Reallocation of aid to the Palestinian Authority

TodayI announce that the Australian Government has discontinued funding to the WorldBank's Multi-Donor Trust Fund for the Palestinian Recovery and DevelopmentProgram.

Iwrote to the Palestinian Authority (PA) on 29 May, to seek clear assurance thatAustralian funding is not being used to assist Palestinians convicted ofpolitically motivated violence.

Iam confident that previous Australian funding to the PA through the World Bankhas been used as intended. However, I am concerned that in providing funds forthis aspect of the PA's operations there is an opportunity for it to use itsown budget to activities that Australia would never support.

Anyassistance provided by the Palestine Liberation Organisation to those convictedof politically motivated violence is an affront to Australian values, andundermines the prospect of meaningful peace between Israel and thePalestinians.

TheAustralian Government remains committed to supporting vulnerable Palestinianswith access to basic services, including health care, food, water, improvedsanitation and shelter. We will now direct our $10 million allocation to theUnited Nations' Humanitarian Fund for the Palestinian Territories whichsupports these services.

TheUnited Nations' Humanitarian Fund helps 1.9 million people. Approximately 75per cent of its funding will be spent in Gaza where the humanitarian situationcontinues to deteriorate.

TheAustralian Government has informed the PA and the World Bank of our decision.