First published in NT News

ABORIGINAL camps at Alice Springs will be compulsorily acquired by the Government after the local council failed to agree on a plan to lease their land.

Indigenous Affairs Minister Jenny Macklin said the Federal Government was taking the first steps towards compulsory acquisition of the Alice Springs town camps.

The action - announced at the start of Reconciliation Week - would involve taking control of the camps from the Tangentyere Council.

The forced takeover comes after the council did not meet a deadline for agreement on leasing of the camps last week, Ms Macklin said..

Chief Minister Paul Henderson said he backed the plan.

He said he was "bitterly disappointed" Tangentyere Council had not agreed to the proposal.

"This decision will result in $100 million being spent ... improving housing and living conditions in town camps, and a further $25 million for health, substance abuse services and infrastructure across Alice Springs," he said.

Ms Macklin said the move was made as a last resort.

"There are appalling conditions in these town camps," she said.

"There could be upwards of 50 people living in a shelter, no walls to the shelter and living in filthy conditions.'

Tangentyere Council and the Central Land Council would not comment yesterday.

The council was offered more than $100 million in camp funding providing they gave the Government long-term leases over the land.

In 2007, then chief minister Clare Martin said her government did not support the compulsory acquisition.

But Mr Henderson said yesterday the policy change was necessary.

NT Opposition indigenous affairs spokesman Adam Giles said the ultimatum showed Labor governments had failed the women and children who live in the camps, as they could have taken over the camp leases at any time.

The Intervention Rollback Action Group's Hilary Tyler said the Government used "blackmail".

"It marks the start of a takeover for all Aboriginal communities who reject government leases," she said.