Expanding Australia's global network - Media release - Minister for Foreign Affairs and Minister for Trade

A printer-friendly version of this document is available.

Joint Statement

Minister for Foreign Affairs, the Hon Alexander Downer, and Minister for Trade, the Hon Mark Vaile

Tuesday, 22 May 2001

Expanding Australia’s global network

The budget funds an expansion of Australia’s global diplomatic, consular and trade network through the establishment of a Consulate-General in Chicago, USA. The Consulate-General in Chicago will be managed by the Department of Foreign Affairs and Trade, with representation from Austrade.

Chicago is a major financial and industrial centre and a key location for powerful mid-west farm interests and for the transport and communications sector.

Having a presence in Chicago will further strengthen Australia’s relations with key political and economic leaders in the United States.

The new Consulate-General in Chicago will support Australian business in identifying, developing and utilising trade and investment opportunities in a region, which generates nearly one third of the GDP of the largest economy in the world.

The expansion of Australia’s presence in the United States will also improve consular service delivery for Australians in that country who require assistance.

Australia’s global network of posts works with business to promote exports of Australian goods and services and to encourage international investment in Australia. Australia is already represented in the United States by its Embassy in Washington and Consulates-General in Atlanta, Honolulu, Los Angeles, New York, San Francisco and Honorary Consuls in Boston, Denver, Houston and Miami.

Strengthening Government secure communications

The budget commits $35.9 million of new funding over three years for the replacement of the whole-of-government secure communications network. This funding will complement a contribution from the Department of Foreign Affairs and Trade (DFAT) to the maintenance and upgrading of information technology systems.

The security of the Government’s diplomatic network is essential to the conduct of Government business and the advancement of Australia’s national interests.

The new funding will ensure the maintenance of cost-effective and reliable communications, secure messaging, office automation and network services between Australia’s diplomatic and consular posts and the Government in Canberra.

The new funding also provides for phase two of a program to introduce satellite communications technology to overseas posts.

Developing new trade opportunities

The Government is committed to developing and expanding opportunities for Australian exports.

The 2001-2002 Budget provides $318 million to Austrade to help Australian business win export business and generate inward and outward investment. Austrade provides a range of services and assistance to businesses in metropolitan and regional and rural Australia, including advice on exports, overseas markets and opportunities and grant availability for export marketing.

The Budget has continued funding for the successful Export Market Development Grant Scheme (EMDG) at $150 million per annum. The EMDG has a significant impact on rural and regional Australian exporters, which receive more than 20 per cent of grants each year. The scheme assists small to medium-sized exporters to promote their products overseas through the reimbursement of a portion of export promotion expenses.

The Export Finance and Insurance Corporation (EFIC) will continue to provide Australian companies with competitive finance, insurance and guarantee services. In 1999-00, EFIC supported exports worth some $6.4 billion and paid a dividend of $14.3 million in relation to that year's results. In 2001 EFIC will be required to form an alliance with a private sector insurer with a commitment for a contingent future divestment. The alliance is aimed at improving short-term credit insurance services available to Australian exporters.

Aid budget highlights

Total Official Development Assistance in 2001-02 will be $1.725 billion an increase of approximately $125 million over the 2000-01 budget figure and a real increase of more than 6 per cent. This is an ODA/GNP ratio of 0.25 per cent, well above the latest (2000) donor average of 0.22 per cent. When other official flows and tax deductions for contributions from the Australian people to non-government organisations providing overseas aid are taken into account, the Australian Government's total assistance to developing countries stands at around $2.75 billion for 2001-02, which is 0.40 per cent of GNP.

Australia's regional neighbours in Asia and the South Pacific will remain the focus of our development efforts. Australia is committed to promoting regional stability and prosperity. Australia's contribution in the South Pacific will be further strengthened, with an increase in total flows to around $165 million, and a continuation of the $300 million program in Papua New Guinea. Total aid flows to East Asia of around $552 million will support sustainable economic recovery and reform efforts. Indonesia and East Timor will remain high priorities.

In recognition of the International Year of Volunteers, the government is pledging approximately $60 million for volunteer activities over the next three years.