Poor performance and serious financial concerns are behind the decision to withdraw funding from Nowra-based Indigenous employment service Habitat Personnel, according to Indigenous Affairs Minister Nigel Scullion.
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Habitat is winding down after 20 years of operation in the Shoalhaven.
It had been funded under the federal government’s Indigenous Advancement Strategy as a Vocational Training and Education Centre (VTEC) since 2014.
However it was unsuccessful in gaining new VTEC funding for 2018.
“The decision to not continue funding Habitat was made on the basis of poor performance, with their success rate of getting Indigenous jobseekers into work amongst the lowest in the VTEC program, and a higher risk rating from ongoing concerns about financial management and governance,” said a spokesperson for Mr Scullion.
The spokesperson said a new provider had been found and no VTEC participant would be disadvantaged.
Concerns were raised in June 2016 when the department was told by Habitat it would go into receivership without financial help. No help was given but Habitat continued to operate. A departmental audit and Australian Federal Police investigation are continuing.
Workforce Extensions labour hire company managing director Ross Thompson said he was extremely disappointed with the decision.
“Through Habitat I have built up important relationships that have helped get Indigenous workers into jobs. Now, we are going to have to do that all over again with a new provider.”
Mr Thompson’s company placed Indigenous workers at the South Coast Correctional Centre expansion, the Burrill Lake bridge upgrade and the helicopter training school construction at HMAS Albatross.
On Wednesday, Habitat staff were still working on a voluntary basis.
