MEDIA RELEASE
Released By:
Downer
I am pleased to announce that Australia will provide approximately
$2.133 billion as Official Development Assistance (ODA) in 2004-05, an
increase of $239 million over the 2003-04 Budget figure
($1.894 billion). This represents a real increase of
9.9 per cent and gives Australia an ODA/GNI ratio of
0.26 per cent, placing Australia above the 2003 donor average of
0.25 per cent.
Instability and poor governance directly threaten the prospects for growth,
prosperity and development for many countries in our region and has the
potential to undermine Australia's security. The Australian Government,
with the help of our regional and international partners, is devoting greater
resources to tackle these challenges head-on. The development cooperation
program will work closely with other Australian Government agencies as part of
enhanced whole-of-government approaches to advancing development in our
region.
BUDGET HIGHLIGHTS
There will be a significant increase of $102 million in ODA to Papua
New Guinea (estimated total of $436 million in 2004-05) to address
fundamental governance challenges - strengthening the rule of law, enhancing
economic and financial management and effective delivery of essential health
and education services. Much of this support will be provided through the
5-year, $1.1 billion Enhanced Cooperation Program, agreed between
Australia and Papua New Guinea in December 2003.
Australia's ODA in 2004-05 to Pacific island countries will more than
double from the 2003-04 Budget ($176 million to an estimated
$383 million), as they deal with serious economic, social and security
difficulties.
Total ODA to Solomon Islands in 2004-05, through the Regional Assistance
Mission to Solomon Islands (RAMSI) and the ongoing bilateral development
cooperation program, will be an estimated $202 million. Australia, working
closely with the Government of Solomon Islands and regional partners, will
continue to support comprehensive economic reform, enhancement of the legal and
judicial environment, developing a capable national police force to maintain
law and order, rebuilding of the machinery of government and provision of
essential services to the community, particularly in health.
An extra $11 million will be provided in support of regional programs
to address good governance in the Pacific, and support opportunities for
pooling regional resources for more efficient and effective service delivery
and administration. This includes the establishment of a new $6 million
per year Pacific Governance Support Program (PGSP) to strengthen practical
links between Australian government agencies and their counterparts in the
Pacific, and support targeted training, mentoring and placement of technical
advisers.
There will be substantial increases in ODA in 2004-05 for both
Vanuatu (up $8.2 million to an estimated $31 million) and Fiji (up
$5.1 million to an estimated $25 million) to strengthen the
administration of law and justice, support improved economic and financial
management, public sector reform and delivery of basic services.
Funding for the Peace and Security Fund, which I established last year, will
increase from $7.5 million to $10 million in 2004-05. This Fund will
continue to provide flexible and targeted assistance to directly address needs
in post-conflict societies, and will complement other regional programs, such
as the Regional Policing Initiative, to address the threat of terrorism and
other trans-national crime.
ODA to Indonesia will increase by $9.1 million to $161 million to
support improved governance, particularly in fiscal management and
accountability and legal reform, and improving the delivery of basic education
through secular and Islamic schools.
Funding of $146 million will be provided for international
humanitarian, emergency and refugee programs, an increase of $13.7 million
on the 2003-04 Budget and a real increase of 50 per cent since
2000-01. This underscores Australia's commitment to assist the most
vulnerable, including those affected by disaster and conflict. Australia will
continue to provide generous humanitarian and longer-term reconstruction
support in Iraq, Afghanistan, Africa and Sri Lanka.
Core funding to the International Committee of the Red Cross (ICRC) will
increase from $3 million to $5 million in 2004-05. Australia will
host a meeting of the ICRC Donor Support Group in June 2004, which will provide
an opportunity to highlight to the international donor community the unique
development challenges facing the Pacific.
Direct Australian support for improved governance now comprises one third of
total Australian ODA, the highest level ever. An important component of this is
increased support for basic policing, including in PNG, the Pacific and East
Timor.
Further to the $1 million provided to the World Health Organisation in
2004, a new 3-year initiative to stop the spread of communicable diseases, such
as avian influenza, in the Asia-Pacific region will commence in 2004-05.
The Government's 6-year commitment, through the development cooperation
program, to arrest the spread of HIV/AIDS in our region will increase by
$50 million to $250 million.
Notwithstanding the significant achievements under Australia's 4-year,
$150 million development cooperation pledge, East Timor remains one of the
poorest countries in the Asia-Pacific. Australia will continue to provide
substantial ODA to East Timor (approximately $40 million in 2004-05) as it
continues the difficult transition to self-reliance.
The Government will provide a $5 million package of assistance to
support training, awareness raising, research and guidelines on water quality
in the Asia-Pacific region, particularly the growing problem of arsenic
contamination in drinking water. This will place Australia at the forefront of
international efforts in promoting water quality through our development
cooperation activities.
Media enquiries:
Chris Kenny (Ministerial) 02 6277 7500 mobile 0419 206 890
Jo Elsom (AusAID) 02 6206 4960