THE Government's intervention in the Northern Territory has stagnated with no more children going to school now than two years ago and reports of substance abuse soaring.

A six-month progress report on the intervention, quietly posted on the internet this week, showed school attendance rates remained virtually static in affected communities with only two out of three children going to school.

It also states plainly the Government's commitment to reinstate the Racial Discrimination Act by October 2009, a promise it has broken.

The intervention was started under John Howard in 2007 and continued under the Rudd Government with extra funding amid criticism from affected communities.

''This is unacceptable treatment. Racism and divisions increase and living conditions deteriorate each day the Act remains suspended,'' a petition signed by Aboriginal leaders said. ''We are like outcasts - denied basic rights afforded to other Australians.''