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Making Australia’s aid program more effective: PNG-Australia Aid Treaty Review

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Media Release

MEDIA RELEASE

On Budget night the Government announced a review of the use of technical advisers, to be conducted jointly with partner governments.

  • Historically, a substantial part of Australia's aid program has been delivered through advisers.
  • The review of technical advisers allows us to examine the role they play in the aid program and focus on the contribution they make to development results.
  • Our ultimate objective will be to ensure that the use of technical advisers represents an effective, value for money response to meeting our partner governments' needs and priorities.

The review will give us the analysis on which, together with recipient governments, to make decisions on how best to manage a growing aid budget.

  • Decisions about what the Australian aid program supports are made jointly with partner governments and therefore the review will be undertaken jointly with them.
  • Under the Rudd Government, the proportion of foreign aid spent on technical assistance is already significantly lower than it has been previously.

During the Howard Government, average spending on technical assistance was 41.8 per cent of the foreign aid budget. It peaked at 47.4 per cent in 2004.

During the Rudd Government, average spending on technical assistance has been 34.5 per cent.

The Government has taken significant steps to strengthen the effectiveness of the aid program. For example, an annual review of development of effectiveness has been tabled in the Parliament each year since 2008. The Australian National Audit Office will also audit the aid program each year.

Both the PNG and Australian Governments want Australia's aid to PNG to be more effective.

In April 2009, Prime Ministers Somare and Rudd agreed to undertake a Review of the PNG-Australia Treaty on Development Cooperation, which guides Australian aid to Papua New Guinea.

Today I am releasing the findings of that Treaty Review.

The Treaty Review is a further demonstration of both the Australian and PNG Governments' strong commitment to improve the effectiveness of the Australian aid program in PNG and to ensure the aid program provides value for money.

The Treaty Review covers the period since the Treaty was signed in 1999 and is the first review of the aid program to PNG since 2004.

The Government welcomes the recommendations of the Treaty Review, which will be considered jointly by the Australian and PNG Governments in the coming months.

Decisions about what the Australian aid program supports will continue to be made in conjunction with the PNG Government.

The Government is committed to ensuring that every dollar spent on aid has the maximum possible impact on poverty and economic development overseas.

The Treaty Review can be found at: http://www.ausaid.gov.au/publications/pdf/PNGAustralianAidReview.pdf

Last Updated: 25 February 2013
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