Aboriginal and Torres Strait Islander peoples are just as keen as the government is to address welfare and social justice issues. These have to be understood in the context of the early European settlement of this country, which destroyed the structure of our way of life and cultural values, and led to the dispossession of our land. Our peoples still face what is described by the Commonwealth Grants Commission (CGC) in a recent draft report (CGC 2000) as ‘the historical legacy of exclusion from the mainstream provisions of Australian society’. It is imperative that we understand the importance of these underlying issues. From the early settlement period until the referendum of 1967, the majority of our peoples never really had a fair go in education or employment, and they were certainly not in a position to exercise autonomy, or self determination about their future. This power was exercised by governments and still is to this day.

Our peoples were exposed to the welfare support system as a necessity, not by desire. They were forced to live in an alien environment, and dependence on the welfare support system of course meant access to the cash economy. As a result our peoples encountered many social problems such as alcohol and substance abuse, ill health, poor housing, brushes with the law, and racism and discrimination. These factors in turn impacted on their ability to attain relevant and appropriate levels of education and labour market skills to enhance their employment and social skills. We are faced with the reality of the legacy of dispossession and dislocation that have weakened or destroyed the economic bases of many Aboriginal and Torres Strait Islander societies. These experiences have left many without social context, relevant skills, or opportunities to move beyond a reliance on welfare.

One factor that has not received enough attention is racism. No government has yet fully considered this as a major issue which warrants changes in its policies so that it can be addressed in the delivery of essential services to Aboriginal and Torres Strait Islander clients. Despite legal sanctions against racism and discrimination, our people still experience overt and tacit racism in this country (see Bartlett, Ch. 20, this volume). It is rare, for example, to be served by an Aboriginal or Torres Strait Islander shop assistant. Racism can be addressed through structural changes in the delivery of services. Governments and policy makers should be aware of the fact that, as Noel Pearson (2000) said, ‘welfare dependency makes people even more vulnerable to the degradations of racism’.

Attempts have been made, and programs introduced specifically to address Aboriginal and Torres Strait Islander peoples’ welfare and social justice issues. Yet since the recognition of our peoples as Australian citizens in 1967, none of these programs have effectively addressed these issues. They may have slowed down the process of dislocation, or improved conditions a little, but governments certainly have not found the right solution. The dislocation of Aboriginal and Torres Strait Islander societies has not been arrested. Wrong decisions on welfare reform have the potential to exacerbate the circumstances of our peoples. This is surely an outcome to which no government would aspire.