Concetta Fierravanti-Wells (NSW, Liberal Party, Minister for International Development and the Pacific) Share this | Hansard source

Yes, Senator Birmingham, in South Australia. Businesses like that are seeing the value—particularly to you, Senator Cameron, who share my love of chocolates—in buying and marketing a boutique product produced in the Pacific region. This is sustainable development in action.

Gender equality also matches neatly with Australia's development program. Our focus on gender is driven by a recognition that empowering women is a strong contributor to economic growth and stability. If we empower a woman, we empower her family and we empower her society. That is why our aid program requires that 80 per cent of our total investments effectively address gender issues in their implementation.

I recently visited parts of Fiji recovering from the devastation of Cyclone Winston. The cyclone had a particularly devastating impact on economic infrastructure, including town markets and the mostly women vendors. Rather than just rebuilding the market, Australia is working with local women's groups to identify issues which are of importance to them. For example, in the township of Rakiraki, which I visited, the women vendors at the market often have to stay overnight with their young children, often at considerable cost and personal risk. So, as part of our assistance, Australia is not only funding the reconstruction of the market in Rakiraki but also funding a new accommodation centre which will mean that the women can stay overnight in a safe place and bring their goods to market, in turn making it easier for them to earn an income, retain that income and add to the economic prosperity of Fiji.

The Sustainable Development Goal relating to peace and governance dovetails perfectly with our efforts on anti-corruption in various forums, including in the G20. It reflects our commitment to human rights—witnessed by our bid to join the UN Human Rights Council in 2018. And it is clearly evidenced by our ongoing commitment to RAMSI in the Solomon Islands.

As RAMSI heads towards its expected conclusion next year, we can be proud of Australia's efforts to promote peace and governance in our region. Our Pacific Island neighbours face particularly complex development challenges, which we are committed to helping address.

We will also continue to work with our partners in the private sector and to look for new partners. This will include initiatives like our Business Partnerships Platform, which designs and builds commercially sustainable solutions to development challenges.

The Addis program on development finance is a practical means for us to address this ambition. This program acknowledges that success for the Sustainable Development Goals will require us to mobilise all sources of development finance—public, private and international. It highlights the importance of ensuring developing countries can sustainably raise the means to support their own prosperity, including by having effective taxation, strengthening financial markets, building market access to improve trade and encouraging and facilitating private investment. So success for the 2030 agenda will require a concerted effort by all of us through genuine partnership with our Pacific and global neighbours.

I now turn to what the government is doing in aid and development more generally. In 2016-17 the official aid spend will be $3.8 billion from a total government budget of an estimated $445 billion. This is an estimated 0.23 per cent of gross national income. The Australian government's development policy document Australian aid: promoting prosperity, reducing poverty, enhancing stability was released in 2014. Our investment priorities are: infrastructure; trade facilitation and international competitiveness; agriculture, fisheries and water; effective governance; education and health; building resilience; and gender equality and empowering women and girls.

Investment priorities for each country and regional program are reflected in aid investment plans that are available on DFAT's website. At least 90 per cent of our aid is directed to the Indo-Pacific region, particularly our immediate neighbourhood in South East Asia and the Pacific. Examples include preventing health threats, such as drug resistant tuberculosis spreading to Australia through a major program in PNG, and countering radicalisation, including through a justice and security partnership with the government of Indonesia. These are only two of a far greater number.

We are on track to spend 20 per cent of the aid budget on aid-for-trade investments by 2020. Aid for trade helps developing countries improve their capacity to trade, contributing to economic growth, job creation and poverty reduction. For example, we are partnering with the World Bank Group to help developing countries improve policies and regulations to attract, retain and extend foreign direct investments. Our plan is for a strong, prosperous and secure Australia. Fundamental to this is a strong, prosperous and secure region, especially the Pacific.

Australia's aid program contributes to prosperity and stability in the Indo-Pacific region, including through humanitarian assistance in response to disasters. Aid contributes to sustainable economic growth, poverty reduction and stability. There are 456 million people who live in extreme poverty—that is, less than US$1.90 a day—in Asia and the Pacific region. With poverty comes poor health and education and a lack of economic productivity, and it contributes to instability. Australia benefits if citizens in its region are healthy, well-educated and making an economic contribution and thereby lessening their dependency.

We also benefit if our neighbouring countries are stable, well-governed and open to trading opportunities. Aid complements other steps the government is taking to make our region safer and more prosperous. When disasters strike, we help to save lives and rebuild critical infrastructure. As a responsible neighbour in the region, it is the right thing to do. We take a rigorous approach to the effectiveness of Australian aid. Our Australian aid program is not charity. We have strategic targets focused on aid effectiveness, value for money and performance benchmarks with partner governments. We have a zero-tolerance approach to fraud and corruption. Potential losses from fraud and corruption in the aid program in 2014-15 were 0.026 per cent of expenditure, about $1.3 million.

By supporting aid for trade and economic integration in the region we create an environment that benefits Australian business. By reducing poverty we empower millions of people to lead healthy and productive lives. This promotes self-reliance and stability in countries across our region. By working to build stable and secure societies we help counter violence, radicalisation and transboundary threats that could affect Australians and our national security. Through investments in health we are preventing threats, such as drug resistant tuberculosis, malaria and the zika virus, from spreading to Australia.

In conclusion, Australia's development investments in the Asia-Pacific are making a positive difference. The Prime Minister and I attended the Pacific Island Forum to demonstrate Australia's continued commitment to help meet the many challenges facing our region, including climate change, transnational threats and security issues, as well as poverty in our region. Last week we demonstrated that right across the board Australia is providing considerable support and real partnership. It is one that respects the independence and sovereignty of the nations of the Pacific and one that recognises that we are all strong and committed partners for this region.

As I travel in the Pacific I reinforce Australia's commitment to building strong personal relationships that underpin this long commitment of partnership, which is so important for our prosperity and the prosperity of our region.