Budget 2004-05

In this Budget the Australian Government has announced a number of measures to advance the interests of Australia and Australians internationally.

Regional Assistance Mission to Solomon Islands

The Australian-led Regional Assistance Mission to Solomon Islands (RAMSI) will receive $165.1 million in 2004-05. Funding includes $66.7 million for AusAID to assist the Solomon Islands Government implement a comprehensive reform agenda to improve the accountability and affordability of government. The allocation also includes $4.5 million to the Department of Foreign Affairs and Trade for the Office of the Special Coordinator which provides leadership for the Regional Mission and for additional staff at the High Commission in Honiara. The Australian Federal Police will receive $93.9 million to fund their work in Solomon Islands.

Australia, through the development cooperation programme, will also provide assistance to Solomon Islands in support of peace building, community development and delivery of essential services, particularly in health. Estimated Official Development Assistance to Solomon Islands in 2004-05, including the additional funding for RAMSI, will total $201.6 million.

Development of Biometrics for Border Control

The Government will provide $2.2 million to DFAT in 2004-05 for the trial of a prototype biometric passport to ensure compatibility with equipment to be used in the United States. This initiative is part of a $9.7 million package of Budget funding for ongoing research into the development and application of biometric technology in passports involving DFAT, the Australian Customs Service and the Department of Immigration and Multicultural and Indigenous Affairs.

The use of biometric identifiers will strengthen border protection through more stringent passport verification processes and will reduce the risk of passport fraud. Previous DFAT research, funded by the 2002-03 and 2003-04 Budgets to the tune of $6.5 million, has shown that facial biometrics technology is effective in detecting people who have applied for passports under a false name.

Maintenance of Australia’s Temporary Presence in Nauru

The Government will provide $0.6 million to continue Australia’s diplomatic presence in Nauru for a further year, to support and facilitate the work of Australian Government agencies in processing asylum seekers. The Consulate-General provides a central point of contact for official dealings with Nauru and is necessary for the smooth functioning of the facilities.

New Opportunities – New Exporters

The Government will help Australian exporters to capitalise on the emerging trade opportunities arising from the conclusion of the Free Trade Agreements with Singapore, Thailand and the United States as well as China’s accession to the World Trade Organization (WTO). In addition to the $6.1 million over four years provided in this Budget, the Australian Trade Commission (Austrade) is reallocating $13.5 million over four years from within its current resourcing.

This measure reinforces the Government’s trade policy agenda by continuing to deliver real outcomes to Australian business. The initiative will target those industry sectors where there is greatest Australian capability to match new opportunities, thereby contributing to the Government’s goal of doubling the number of exporters by 2006.

Security Upgrade at Overseas Austrade Posts

The Government will provide $4.6 million over four years for upgrading security and relocating of some Australian overseas posts operated by Austrade. This follows the provision of $74.5 million over five years to DFAT for the security upgrade and relocation of some DFAT posts. The enhanced security measures are designed to protect the people who visit and work in Australia’s posts overseas.

Business Club Australia – M2006

The Government has announced funding of $0.8 million for Austrade to run the M2006 Commonwealth Games Business Club. The magnitude of the 2006 Commonwealth Games in Melbourne provides a platform to showcase Australian business capability and to facilitate international business networking. The M2006 Business Club will be modelled on the highly successful Rugby Business Club Australia and Olympics Business Club Australia.

The Club will be run in collaboration with DFAT, See Australia, the Australian Tourist Commission, State and Territory governments and industry groups.

Aid Highlights

In 2004-05 the Australian Government will provide $2.133 billion as Official Development Assistance (ODA), an increase of $239 million over the 2003-04 figure of $1.894 billion. The ratio of Australia’s ODA to Gross National Income (GNI) for 2004-05 is estimated at 0.26 per cent, placing Australia above the 2003 donor average of 0.25 per cent.

The Australian aid programme will continue to place a high priority on promoting development in the Asia Pacific region. There will be a significant increase of $102 million in ODA to Papua New Guinea to address fundamental governance challenges. Much of this support will be provided through the five year $1.1 billion Enhanced Cooperation Programme, agreed between Australia and Papua New Guinea in December 2003. Australia will more than double total aid flows to Pacific Island countries to $383 million, including a new $6 million per year Pacific Governance Support Programme (PGSP). Funding for the Peace and Security Fund which provides flexible and targeted assistance to post-conflict societies will increase to $10 million. Total aid flows to Indonesia will increase by $9.1 million to $161 million to support improved governance and improve the delivery of basic education through secular and Islamic schools. Australia will continue to provide substantial ODA of approximately $40 million in 2004-05 to support East Timor as it continues the difficult transition to self-reliance.

Funding for international humanitarian, emergency and refugee programs will increase by $13.7 million to $146 million in 2004-05. This represents a real increase of fifty per cent since 2000-01, underscoring Australia’s commitment to assist the most vulnerable. Australia will continue to provide generous humanitarian and reconstruction support in Iraq, Afghanistan, Africa and Sri Lanka. Core funding to the International Committee of the Red Cross will increase by $2 million to $5 million in 2004-05. The Government’s six year commitment to arrest the spread of HIV/AIDS in our region will increase by $50 million to $250 million.

Media inquiries: Chris Kenny (Mr Downer’s office) 02 6277 7500 - Matthew Doman (Mr Vaile’s office) 02 6277 7420