Graham Perrett (Moreton, Australian Labor Party) Share this | Hansard source

I'll take that interjection. At the heart of this bill is Labor's commitment to strengthening our regional ties and to our Pacific family. I use the term 'Pacific family' not in a patriarchal sense but rather as a sibling. I think the Treasurer has the most significant Pasifika community in the country, but, as the member for Riverina touched on, the Pasifika diaspora and Pasifika migrants are scattered right throughout Australia. They are particularly noticeable in our rugby league teams, rugby union teams and netball teams, in fact. But the Treasurer, Jim Chalmers, is particularly engaged with the need for this guarantee. Obviously, coming from the electorate of Rankin, it is personal.

Since coming to office, the Albanese government has been committed to strengthening partnerships in the Pacific, which, sadly, have been trashed by the coalition for nine long years—that wasted decade, in fact. Who could forget the coalition leader joking about our Pacific family members losing their homes due to climate change? Contrast that with the fine words the member for Riverina just delivered. The Minister for Foreign Affairs and the Minister for International Development and the Pacific have travelled extensively, amending the relationships that have become strained during that disastrous decade of coalition government. In fact, Albanese government ministers visited every Pacific Islands Forum nation in our first 12 months in office—something that reflects our commitment to the region.

In August 2023, the government released the milestone International Development Policy. This policy focuses on high-quality support for our neighbours in economic growth, infrastructure development, health care, climate change, gender equality and addressing poverty—all of which contribute to a stable and prosperous region. The International Development Policy operates alongside the Official Development Assistance budget. That shortsighted former coalition government slashed this budget by $11.9 billion. That's right—$11.9 billion. I know that speakers from the coalition have spoken about team Australia and bipartisan support, but you just can't get away with the damage that you do to relationships when you slash $11.9 billion. That is something that the former foreign minister, Julie Bishop, has never publicly apologised for, nor has she been held accountable for the damaging slap in the face delivered to our Pacific neighbours and others.

Labor however recognises the vital and ongoing importance of supporting our neighbours. It makes Australians safer. That's why we've increased the ODA budget by $10.4 billion. The Albanese government has also added $500 million to the ODA budget over the forward estimates for climate change finance for developing countries and for the development of better infrastructure. Labor's responsible economic management will also ensure long-term sustainable growth to the ODA budget via annual indexation of 2.5 per cent.

As mentioned by the Treasurer on Tuesday night, we'll redirect $119 million to the Indo-Pacific region, after the United States cut, effectively, 40 per cent of the world's global aid overnight. I know it's not quite that. They've cut back a little bit on the cutting, but it is incredible to think of the hundreds and thousands of people who lost their jobs and, even more than that, as we know, the lives that have been lost since that decision. Something as simple as keeping people alive with HIV treatment—what would have been 600,000 deaths per year is probably going to be 10 times that over the next five years. People are dying right now because of that decision. Obviously, we can't take up 40 per cent of the world's foreign aid. We can't fill that gap. All the world's other economies can't fill that gap. It's quite significant. But we will support the Pacific in terms of economic health, humanitarian and climate responses wherever we can to try and make up for that and do what we can to look after our patch.

All of these measures indicate Labor's strong commitment to international development but especially to the development in our region. They also highlight this government's focus on reinforcing crucial regional relationships. In times of increasing global insecurity and uncertainty, the relationships we have with our regional partners are vital. We are collectively facing complex geopolitical challenges as we emerge from a global pandemic. We are faced with conflicts, with wars, with humanitarian and economic crises and with that ever-growing grim reality of climate change that everyday Australians see every time they—basically, we see it on our television screens every couple of weeks.

The challenges of climate change are no laughing matter for our Indo-Pacific neighbours, despite the Leader of the Opposition's cruel performance. His flippant comments about the effects of climate change on the Pacific islands laid bare his contempt and lack of understanding of the modern world. What's that saying from Maya Angelou? 'When someone shows you what they are, believe them.' It has been 10 years since that infamous boom mic incident, but the Leader of the Opposition continues to be steadfast in his climate change denial, and he will not come clean about his plans for the 2030 emissions target or the Paris Agreement.

In contrast to the coalition's approach to our regional neighbours, the Albanese government is drawing on all the tools of statecraft, including rugby league, rugby union, netball, football, cricket, and others, I'm sure—I'm seeing some nods from someone who would know—to deepen and strengthen our vital relationships with regional partners. And, just as an aside, I know I'm speaking to a Western Australian deputy speaker, but the rugby league diplomacy that the Prime Minister exhibited on the State of Origin a few years back was a masterstroke—perhaps it something that would never be written by a DFAT official but by a South Sydney Rabbitohs tragic like the Prime Minister—and it was incredibly effective. The Pacific Banking Guarantee Bill is obviously a part of this expanded relationship.

Simply put, this bill will help to provide ongoing access to banking facilities across the Pacific. In recent years, Australian banks have scaled down operations in Pacific countries, and the decrease of correspondent banking services has been faster in this region than anywhere else in the world. Correspondent banking services occur when a financial institution provides banking services to another financial institution in a foreign country. The services provided include cash management, international funds transfer, cheque clearing, trade finance arrangements and foreign exchange services—all crucial to stay connected to the international finance system, particularly when you have the PALM worker scheme, which is, I would suggest, one of our greatest diplomatic engagements with the Pacific.

Connection is necessary for economic growth, financial inclusion and regional stability. The Albanese government's Pacific banking guarantee will ensure the entire region stays connected. The need for this guarantee was discussed when the Treasurer attended the Pacific Islands Forum Economic Ministers Meeting in August last year. In fact, it was the first time in nearly 20 years that an Australian Treasurer had attended such a meeting. The Pacific banking guarantee is not a loan or a subsidy. Instead, the Commonwealth will back eligible Australian banks to continue their operations in the Pacific by providing a guarantee. It places the risk of default on low-risk exposures on the Commonwealth rather than the financial institutions, who, I have noticed, are not exactly struggling.

The participating banks will pay a fee for the arrangement. The bill will implement a special appropriation on the Consolidated Revenue Fund and enable the Commonwealth to pay for the full amount of the guarantee if there is a default. It's unlikely that the guarantee will ever be needed, but it provides additional security and confidence for Australian banks to continue to operate in the Pacific.

The Pacific banking guarantee is a regionwide approach. It is not about any one nation, and it's all about strengthening our Pacific family, as a good sibling should do. The importance of finance to this regional relationship is reflected in the work this government has already undertaken in the sector. I'm talking about progress such as the Commonwealth bank opening in Nauru this year and the development of digital identity infrastructure with the World Bank and Asian Development Bank. We've also supported ANZ and Westpac to continue operations in the Pacific.

It's not just about the banks, though. The Attorney-General's Department has been working with capacity building in Pacific countries in the areas of financial crime protection. This reflects the core tenets of the international development policy, which focuses on genuine partnerships that value consultation, listening, collaboration and respect. Those four terms, again, are consultation, listening, collaboration and respect. Throw in a little bit of culture and food, the occasional shared meal, maybe even a bit of kava—not as much as the member for Riverina consumes—and some sporting links and you have a recipe for a happier Pacific family.

We know what the Pacific is. You can't just go to Noosa and have a swim and say you are involved with the Pacific. That's not diplomacy. You need to do a lot more, as our ministers have shown. The Albanese Labor government's put partnership at the centre of international development, and we respect the different strengths that all our different partners bring to the table.

The Pacific banking guarantee is a necessary, useful and forward-thinking component of our relationship with our Pacific family. It sets the region up for ongoing growth, prosperity and stability. For the last time I say, I commend the bill to the House.

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