Ms Julie Bishop (Curtin, Liberal Party, Minister for Foreign Affairs) Share this | Hansard source

I thank the member for O'Connor for his question because I know that his constituents were concerned about the many reports of wasted aid and untargeted aid under the former Labor government. Reports like 'Aussie millions wasted overseas' were of concern to his electorate and those of others.

On coming to office, yes, the new government has had to clean up the mess of the Labor Party. We all know about the $47 billion of deficit this year, the $123 billion of accumulated deficits and the $667 billion of gross debt that we were heading towards had there not been a change of government. But we have also had to clean up the mess in the aid budget.

You see, what Labor would do is that they would make an announcement about an increase in the aid budget, and then, having promised to increase it, they would strip the money out of the aid budget. In the last 15 months of the Labor government, they stripped away, after announcing it, $5.7 billion from the aid budget. So it was a mirage. They did not even have the courage to take it to an election. They would announce it then strip it away.

In contrast, we said before the last election that we would make savings of $4.5 billion over the forward estimates and that we would stabilise the aid budget to $5 billion a year and thereafter it would increase by CPI. We also said we would focus the aid budget on our region, on the Indian Ocean and Asia-Pacific, and that we would alleviate poverty by promoting economic growth, sustainable growth.

The Deputy Leader of the Opposition sought to justify the mess under Labor by saying in this House on 27 February:

… we looked at every dollar of aid spending to make sure that it was well targeted.

Really? 'Well targeted'? By 'well targeted', does she mean the $375 million that was ripped out of the aid budget in 2012 and again in 2013 to put into the budget black hole caused by the blow-out in onshore detention centre costs?

By doing that, by transferring the money from aid to immigration, the Labor government made itself the third-largest recipient of foreign aid—the Labor government!

Ms Plibersek interjecting—

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