Joint Standing Committee on Foreign Affairs, Defence and Trade 
      
      
      Inquiry into Australia's aid program in the Pacific
  
        
September 2007
  
  Canberra 
© Commonwealth of Australia 2007
  
  ISBN  978-0-642-78936-5 (printed version)
  
  ISBN  978-0-642-78937-2  (HTML version)
Contents
  Foreword
      Membership of the Committee
      Membership of the Sub-Committee
      Terms of reference
      List of abbreviations
      List of recommendations
      
      Chapter 1 
        
        
        Introduction
    Chapter 2 Strengthening law and justice
    Chapter 3 Improving economic management and public accountability institutions
    Chapter 4 Maintaining access to basic services (especially health)
    Chapter 5 Anti-corruption and good governance measures
    Chapter 6 Supporting peace-building and community and civil society development
    Chapter 7 Committee comment and conclusion
    Appendix A – List of Submissions and Exhibits 
    Appendix B – Witnesses appearing at hearings
    Appendix C – Australia's Overseas Aid Program Budget 2007-2008
    Appendix D – Executive summary of AusAID's White Paper
    Appendix E – Summary of Pacific 2020 report
     
Foreword
Australia’s aid program focuses on assisting countries  in the Asia-Pacific region. A  considerable proportion of our aid goes towards assisting our Pacific Island neighbours. In the 2007-2008 financial year $872.5 million will be disbursed in the Pacific,  with the majority directed to assist citizens of the Solomon Islands and Papua New Guinea. Each  of the Pacific Island states has different development needs—some  more complex than others—and the Australian aid program seeks to address a wide  range of them. The Australian Government does so in partnership with,  principally, national governments; but also other donors, non-government  organisations and local communities.
  
  In the course of the inquiry, the Committee heard from a wide range of  government and non-government stakeholders with an interest in development in  the Pacific—Australians and Pacific Islanders alike.
  
  A key theme to emerge throughout the inquiry was the need for strong  people-to-people links between Australians and Pacific Islanders—not only for  development reasons but also to promote a deeper understanding and better  appreciation of our respective cultures.
    
  Concerns were raised by some that the people-to-people links between  our nations (be they government-to-government, business, civil society or  educational) have reduced in recent years. However, the Committee learnt that many opportunities for engagement  exist and that these are increasing. For  example, Australia is expanding its scholarship assistance through the  Australian Scholarships Program and will double the total number of education  awards offered to the region to over 19, 000.
   
  It was with their benefits in mind that the Committee recommends that  the Australian Government consider establishing a Pacific Island Youth  Ambassador Scheme (similar to and possibly linked with the Australian Youth  Ambassador Scheme or AusAID Development Scholarships), whereby young skilled  Pacific Islanders can apply for placements in an Australian host organisation  workplace for the purpose of work experience and cultural exchange. It is the Committee’s view that an exchange  such as this will build further personal contacts and—in time—boost cooperative  networks in Australia and the Pacific.
On behalf of my Committee colleagues I wish to thank all those who took  part in the inquiry process, from providing written submissions and/or oral  evidence at public hearings to meeting with the Committee on other  occasions. The Committee valued the  candid discussions it had with witnesses, who shared many anecdotal experiences  and insights.
  
  Aid and development is a complex area in which to work. The Committee acknowledges the efforts of  Australians seeking to make a difference in this field, be they AusAID  officials or public servants seconded to the Pacific from other government  departments and agencies such as the Attorney-General’s Department, Customs,  Defence and the Australian Federal Police; church groups; non-government  organisations; academics; volunteers or private citizens. 
 
  
  All are collaborating on a daily basis with counterparts in the  Pacific, working towards common goals. In some parts of the region it is more a work in progress than in  others—but their efforts to promote and enhance human rights and security in  the region are something that Australians can be proud of and should continue  to support.
  
  
  
Senator M A Payne  
    Chair, Human Rights Sub-Committee
Membership of the Committee
  
     Chair   | 
    Senator M A Payne (from 15/08/07) 
    Senator  A B Ferguson (until 15/08/07)        | 
      | 
  
  
     Deputy Chair   | 
    Hon. G J Edwards,  MP | 
      | 
  
  
     Members   | 
    Senator Bartlett (from 09/12/05)  | 
    Hon     B G Baird,    MP  | 
  
  
        | 
    Senator P M    Crossin (from 28/12/05)  | 
    Mr P     A Barresi,    MP  | 
  
  
        | 
    Senator A Eggleston  | 
    Mr M Danby, MP  | 
  
  
        | 
    Senator S Hutchins  | 
    Mrs T Draper, MP  | 
  
  
        | 
    Senator L J Kirk  | 
    Mrs J Gash, MP  | 
  
  
        | 
    Senator the Hon. J A L (Sandy)    McDonald (from 08/02/07)  | 
    Mr S W Gibbons, MP  | 
  
  
        | 
    Senator C M Moore (from 23/06/05)  | 
    Mr B W Haase, MP  | 
  
  
    |   | 
    Senator M A Payne  | 
    Mr M J Hatton, MP  | 
  
  
    |   | 
    Senator N Stott Despoja  | 
    Hon. D F Jull, MP  | 
  
  
    |   | 
    Senator R B Trood (from 23/03/07)  | 
    Hon. J E Moylan, MP  | 
  
  
    |   | 
    Senator R S Webber (from 23/06/05)  | 
    Hon. G D Prosser, MP  | 
  
  
    |   | 
    Senator M Fifield (from 17/08/07)  | 
    Hon. B C     Scott, MP  | 
  
  
    |   | 
       | 
    Mr R     C G Sercombe,    MP  | 
  
  
    |   | 
       | 
    Hon. W E Snowdon, MP  | 
  
  
    |   | 
       | 
    Dr A     J Southcott,    MP (from 08/02/06)  | 
  
  
    |   | 
       | 
    Mr C     P Thompson,    MP  | 
  
  
    |   | 
       | 
    Ms M Vamvakinou, MP  | 
  
  
    |   | 
       | 
    Mr B     H Wakelin,    MP  | 
  
  
    |   | 
       | 
    Mr K     W Wilkie,    MP  | 
  
    
      Membership of the Sub-Committee
  
     Chair   | 
    Senator M A Payne  | 
      | 
  
  
     Deputy Chair   | 
    Ms M Vamvakinou, MP | 
      | 
  
  
     Members   | 
    Senator A     Bartlett (from 09/12/05)  | 
    Hon. B     G Baird,    MP  | 
  
  
        | 
    Senator P M    Crossin (from 28/12/05)  | 
    Mr M     Danby, MP  | 
  
  
        | 
    Senator L J     Kirk  | 
    Hon G     J Edwards,    MP (ex-officio)  | 
  
  
        | 
    Senator C M     Moore (23/06/05)  | 
    Mr R     C G Sercombe,    MP  | 
  
  
        | 
    Senator N Stott     Despoja  | 
    Dr A     J Southcott,    MP (from 02/05/07)  | 
  
  
        | 
    Senator R B     Trood (from 23/03/07)  | 
    Mr C     P Thompson,    MP  | 
  
  
        | 
    Senator M Fifield (from 17/08/07) | 
      | 
  
Committee Secretariat
  
     Secretary   | 
    Dr Margot Kerley  | 
  
  
     Inquiry Secretary   | 
    Ms Sara Edson  | 
  
  
     Administrative Officer   | 
    Ms Jessica Butler 
      Ms  Emma Martin 
       | 
  
Terms of Reference
The  Human Rights Sub-Committee of the Joint Standing Committee on Foreign Affairs,  Defence and Trade will review the impact of Australian aid to the Pacific in  promoting and enhancing human rights and security in the region.
The  inquiry will focus on:
  - strengthening       law and justice; 
 
  - improving       economic management and public accountability institutions; 
 
  - maintaining       access to basic services (especially health); 
 
  - anti-corruption       and good governance measures; and 
 
  - supporting       peace-building and community and civil society development.
 
  
    List of abbreviations 
  
    APF  | 
    Asia    Pacific Forum of National Human Rights Institutions  | 
  
  
    APTC  | 
    Australia-Pacific     Training College  | 
  
  
    ASPI  | 
    Australian Strategic Policy    Institute  | 
  
  
    AusAID   | 
    Australian Agency for    International Development  | 
  
  
    AUSTRAC  | 
    Australian Transaction and    Analysis Centre  | 
  
  
    AVI   | 
    Australian Volunteers    International  | 
  
  
    AYAD  | 
    Australian Youth Ambassador for    Development  | 
  
  
    CDI  | 
    Centre for Democratic    Institutions  | 
  
  
    CIMIC  | 
    Civil Military Cooperation Unit  | 
  
  
    CUF  | 
    Credit Union Foundation  | 
  
  
    DEST  | 
    Department of Education, Science    and Training  | 
  
  
    DFAT  | 
    Department of Foreign Affairs and    Trade  | 
  
  
    ECF  | 
    Enterprise    Challenge Fund  | 
  
  
    ECP  | 
    Enhanced Cooperation Program  | 
  
  
    EITI  | 
    Extractive Industries    Transparency Initiative   | 
  
  
    FaCSIA  | 
    Department of Families, Community    Services and Indigenous Affairs  | 
  
  
    FDC  | 
    Foundation for Development    Cooperation  | 
  
  
    HRSC  | 
    Human Rights Sub-Committee  | 
  
  
    ICEAPS  | 
    International Centre of    Excellence in Asia-Pacific Studies  | 
  
  
    IDG  | 
    International Deployment Group  | 
  
  
    IFC  | 
    International Finance Corporation  | 
  
  
    IMF  | 
    International Monetary Fund  | 
  
  
    JSCFADT  | 
    Joint Standing Committee on    Foreign Affairs, Defence and Trade  | 
  
  
  
    MOU  | 
    Memorandum of Understanding  | 
  
  
    NGO  | 
    Non-government organisation  | 
  
  
    ODA  | 
    Overseas Development Assistance  | 
  
  
    ODE  | 
    Office of Development    Effectiveness  | 
  
  
    ORG  | 
    Operational Response Group  | 
  
  
    PBP  | 
    Patrol Boat Program  | 
  
  
    PCRF  | 
    Primary Casualty Reception Facility  | 
  
  
    PIF  | 
    Pacific     Islands Forum  | 
  
  
    PITIC  | 
    Pacific Investment and Trade    Investment Commission  | 
  
  
    PMCF   | 
    Pacific Media Communications    Facility  | 
  
  
    PMI  | 
    Pacific Media Initiative  | 
  
  
    PNG  | 
    Papua      New Guinea  | 
  
  
    PNGDF  | 
    Papua      New Guinea Defence Force  | 
  
  
    PPD  | 
    Political Party Development   | 
  
  
    PPF  | 
    RAMSI’s Participating Police    Force  | 
  
  
    RAMSI  | 
    Regional Assistance Mission    to Solomon Islands  | 
  
  
    RAN  | 
    Royal Australian Navy  | 
  
  
    TI  | 
    Transparency International  | 
  
  
    VIDA  | 
    Volunteering for International    Development from Australia  | 
  
 
List of recommendations 
3 Improving economic management and public  accountability institutions
  Recommendation 1
  The Committee notes the importance of financial  services in the development of Pacific Island economies, and recommends that  the Australian Government develop a focused strategy to encourage financial  services development, including microfinance. 
  
Recommendation 2
  The Committee recommends that the Australian Tax  Office, in conjunction with AusAID, consider and report on the merits and  practicalities of Mr Roland Rich’s proposal to amend the Australian tax rules  to encourage companies to become directly involved in building private sector  capacities in developing countries in the Pacific by allowing them to deduct  from their taxable income the full costs incurred in providing such assistance. 
  
Recommendation 3
The Committee notes the evidence of the importance to  Pacific Island economies of access to developed economies for seasonal workers,  and recommends an active and serious evaluation by the Australian Government of  the possibility of such a scheme.
4 Maintaining access to basic services (especially  health)
  Recommendation 4
  The Committee supports the consideration of each of  the issues raised by the students, and in particular recommends that the  Australian Government conduct a regular review of the stipend rate for Pacific  Island students on Australian Development Scholarships to ensure that it  remains commensurate with the cost of living, and is at a reasonable level for  those students with accompanying dependents. 
  
  
6 Supporting peace-building and community and civil  society development 
 Recommendation 5
  The Committee recommends that the Australian  Government consider establishing a Pacific Island Youth Ambassador Scheme  (similar to and possibly linked with the Australian Youth Ambassador Scheme, or  AusAID scholarships), whereby young skilled Pacific Islanders can apply for  placements in an Australian host organisation workplace for the purpose of work  experience and cultural exchange.
  
        
      
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