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

I will make a brief opening statement before accepting questions relating to the Foreign Affairs and Trade portfolios. The 2015-16 budget is part of the Australian Government's plan to build a strong, safe and prosperous future for all Australians. The initiatives outlined in the budget will assist in advancing Australia's national interest in an increasingly complex economic and strategic environment. The transfer of global power, brought about by the re-emergence of Asia's great economies, instability in Europe and the Middle East, terrorism, tensions in the South China Sea and issues like infectious disease have emerged as potential fault lines in international affairs.

Managing the opportunities and the challenges that our country faces, now and into the future, requires a foreign policy that reflects our standing as one of the world's top 20 nations. We are a significant voice internationally. Australia's foreign policy projects and protects our reputation as a strong, open, export-oriented market economy and as an open, liberal democracy, with a strong commitment to freedom, the rule of law and democratic institutions.

While our priorities remain firmly focused on the region, our interests are global. In a globalised world, individuals and ideas on the other side of the world are just as capable of striking out at our interests as those in our own backyard. As I speak, over 300 Australian Defence Force personnel are in Iraq, training the Iraqi army in its fight against the terrorist group, Daesh. The rise of Daesh is not only a threat to the stability of Iraq and the Middle East region but a global threat, including to countries like Australia that celebrate liberal democratic values of freedom of expression, the separation of powers and gender equality.

The 2015-16 budget delivers $106 million to ensure the Australian Embassy in Baghdad continues to play its critical role in supporting our Defence Force personnel in Iraq, as well as the international effort to combat terrorism. The budget also provides $138.4 million to continue Australia's diplomatic engagement and security arrangements in Afghanistan. This budget lays the foundation for Australia's growing relationship with key economic and strategic partners in the Pacific, Asia and Middle East. The government has committed $98.3 million to establish new missions or posts in Qatar, Mongolia, Indonesia, Thailand and Papua New Guinea. It is the single largest expansion of Australia's diplomatic network in over 40 years.

We have also committed funds to rebuild the Australian Embassy in Washington DC, which had fallen into a shocking state of repair—you only have to ask the current Australian Ambassador to Washington, the Hon. Kim Beazley, about the need for repairs to the Australian Embassy.

In 2015-16 the Australian government will provide around $4 billion in official development assistance, ensuring that Australia remains one of the most significant providers of aid in the world. And Australia will have an aid program that we can reasonably afford. 'You cannot fund an aid program on borrowings'—quote, the former foreign minister, Bob Carr.

We have applied a rigorous analysis to country aid allocations to ensure our assistance is well targeted and supports economic growth and poverty alleviation. Aid to Pacific Island countries has been maintained in recognition of our primary responsibility to our neighbourhood and of their particular development challenges, while assistance to fast-growing Asian economies has been appropriately been scaled down.

We are taking an innovative, creative approach to overseas development assistance that will deliver better and more targeted outcomes, through sensible priorities, which will be subject of course to consultation with partner governments. The government has also committed additional resources to strengthen Australia's export performance and attract foreign investment, which will enhance our productivity and drive job creation.

Initiatives announced in the budget include: $18 million over four years to expand Austrade's current program of Australia Week events; $24.6 million over two years to promote business understanding of the recently concluded free trade agreements with the Republic of Korea, Japan and China; $30 million over four years to attract investment in the government's five priority areas—infrastructure, tourism, resources and energy, agribusiness and food, and advanced manufacturing services and technology; and $5.2 million over four years to expand Match Australia's sport business program.

These measures complement the Australian government's economic diplomacy agenda. Just as traditional diplomacy seeks peace, economic diplomacy seeks peace and prosperity. The Australian government will continue its efforts to ensure Australia is stronger, safer and a more prosperous nation.

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