Pat Conroy (Shortland, Australian Labor Party, Minister for International Development and the Pacific) Share this | Hansard source

I was reflecting on the great policy ignorance and policy failure of those opposite on Pacific matters in their almost 10 years in government. Let's go through some of their highlights. The member for Petrie talked about ODA. Their first budget cut ODA by $65 million, as part of an $11.8 billion cut to ODA in their first budget, which had a demonstrably negative effect on our standing in the world. Their inaction and positive opposition to action on climate change made it so much harder for Australia to build rapport in the Pacific. Who can forget the now Leader of the Opposition's hot mic moment when he made jokes about climate change wiping out Pacific islands? That demonstrably made Australia less safe by imperilling relationships in the Pacific. Who can forget former prime minister Scott Morrison's bullying behaviour at the Pacific Islands Forum leaders week, Tuvalu, where his actions were so demonstrably counter to our interests that then Fijian prime minister Bainimarama said his behaviour was 'very insulting' and 'condescending' and pushed the Pacific towards China. Those are direct quotes from then prime minister Bainimarama of Fiji. Who can forget the Solomon Islands-China security pact that the last government allowed to happen under their watch—the most disastrous foreign policy failing of any Australian government since World War II? So committed are they to the Pacific, what was the foreign minister at the time, Senator Marise Payne, doing when that security pact was being discussed in the Solomon Islands? Was she getting on a plane to go and try and persuade the Sogavare government not to enact it? No. Was she even making phone calls to the Sogavare government to persuade them? No. She refused to make phone calls. She was handing out on prepoll in my electorate of Shortland instead of doing her day job of getting on a plane and trying to persuade the Solomon Islands government not to do that security pact with China.

The last government's, the coalition government's, record on the Pacific is appalling. It condemns them. It demonstrates they are unfit to govern because they can't be taken seriously on national security or foreign policy. That's notwithstanding some very enthusiastic members on the other side, and I do acknowledge the deep interest of the member for Riverina, my shadow minister, who is an enthusiastic advocate for close relations with the Pacific. I acknowledge that. Unfortunately, he is few and far between compared to people like the member for Petrie and the opposition leader, who instead make jokes about climate change and refuse to do the hard yards.

The truth is that the Pacific is our home. It's in our interest to foster a resilient, connected region that enables our economies to grow and our peoples to prosper. The Albanese government has brought new energy and ambition to revitalise our Pacific partnerships after a decade of neglect. We are using all tools of statecraft, including security cooperation, development cooperation and people-to-people links, to that end. We're also supporting the services that underpin economic growth, like banking, aviation and critical infrastructure. Pacific countries look to us first for support. That is what good neighbours do. We're also facing a more uncertain strategic and international environment. As both the foreign minister and I have remarked, we are in a permanent contest in the Pacific, and there has been a transformational change in Australia's approach to the Pacific since we were elected in 2022. We've signed landmark treaties with both Tuvalu and Nauru, creating a safer region and advancing our position as the security partner of choice. We've strengthened cooperation with Papua New Guinea through our bilateral security agreement and the innovative National Rugby League deal, and both of these are underpinned by shared strategic trust. We've also been getting the relationship with the Solomon Islands on a better footing by helping build its police force, and this confirms our position as the security partner of choice for the Solomon Islands. Our view is that regional security is the responsibility of the Pacific, and we've been working to put this into practice through the Pacific Policing Initiative, which will enable regional police teams to deploy quickly on request, as well as the Pacific Response Group.

We're building a proud track record of assisting one another after natural disasters. Most recently we worked to support Vanuatu after its earthquake, getting rescue and humanitarian teams on the ground within 24 hours of Vanuatu's request. But we also shouldn't forget that, when Australia was hit by the terrible bushfires of 2019-20, Fiji sent 54 of its soldiers to help our emergency response, and I acknowledged the bipartisan response there. We're working hard to support every Pacific country to have an undersea telecommunications cable by the end of 2025 to bolster economic growth and connectivity, and we're building people-to-people links. A love of sport is a connection we share with the Pacific, and we're building sports cooperation, whether it's for rugby league in PNG, rugby union in Fiji, netball across the Pacific or soccer in Vanuatu and the Solomon Islands.

We're increasing the number of Pacific workers in Australia under our labour mobility scheme. This is resulting in higher remittance flows to the region and fills vital worker shortages in regional Australia while, at the same time, increasing protection and welfare measures for those Pacific workers—a very solemn responsibility we take seriously. We're also creating the first ever Pacific permanent migration pathway through the Pacific engagement visa, responding to a longstanding request from our Pacific partners.

Our engagement with the Pacific is underpinned by the government's recognition that climate change is the top concern of the Pacific, and our commitment to climate change action has enabled us to build transformational relationships in the region. For example, our landmark Falepili Union treaty with Tuvalu responds to Tuvalu's position at the front line of the climate crisis. Recognising this has enabled us to unlock greater security cooperation.

This bill is part of our commitment to our Pacific neighbours. The Albanese government places a high priority on ensuring that the Pacific and Timor-Leste remain connected to the global financial system. The Pacific has experienced the fastest withdrawal of correspondent banking relationships anywhere in the world. Just as the Pacific suffers the worst consequences of climate change, its businesses, workers and people are disproportionately bearing the cost of debanking. Secure access to the global financial system and banking services is critical for economic growth, financial inclusion and overall stability. At a national level, banking services mean governments and businesses can engage in international trade, can progress projects for infrastructure and essential services and maintain and grow their economies. At a local level, banking services allow people to start up new businesses and maintain and grow their existing businesses. They enable workers to send money home to support their families and communities. For example, we've seen for many years now how transformative remittances can be.

Under the Pacific Australia Labour Mobility, or PALM, scheme, workers from the Pacific contribute to Australia by filling labour gaps in regional and rural areas and specific industries. Right now over 30,000 PALM scheme workers are, on average, sending $1,500 per month home to their families and communities. I've visited many communities throughout Timor-Leste and the Pacific and I've seen firsthand how this income directly alleviates poverty in local communities. It helps pay for food and other essentials. It pays for education and medicine and is even used to start small businesses, contributing to economic growth and job creation.

Banking services are essential in supporting remittances and fund transfers between people, organisations, businesses and nations. Australia and our Pacific partners want to avoid a situation where Pacific nations are debanked and lose access to timely and affordable cross-border payments and banking services. This is not about any individual country. This is about enhancing our cooperation with Pacific island neighbours. This is about listening to their needs and working together on solutions. We all want to live in a region that is peaceful, stable and prosperous—a region where our partnerships are grounded in respect, including respect for sovereignty—and we're committed to doing our part to contribute to this vision.

For over 140 years, Australian banks have been partners to the Pacific region. Today, three Pacific nations use the Australian dollar as their national currency, underscoring our economic interdependence. But banks are not just financial intermediaries; they're symbols of our commitment to the region and they're a key to stronger trading and investment relationships between us and our Pacific neighbours.

Our presence in the Pacific ensures that our neighbours can stay connected to their global financial system and experience secure, reliable and higher quality services. I've engaged directly with Pacific leaders and Australian banking executives to find ways to ensure an enduring banking presence in the region. Australian banks' Pacific operations are lauded for maintaining high standards of service quality and high rates of regulatory compliance, helping to thwart financial crime. The importance of this cannot be overstated. Economic instability creates vulnerabilities that can be exploited by transnational criminals and other bad actors. Ensuring the Pacific is a robust financial system mitigates financial crime risks and supports economic resilience. A financially stable Pacific benefits Australia too.

I thank the Commonwealth Bank of Australia for providing banking services to Nauru in our national interest, and this is part of the recently signed Nauru-Australia Treaty. Under that treaty, Australia committed to ensuring Nauru will not be left without a bank when Bendigo Bank departs this year. The treaty also reflects a shared commitment to security that is led by the Pacific family, which is in our national interest.

I also acknowledge ANZ's commitment to remaining in eight Pacific markets in Timor-Leste. ANZ has been in the Pacific for 140 years. The guarantee will support meaningful access to face-to-face banking services. It will also support enhancements to ANZ's banking services, including its digital banking services. ANZ will continue to support access to international money transfers and correspondent banking services. ANZ will also support Pacific countries through infrastructure financing, in line with the bank's credit risk policies. The guarantee is a responsible and low-risk way to secure ANZ's long-term commitment to the Pacific.

I also acknowledge and thank Westpac for their continued presence in the Pacific. Having three banks active in the Pacific, committed to those markets, improves services in the Pacific and improves our relationship with the Pacific.

Supporting the Pacific Banking Guarantee Bill 2025 is how members here today can also advance our national interest. A secure, stable and inclusive financial system in the Pacific is not just beneficial to the region; it is in Australia's national interest. We're also doing our part to address the structural factors that are leading to banks exiting the Pacific. This includes helping to build digital identity infrastructure in seven Pacific jurisdictions; building the capacity of financial intelligence units so that Pacific governments can respond to money laundering and terrorism financing risks; trying to find ways to address the lack of scale in Pacific countries' financial markets—and we're doing this in partnership with the World Bank and the Asian Development Bank; and supporting secure and affordable channels for Pacific workers to remit money—and we're doing this with the New Zealand government and the IMF. This is important in itself.

I'm pleased to be a part of a government progressing this important piece of legislation. We must ensure that Australia remains the partner of choice for Pacific nations. Let us be clear that safeguarding banking services in the financial system is also about underpinning greater economic resilience and security in our region. We're committed to listening and working together with our Pacific neighbours on this issue that matters to us both. That is the principle that underpins all our actions in the Pacific: we turn up, we listen, and we act on the priorities of the Pacific. That leads to greater relationships with the Pacific, and it stands in stark contrast to actions of the last government, particularly of people like the Leader of the Opposition.

This bill is a clear demonstration of our commitment to building stronger Pacific relationships, and I commend the bill to the House.

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