The federal government is boosting the ranks of Australia's diplomatic corps and beefing up efforts to push back against economic coercion, in another sign it is preparing for China's government to resume its campaign of trade punishment.
Key points:
- DFAT is boosting its staff and Australian businesses involved in trade will be offered strategic and political risk analysis
- The budget includes $176 million to help the tens of thousands of Australians stuck overseas and fund repatriation flights
- Foreign aid has been cut by $144 million to $4.335 billion, with $335 million being spent to help roll out vaccines in the Pacific and South-East Asia
Labor has accused the government of chronically underfunding the Department of Foreign Affairs and Trade (DFAT), which was forced to shed staff last year as it struggled with budget woes and the financial demands imposed by the COVID-19 pandemic.
But in this year's budget, the Coalition is handing DFAT a modest funding boost, providing $198 million over four years for key foreign policy initiatives.
Some of that money will be used to boost staffing levels in Canberra and at Australia's overseas embassies and high commissions, while also helping the department meet rapidly rising lease costs.
Over the next four years that should allow DFAT to create almost two dozen new diplomatic positions at about 20 posts in Australia's region.
The department's ranks in Canberra will also swell slightly over the same period, with an additional 37 new policy positions.
Businesses backed amid ongoing trade tensions
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)On top of that, there will be an investment in trade diplomacy, with Australian businesses being offered strategic and political risk analysis to help them navigate both mounting traditional trade barriers and outright economic coercion.
China has already hit several Australian exports with formal and informal trade barriers in a wide-ranging campaign of economic punishment.
There are fears that campaign may now be resuming after a pause of several months, with Australian grape growers last week warning they could be crippled by inexplicable delays at Chinese customs.
In a statement, Foreign Minister Marise Payne and Trade Minister Dan Tehan said the government wanted to help business build a "more resilient" Australian economy.
"In the face of a difficult trading environment, we will work with Australian businesses to ensure exporters have access to the widest possible range of opportunities to expand and diversify their markets," they said.
The federal government will also boost the department's resources to help Australian officials contest trade disputes at the World Trade Organization (WTO), as well reinvigorate Australia's push to reform the international body.
Australia has already taken China to the WTO over crippling barley tariffs, accusing Beijing of undermining a free trade agreement signed by both countries.
DFAT will also get funding to boost its efforts to fight online disinformation campaigns, and additional money to boost foreign policy skills within the broader Australian Public Service (APS) although details remain scant for now.
The Foreign Minister and Trade Minister said the extra funding would "complement our defence and security investments as we work to shape a regional balance that supports security, prosperity and freedom".
The government has not explained how it will divvy up the $198 million between staffing costs and its other initiatives, saying the breakdown cannot be published due to "legal and national security sensitivities".
But some of the new measures will be funded by cuts to the New Colombo Plan, a signature initiative from former foreign minister Julie Bishop, that provides young Australians with scholarships to study at universities across Asia.
The coronavirus pandemic has made travel difficult or impossible for many students, offering the government quick savings.
The budget also includes $176 million to help the department respond to mounting demands for help from the tens of thousands of Australians left stranded overseas by the coronavirus pandemic.
That money will fund about another 120 repatriation flights, as well as boost consular staff numbers in both Canberra and overseas posts.
Aid cut during pandemic concerning
Supplied: Dr Patrick Ofokonare
)The budget has drawn a disappointed response from civil society groups, who wanted to see major new commitments to foreign aid from the government.
The government maintains an official Overseas Development Assistance budget of $4 billion a year, but has been boosting that with "temporary and targeted" measures to help fight the coronavirus pandemic across the region.
In 2021–22, it will plunge an extra $335 million into the Pacific and South-East Asia to help deal with the shocks caused by COVID-19 and roll out its vaccination program across the region.
But the total amount of money spent — $4.335 billion — still represents a fall of $144 million from 2020-21, when the government spent $4.479 billion.
The chief executive of the Australian Council for International Development Marc Purcell said having the dip come amid a global pandemic was concerning.
"The Australian government did the right thing by front-loading its immediate regional response to COVID-19," he said.
"But despite COVID-19 deaths rising alarmingly across the Asia Pacific, Australian development assistance is now declining.
"DFAT is working around the clock on our response in the region, but we need a greater speed and scale of investment from the government."
Director of the Development Policy Centre at the Australian National University, Stephen Howes, said the reduction in overall aid was unacceptable during the pandemic.
"Now we've seen, in fact, Australia's economy's done really well," Dr Howes said.
"In fact, donors, other donors, are increasing aid. Total global aid went up in 2020, not down.
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The budget also includes $37.1 million to provide medical equipment and supplies to India, which is struggling with a catastrophic COVID-19 outbreak.
The first flight carrying ventilators from Australia arrived in New Delhi last week.
We want to hear your questions and comments about the budget and how it impacts you. You can submit your response here.
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2021-05-11 18:31:22Z
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