Louise Pratt (WA, Australian Labor Party, Shadow Assistant Minister for Manufacturing) Share this | Link to this | Hansard source

It's terrific to be able to resume this debate, particularly at this important time when we face a global health pandemic. We are, indeed, reminded about how important multilateral organisations are in addressing global crises like these. Since we last debated this issue, it has concerned me that the withdrawal of the United States from the World Health Organization has become more serious. I really want to reiterate in my remarks today how important global cooperation is for global health. I know this is something my good friend Senator Dean Smith well understands. In the past we've discussed support for organisations like the Global Fund to Fight AIDS, Tuberculosis and Malaria and the Global Vaccine Safety Initiative. I know they're organisations that he has long supported. I ask this government to continue to step up and show leadership in supporting multilateral organisations, including the World Health Organization. That continued multilateral support is incredibly important for us as a nation and for the health of the whole world.

I note with some relief that, although our aid budget as a nation has continued to decline, the government has nevertheless, very importantly, made a strong contribution to Gavi, the vaccine alliance. Gavi's pledging conference took place last week, and the Australian government has pledged some $300 million to that organisation, which is an increase on our previous contribution. I'm sure many of you have received email messages full of antivax messages, asking us to repeal No Jab, No Pay, but at a time like this COVID really reminds us what a world without immunisation and vaccination would be like: a world with smallpox, measles, polio. We would be far more restricted in our economy and our movement as people without the vaccines on which we rely. So I really want to express my pleasure that this $300 million will be forthcoming to Gavi. They've supported 318 million children in our region to get immunised. They've now got a big job to do in catching up on immunisations that have been delayed because of COVID, and they are also looking to make sure that any future vaccine is equitably and fairly accessible by all countries, irrespective of their wealth.

In closing my remarks, I want to give a shout-out to the groups that really support and call for government support for these multilateral organisations—groups like Global Citizen, RESULTS and the Pacific Friends of Global Health. Australia needs to and must maintain a strong commitment to multilateralism. (Time expired)

Mehreen Faruqi (NSW, Australian Greens) Share this | Link to this | Hansard source

I rise to speak to the Official Development Assistance Multilateral Replenishment Obligations (Special Appropriation) Bill 2019. The bill provides funds to existing and future official development assistance multilateral replenishment obligations. The Greens support this bill, but the government needs to do much more. We are living through a global pandemic with the entire world impacted. We are set to face, as a global community, social and economic consequences at a massive scale which will be felt ever more deeply in the global south.

Wealthy nations like ours have a responsibility to share capacity, information and resources so that other countries have a fighting chance of withstanding this crisis and recovering from it. Sadly, the recent repurposing of our already shrinking aid budget is a signal the coalition government is moving further away from the global community and retreating from its responsibilities. The government should increase rather than repurpose aid to our immediate neighbours so we can come through stronger. The government should also cancel the debt owed to us by Pacific countries. I'm glad to see the Australian government committing to using its leverage at the International Financial Institutions for financial support packages in the Pacific, but this needs to go further. We should be lobbying for debt forgiveness. We live in a grossly unequal world, and we have an obligation to contribute to the global and ongoing response that this pandemic requires—and beyond. Australia has a crucial leadership role to play, and this involves continuing to fund multilateral organisations and work to ensure a strong international effort.

It is a shame then that we have seen the right wing of politics in our country following in the footsteps of US President Donald Trump and attacking organisations like the World Health Organization. Divisive leaders will not get us on the other side of this. Closed-minded politicians will not get us on the other side of this, but our collective global community work will. This is a time when Australia must recognise and foster our global community with the understanding that we are all truly in this together. It's not just one country; it is all of us. This is a time to show leadership. This is a time to build a global community that can face threats such as this in the future. It is also a time to move in solidarity towards a recovery.

Australia's aid and development funding is pitifully low. In fact, it is the lowest it has been in decades. Our aid budget has been cut by 25 per cent since 2013. This is abysmal. It is a real shame that we are not willing to play our part in addressing the vast social, economic, environmental and health inequalities that exist across the world. The impact of COVID-19 will mean millions upon millions more people will fall into poverty in the global south, undoing decades of work fighting against poverty. Our aid is at a dismal level of less than 0.2 per cent of our gross national income, which is well below the OECD average. We must bring our aid back up to at least meet the United Nations' target of 0.7 per cent of our GNI.

We know public health systems are desperately underfunded and ill equipped in many countries. These countries—already low income countries—will be disproportionately affected by the crisis, with social and economic costs of lockdowns and shutdowns far greater than we could imagine. In addition to increasing our aid budget, we must also act immediately to provide emergency funding to countries in the global south to bolster their health, social and economic response.

The climate emergency looms large in the landscape of global inequality. Given Australia's 'dirty hands' in producing climate-changing emissions, we have a special responsibility to do everything we can for climate justice. The longer we wait, the greater the loss of life and the greater the threat to the world as we know it. Those who have contributed least to the climate emergency we face are often the hardest hit—by rising sea levels, extreme weather events and environmental change. Australia must provide climate reparations to affected countries and communities that are commensurate with its historical and ongoing contribution to the problem. Our aid programs must include mitigation, adaptation, and resilience building, with a focus on addressing the particular needs and challenges facing women and girls. Australia must not forget its Pacific neighbours in this public health crisis or in the climate crisis. Health systems in the region are already at risk of stretching to breaking point, and a full-blown outbreak could cause serious economic disaster. Climate change is already causing serious havoc to our Pacific neighbours. Australia should release new, targeted funding to add capacity to health systems and towards whatever other needs our Pacific Island nations have. This is a time to be working with our global partners to achieve a truly global response and to be prepared for the future. This is a time to be committing more, not less, to our foreign aid program.

While we are on the topic of our Pacific neighbours, I do want to bring up the comments made by the Minister for International Development and the Pacific which were reported in The Guardian. The comments criticised the people who attended the Black Lives Matter protests in Australia and called the Black Lives Matter protests 'self-indulgent'. This just shows how out of touch Minister Hawke is with the deep systemic and structural racism, the discrimination and the calls for equality that the protesters and black and brown people and other indigenous people are demanding—racism and discrimination from which they have suffered for centuries, including those who live in the Pacific. Minister Hawke and the Prime Minister and their government need to listen. They need to learn. They need to heed these calls and act immediately to dismantle systems of racial discrimination and violence against First Nations people and people of colour.

At this time of crisis we must start to think transformatively about our foreign aid program. As we move to recovery, we must not forget that our foreign aid program is central to it. We must re-imagine foreign aid: not simply as charity but as an issue of global justice; not as a way to further our own national ambitions but as a way to right historic wrongs; and not as a way to further our greedy trade interests but as a way to build communities in parts of the world that have been left destitute. Australia has an obligation, particularly as a wealthy country and given its colonial past, to contribute to a just and equitable world by working with communities in the global south to alleviate poverty and to promote human rights and access to essential services such as health care and education. This is an obligation that we must take seriously as we move into the recovery phase and beyond.

David Van (Victoria, Liberal Party) Share this | Link to 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.

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

I rise to speak on the Official Development Assistance Multilateral Replenishment Obligations (Special Appropriation) Bill 2019, a bill that provides a special appropriation to enable the government to meet its commitments to replenish a range of multilateral development funds over the coming years. It is the case that these funds have long carried out essential work in tackling poverty and promoting economic growth and sustainable development in some of the world's poorest countries. These funds have long been essential, but they have never been more critical. As our world grapples with the worst pandemic in a century, it is the world's developing nations that stand to suffer the most. This is a point I will come back to, but I want to first place this discussion in some context.

It has been clear for some time that Australia's current Prime Minister does not take the same approach to foreign policy that has been the tradition of Australian political leaders. A bipartisanship has characterised the handling of our national interests in the world, but it is a bipartisanship that is strained by Mr Morrison's willingness—in fact, his reflex—to put short-term political marketing ahead of key national interests. Now, in fairness to him, the massive cuts to Australia's ODA that have been contrary to our interests began before Mr Morrison outmanoeuvred Mr Turnbull to become Prime Minister. Since this government came to office in 2013 it has cut in excess of $11.8 billion from Australia's aid programs. As a result, Australian official development assistance is on track to fall to just 0.19 per cent of gross national income. That will be the lowest level of ODA as a share of gross national income since the Commonwealth started publishing data in 1961.

So, under Mr Morrison Australia's international aid is lower as a share of national income than it was under Liberal prime ministers Menzies, Holt, Gorton, McMahon, Fraser and Howard. Australia's aid budget as a share of GNI has fallen from the middle of the pack amongst OECD nations to one of the least generous amongst OECD Development Assistance Committee member countries. Whilst it might look like an Australia-first approach, it is in fact contrary to Australia's interests. It weakens our international standing and some of our most important relationships. Australia is a substantial power, but we are not a superpower, and our international standing matters.

This approach taken by the Morrison government ignores the fact that economic development promotes prosperity, stability and security—things we not only want but need in the region and the world around us. Beyond these pragmatic interests, it's also the wrong thing to do. It's hurting some of the worlds poorest people. And whilst these cuts began under Mr Abbott and Treasurer Hockey, they've been getting deeper under Mr Morrison as Treasurer and Prime Minister, and that's part of a consistent pattern from him. Foreign policy, including international development, is fundamentally about protecting and promoting Australia's interests and Australia's values, but we have a Prime Minister who is willing to play serious foreign policy issues for short-term domestic political marketing purposes.

People might recall that in September he launched his campaign against what he called 'negative globalism', and he claimed that he was going to protect Australia from 'threats to our sovereignty' from international institutions, such as the UN having too much power. He sounds a bit like Senator Rennick, doesn't he? He said this because he thought it would be good marketing to sound tough, perhaps in his party room—perhaps for the Sky News after dark wing of his party room. What he didn't appreciate was that Australia's interests are more than a good headline. He created a fake threat: the United Nations. But soon we were going to face a real threat—a virus to which none of us has immunity and which all of us need to work together to overcome. But, just as before, Mr Morrison wanted to sound tough in the face of this threat, so he called for the UN to have more power so they may be able to step in and stop pandemics from happening in the future.

Unlike what is currently the case—where, contrary to Mr Morrison's negative globalism speech, the UN can't challenge any country's sovereignty without the specific agreement of a majority of the Security Council, including all five of its permanent members—this new proposal would apparently give the UN's health body, the WHO, the ability to conduct inspections wherever they saw fit, whether that be in China, the US or Australia. Now, Labor agrees with Mr Morrison; we need more robust international institutions that enable better cooperation where humanity's common interest is at stake. But it is hard to ignore that Mr Morrison has argued both sides of the same argument in order to sound tough for domestic purposes. So in September he launched his campaign for the UN to have less power; in April he launched his campaign for the UN to have more power. That brings me back to the central point: Mr Morrison's political interests may change but Australia's national interests don't, and you can't and shouldn't play foreign policy for short-term domestic political marketing. We need to be looking to 30-year horizons, not three-year election cycles. As a medium-sized country with an economy reliant on open trade, we always need international cooperation so we don't get steamrolled or sidelined by the great powers.

Australia has benefited greatly from multilateralism under governments of both parties. I can say, in his absence, that I appreciate the contribution from Senator Van. It is unusual to have a coalition senator actually talking about the benefit of multilateralism. It's good to know that there are some on that side who do not belong to the 'Sky after dark' wing of the Liberal Party. Senator Molan is gesticulating too, so it's good that a few people are on board.

A government senator: You should listen to us more!

Well, I do listen to the Prime Minister, who talks about negative globalism, and I listen to Senator Rennick, who is a very interesting character. I don't want to speak ill of him now that he's not in the chamber, but one would not suggest that his views are supportive of multilateralism. You see, we have benefited greatly from multilateralism under the governments of both political persuasions and we shouldn't play partisan politics with our support for it.

Across the Pacific, the pandemic, along with the associated shutdown of tourism sectors and commodity price slumps, will weaken already fragile economies and potentially overwhelm healthcare systems. Indonesia, our closest neighbour, whose stability is critical to our region and to Australia's security, is vulnerable to a dangerous mix of capital outflows, falling growth, reduced exports and a spiralling exchange rate as a result of the pandemic. Australia cannot afford our neighbours to founder and we must stand ready to assist. These are countries that stepped up to help us in the bushfire crisis, so if we genuinely want to be the partner of choice for Pacific island nations and South-East Asian nations, with all the benefits that brings to Australia's national interests, then how we contribute to their COVID-19 challenge in coming months will shape our future in this important region.

You see, flattening the curve at home is only the first step. Our success and our ability to return to normal will be tied to the region's response. Whilst we recognise that Australia alone does not have the resources to play a singular and decisive role to help countries like Indonesia or India navigate financial shocks or improve health infrastructure and supplies across the Pacific, we can play a crucial role in galvanising an effective multilateral response for our key partners and with like-minded countries. Australia has substantial capacity to contribute to this, as was demonstrated by our role in the G20 successful management of the GFC and by our leading public health capabilities. We can take advantage of our location in the fastest-growing region of the world only if the region itself is stable and prosperous. So, whilst Mr Morrison has talked up his attendance at the expanded G7 meeting at President Trump's invitation and has flagged a Five Eyes commercial expansion, what he doesn't have is a plan to help partners in the region; what he doesn't have is a plan to rally a global response that reflects the economic importance of the countries of South-East Asia and the Indo-Pacific, and that is what being a responsible, enduring partner in our region requires.

Labor welcomes this bill because it will support Australia's continuing participation in multilateral development institutions. As such, it will further Australia's interests in a stable, secure and prosperous international environment. Strong international development and active, positive engagement in global institutions is a key part of furthering our national interests. The funds covered by the bills of special appropriation include the International Development Association, which is the World Bank's development arm—one of the main sources of ODA. In addition, the Heavily Indebted Poor Countries Initiative and the Multilateral Debt Relief Initiative are debt relief arrangements which have relieved 36 of the world's poorest countries from a sum of around US$99 billion of debt. In addition, the Asian Development Fund, which provides development grants to low income members of the ADB; the Global Environment Facility Trust Fund, which is administered by the International Bank for Reconstruction and Development to support sustainable development activities around the world; and the Multilateral Fund for the Implementation of the Montreal Protocol.

We supported these funds for many years on a bipartisan basis. In fact, our commitment to the World Bank goes back to the international financial architecture adopted in the aftermath of World War II and the Chifley government's decision in 1947 for Australia to join the Bretton Woods institutions. Under the Hawke government Australia became one of the first countries to ratify the Montreal Protocol. The Howard government committed Australia to the Heavily Indebted Poor Countries Initiative and the Multilateral Debt Relief Initiative in 2005.

Our funding commitments are typically refreshed every three to four years in replenishment pledges which can commit us to providing funding over several years. That is why it is appropriate for parliament to make a special appropriation to support these commitments. An ongoing special appropriation will better reflect the multiple time frames for our commitments to these multilateral funds rather than annual appropriations. But we do know more will be needed.

COVID-19 presents major challenges for Australia, for our place in the world and for the countries in our region. Australia, as a substantial power, recognises the importance of multilateralism, including multilateral development institutions and the contribution they make to stability and prosperity. This is a dynamic reinforced by the pandemic. Australia is a country committed to helping the vulnerable and disadvantaged. In tackling a disease that knows no boundaries it is even more vital that the international community is equipped to respond.

This government's aid cuts have put Australia in a position of weakness to effectively help our region. Not only is that the wrong thing to do; it is directly counter to our national interests. So I say this to Mr Morrison: rather than talking about negative globalism, rather than trying to score domestic political points at the expense of a multilateral system we all rely on and we all benefit from, show some leadership, help navigate the global impacts of the pandemic to improve not only Australia's resilience but that of our region.

I move:

At the end of the motion, add:

", but the Senate:

(a) notes that Australia's Official Development Assistance (ODA) investments are an important way of advancing Australia’s interests, projecting our values and tackling global poverty;

(b) expresses its concern that:

(i) since 2014, Coalition governments have cut $11.8 billion from the foreign aid budget, with the result that Australia's ODA investments are now at a record low as a share of Gross National Income, and

(ii) the Prime Minister's promotion of negative globalism is contrary to Australia's interests in an international rules-based order supported by multilateral institutions, which promote economic growth, global security and human development; and

(c) agrees that active and engaged participation in multilateral institutions, including multilateral development institutions, is essential for advancing Australia’s interests in a stable, secure and prosperous international environment".

Jim Molan (NSW, Liberal Party) Share this | Link to this | Hansard source

I too rise to speak on the subject of the Official Development Assistance Multilateral Replenishment Obligations (Special Appropriation) Bill 2019. I join with many of the other senators who have spoken before me to support the bill. I particularly welcome the $350 million, which is the average annual amount of money that Australia provides to the multilateral bodies which have been mentioned by a number of speakers. I also point out that this is not all Australia does in many, many countries overseas and through many multilateral organisations.

I note the desire by Rotary and UNICEF to celebrate in 2021 the 100 years of Rotary's presence in Australia and New Zealand by providing a boost to the level of inoculations of nine South Pacific countries. Although people may complain about the level of foreign aid in a country such as Australia and people may focus on certain aspects of foreign aid which they don't believe in, Australia is a generous nation and does an awful lot in helping its neighbours, not just through assisting multilateral organisations but very much through individual community based bodies.

Senator Wong made reference to 'Sky after dark'. I'm a proud member of the association of 'Sky after dark'. If I remember rightly, I was on late last night and it was dark, which is always a lot better than 'Guardian by day and night', I must admit. The ideas I hear on Sky after six o'clock or 5.30 these days are, in my humble view, a lot more substantial than many of the ideas that I read in The Guardian. But that doesn't go, of course, to the purpose of this bill.

The purpose of this bill is to appropriate money from the consolidated revenue fund, to meet Australia's existing and future obligations for the following multinational organisations. It's important to list them, because too easily we can be diverted from understanding where this money goes and the value to the international community that this money has. These are the World Bank's International Development Association; the World bank's debt relief schemes, including 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 bodies are not perfect. We recognise that. To think that they are perfect is to deny the obvious, but, even though they're imperfect, we in this government support them. We support them because these organisations, as Senator Van explained, bring financial resources, policy influence and convening power that complement and enhance Australia's bilateral programs and leverage financial resources, expertise, geographic reach and influence in order to achieve greater development outcomes.

Through its membership in these institutions, Australia is legislatively required to form a commitment and replenish our financial contributions as required according to the membership arrangements for each organisation. The special appropriation is included in a bill, as I am discovering at the moment, when it's desired to provide for an automatic authority to pay funds where an entitlement exists. The Social Security (Administration) Act 1999, for example, contained 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.

Why do we need a special appropriation? We need it because historically the Department of Foreign Affairs and Trade—and formerly, several years ago, AusAID—was 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 administered appropriations process. But, with the repealing of the 2014 annual appropriations acts 1 and 2 and the inclusion of an automatic repeal clause from 2014-15 in the annual appropriations acts, government agencies are no longer able to retain annual appropriations across financial years. The result has been that the Department of Foreign Affairs and Trade is no longer able to retain the full value of its multi-year commitments and so cannot fund its contributions to the organisations I mentioned before that are covered by this bill.

So let's look at an example. New commitments signed with the International Development Association in 2013-14, for example, for $100 million are to be paid over a nine-year period from 2014-15. The full value of the appropriation would have previously been included in the 2013-14 appropriations acts, retained or held by Foreign Affairs and Trade and then drawn down over the nine-year period. With the new automatic repealing clause, we no longer have access to the funds that were appropriated in 2013-14 from 2016-17. As such, DFAT is unable to meet the commitment for this replenishment without a special appropriation. Consistent with our membership arrangements for these organisations, Australia pledges to replenish our financial contribution every three or four years with payments being made over a three- to 10-year period. On average we are paying out $350 million annually to these commitments. I stress that this is not new or additional money. The funds to meet the commitments authorised by this bill will come from within the agreed Official Development Assistance budget.

The implied question from many of the other speakers was: why do we provide funds to such bodies? Australia joined the Word Bank Group in 1947, for example, and became a member of the World Bank's International Development Association in 1960. The IDA, or International Development Association, operates the largest pool of concessional finance in the world. It provides grants, technical expertise and concessional loans to promote growth and reduce poverty in the world's poorest and most vulnerable countries. The Treasurer, of course, as was pointed out by Senator Van, is on the board of governors. Australia's contribution has supported 1.5 million new labour market programs across the world, including 3,500 young people to complete job-ready training and enter the workforce.

The debt relief schemes managed by the World Bank, which are the Heavily Indebted Poor Countries Initiative and the Multilateral Debt Relief Initiative, provide debt relief to eligible poor countries. In 2005, the Howard government made a 40-year commitment to support this fund. Between 2001 and 2015, the average decline in crippling debt in eligible countries fell by 1.5 per cent of GDP, freeing up local government spending on health and education and reducing local reliance on foreign aid. Australia joined the Asian Development Bank in 1966 and the Asian Development Fund in 1973. Australia's contribution to the fund, managed by the bank—of which the Treasurer, again, is on the board of governors—provides grants to developing countries that are at moderate to high risk of debt distress to promote poverty reduction and accelerate development in the poorer countries of Asia and the Pacific. Australia's contributions have assisted in lifting 16 million people out of poverty and have improved economic growth in recipient nations.

What about the World Bank's International Development Association? We've been providing support to the Global Environment Facility Trust Fund since its inception in October 1991. Our contributions have assisted the protection of over 350 million hectares of seascapes and ocean life and supported the phase-out of over 29,000 tonnes of ozone and 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. Australia's contribution to the Multilateral Fund for the Implementation of the Montreal Protocol assists 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.

Not only by means of this bill but also through community development aid and community actions. such as those I mentioned before, referring to Rotary's 100-year celebration in 2021, in line with UNICEF, we—Australia and the Morrison government—are an active member of the community of nations and proud of it.

Paul Scarr (Queensland, Liberal Party) Share this | Link to this | Hansard source

I'm very pleased to rise in the Senate today to speak in favour of adoption of the Official Development Assistance Multilateral Replenishment Obligations (Special Appropriation) Bill 2019. In reference to my friend Senator Molan's comments about 'Sky after dark', as a relatively new senator, I would say if, I could get on 'Sky after dark', 'Sky at noon' or 'Sky at pre-dawn', I would greatly appreciate it—or the ABC or anywhere else for that matter, Senator. I'm happy to give interviews to The Guardian as well.

I rise to speak in favour of this bill as someone who does believe in our commitment to multilateral organisations, to bilateral relationships and also to an international rules based order. I'm also someone who believes that our foreign affairs policies and initiatives should be based on our national interest, our Australian values and matters which rightly belong within our own self-determination being respected. I think that's the view of many Australians with respect to these matters. I don't think it helps matters when, as we heard from Senator Wong and from Senator Faruqi, scorn is poured on those who raise legitimate questions with respect to Australia's place in the international order, because, when those questions are raised, they are simply a reflection of what people are thinking in our community. It is so important in these areas that we bring the Australian community with us. We need to bring the Australian community with us to support our place in terms of multilateral foreign relationships.

I'm very pleased to speak in favour of this bill. The content of the bill has been described in depth by previous speakers, but what I want to do in this contribution to the debate is highlight in practice what a difference this makes to people's lives. I want to refer to a number of projects. A country I spent over two years living and working in is Papua New Guinea. There's a project in PNG called the Urban Youth Employment Project, which is run through the World Bank and the International Development Association. That project has provided work to 18½ thousand unemployed, young urban people in Port Moresby. For those of us who have lived and worked in Papua New Guinea, a daily occurrence was to see the number of young people who migrated to the city, to urban centres, from rural areas and could not find employment. So this is an absolutely crucial program. Forty-one per cent of participants have been young women, and 18,000 new bank accounts were established through this project. These were young people who didn't even have a bank account. That's what this project meant to them and to their lives. Between 2011 and 2018, the Australian government provided a total of $10.8 million for the Urban Youth Employment Project in Papua New Guinea—a practical example of what Australia's contribution to these multilateral agencies means in practice for people on the ground.

Let me give you another example: the Solomon Islands Rural Development Program. The objective of the Solomon Islands Rural Development Program is to raise the living standards of rural households by establishing improved mechanisms for the delivery of priority economic and social infrastructure and services by the public and the private sector. The project consisted of three components, the first being the delivery of local infrastructure and services. The specific objective of that component was to increase access to and use of infrastructure and services in rural areas through participatory planning, budgeting and execution mechanisms at community and provincial levels. The second component involved improving access to agricultural services, in particular to improve access of smallholder households to quality agricultural services to support rural economic growth. The final component of that project, the Solomon Islands Rural Development Program, was to facilitate rural enterprise development through provision of an equity financing facility and associated training and technical assistance. Microfinancing is an imperative and incredibly useful tool to empower people in some of these impoverished nations.

Let me give you another example: Vaccinating in Vanuatu for a Healthier Future, through the work of the Asian Development Bank. Under that project three new quality assured vaccines were introduced to the health systems of Samoa, Tonga and Vanuatu. They will eventually shield more than 500,000 young women and children in those specific countries from a range of viruses. It's an outstanding project. This one is through the Asian Development Bank.

Tuvalu's Chief Executive Officer for the Ministry of Health, in relation to that project, said:

Our countries' women will benefit and so of course will their children. And they are our future.

Absolutely.

Another project, through the Asian Development Bank, is the provision of relief for Vanuatu after Cyclone Harold. Cyclone Harold, as those in this chamber will know, destroyed essential water and power infrastructure and severely damaged roads, schools, health facilities, homes, livestock and garden crops. The grant assistance provided in that case through the Asian Development Bank will help restore essential services, assist clean-up efforts and provide humanitarian supplies to those most vulnerable.

Those are each practical, worthwhile projects which are being delivered through these multilateral structures which Australia continues to support and should continue to support which make a difference to people's lives in our region. When we talk about Australia's commitment to helping our neighbours, both near and far, I think it's incredibly important that we actually refer to the concrete examples of what the money means for people on the ground.

I'd like to make some comments in relation to the contribution from Senator Faruqi. She referred to comments from Minister Hawke in relation to the Black Lives Matter protests held over the weekend. I thought Senator Faruqi's contribution in that regard was quite gratuitous and uncalled for. The fact of the matter is that Minister Hawke simply gave voice to what the vast majority of Australians believe—that's all. That's what his comments represented. He gave voice to the beliefs of the vast majority of Australians who have been under COVID-19 restrictions and have complied with those restrictions over months to their personal and economic detriment. That has been to such an extent that when the mother of a small-business owner in my area passed away, because there were more than 10 family members, one of his brothers had to sit in the car park of the church whilst his mother's funeral service took place. So Australians are understandably upset when they see thousands of people just disregard the laws of the land to pursue a protest. Australians have a right to exercise freedom of speech, absolutely. But they are disgusted when they see people cross the boundaries and breach the laws which they've been complying with in a responsible manner to their own personal detriment. Minister Hawke was simply giving voice to that mainstream view in the Australian community. It's certainly the view I've heard from dozens and dozens of constituents.

Senator Faruqi would have been more kind if, instead of referring to Minister Hawke's comments with respect to the protests over the weekend, she had referred to the great initiatives undertaken by the Minister for Foreign Affairs, Senator Payne, and also by the Minister for International Development and the Pacific, Alex Hawke MP, in relation to tackling the challenge of COVID-19 in the Pacific. There are a number of great contributions which our Australian government have made in helping our Pacific family in the Pacific deal with the COVID-19 pandemic.

I just want to run through a few of those contributions. I think it's important because this is an example of Australia doing its bit to support the members of our Pacific family. Australia has been integral in maintaining an essential services and humanitarian corridor to the Pacific and Timor-Leste, recognising that we are an important transport hub for the Pacific and Timor-Leste. This allows the movement of a limited number of international exports of essential supplies and food to our Pacific neighbours. We're working in partnership with Pacific island countries, including Timor-Leste, New Zealand and regional organisations on that initiative.

We've also assisted those Pacific islanders or members of our Pacific family who have been in Australia through the Pacific Labour Scheme and the Seasonal Worker Program. That included extending their visas for up to 12 months so they could stay and work in Australia. That has been incredibly important not just to those individuals from those Pacific countries but also to our agricultural producers.

But Senator Faruqi didn't mention that. She also didn't mention the fact that Australia has been integral in assisting Pacific islanders to return home. Australia is committed to making sure our Pacific island friends and Timorese nationals can get home and are still able to transit through Australia en route to Pacific destinations and to Timor-Leste. Australia is now implementing screening measures at Australian airports for both transit and outbound flights to the Pacific and Timor-Leste.

Our Pacific posts are staying open during this time of the COVID-19 pandemic. We didn't hear about that from Senator Faruqi at all. She just wanted to mention the comments made over the weekend by Minister Hawke. Our Pacific posts remain open. I pay tribute to each and every one of our local staff at those Pacific posts for the great job they're doing at this time. Our local staff at those posts play a key role in the delivery of Australian development assistance and are the backbone of our aid program personnel.

Lastly, Australia also responded to Tropical Cyclone Harold. We've made contributions to assist our Pacific family—all those members who have been impacted by that tropical cyclone. Unfortunately, we did not hear about any of that from Senator Faruqi.

Again those are practical ways Australia directly, through bilateral relationships and multilateral organisations, contributes and helps our Pacific neighbours and further afield. On that basis, I commend the bill to the chamber.

Marise Payne (NSW, Liberal Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I begin by thanking all senators who have contributed to the debate on the Official Development Assistance Multilateral Replenishment Obligations (Special Appropriation) Bill 2019. I had the opportunity to hear part of Senator Scarr's speech. I particularly want to acknowledge his very courteous remarks about DFAT staff at posts, both locally engaged and Australian staff, for the work they do. I very much appreciate that acknowledgement and, Senator Scarr, I'm sure they will too.

This bill will provide standing appropriation to meet Australia's international development commitments to the World Bank's International Development Association; the World Bank's debt relief schemes, including the Heavily Indebted Poor Country 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.

Consistent with our membership arrangements of these organisations, Australia pledges to replenish our financial contribution every three or four years, with payments being made over a three- to 10-year period. The funds to meet the commitments authorised by this bill will come from within the agreed official development assistance budget. Our contributions to these organisations constitute an important component of Australia's support for the promotion, protection and improvement of the international rules based order. These organisations complement Australia's efforts at the country and regional levels to promote the prosperity and security of the Indo-Pacific region. I commend the bill to the chamber.

Scott Ryan (President) Share this | Link to this | Hansard source

The question is that the second reading amendment moved by Senator Wong be agreed to.