Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Hansard source

in reply—I want to thank all of the members who have participated in this debate on the Asian Development Bank (Additional Subscription) Bill 2009, and in particular the previous speaker, the member for Blair, for a very important contribution. The purpose of this bill is to obtain parliamentary approval to enable Australia to subscribe to its additional capital share at the Asian Development Bank. In so doing, it will ensure that Australia is able to continue to deliver on its commitments to the G20 leaders summit in London in April. The G20 has played a landmark role in responding to this global recession. It is important at this time that members of the G20 continue to work together to support recovery in the global economy. Indeed, that was reaffirmed at the finance ministers meeting only the weekend before last in London. It was 10 days ago that G20 finance ministers met and reiterated all of our commitments to deliver on the commitments that were given in April in London at the leaders meeting.

This is important, because every G20 finance minister knows just how fragile the global recovery remains and how important it is that we continue to support the global economy. Of course, the G20 finance ministers did note that the multilateral development banks were on track to deliver US$100 billion in additional lending, and this is very important to support the global economy. This additional lending is playing a critical role in supporting recovery in developing economies and, therefore, the global economy. Through its part, the ADB is helping to secure recovery and ensure sustained growth and stability in the Asia-Pacific region. Of course, this will be of great benefit to Australian exporters and Australian jobs for many years to come.

The April leaders summit also agreed to ensure that the ADB has appropriate capital to increase its support for recovery in the region through a 200 per cent general capital increase. Australia’s capital contribution would be at a cost of around US$197.6 million, paid over 10 years. This subscription appeared as a capital measure in the 2009-10 budget and does not impact on the budget bottom line. Australia’s contribution represents a small part of Australia’s aid program over this period but a very important one. Supporting this bill will enable Australia to demonstrate its leadership globally and support recovery from the global recession in our region. I commend the bill to the House.

Question agreed to.

Bill read a second time.

Message from the Governor-General recommending appropriation announced.

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