Transcript of Interview, The World Today, Radio National, ABC
Transcript, proof copy E&OE
12 May 2010
ASHLEY HALL: The federal Budget has delivered an additional half a billion dollars in overseas development assistance.
And while aid groups are very pleased with that, there's criticism of the size and type of funding that'll go to help poor countries adapt to climate change.
There's also concern about an accounting change which some groups claim is tantamount to ripping a billion dollars out of the aid budget.
The Foreign Minister Stephen Smith says the change to a new international standard for calculating national income will deliver two to three billion dollars more to aid in coming years and that is on track to meet government aid funding goals.
From Canberra, Radio Australia's Linda Mottram reports.
LINDA MOTTRAM: Australia's foreign aid budget is up from $3.8 billion last year to 4.3 billion next year. Still at around 0.3 per cent of gross national income, but with the Government setting targets to reach its ultimate goal.
The Foreign Minister Stephen Smith.
STEPHEN SMITH: Since we came to office we've effectively increased the development assistance budget by $1.2 billion and we are on track in a sensible managed, scaled way to get to our election commitment, which is to increase our development assistance to 0.5 per cent of gross national income by 2015/16.
LINDA MOTTRAM: Australia's aid groups are pleased too. Andrew Hewitt is executive director of Oxfam Australia.
ANDREW HEWITT: The aid budget has been increased by over half a billion dollars. That demonstrates the Rudd Government is still sticking to its commitment to hit 0.5 per cent of gross national income by 2015/16. Spent well, that money will make a real difference to people's lives in developing countries right around the globe.
LINDA MOTTRAM: There is this question of a recalculation of gross national income and whether Australia is perhaps fudging on some money it could be giving to the aid budget. Are you concerned about that?
ANDREW HEWITT: No. Not concerned. I think in some ways it could mean more money will flow over time to overseas aid.
LINDA MOTTRAM: Stephen Smith also rejects some suggestions that in moving to a new international standard calculation of gross national income, the Government has pulled a sneaky $1-billion out of the aid budget.
STEPHEN SMITH: Because of the changed calculation we have to book, under the Budget rules, technically a saving. So technically it's a saving, but the reality is we see $500 million spent more this year, by the time we get to 2015/16 it will effectively be between two-and-a-half and $3 billion more that we will spend.
So we have an absolute commitment to get to 5 per cent of GNI and we're not going to deviate from it despite the fact that the ultimate objective is now a larger one in dollar or volumes terms than it was last year because of the changed calculation.
LINDA MOTTRAM: One of the big ticket items in this Budget is the, you've got three programs, so called Fast Start Programs, climate change adaption for poor countries; under your international obligations that's not meant to come out of ODA. Why is it coming out of the development assistance budget?
STEPHEN SMITH: Well, some of it is climate adaption, some is mitigation. The key thing, I think there are two key points. Firstly, it's additional money, it's new money. It's not taking away from other programs, indeed as a general proposition because we're spending $500 million more the programs are enhancing.
But secondly the target of our climate change financing are low income, developing countries. Particularly, in our own backyard so far as the Pacific is concerned, the small Pacific Island nation states.
LINDA MOTTRAM: And this is the issue where the Government and aid groups part company.
JAMES GOODMAN: Totally inadequate, and secondly driven by self-interest.
LINDA MOTTRAM: James Goodman from the aid advocacy group, Aidwatch. He says Australia's new climate adaption money for the poor is $119 million next year.
JAMES GOODMAN: It is 0.0016 per cent of 75 billion that the World Bank says is needed. So clearly, Australia is not living up to its responsibilities.
LINDA MOTTRAM: Like the rest of the Budget, there are no big headline grabbing new programs in aid, though aid contractor will be pondering their future. The Government has announced a review of the use of technical advisors in delivering aid with Stephen Smith signalling that he's open to a change in an area that's been criticised for sapping big dollars that line contractors' pockets.
ASHLEY HALL: Linda Mottram reporting from Canberra.
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