Australian Government, 2007–08 Commonwealth Budget

Table 6: Increasing overseas aid — delivering on the Aid White Paper

	2007-08 $m	2008-09 $m	2009-10 $m	2010-11 $m	Total $m
EXPENSE MEASURES
FOREIGN AFFAIRS AND TRADE
AusAID(a)
Increasing overseas aid
– delivering better education	43.2	62.6	186.3	248.2	540.3
– delivering better health	55.2	78.5	172.0	225.1	530.8
– infrastructure for growth initiative	85.1	119.0	142.3	159.4	505.8
– Australian response to emerging country and regional priorities – enhancement	100.9	96.2	95.6	90.0	382.7
– performance incentives	41.3	74.3	-	-	115.6
– Australian emergency and humanitarian response capacity – enhancement	21.3	23.0	24.0	25.0	93.2
– climate change, global health and multilateral initiatives – building and supporting effective partnerships	86.9	-	-	-	86.9
– governance and leadership programme	16.6	24.4	-	-	41.0
– Australia-Indonesia Partnership for Reconstruction and Development – supplementary administration costs	11.0	11.0	10.0	9.0	41.0
– Aid White Paper – continuation of programme development and realignment	5.3	5.8	5.7	5.8	22.6
– anti-corruption for development activities	16.7	-	-	-	16.7
– emergency and humanitarian relief – contributions	-	-	-	-	-
Sub Total	483.5	494.6	635.8	762.5	2376.4
Other Government Departments(b)	23.7	11.8	10.4	1.7	47.6
Total Expense measures	483.5	494.6	635.8	762.5	2376.4
SUMMARY OF EXPENDITURE
Total expense measures	483.5	494.6	635.8	762.5	2376.4
Total capital measures	-	-	-	-	-
Total expenditure	483.5	494.6	635.8	762.5	2376.4
Total revenue measures	-	-	-	-	-
Net additional expenditure	483.5	494.6	635.8	762.5	2376.4

See also the related expense measure with an AusAID component titled Climate change — Global Initiative on Forests and Climate in the Environment and Water Resources portfolio.
For details of the ODA expense measures being delivered by government agencies other than AusAID see:

Papua New Guinea – improving border security capability (in the Attorney-General’s portfolio);
National Illicit Drugs Strategy – Australian Federal Police overseas liaison network (in the Attorney-General’s portfolio);
Sudan – providing an Australian Federal Police contribution for the United Nations Mission in Sudan (in the Attorney-General’s portfolio);
Strategy to prevent people smuggling – assistance for immigration detention centres in Indonesia (in the Immigration and Citizenship portfolio);
Strategy to prevent people smuggling – stabilising displaced populations (in the Immigration and Citizenship portfolio); and
Transport safety assistance to Indonesia (in the Transport and Regional Services portfolio).

Increasing overseas aid — emergency and humanitarian relief — contributions

Expense ($m)
	2007-08	2008-09	2009-10	2010-11
AusAID	-	-	-	-

The Government has provided $18.6 million since the Mid-Year Economic and Fiscal Outlook 2006-07 for emergency and humanitarian relief efforts. The funding has been provided through various international agencies, such as the United Nations Children’s Fund, the United Nations High Commissioner for Refugees, the World Food Programme and the International Organisation for Migration, and a number of non-government organisations. Examples include assistance to earthquake and tsunami victims in the Solomon Islands, displaced Iraqis and victims of conflict in Africa.

The cost of these measures was met from within the existing resourcing of AusAID.

Further information can be found in various press releases issued by the Minister for Foreign Affairs.

Increasing overseas aid — delivering better education

Expense ($m)
	2007-08	2008-09	2009-10	2010-11
AusAID	43.2	62.6	186.3	248.2

The Government will provide an additional $540.3 million over four years to improve education outcomes for children, including those in secondary school, across the Asia-Pacific region, and help equip them with the skills necessary to gain productive employment and contribute to the development of their countries. This funding will assist in improving access to and the quality of schooling. It will also support areas within educational sectors that might otherwise be marginalised, particularly Islamic education in some Asian countries, English language training, and vocational and technical education.

Increasing overseas aid — delivering better health

Expense ($m)
	2007-08	2008-09	2009-10	2010-11
AusAID	55.2	78.5	172.0	225.1

The Government will provide an additional $530.8 million over four years to improve the levels of maternal and child health, and reduce the incidence of malaria and other major diseases, in selected countries in the Asia‑Pacific region. In addition to supporting basic health essentials such as immunisations, the funding will assist in strengthening the fundamentals of health service delivery, including through reforms to budgeting and planning. It will also help increase the focus on health education and the training of essential health workers.

Increasing overseas aid — infrastructure for growth initiative

Expense ($m)
	2007-08	2008-09	2009-10	2010-11
AusAID	85.1	119.0	142.3	159.4

The Government will provide an additional $505.8 million over four years to address critical infrastructure constraints to growth and improve the management of infrastructure in the Asia-Pacific region. The funding will be targeted towards infrastructure that strengthens market access, promotes regional trade and integration, and increases productivity.

This measure will enable AusAID to partner with the World Bank and the Asian Development Bank on transport and energy programmes in the Mekong region, East Timor, Papua New Guinea and Pacific nations. In Indonesia and the Philippines, national policy and regulation will be strengthened along with local level management and the delivery of infrastructure. Implementation will be guided by an Infrastructure Advisory Group with both Government and external specialist membership.

Increasing overseas aid — Australian response to emerging country and regional priorities — enhancement

Expense ($m)
	2007-08	2008-09	2009-10	2010-11
AusAID	100.9	96.2	95.6	90.0

The Government will provide an additional $382.7 million over four years to increase in-year flexibility within the aid budget to meet unforeseen aid priorities. The funding will facilitate the mobilisation of resources for emerging whole-of-government, rapid response humanitarian and development priorities.

Increasing overseas aid — performance incentives

Expense ($m)
	2007-08	2008-09	2009-10	2010-11
AusAID	41.3	74.3	-	-

The Government will provide an additional $115.6 million over two years through performance incentive agreements with selected countries in the Asia-Pacific region in support of priority reforms. The additional funding will be provided where countries meet robust, mutually pre-determined performance criteria and will be applied to high priority development initiatives. Performance incentive payments will be withheld if governments do not meet their commitments.

The programme will be similar to existing performance arrangements with the national governments of Papua New Guinea and Vietnam, through which incentive payments are provided on achievement of agreed performance milestones.

Increasing overseas aid — Australian emergency and humanitarian response capacity — enhancement

Expense ($m)
	2007-08	2008-09	2009-10	2010-11
AusAID	21.3	23.0	24.0	25.0

The Government will provide an additional $93.2 million over four years to improve Australia’s responses to humanitarian and emergency crises in the Asia-Pacific region. The funding will support a reduction in Australian response times, improve risk analysis and strengthen contingency planning. It will also assist partner countries to plan for and manage crises themselves.

Increasing overseas aid — climate change, global health and multilateral initiatives — building and supporting effective partnerships

Expense ($m)
	2007-08	2008-09	2009-10	2010-11
AusAID	86.9	-	-	-

The Government will provide an additional $86.9 million in 2007-08 for multilateral initiatives targeting climate change and improved health standards in the Asia-Pacific region.

The measure includes $32.5 million for joint initiatives with the World Bank, the Asian Development Bank and other international organisations to support climate adaptation and mitigation initiatives, including on water management, energy efficiency and alternative energy sources.

Funding of $54.4 million will be directed towards improvements in maternal and child health through the Global Fund to Fight HIV, Tuberculosis and Malaria, and the United Nations Children’s Fund.

The Government will also make an upfront payment of approximately $80.0 million in 2007-08 to the World Bank’s International Development Association as a demonstration of Australia’s support for the World Bank’s efforts in the fight against global poverty. Together with payments already scheduled for 2007-08, the upfront payment will fulfil Australia’s obligations under the Thirteenth International Development Association Replenishment. As this entails early encashment of a previously agreed commitment, which was expensed in 2001-02, it has no fiscal balance impact over the forward estimates period.

See also the related expense measure titled Climate change — Global Initiative on Forests and Climate in the Environment and Water Resources portfolio.

Increasing overseas aid — governance and leadership programme

Expense ($m)
	2007-08	2008-09	2009-10	2010-11
AusAID	16.6	24.4	-	-

The Government will provide an additional $41.0 million over two years to improve the quality of governance and leadership in the Pacific region and selected Asian countries. The funding will assist in developing existing and potential leaders in government and promote strengthened governance and leadership in business, churches and community organisations. It will also help support civic education programmes to improve the knowledge and expectations of government within local communities.

Increasing overseas aid — Australia-Indonesia Partnership for Reconstruction and Development — supplementary administration costs

Expense ($m)
	2007-08	2008-09	2009-10	2010-11
AusAID	11.0	11.0	10.0	9.0

The Government will provide an additional $41.0 million over four years to cover the administration costs of the Australia-Indonesia Partnership for Reconstruction and Development. This continues the funding for administrative support provided since 2004-05.

Funding for the administration costs is in addition to the $1.0 billion being provided by the Government to help with Indonesia’s recovery, reconstruction and development following the December 2004 tsunami.

Increasing overseas aid — Aid White Paper — continuation of programme development and realignment

Expense ($m)
	2007-08	2008-09	2009-10	2010-11
AusAID	5.3	5.8	5.7	5.8

The Government will provide $22.6 million over four years to resource the policy, planning and design work necessary for the effective implementation of initiatives arising from the Aid White Paper, Australian Aid: Promoting Growth and Stability. This continued preparatory work will enhance the effectiveness of future aid increases, consistent with the Government’s goal of increasing Official Development Assistance to about $4 billion per annum by 2010.

Increasing overseas aid — anti-corruption for development activities

Expense ($m)
	2007-08	2008-09	2009-10	2010-11
AusAID	16.7	-	-	-

The Government will provide $16.7 million in 2007-08 for the implementation of anti-corruption activities in selected countries in the Asia-Pacific region. The funding will also support planning and early implementation of programmes to give effect to the Government’s anti-corruption for development policy, Tackling Corruption for Growth and Development.

Further information can be found in the press release of 30 March 2007 issued by the Minister for Foreign Affairs.

Other measures in the Foreign Affairs and Trade portfolio

Australia on the World Stage — enhancement

Expense ($m)
	2007-08	2008-09	2009-10	2010-11
Department of Foreign Affairs and Trade	2.6	4.0	6.8	6.9

The Government will provide $20.4 million over four years to expand cultural diplomacy and cultural export programmes, primarily in Asia, the South Pacific, the Middle East and North America.

This measure includes funding for the Australia International Cultural Council programme, including grants to artists and performers to tour overseas, the production of promotional material, website development and the promotion of Australian culture through international television broadcasting.

Australia-China Free Trade Agreement — continuation of negotiations

Expense ($m)
	2007-08	2008-09	2009-10	2010-11
Department of Foreign Affairs and Trade	4.1	4.1	-	-
Department of Agriculture, Fisheries and Forestry	0.4	0.4	-	-
IP Australia	0.3	0.3	-	-
Department of Communications, Information Technology and the Arts	0.3	0.3	-	-
Department of Finance and Administration	0.3	0.3	-	-
Department of the Treasury	0.3	0.3	-	-
Department of Education, Science and Training	0.2	0.2	-	-
Attorney-General’s Department	0.2	0.2	-	-
Department of Immigration and Citizenship	0.1	0.2	-	-
Total	6.3	6.4	-	-

The Government will provide $12.7 million over two years to continue negotiations on the Australia-China Free Trade Agreement. In addition to supporting direct negotiations, the funding will enable further consultation with industry groups and facilitate information exchanges with Chinese representatives.

The successful conclusion of a free trade agreement will provide improved access for Australian goods and services into China.

Australia-Japan Free Trade Agreement — commencement of negotiations

Expense ($m)
	2007-08	2008-09	2009-10	2010-11
Attorney-General’s Department	0.4	0.5	-	-
Department of Agriculture, Fisheries and Forestry	0.4	0.4	-	-
Department of the Treasury	0.2	0.2	-	-
Department of Communications, Information Technology and the Arts	0.2	0.2	-	-
Australian Customs Service	0.2	0.4	-	-
Department of Finance and Administration	0.2	0.2	-	-
Department of Immigration and Citizenship	0.1	0.1	-	-
IP Australia	0.1	0.1	-	-
Department of Education, Science and Training	0.1	0.1	-	-
Department of Foreign Affairs and Trade	-	-	-	-
Total	2.0	2.3	-	-
Related capital ($m)
Attorney-General’s Department	0.1	-	-	-

The Government will provide $4.3 million over two years to facilitate negotiation of the Australia-Japan Free Trade Agreement. In addition to supporting direct negotiations, the funding will enable consultation with industry groups and facilitate information exchanges with Japanese representatives.

The negotiations follow the completion of the joint free trade agreement feasibility study. The successful conclusion of a free trade agreement will provide improved access for Australian goods and services into Japan.

This measure includes $0.1 million in capital funding in 2007-08 for the Attorney-General’s Department for the fit‑out of offices for new staff engaged in the negotiations.

Consular emergency services — reallocation of funding

Expense ($m)
	2007-08	2008-09	2009-10	2010-11
Department of Foreign Affairs and Trade	-	-	-	-

The Government will provide $0.8 million over four years for the provision of emergency consular support to Australian travellers overseas who require assistance in extreme circumstances and who do not have the capacity to enter into legally binding loan agreements.

The cost of this measure will be met from within the existing resourcing of the Department of Foreign Affairs and Trade.

Global Integration — export facilitators for the United States market — extension

Expense ($m)
	2007-08	2008-09	2009-10	2010-11
Australian Trade Commission	-	-	-	-

The Government will provide $11.1 million over two years to extend the appointment of 30 export facilitators to pursue export opportunities arising from the Australia-United States Free Trade Agreement. The extension will help small and medium-sized Australian businesses take advantage of export opportunities, targeting government procurement, agricultural and other niche markets.

Provision for this funding has already been included in the forward estimates. The cost of this measure will be partially met ($5.1 million over two years) from within the existing resourcing of Austrade.

See also the related expense measures titled Global Integration in the Industry, Tourism and Resources, and Agriculture, Fisheries and Forestry portfolios, and the related revenue measure titled Global Integration – extension of the premium 175 per cent research and development tax concession to subsidiaries of multinational enterprises in the Treasury portfolio.

Further information can be found in the statement of 1 May 2007 issued by the Prime Minister and the Minister for Industry, Tourism and Resources.

International Relations Grants Programme — continuation of funding

Expense ($m)
	2007-08	2008-09	2009-10	2010-11
Department of Foreign Affairs and Trade	-	-	-	-

The Government will provide $18.0 million over four years to continue supporting bilateral bodies, organisations and cultural programmes that advance Australia’s foreign and trade policy goals. The programme promotes Australia’s objectives in key bilateral relationships, international security, trade and economic performance and public diplomacy.

This measure involves funding of $4.5 million per annum from 2007-08 to 2010-11. Provision for this funding has already been included in the forward estimates.

Shanghai World Expo 2010 — planning and design

Expense ($m)
	2007-08	2008-09	2009-10	2010-11
Department of Foreign Affairs and Trade	1.5	-	-	-

The Government will provide $1.5 million in 2007-08 to develop project plans and a detailed design for an Australian pavilion at the Shanghai World Expo 2010.

Funding for the construction of the pavilion and participation at the World Expo will be considered in the context of the 2008-09 Budget.

Strategy to prevent people smuggling — enhanced intelligence collection

Expense ($m)
	2007-08	2008-09	2009-10	2010-11
Australian Secret Intelligence Service	1.5	2.4	2.4	2.5
Related capital ($m)
Australian Secret Intelligence Service	0.2	0.2	-	-

The Government will provide $9.0 million over four years (including $0.4 million in capital funding) to the Australian Secret Intelligence Service to enhance intelligence collection capabilities, thereby improving Australia’s ability to address the issue of people smuggling.

See also the related expense measures titled Strategy to prevent people smuggling in the Immigration and Citizenship, and Attorney-General’s portfolios.

Other measures in the Foreign Affairs and Trade portfolio

2007-08 Budget Documents

Miscellaneous

Legal information