It is now two years since the former Howard government, shocked by the revelations of violence and child sexual abuse contained in the Little Children are Sacred report, launched its much ballyhooed Northern Territory intervention, and more than 18 months since Labor, having strongly committed itself to continuing that intervention, came to power. Yet, the Productivity Commission report, Overcoming Indigenous Disadvantage, has found the gap between the non-indigenous and the indigenous population on rates of child abuse and neglect is widening, alarmingly so, and that while some progress has been made on other key social indicators, such as educational performance and school retention rates, little or no progress has been made on others. Admittedly, much of the data on which the report is based was collected before Labor came to power, but it raises major questions about the effectiveness of the intervention.

Prime Minister Kevin Rudd, who released the report at a Council of Australian Governments meeting in Darwin on Thursday, has said the findings indicate that indigenous disadvantage is more profound than previously believed a somewhat disingenuous assessment given the plethora of reports during the years that have either detailed shocking deficiencies in the provision of adequate health, education and housing for indigenous communities, or revealed deeply entrenched social ills in the those very same communities. Looking to turn a sow's ear into a silk purse, Rudd claimed that previous data on indigenous disadvantage was unreliable, and the Productivity Commission's findings would enable the Commonwealth and states and territories to better target disadvantage, and to assess the impact of the various programs.

Rudd has compared bridging the gap on indigenous disadvantage to the long and difficult task of turning around a super tanker, but given his previous strong commitments to closing that gap and the hundreds of millions of dollars that have been invested in the intervention the lack of progress on the one signature issue of the crisis in indigenous communities (the abuse and neglect of Aboriginal children) is disturbing. On the evidence of the Productivity Commission, the squads of health workers, public servants and police and army personnel flown into remote NT communities to ascertain the extent of the problem and to bring the alleged perpetrators to justice achieved nothing other more than the illusion that something was being done. Perhaps that was always the intention of the Howard government.

Admittedly, the intervention's effectiveness was blunted by logistical difficulties such as the shortage of police and doctors trained and willing to take part. However, there were many who argued the violence and abuse in some (but not all) indigenous communities was symptomatic of far wider social and economic problems, and that treating that one symptom without addressing the underling causes was likely to be counter-productive. That Aboriginal children were almost seven times more likely to be abused or neglected than non-indigenous children in 2007-08 would seem to be a vindication of their position: Not that it would give anybody any comfort to claim this.

There is no doubt that a multi-factorial approach is required if the gaps in life expectancy, health and education standards, child welfare, and economic opportunities are to be narrowed. The agreement reached at this week's COAG meeting to improve the standard and affordability of food sold at isolated Aboriginal communities is one such inexpensive initiative that could deliver lasting benefits, if implemented successfully. Encouraging mining and agricultural companies to employ more indigenous workers is another.

Not all indigenous communities, remote or otherwise, are dysfunctional. A good many are normal, everyday communities, if not thriving then imbued with a strong sense of shared purpose. This is often characterised by the drive, energy and enthusiasm of their leaders and elders, and their unwillingness to subscribe to a corrosive culture of welfare dependence. Even allowing for the fact that no two communities are alike, there are plenty of indigenous success stories that can serve as templates for other more deprived communities.

Much will depend on the commitment of the Federal Government. Rudd's rhetoric has so far been encouraging, and he has earned the goodwill and admiration of indigenous people with a heartfelt apology to the Stolen Generations, but he has yet to fully demonstrate that he has the stomach to see this most difficult of tasks through to some conclusion.