has proved the one constant in the administration of the indigenous realm. When the missions came to the north in the early 20th century, strict rules were put in place to govern their populations, as anthropologist Peter Sutton points out in his landmark new book on indigenous policies and their consequences, The Politics of Suffering. When the welfare era came, in the late 1960s, Aboriginal communities were controlled and weakened by the provision of "sit-down money". When the intervention of 2007 came, the limited autonomy of remote communities was eroded by the drastic measure of income management.

All these manoeuvres stemmed from different philosophies; all leached power from the local communities. How to build power back up and create new, effective institutions for remote Aboriginal Australia? This is the hidden policy challenge before Rudd and Indigenous Affairs Minister Jenny Macklin. Significantly, it is one that has already been taken up in a quiet way by indigenous groups on the ground. Old forms of representation have failed and, as this power vacuum deepens, new ones are slowly being built.

The political revolution in the remote Aboriginal regions may well be the most significant mid-term consequence of the intervention, though it has yet to register at federal level. By now, the sweep of recent history can begin to be seen: the collapse of the welfare dream, the long chaos it brought, the undermining of indigenous cultures and the creation of a loose, fraught pan-Aboriginal political identity. The removal of the former Aboriginal and Torres Strait Islander Commission from the scene and the collapse of relations between the most prominent members of the old national Aboriginal leadership and the Coalition government of John Howard ended that phase. Something new began to form in Cape York, where Noel Pearson began working to build up local communities from ground level, and in small areas with forward-looking Aboriginal councils, such as the Western Desert's Ngaanyatjarra shire.

The X-ray map of today's Aboriginal power system in the Northern Territory and the remote northwest shows a fascinating picture quite at odds with the official blueprint. The legitimacy of the old architecture has begun to fade. Federal bureaucrats and their praetorian representatives continue to hold sway and to hold the purse-strings, but the sense is strong among many remote-area leaders that the reformist zeal of the Mal Brough era has vanished. Indeed, the emergency response is in danger of stalling: the key housing program is advancing at a snail's pace, its funds soaked up by administration. Attempts by indigenous politicians to streamline the vast public service machine and instil a mood of urgency have proved unavailing. Struggles for bureaucratic control of projects are commonplace.

Of all this, not a word in public. Meanwhile, the survival of the new policy initiatives is in doubt. The Territory's minority government appears stalemated on its indigenous initiatives, now its Chief Minister Paul Henderson is being held hostage by a Labor defector turned independent. Beyond government, the picture of decay in the old authority networks is similar. For decades the accepted political voice of Territory Aborigines was provided by the Northern and Central land councils. Both are Labor creatures, heavily enmeshed with the federal and Territory parties. Macklin's key confidant on central Australian affairs is CLC director David Ross, while the NLC's chief executive Kim Hill is the Labor heir presumptive to the Territory bush seat of Arafura. The two councils derive their power from their position as gatekeepers, mandated to issue permits and negotiate on behalf of Aboriginal landholders.

But a tide of anger against the NLC is blazing in the key northern communities of Wadeye, Maningrida, Borroloola and Ramingining, where local traditional owners have been trying for years to advance commercial development. In the centre, the CLC last month advised Warlpiri leader Thomas Rice Jangala that his ownership of a key set of dreaming sites was in dispute: the controversy, first reported in Alice Springs News, has received little attention in the outside world, but this was a shot heard all across the Western Desert, where Rice is one of the region's most senior traditional men.

The authority of the CLC, whose new, $16m headquarters was just opened by Macklin, is in shreds among the people it purports to represent. Meanwhile, different indigenous institutions have begun to take form. Several of the new Territory local shires are in effect Aboriginal regional bodies, exercising considerable power. The councillors of one shire recently removed their white chief executive, to vast surprise and consternation in official circles. In the Top End, autonomous bodies of traditional leaders are emerging; new councils made up of senior figures have been set up in the Thamarrurr region around Wadeye and in the Yolngu region of northeast Arnhem Land.

Not only are these developments telling responses to the recent phase change and to the slow breakdown of old authority structures caused by the paralysing welfare culture and the collapse of the schooling system; they also highlight the divide between traditional Aboriginal societies and the indigenous institutions set up under the Northern Territory Land Rights Act to serve as designated representatives in mainstream society.

The Aboriginal politics triggered by the intervention is thus tense and complex: the struggle being played out is largely invisible to outside politicians, since their information comes from the placemen and administrators charged with controlling the field. Why, indeed, should Rudd know any of this, if his sources are the Productivity Commission's statistics and a quick COAG breakfast with a broad spread of NT Aboriginal figures?

But the optic through which to view much in north Australian indigenous affairs is precisely this battle for influence between old institutions and new. Significantly, two of the key official interventions listed by Rudd in Darwin were in fact governmental co-options of promising local plans: the Cape York Family Responsibilities Commission and the Kimberley alcohol controls. Both are testimony to old, local, lurking networks of social capital rising up to defend Aboriginal interests.

Various paradoxes flow from the strange configuration of divergent interests in the Territory. Traditional community leaders and those close to the cultural heart of remote Aboriginal societies tend to have quite strong biases in favour of a degree of modernisation and integration into market economic structures, while preferring a sharp boundary between their own realm of law, language and culture and the Western world. But the leaders of old representative bodies and their advisers, whose influence is tied to the preservation of the status quo, often hold opposite positions.

Thus many traditional leaders welcome the breaking of the welfare trap and yearn for large projects that offer prospects of sustainable employment, even as they oppose excess commercial development of the Aboriginal art sector and, secure in their own languages, oppose plans to deliver bilingual education. In the long-dominant "progressive" establishment that comments on indigenous affairs, the view is almost the reverse.

How, though, for the federal government, still very much the post-colonial power in the north, to oversee the successful transformation of a broken system? The intervention, in its first two years, has been a one-size-fits-all affair; its natural evolution would be into a range of local regimes, with calibrated degrees of social control and specifically tailored economic projects for different areas.

Traditional Aboriginal power structures and local indigenous councils, rather than old regional bodies dominated by partisan networks, are the way ahead for a Prime Minister who understands the powerlessness of today's remote Aboriginal world, and who is on record as saying that "everything we've tried in the past hasn't worked".

Thursday, July 16, 2009

Ali Curung Intervention

NTER Review

http://www.nterreview.gov.au/subs/nter_review_report/62_Ali_Curung.htm

Ali Curung

The Intervention

Most Ali Curung staff were pleased to hear about the intervention. It seemed to signal that the federal government was very keen to tailor approaches towards helping communities. The rhetoric was encouraging and the money was there. The announcement barely caused a ripple in a community used to the fluctuating winds of change.

Business Managers on generous salaries were appointed and Territory roads busied with road trains transporting refurbished demountables to house them. The community looked on with listless anticipation and we wondered how they would attack the training and employment issues.

The Business manager was followed by and equally well heeled Employment Broker in his signature Nissan Patrol with two spare wheels. He was said to be on incentive payments based on head counts. Ali Curung Council's compound became busy with government vehicles.

As time passed by changes of note did take place. The business manager gave the go ahead for a shed for the new art centre and he threw himself behind a move to have Outback Stores take over the Ali Curung store. The committee running the shop and a substantial part of the community did not want this to happen.

Outback Stores is owned by the IBA (Indigenous Business Australia-the federal government) and promised to revitalise the business. The store was suffering from lack of cash flow due to ‘book-up' and was badly stocked, often with poor quality products. Take-over by Outback Stores saw improvements in the quantity and quality of the stock as well as price increases to address the increase in overheads.

The profitability of their business is unknown but the government could not be too worried about this. The quarantining of welfare pavements was managed in such away that the Ali Curung store had a windfall cash flow. Apart from the price rises and the sidelining of the Mirnirri Aboriginal Corporation all seemed to be going well until it was realised the Warrabri Bakery was being put out of business, once more ,by insensitive management and poor planning.

The bakery had been in business and serving the community since the seventies (See Warrabri Bakery blog). The quarantining of payments meant that many people in the community could no longer spend their money with the business. In addition, a long standing agreement by the Ali Curung store on opening hours was also broken. Warrabri Bakery was going out of business. After weeks of appeals, radio interviews and some help from Warren Snowdon and Elliot McAdam, the bureaucracy stirred and the bakery now looks safe once again.

During this time the government employment broker thundered into the community. The task was to get people into jobs or more properly, to work. He plundered the CDEP list of around 160 registered workers. Some training programmes were started. These were simple repeats of all that had been done before and failed. A hand full of people turned up to work along side highly paid contractors doing community maintenance such as fencing and housing refurbishment. As per normal Ali Curung worker numbers ebbed and flowed and schedules crawled on. The business manager and the employment broker claimed accolades and barrow loads of money. Exaggerated stories of their achievements spread to people who could never be wiser. Employment remained as always. The programme achieved nothing that a properly resourced and supported Ali Curung Council could not have and at less cost. It was fairly clear that this part of the intervention was a very costly exercise that could just as easily been achieved if the bureaucrats had taken time to work more closely with the existing council. At the end of the day employment and training at Ali Curung remain unchanged. Also it is possible that an opportunity was lost to find out what small steps are needed to encourage engage the community in proper work.

The most obvious changes to the community come in the form of paint and fences. Homes that were painted as little as a year ago by a local painting team are now being repainted by outside contractors accompanied by their massive costs. Homes that were recently painted in colours chosen by their occupants are now repainted in standard colours. There has also been massive spending on fences and fencing contractors. The fences are welcome allowing some control over the hungry dogs and litter spread by careless children. However the work is slovenly. Poor construction will see many of the fences decay rapidly and a return to the status quo.

By now the business manger and employment broker are rarely seen in Ali Curung. Neither demonstrated much support for the community and its real needs. The Ali Curung school is in crisis, producing generations of young people who can barely read or write. 40 children in Ali Curung have never been to school. Of around 140 students there are days when only four will be in school. Adult education is ignored. There is no evidence that the intervention has had any impact. A government is pushing people into jobs. But most lack the ability to even read a tape measure or the number of litres in a tank, their skills are inadequate in the mainstream economy.

Such is the concern of a group of parents, it has been decided to form a committee to work out ways for them to manage the school and improve school attendance. The community now feel they can do a better job of management than the existing organisation and are meeting with key people from Darwin Alice Springs and Tennant Creek. No matter where the blame lies for poor school attendance and education standards, this group will be an indispensable element of future changes. In a community increasingly disaffected by the many changes over the last year or so this could be an opportunity for all parties to meaningfully engage with each other to achieve what is best for everybody.

Post Script.

FaHCIA and the IBA and Quarantining of Payments.

Using terms such as “I am the government so we do what we want” FaHCIA representatives attempted to bully business people into submission. The only defence available to business people badly effected by the quarantining of payments was to go to the media. Forty people from Elliot, Tennant Creek and Alice Springs met to defend themselves against an aggressive bureaucracy and bad planning. In most cases, with the help of ABC radio and people such as Elliot McAdam, they managed to get a better deal for themselves. Thanks to ABC radio, FaHCIA was found wanting in areas of truth and it is rumoured that a key player in the department has been moved on. There have been suggestions that FaHCIA and Outback Stores colluded to make sure any competition from other business be reduced so as to allow the IBA, the owners of Outback Stores maximum opportunity to increase their revenue.

In Ali Curung the strategy is clear. Outback Stores Business Development Manager is said to be ‘advising’ the Ali Curung store committee, the Mirnirri Corp, as to what they should do without any proper consultation process. Proper consultation processes in communities where English may be a second or third language is critical and takes time. Lack of proper consultation allows unscrupulous people or organisations to simply bully or bulldoze the people into doing what they want. Quite often, by the time the community understands the reality, then it is too late to stop the changes.

This has special meaning at Ali Curung. There are two shops. The Warrabri Bakery has been in business since around 1979 (see other blog) and has a good relationship with the Mirnirri Corporation now being managed by Outback Stores. While the bakery is recovering from almost being put out of business by the quarantining of payments, Outback Stores is pressing on with its agenda. The long-standing agreement with the Mirnirri Corp. for the Bakery to operate out side hours, including weekends, has been broken without consultation. In addition it seems that Outback Stores is now pressing the committee to extend the original one year management contract. Whatever the final decision is not important. What is important is the process used to reach the decision in a community increasingly alienated by the current era of change.

Vic Martin
Ali Curung Community NT

Farm owner urges more job support

Posted Mon Nov 17, 2008 1:30pm AEDT

The owner of a large farm on Aboriginal land in central Australia says he needs more support to employ local people.

Paul McLaughlin runs the Desert Springs Melon Farm at Ali Curung, north of Alice Springs.

He is currently harvesting the 60 hectares of melons and pumpkins, mainly using pickers from elsewhere.

Mr McLaughlin says he would like to employ more local staff, but is finding it difficult to keep people there.

"Definitely need some sort of mentoring program," he said.

"The idea of every day working outside, five-days-a-week is still a new idea, but needs some encouragement there and a mentoring program is probably what's needed."

Ali Curung Step Forward

Melons and Pomegranates for Ali Curung

21/04/2008

Joint Media Release with The Hon. Brendan O'Connor, Minister for Employment Participation
The Hon. Warren Snowdon MP, Member for Lingiari. Minister for Defence Science and Personnel

Pomegranates and melons will be grown in the remote Indigenous community of Ali Curung in the Northern Territory, as part of a major horticulture project.

During a visit to Ti Tree today, Minister for Employment Participation, Brendan O'Connor, announced a $4 million grant to the Ali Curung project, which will establish up to 100 hectares each of spring melons, autumn melons and pomegranates over the next 15 months, with the overall goal of developing 400 hectares within three years.

"This demonstrates the benefits of working with a local community to develop real employment opportunities," Mr O'Connor said.

"More than 60 jobs will be created through the life of this project – six full-time jobs in the first year and up to 60 part-time jobs by the third year."

Minister for Indigenous Affairs, Jenny Macklin, said the Aboriginal Benefits Account had provided $3.2 million to the Alekarenge Horticulture Pty Ltd to construct an artesian bore field.

This will enable the organisation to generate income by leasing essential infrastructure and charge water usage fees to AFM Central Australia Pty Ltd.

"This is a real achievement for the Ali Curung community. They have established a successful partnership with a private sector firm, AFM Central Australia, who will help them achieve their goal of establishing a successful horticulture business," Ms Macklin said.

The Aboriginal Benefits Account receives money from the Commonwealth equivalent to royalties paid by mining interests on Aboriginal land in the Northern Territory.

Federal Member for Lingiari, Warren Snowdon, acknowledged Centrefarm's long history of helping Aboriginal people to develop business opportunities on their own land.

"Over $900 000 has also been provided to Centrefarm Pty Ltd to expand their operations over the next three years, helping more communities and individuals achieve economic self-reliance through horticulture projects," Mr Snowdon said.

"Centrefarm has played a pivotal role in bringing together the traditional owners of the Warrabri Land Trust and AFM Central Australia to create a project that will deliver income and employment opportunities and benefits for the local community of Ali Curung."

Education Disaster

NT education system 'a failure'

Posted Tue Apr 14, 2009 1:03pm AEST
Updated Tue Apr 14, 2009 2:51pm AEST

A senior fellow at the Centre for Independent Studies has labelled the Northern Territory's education system a 'failure'.

Helen Hughes has released a paper reinforcing that students from remote schools perform a lot worse in literacy and numeracy than their metropolitan counterparts.

Professor Hughes says by encouraging bilingual education programs in remote schools, the Northern Territory Government has failed to achieve results in any language.

She is calling on the Government to streamline education.

"[The] Northern Territory is an outlier on every single test of numeracy and literacy, years three, five, seven and nine," she said.

"The results are appalling.

"They amount to a 100 percent failure rate."

She said there was an inherent culture in remote schools that children "are different" and do not need to read and write.

"There's hardly any secondary teaching and it's the curriculum that's the problem. Everybody knows it."

However, the Northern Territory branch of the Education Union says bilingual programs in remote schools encourage better school attendance.

"We want the kids to get to school. That is all it boils down too," the union's Rodney Smith said.

"If they get to school they have a chance of learning something and by removing the chance to be comfortable at school and being introduced to school in their own language, is going to stop getting the children there and feeling comfortable."

No New Houses in NT Intervention

At this time no new houses built after 2 years of intervention

Indigenous housing program defended

Posted Tue Jul 7, 2009 11:05am AEST

Several new houses stand at Wugularr

No houses have yet been built in remote Indigenous communities under a $672 million plan. [File image]. (AAP: Karen Michelmore)

The Northern Territory housing department has defended the amount of money that has been spent on the administration of a new housing program for Indigenous people.

In 2007 the Federal Government announced it would spend $672 million on a housing project to be managed by the Territory Government, but so far no new houses have been built.

The Territory Opposition says nearly 15 per cent of the money will be spent on management, although the Government disputes the figure.

The housing department's chief executive, David Ritchie, says some of the program's costs are unavoidable.

"In any comparison of cost, it's important to compare apples with apples.

"So it's unrealistic to expect the costs of this program to be equivalent to say one built in the suburban environments of Darwin or Alice Springs.

He says the department has taken its time because it is important to get the housing right.

"The housing [is] for the 30 to 50 year time frame that public housing is to be built out rather than the less than 10 years, which is what had tended to happen previously.

"So there was a lot of work necessary in the field, not only talking to communities, but also talking through just what had worked and what hadn't worked."

Ali Curung in a nutshell

On ABC radio, CEO Barkly Shire, Jeff Sowiak passed the buck to NT Housing

NT Times TARA RAVENS

ELDERS are threatening to abandon their remote community in central Australia, claiming intervention houses, rubbish and ankle-deep sewage are making residents sick.

A group of 30 indigenous leaders from Ampilatwaja have set up a protest camp three kilometres from the township, about 300km north-east of Alice Springs.

They say the federal intervention into remote communities has left them demoralised and sick, and they are threatening to build a new community on traditional lands not subject to government control.

"Under your intervention team's poor management, my people and community is in disarray," said community spokesman Richard Downs.

"(There is) malfunctioning with dust, rubbish and poor housing with leaking sewage...

"We have no other choice but have now decided and agreed upon to return to our grandfather's/mother's country which is on the pastoral lease."

Mr Downs said the intervention had widened the gap in Aboriginal disadvantage, and Government Business Managers (GBMs) deployed to the community had not shown "compassion, understanding or respect".

"Our people are demoralised, hurt, embarrassed, outcast on their own community," he said in a statement.

"We no longer have any rights to exist as humans in our own country...

"People have no motivation, no self esteem, no direction."

Mr Downs said the last straw for the community was the federal government takeover, using intervention powers, of a community-run store in May.

"What will you take away from us next?" he said.

"At this stage we no longer have any confidence with any members of your GBMs and intervention team and your government."

Health worker Kim Morrish said raw sewage in some of the public houses regularly resulted in gastric and skin infections.

"And there are quite a number of people living in houses that are exclusively made of tin," he told ABC radio in Alice Springs.

A Northern Territory government spokeswoman said "urgent work" was needed on seven houses and their septic tanks.

Work was expected to start on Friday morning "at the latest".