David Van (Victoria, Liberal Party) Share this | Hansard source

I rise to speak on the Official Development Assistance Multilateral Replenishment Obligations (Special Appropriation) Bill 2019. Before I go into the details of the bill, I want to recognise this government's continued commitment to participating in the international rules-based order and our ongoing efforts to support the various international institutions that work within it. Australia has a proud history of helping to found and support various international institutions that dates back to the League of Nations, following World War I, and this is reinforced through the United Nations, following the destruction and carnage of World War II. I think it is important to remind people how important these organisations are for international efforts to raise whole countries out of poverty, to raise the standard of living for their communities and to improve the lives of their individual citizens.

Through the work of organisations such as the United Nations, the World Bank, the International Monetary Fund and a range of others in the areas of humanitarian relief, health and trade, countries both in our region and further afield have benefited from the expertise and assistance that they have brought to bear in times of crisis. When I hear people rail against the government's commitment to international aid, economic development programs and disaster support, I just shake my head in disbelief.

Australia is part of a community of nations, and, while we're a big island that sometimes has its practical advantages, such as in the current COVID-19 crisis, we cannot retreat of from being part of an international community. As a trading nation that exports goods and services across the world, we rely on an open and free world trading system that is supported by an international rules based order to maintain peace and prosperity. Without that system, Australia would not have enjoyed 28 years of uninterrupted growth, growing export markets for both goods and services—especially for our agricultural, gas and mining sectors—and an international reputation for low sovereign risk and as a preferred investment destination.

Of course, no system is perfect and there is no doubt that the international system and its institutions come under strain every so often. That is evident in moments of crisis, such as through the current pandemic and previously through the 1997 Asian financial crisis or the global financial crisis, which saw devastating impacts across Asia, Europe and the United States. However, recovery from these events is more effective when there is coordinated international action—where countries work together to aid in recovery; to deal with crushing economic burdens, such as debt; and to help each other to undertake the necessary structural reforms to prosper in the future.

The purpose of this bill is to appropriate money to meet Australia's existing and future obligations for many of those multilateral organisations that assist in times of economic crisis, and these include the World Bank's International Development Association; the World Bank's debt relief schemes, including the Debt Relief Under the Heavily Indebted Poor Countries Initiative and the Multilateral Debt Relief Initiative; the Asian Development Bank's Asian Development Fund; the Global Environment Facility Trust Fund; and the Multilateral Fund for the Implementation of the Montreal Protocol. These organisations bring financial resources, policy influence and convening power that leverage financial resources, expertise, influence and geographic reach to achieve greater economic and development outcomes.

Through its membership of these institutions, Australia's own international policy and bilateral programs are enhanced, but we are legislatively required to honour the financial obligations for each organisation that we have made a commitment to. This bill allows for a special appropriation to be provided for an automatic authority to pay funds where an entitlement exists. The Social Security (Administration) Act 1999, for example, contains several special appropriations to make social security payments. The Minister for Finance must be consulted on any bill containing a special appropriation, and a message from the Governor-General is required for bills containing special appropriations.

Historically, DFAT and, formerly, AusAID were able to retain the full value of the appropriation required from the year that the new replenishment obligation was signed through the section 11 retention of administered appropriation process. With the repealing of the 2013-14 annual appropriations acts 1 and 2 and the inclusion of an automatic repeal clause from 2014-15 in the annual appropriation acts, government agencies are no longer able to retain annual appropriations across financial years. The result has been that DFAT is no longer able to retain the full value of its multiyear commitments and so cannot fund its contributions to the organisations covered by this bill. Australia pledges to replenish our financial contribution every three to four years, with payments being made over a three- to 10-year period. On average, we are paying out A$350 million annually to these commitments. This is not new or additional money; the funds to meet the commitments authorised by this bill will come from within the already agreed Official Development Assistance Budget.

As I mentioned earlier, Australia has a proud history of involvement in international organisations dating back to the League of Nations. In the case of the World Bank, Australia joined in August 1947 and became a member of the World Bank's International Development Association in 1960. The IDA operates the largest pool of concessional finance in the world. It provides grants, technical expertise and concessional loans to promote growth and to reduce poverty in the world's poorest and most vulnerable countries. The Treasurer is on the board of governors.

The World Bank manages debt relief schemes. As I mentioned before, there is the Debt Relief Under the Heavily Indebted Poor Countries Initiative and the Multilateral Debt Relief Initiative, which provide debt relief to eligible poor countries. In 2005 the Howard coalition government made a 40-year commitment to support this fund. Between 2001 and 2015, the average decline in crippling debt in eligible countries had fallen by 1.5 per cent of GDP, bringing up local government spending on health and education and reducing reliance on foreign aid. In terms of practical outcomes, Australia's contribution has supported 1.5 million new labour market programs across the world, including 3,500 young people completing job-ready training to enter the workforce.

Another good example of where our membership and contributions pay dividends is the Asian Development Bank. Australia joined the Asian Development Bank in December 1966 and the Asian Development Fund in 1973. Australia's contributions to the fund provide grants to developing countries at moderate to high risk of debt distress to promote poverty reduction and to accelerate development in poorer countries of the Asian and Pacific regions. Australia's contributions have helped to lift 16 million people out of poverty and have improved economic growth in recipient nations.

Our Greens colleagues often lament in this place the woeful lack of this government's contribution to global environmental efforts. Well, let me correct some of that misrepresentation. In the case of our funding to the World Bank's International Development Association, Australia has been providing support to the Global Environment Facility Trust Fund since its inception in October 1991. Our contributions have assisted in the protection of over 350 million hectares of seascapes and ocean life, supported the phase-out of over 29,000 tonnes of ozone-depleting pollutants and supported the safe disposal of 200,000 tonnes of chemicals, including in the Pacific. The fund's work has supported a 60 per cent increase in tuna stocks in the Pacific. Also, in the case of the Multilateral Fund for the Implementation of the Montreal Protocol, also a subject of this bill, Australia's contributions assist developing countries to phase out ozone-depleting substances. Collective action through this fund has seen over 215,000 tonnes of ozone-depleting substances eliminated since 1991.

In concluding my remarks, let me reiterate Australia's longstanding commitment not only to these international organisations but also to the international rules based world order. Through our network of economic, trade and security alliances and memberships, Australia draws numerous benefits. Those who seek to dismiss those benefits fail to appreciate that Australia's economic prosperity relies on these foundations and the benefits drawn from them. Without playing our part and honouring our commitments, we are diminished in so many ways.