First published in ABC News

The Indigenous leader Galarrwuy Yunupingu says the Federal Government's intervention in the Northern Territory has failed to improve the lives of Aboriginal people.

Mr Yunupingu is among a group of senior traditional owners from 36 clans who have formed a new federation called the Dilak Provincial Authority.

He says it represents 12,000 Yolngu people who are calling for the Northern Territory Emergency Response legislation to be urgently repealed.

"It is now three years old but it hasn't made Aboriginal people any richer or healthier or happier," he said.

"It is really and truly dragging people down to create more misery. So the intervention that I am calling now is to close. Let's start again."

'Time for recognition'

He says Federal Government funding earmarked for Aboriginal people should bypass the Northern Territory Government.

The new Dilak Provincial Authority could distribute funding for roads, schools, health and housing more effectively than shires and local government, he says.

"We are directing the Federal Government to pass the Aboriginal dollars straight to the Aboriginal people in East Arnhem with our own authority spending the Commonwealth fundings to the best of our ability and still be accountable."

Mr Yunupingu says the time has also come for the Prime Minister, Kevin Rudd, to honour his pledge to recognise Aboriginal people as the first Australians in the constitution.

"He has gone as far as apologising to the Stolen Generation.

"Now he is sitting back. We have waited a bit too long.

"[We are] calling for constitutional amendment or changes and perhaps accepting Aboriginal people for the first time that we are well and truly the first Indigenous Australians and they found us here."