Dr Geoff Wade
The
appropriation of $1,400 million to the Department of Foreign Affairs and Trade
(DFAT) for 2015–16 represents a five per cent increase over the $1,324 million
appropriated in 2014–15.[1] In terms of
staffing, while some 500 positions were slated for removal last year,
partly through the integration of aid agency AusAID
into DFAT, this year DFAT will see average staffing levels increase
slightly from 5,722 to 5,734.[2]
Across the foreign affairs realm,
changes to the aid budget have been of the largest magnitude and attracted the greatest
attention.[3] By comparison, the other
changes in DFAT’s budgeted operations are less dramatic, but some aspects are
worthy of mention.
First, Australia’s regional
positioning has been revised again. While the 2014–15 Budget was replete with references
to Australia’s location in the ‘Indian Ocean Asia Pacific’, this year’s Budget
statement makes no reference at all to this term, with Australia now being
located simply within the ‘Indo-Pacific region’.[4] The significance of this
change is moot, but it does reflect a growing use of this new term.[5]
In areas of intense engagement
overseas, over $110 million is being provided for continuing diplomatic
activities in Iraq and Afghanistan in 2015–16, along with a further $15 million
in capital costs. These figures represent marked increases over 2014–15, a
trend that looks set to continue—departmental expenses will see $6 million
growth in 2016–17.
Increases in the funding of the New
Colombo Plan, which carries forward and expands the Rudd Government’s Australia
Asia Awards, feature prominently in this year’s Budget.[6]
Some 4,800 grants will be on offer in 2016 to assist Australians to study
across the region.[7] The almost $28 million
allocation in the current Budget more than doubles that provided in the 2014–15
Budget and the forward estimates suggest that in 2017–18 and 2018–19 the
program will be funded at about $50 million annually. This funding will thereby
far surpass the $100 million over five years to which the Coalition initially
committed.[8]
In the sphere of trade promotion,
two measures are notable. The international and domestic promotion of the
various Free Trade Agreements into which Australia has entered during the
current government has been funded for $24.6 million.[9]
In addition, five new offshore investment promotion positions have been created
and a new office for investment promotion is to be established in Boston.[10]
The inaugural Australia Week held
in Shanghai in April 2014, which was intended primarily to promote Australia as
an investment and tourism destination, was obviously seen to have been
worthwhile as the new Budget provides Austrade with $9.2 million over four
years to fund further Australia Week events in China, India, the US and ASEAN
countries.[11]
Tourism has lost the prominent
position it enjoyed in the 2014–15 Budget. The $151 million appropriated this
year for programs to promote Australia’s international tourism interests
represents a reduction compared to the estimated actual expenditure in 2014–15.
Industry bodies have indicated their disappointment.[12]
Worthy of further note is
Austrade’s participation in the Global Leader in Tropical Health program,
assisting the Department of Industry and Science in efforts to develop northern
Australia into a centre of expertise in tropical health.[13]
Austrade is being given $1.4 million (growing to more than $2 million annually
over 4 years) to provide sectoral expertise and advice to what will be an $80
million undertaking.[14]
The Budget also provides for
expanded Australian diplomatic representation, as outlined in the Library’s Budget
Review article The Indo-Pacific focus of ‘Expanding Australia’s Diplomatic
Footprint’.
[1]. Australian
Government, Portfolio
budget statements 2014–15: budget related paper no. 1.9: Foreign Affairs and
Trade Portfolio, p. 21; The budget figures in this article have
been taken from the following document unless otherwise sourced: Australian Government, Portfolio budget statements
2015–16: budget related paper no. 1.9: Foreign Affairs and Trade Portfolio,
2015.
[2]. Australian
Government, Agency
resourcing: budget paper no. 4: 2015–16, p. 136; ‘More
than 2,500 jobs axed at ATO, Foreign Affairs Department’, ABC News online, 14 May 2014.
[3]. For
information on changes to the aid budget, see the Library’s Budget Review
article ‘The shrinking aid budget’.
[4]. Portfolio
budget statements 2014–15: budget related paper no. 1.9: Foreign Affairs and
Trade Portfolio, op. cit., pp. 3, 5, 15, 39; Portfolio
budget statements 2015–16: budget related paper no. 1.9: Foreign Affairs and
Trade Portfolio, op. cit., pp. 3, 4, 5, 15, 16, 18, 19, 27, 43, 44.
[5]. See,
for example, C Hill, ‘Australia
in the Indo-Pacific century: rewards, risks, relationships’, Parliamentary
Library briefing book: key issues for the 44th parliament, Parliamentary
Library, Canberra, 2013; M Beeson, ‘The rise
of the Indo-Pacific’, The Conversation weblog, 3 May 2014; B Thomas-Noone, ‘Indo-Pacific
security links: nuclear weapons, Merkel in Japan, security cooperation in South
China Sea and more’, Lowy Interpreter weblog, 12 March 2015.
[6]. K
Rudd (Prime Minister), 'On the power of
ideas: the establishment of the Australia Asia Awards—Address to the National
University of Singapore’, transcript, 13 November 2009.
[7]. Department
of Foreign Affairs and Trade (DFAT), ‘New Colombo Plan’, DFAT
website.
[8]. Liberal
Party of Australia,
The Coalition’s Policy for a New Colombo Plan, 30 August 2013.
[9]. Australian
Government, Budget
measures: budget paper no. 2, 2015–16, p. 97.
[10]. Ibid.,
p. 98.
[11]. A
Robb (Minister for Trade and Investment), China-Australia
Business Week, media release, 3 March 2014; Budget
measures: budget paper no. 2, 2015–16,
op. cit., p. 95.
[12]. Tourism
and Transport Forum, Tax hit on tourism,
media release, 12 May 2015.
[13]. A
Robb (Minister for Trade and Investment), $15.4
million to support tropical research under Northern Australia growth plan,
media release, 10 May 2015.
[14]. This
initiative is part of a broader education and science undertaking aimed at tropical health and medicine research in northern Australia. See C Pyne
(Minister for Education), $42 million for tropical health and medicine research in northern
Australia, media
release, 9 May 2014.
All online articles accessed May 2015.
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