Yesterday Katherine traders said they felt betrayed by the Federal Government for giving the money to Mr Lodge’s company. 

Custom Cabinets owner Jeffery Usher rallied more than 30 local businesses behind a protest letter to NT Senator Nigel Scullion. 

Senator Scullion defended the use of taxpayer money to support an Indigenous company, Innovative Office Furniture, to boost Aboriginal employment and training opportunities in Katherine.  

Responding to the claims, company director Allan Lodge said the money was spent on furniture manufacturing.

“As an Indigenous business we want to build pathways for other Indigenous people by way of traineeships, apprenticeships and general upskilling,” Mr Lodge said.

“It is true that we have received some financial support from the Federal Government but this is only a small part in comparison to the time, effort and money we have invested, and continue to invest, in this business and in Katherine.  

“Innovative Office Furniture has been operating in Katherine and surrounding regional and remote areas since 2013 so this is nothing new and we are not new to Katherine,” he said.

“We have accounts with numerous businesses in Katherine and are spending thousands of dollars every week in the town. “

Mr Lodge said he understood “some peoples’ concerns around town”.

“But I would have thought that walking down the main street looking at the ever growing number of businesses closing down or moving out of town and the empty buildings left behind that any investment and employment opportunities brought to Katherine would be embraced and welcomed,” Mr Lodge said. 

Jeffery Usher said “We have no issue with the company who was awarded the grant, and we have no issue with funding for Indigenous employment.

“What we are disappointed about is the Government has given a grant to a Darwin company to franchise here and compete in our market,” Mr Usher said. 

“The money could have been spent on companies that are already established here in Katherine that want to train Indigenous people.

“I am really keen to support Indigenous employment and I do not want to bash the other business owner who got the money, or come across as racist. I just think the government has changed our economy without consulting us,” he said. 

Northern Land Council CEO Joe Morrison said on Twitter: “The Katherine economy wasn’t and never has been a level playing field for Aboriginal people whose monies, both private and public prop the town up.”

A spokesman from Nigel Scullion’s office said any Katherine small business is able to apply for grants.

He said the grant “allows Indigenous businesses to make applications for plant and equipment to help grow the sector to parity levels”.

“Indigenous businesses make up just 0.7 per cent of small businesses in Australia despite being 3 per cent of the population. Economic modelling shows that the Australian economy will be up to $24 billion better off in decreased welfare expenditure and increased tax receipts if there are parity rates in economic participation”.