The Hon. Duncan Kerr SC MP
The Hon Duncan Kerr SC MP
Former Parliamentary Secretary for Pacific Island Affairs

Speech

Australia and the Pacific Islands Forum: Opportunities Ahead

Australian Institute of International Affairs

7 September, 2009, Canberra

(As Delivered)

Thank you for your introduction.

It is my very great pleasure to be here today to address you.

The Australian Institute of International Affairs provides an important forum for debate and discussion about international affairs, throughout Australia.

The Institute also has a crucial role in disseminating ideas and informing the wider Australian community about international affairs issues.

I thank you for this opportunity to speak to you today.

Ladies and gentlemen, last month Australia hosted the 40th meeting of the Pacific Islands Forum - the first time we have done so in 15 years.

It was fitting that the largest international meeting hosted by Prime Minister Rudd to date should comprise Pacific leaders.

The meeting occurred at a critical moment in history - amid the global financial crisis, which is exacting such a toll on the Pacific, and in the lead up to the crucial Copenhagen climate change negotiations.

The meeting was historic in that leaders agreed to start negotiations on PACER Plus, a new regional trade and economic agreement that will create new opportunities for Pacific island countries to engage with the world.

The Forum meeting was notable in that leaders shared a vision and a clear sense of purpose about what they wanted to achieve.

Leaders tackled an exhaustive array of issues, including building economic stability, climate change, trade liberalisation, development cooperation, fisheries and energy.

They were assisted by the attendance at the Post Forum Dialogue of crucial development partners, including high-level representatives of the World Bank and the International Monetary Fund, the United Nations, the Asian Development Bank and the Commonwealth Secretariat.

It was, by any measure, a highly successful meeting and today I want to give you an overview of some of the most important outcomes.

But I also want to underscore that this work has only just begun.

Australia took on the role of chair of the Pacific Islands Forum in Cairns last month, and we will hold it until the next Leaders' meeting in Vanuatu, in the second half of 2010.

We want to make the most of this opportunity to help our Pacific neighbours create the conditions under which they can build a better future.

It is a chance to bring people and resources together to make progress on some of the most intractable issues facing the Pacific.

Our renewed commitment stems from Prime Minister Kevin Rudd's Port Moresby Declaration in March last year, signalling Australia's ambitious and co-operative new approach to our Pacific relationships.

We know that if we don't start seeing better outcomes and securing the long-term prosperity of our region we face not only continuing high levels of aid, but the fallout from problems such as health epidemics and transnational crime.

Therefore, we embrace this opportunity to further demonstrate our new approach and commitment to the Pacific.

The only Forum country missing from the Cairns meeting was Fiji. Fiji was suspended from the Pacific Island Forum on 2 May this year, following Commodore Bainimarama's failure to abide by the Pacific Islands Forum's reasonable deadlines and conditions for democratic elections.

At the Cairns meeting, leaders unanimously agreed that this suspension should remain in force. At the same time, they reiterated their commitment to engage Fiji on an early return to democracy.

Following last week's suspension of Fiji from the Commonwealth, we join with the international community in encouraging swift action to enable the people of Fiji to again choose their government freely.

We want Fiji resume its proper place in our Forum community at the earliest opportunity.

The key themes for the 40th Pacific Islands Forum Leaders' Meeting were building economic resilience for future growth, addressing climate change, and strengthening development cooperation.

Important outcomes were achieved in each of these areas.

Leaders agreed the Cairns Compact on Development Coordination to improve the efficiency of donor coordination. They issued a Call to Action on Climate Change, spelling out to global leaders the seriousness of the climate change threat in the Pacific. Leaders also agreed to commence negotiations on a new regional trade and economic agreement.

In addition, agreements were reached on strengthening protection and management of regional fisheries resources, and on improving energy security.

The choice of building economic resilience in the Pacific as a key theme for this year's Pacific Islands Forum recognised the toll the global financial crisis has taken on a number of our neighbours in the Pacific region.

Many Pacific islands have narrowly based economies, largely dependent on one or two sectors such as agriculture, fishing or tourism. Adverse impacts of the global downturn on just one of these sectors can lead to major economic challenges.

Over the past 18 months, many Pacific island nations have faced lower prices and reduced demand for commodity exports, in addition to falling tourism numbers, remittances and the value of offshore national trust funds.

This has translated into lower government revenue and reduced cash incomes for families. This can mean less money for food, for school fees and for essential health services, leading to worsening health outcomes and children being withdrawn from school.

In recent years, economic growth and growth per capita in the Pacific has been generally low, or negative, and people in a number of countries are now worse off than a decade ago.

At the meeting in Cairns, Forum leaders resolved to tackle the issue of strengthening economic resilience, by taking concrete steps in priority areas.

These areas include fostering economic development and promoting opportunities for broad-based, private sector led growth in the Pacific - for example, by supporting the fisheries and tourism sectors, developing infrastructure, and fostering greater trade opportunities.

As I mentioned, at the Cairns meeting, leaders took an historic step in agreeing to commence negotiations on a new regional trade and economic agreement, called PACER-Plus.

Agreement on PACER Plus offers tremendous opportunities for building a more prosperous, stable and sustainable Pacific.

Trade liberalisation and economic integration are an essential component of what Prime Minister Rudd, in his Port Moresby Declaration of March 2008, called 'a new era of cooperation with the island nations of the Pacific'.

Forum countries have, for decades, pursued greater economic integration as a means of creating jobs, raising their standards of living, and contributing to sustainable economic growth.

PACER Plus represents the next step in this important process.

We expect to hold the first round of negotiations no later than November, when Forum Trade Ministers will meet to decide how to take discussions on PACER Plus forward.

Fisheries were another central area of discussion in Cairns representing, as they do, a critical source of nutrition, food security and income for Pacific Island countries.

Maximising the return from fisheries, while protecting these resources and ensuring their sustainability, is fundamental to the well-being and stability of the Pacific region.

The Pacific is home to possibly the last remaining sustainable tuna populations in the world - more than half the global tuna catch, with a value of 4.88 billion US dollars.

The overfishing of key tuna stocks, largely by distant nations, are threatening the sustainability of the region's fish stocks, and pose a significant challenge to the ability of the Pacific islands to develop domestic fishing industries.

It is vital that this resource is preserved and effectively managed for the benefit of the region.

For these reasons, Leaders agreed to drive development of stronger mechanisms to protect regional fisheries, including through new agreements on fisheries enforcement.

To this end, Australia will host a meeting early next year of Pacific Island Forum Ministers responsible for both fisheries, and law enforcement and justice.

We want to use this meeting to agree on the form of new legal arrangements to be negotiated and on a roadmap for the negotiation process.

On a broader level, Australia will provide up to $18 million over four years to improve Pacific fisheries management and development.

Our support will include expanded technical assistance and additional bilateral funding for strengthening of fisheries management agencies, and grants to improve fisheries administration.

Addressing the impact of climate change ranks among the highest priorities for the Pacific region.

Pacific island countries have contributed little to the causes of climate change, but are among the most vulnerable to its effects.

Australia is serious about tackling climate change, and we have a major contribution to make in helping our region deal with the challenge.

In the Pacific, climate change threatens not only livelihoods and living standards, but the very viability of some communities.

Without effective global action, climate change will cause damage to coastal systems, settlements and infrastructure; undermine economic progress; exacerbate existing water and food security challenges; increase threats to human health; and degrade regional biodiversity.

The active engagement on climate change by Forum Leaders at the Cairns meeting underscored the urgency of the issue.

The landmark Call to Action on Climate Change, issued by Forum Leaders in Cairns, urges a global response to climate change.

It sends a clear message to world leaders of the need for higher levels of ambition and renewed mandates in order to secure a successful agreement in Copenhagen - one that sets the world on a path to limit the increase in global average temperatures to 2 degrees Celsius or less.

Pacific Forum Leaders also sought a global mid-term mitigation goal of at least 50 per cent below 1990 levels by 2050, and a global peaking year of no later than 2020.

In Cairns, Australia also released a new policy document Engaging our Pacific Neighbours on Climate Change, Australia's approach.

This policy will guide Australia's engagement with the Pacific on climate change to 2015, drawing together our efforts on mitigation and adaptation and collaborating with our Pacific partners nationally, regionally and internationally.

Australia has listened to Pacific Island countries and part of our approach will be for Australia to be a conduit for Pacific voices in international forums on climate change.

For example, the Prime Minister will raise Pacific concerns at the upcoming G20 meeting in Pittsburgh.

We will also support practical adaptation activities to increase resilience and reduce vulnerability. We will assist Pacific island governments to build their institutional arrangements and skills on climate change development policy.

We will help improve the quality of, and access to, accurate, localised and relevant data necessary for effective decision-making.

Alongside the launch of the Pacific climate change policy, Australia announced the allocation of a further $50 million from our International Climate Change Adaptation Initiative to meet high priority, practical adaptation programs in Pacific island countries.

On renewable energy, we will work with key Forum agencies and development partners - including the World Bank, Asian Development Bank, New Zealand and the European Union - to look at ways to improve access to clean and affordable energy in the region.

We will also discuss how best to deliver on Australia's commitment to provide $25 million over four years for clean energy initiatives in the region.

Work on food security, health, education, support for the disabled and fighting gender-based violence will comprise part of the priority of improving the livelihoods and the well-being of Pacific peoples.

As I have stressed on a number previous occasions, sexual and gender-based violence is a recognised risk to human security and a destabilising force for communities.

It is pervasive across the Pacific but its prevalence is under-reported.

The Pacific Forum Regional Security Committee already had this issue on its agenda at its July meeting.

However, this was the first time Pacific Island Forum Leaders have addressed the issue.

In Cairns, Leaders committed to eradicate sexual and gender-based violence in the region, and to ensure that all individuals have equal protection of the law and equal access to justice.

To do this they will raise awareness of the seriousness of the issue and pursue increased Pacific engagement in relevant global initiatives aimed at preventing and eliminating violence against women.

The Australian Government has zero tolerance for violence against women and is committed to reducing violence against women in Australia, as well as contributing to international efforts to end violence against women.

In the Pacific the Australian Government is supporting activities that contribute to the goal of eradicating sexual and gender-based violence.

In August, the Australian Minister for Foreign Affairs and Minister for the Status of Women launched the report "Stop Violence: Responding to violence against women in Melanesia and East Timor".

The report sets out the Australian Government's priorities and actions in responding to violence against women in Melanesia and East Timor.

For example, in Papua New Guinea, the Australian Law and Justice Partnership is working to strengthen the courts to better assist victims of violence access justice.

Through AusAID, we are supporting the Fiji Women's Crisis Centre and the Vanuatu Women's Centre to meet the needs of survivors of violence and to advocate for women's rights in their countries.

Reducing violence is crucial for the full participation of women in their communities and for the achievement of the full range of Millennium Development Goals.

Australia will use opportunities throughout our term as Forum to discuss the issue with partner governments and other key agencies such as UNIFEM Pacific and the Secretariat of the Pacific Community.

Australia also wants to support Pacific leaders as they work to improve the lives of people with disabilities - another important issue addressed by Leaders in Cairns.

We have agreed to provide support for the Pacific Islands Forum Secretariat to enable it to convene the first ever Pacific Disability Ministers meeting.

The aim of this meeting, to be held in the Cook Islands next month, is to galvanise efforts towards a more disability-inclusive national development.

Ensuring improved social, political and legal conditions for stability, safety and security, is another priority Leaders identified in Cairns.

Leaders agreed to focus on conflict prevention and peace-building, strengthening cooperation to address terrorism and transnational crime, and consolidating regional stability.

Australia recognises the importance of ensuring that both women and men play a role in peace-building, consistent with UN Security Council Resolution 1325 on women, peace and security and Resolution 1820 on ending sexual violence.

RAMSI - the Regional Assistance Mission to the Solomon Islands has been an outstanding example of cooperative regionalism in support of national and regional stability.

The mission arrived in the Solomon Islands in July 2003, following an invitation by the Solomon Islands Parliament to help restore law and order after five years of armed crisis.

Since RAMSI's deployment, much has been achieved, particularly in the areas of law and justice, economic governance and machinery of government.

RAMSI's success and strength lies in its regional character - Pacific island countries working together to assist a close neighbour and friend, and the contributions of Pacific island countries are highly valued.

At the Cairns meeting, Forum leaders warmly welcomed the productive partnership and increasingly positive relationships between the Solomon Islands Government and RAMSI.

Their statement followed Prime Minister Sikua's comments in August noting his government's strong and close relationship with RAMSI and the "spirit of genuine partnership to ensure that peace, security and stability in our country is sustained". (Press Release, 31/08/09 PM Sikua, released by Government Communications Unit.)

Despite the success of this mission, we need to remember that the conditions that led to the RAMSI deployment must not be allowed to erupt again.

This is why Australia must continue to assist the Pacific and do all we can to drive better outcomes and long-term prosperity in our region.

Another priority in the Forum outcomes is achieving stronger national development through better governance.

The 2009 Tracking Development and Governance in the Pacific report, produced by AusAID and released by Australia at the Forum, reveals that despite continued high levels of development assistance over many years, the Pacific region is not on track to achieve the Millennium Development Goals by 2015.

To turn this around, priority is being given to improving development coordination, strengthening accountability and integrity institutions, tackling corruption and improving record keeping and data collection.

This brings me to the critical issue of improving the coordination of development assistance, about which Forum Leaders forged a new development compact - the Cairns Compact on Strengthening Development Coordination in the Pacific.

The purpose of this Compact is to drive more effective coordination and use of development resources, with the aim of making better progress on the Millennium Development Goals.

It calls on all donor countries to effectively coordinate the inflows of our development assistance to avoid overstretching small island countries.

The second aspect of the Cairns compact on development coordination is to call on donors and recipients to work together on the basis of agreed national plans of economic development to ensure that we are focusing on the key challenges for each nation.

The new Compact is based on principles including:
* the need for broad-based, private sector-led growth;
* the essential role of improved governance and service delivery; and
* the role that greater investment in infrastructure plays in underpinning economic development.

The Compact reflects a revitalised commitment to achieving the Millennium Development Goals in the Pacific. This is crucial, given the slow and limited progress we continue to see against the MDGs.

We need to keep at the forefront of our minds that about 2.7 million people in the Pacific are living in poverty and do not have the income to satisfy basic human needs.

About 700,000 children in the region do not finish primary school. Out of every 1000 children born, approximately 40 die before the age of five.

According to the PNG Demographic Health Survey, there were 733 maternal deaths per 100 000 live births in PNG during 2006, with the majority of babies not delivered by a trained health professional.

This compares with Australia's maternal death rate of just 8 in every 100,000.

In PNG, at least 80,000 adults have HIV and the rate of infection is growing by more than 40 per cent a year. (AusAID Tracking Development and Governance in the Pacific, 2009, p1)

We want to get back on track to try to meet the Millennium Development Goals in our region, recognising that these are potentially life-saving changes for so many.

It is clear that more needs to be done.

We have a moral imperative to address these issues and to try and bring about better outcomes for our Pacific neighbours.

This is why Australia is focused on engaging development partners, such as the IMF, the World Bank and the United Nations to ensure that we are not tripping over each other in our efforts to support our Pacific neighbours.

In conclusion, the Australian Government will use the next 12 months to take a leading role in making progress on key challenges for the region - both through engagement within the region and internationally.

Prime Minister Rudd has pledged to use our term as Forum chair to take the Pacific's concerns to the world, through the UN General Assembly, the G20, the Commonwealth Heads of Government meeting and this year's crucial climate change negotiations in Copenhagen.

We have an ambitious agenda for our Forum year and we will work hard, in partnership with fellow Forum members and partners, to ensure we get results.

We know that, even amid these difficult economic times, progress is possible.

We know that by taking up opportunities and embracing reform Pacific nations can strengthen their economic growth and development, and in turn strengthen the prospects of their peoples and communities.

My message today is that Australia stands firmly beside our Pacific neighbours as we work together to ensure that the commitments we have made in Cairns, are translated into results on the ground in Forum countries.

Thank you.


Media inquiries: Mr Kerr's office - 02 6277 4991


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