David Johnston (WA, Liberal Party, Shadow Minister for Defence) Share this | Link to this | Hansard source

asked the Minister for Foreign Affairs, upon notice, on 17 August 2012:

(1)   What processes were followed and/or what criteria were used in determining which regions or program line items will be affected by the Government's 2012-13 Budget decision to defer the target spend of 0.5 per cent of Gross National Income on foreign aid by one year.

(2)   Why has Australia begun pursuing membership of the African Development Bank in the same year it has deferred spending on foreign aid.

Bob Carr (NSW, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

The answer to the honourable senator's question is as follows:

(1)   The slowing of the growth in the aid program to 0.5 per cent of GNI from 2015-16 to 2016-17 has not resulted in a cut to current aid levels or in reduced Australian aid to any region. Assistance to all regions will increase by 2015-16, with the exception of Latin America and the Caribbean which will be maintained around its current level. The deferral has been achieved through a more graduated increase in aid to most regions than originally planned, and a more graduated increase in our support for multilaterals.

Growth adjustments were informed by consideration of targets set in the Comprehensive Aid Policy Framework and existing commitments to particular countries, regions, or initiatives.

(2)   Membership of the African Development Bank (AfDB) will demonstrate Australia's commitment as a long-term development partner to Africa. To join the AfDB, a full treaty process, the passage of legislation through the Parliament, and agreement from AfDB members is required. These membership processes are not expected to be concluded before 2014.

Australian membership of the AfDB offers the opportunity to extend our reach and impact in Africa and to work more effectively in more development areas than are possible when working alone or through bilateral mechanisms.

The AfDB works in areas that are critical to spurring sustainable growth and reducing poverty in Africa. The Bank received a favourable review in the Australian Multilateral Assessment, which found that funding to the Bank would deliver tangible development benefits in line with Australia's aid objectives and represent value for money.