Federal budget 2015: Foreign aid to Indonesia cut by nearly half, Africa aid down 70 per cent

Date: May 13, 2015

(29)
Comments 10

Sarah Whyte

Health and Indigenous affairs correspondent

View more articles from Sarah Whyte

Follow Sarah on Twitter Follow Sarah on Google+ Email Sarah

Return to video

Video settings

Please Log in to update your video settings

Video will begin in 5 seconds.

Video settings

Please Log in to update your video settings

Foreign aid cuts slammed

Slashes to the foreign aid budget are at odds with the government's emphasis on national security says ACFID's Marc Purcell.

PT4M42S 620 349

Federal budget 2015: Full coverage

Aid to Indonesia has been cut by nearly half and assistance offered to Africa has plummeted by 70 per cent in historic cuts to foreign aid.

Indonesia, once Australia's largest aid beneficiary, dropped from $605.3 million to $366.4 million, in a move that could be seen as retribution for the executions of Andrew Chan and Myuran Sukumaran. But it is understood that funding for some of the long-term Australian aid projects established in Indonesia following the Boxing Day tsunami were due to expire this year, paving the way for budget savings.

Aid established after the Boxing Day tsunami was due to expire. Photo: Kate Geraghty

South-East Asian countries including the Philippines and Vietnam also had their aid cut by 40 per cent.

Yet countries involved in Australia's regional processing centres and the resettlement of asylum seekers were barely touched by the severe cuts. Aid to Cambodia was unaffected, as was aid to Nauru, which now hosts one of Australia's regional processing centres. Papua New Guinea, Australia's largest aid beneficiary, was only cut by 5 per cent. This year the country will receive $553.6 million. Last financial year it received $577.1 million.

In March, ambassadors from several African countries pleaded to the joint standing committee on foreign affairs and aid not to cut aid to their impoverished nations. Now, aid to Africa has been cut by 70 per cent as the Abbott government says it has committed to broadening and deepening Australia's engagement in the Indo-Pacific region.

Financial commitment to a number of global organisations including the United Nations Development Fund and United Nations Children's Fund were also significantly cut, while major non-government organisations such as World Vision and Care Australia will lose 5 per cent of their federal funding.

Foreign Affairs Minister Julie Bishop said Australia would provide $4 billion in total Official Development Assistance in this year's budget.

Over the next three financial years, $3.7 billion will be cut from the overall foreign aid budget, as forecast in December's mid-year economic fiscal outlook.

10 comments

Seems the time has come for the most vocal supporters of giving other peoples cash away to dip into their own pockets to maintain the level of assistance they demand.

Commenter

The Bujoo

Date and time

May 13, 2015, 8:53AM
- It's not necessary, Buj. China will step up to the plate and fill the shortfall.
  P.s. The Development Policy Institute is live streaming an expert panel analysis and Q&A of the implications of aid budget cuts if anyone wants to hear some great informed discussion.
  
  Commenter
  
  Miss Rach
  
  Date and time
  
  May 13, 2015, 10:17AM
Did the local Indonesians collect coins in the "Coin for Australia" to "repay Australia's aid...." It's a bit embarrassing that only $308 was raised. The next time there is a large natural disaster in Indonesia, I don't think the Australia population will be as giving as when the Tsunami hit in 2004....

Commenter

Matt

Date and time

May 13, 2015, 9:11AM
- Perhaps it was only $308 that actually made it for relief, there rest may have gone here. http://www.smh.com.au/world/millions-of-dollars-for-aceh-go-missing-20141219-12a4d6.html
  
  Commenter
  
  The Bujoo
  
  Date and time
  
  May 13, 2015, 10:15AM
This is a tiny amount of saving in terms of the total budget, but it hits the very poorest of the poor. It is a mean spirited and morally bankrupt policy. It delivers nothing but bad will to Australia. For all our problems we have always been a wealthy country, and we should do our fair share to help those in greatest need.

Commenter

T.

Date and time

May 13, 2015, 9:30AM
- We are not a wealthy country if we are spending more than we're earning. That is equivalent to saying you are rich because you have a huge limit on your credit card but are actually earning a pittance.
  Besides the necessity of solving some major issues in our own economy with the savings, Sub-Saharan Africa does all it can to antagonise Western countries these days and Robert Mugabe even went so far as to say he doesn't want to see a white face in South Africa recently. Rather amusing when he's kowtowing to Vladmir Putin a few weeks later. The only reason we should provide funding to countries such as Zimbabwe is to get rid of people like Mugabe. Go and live in one of these countries and experience the attitude for a while before you accuse Australia of being mean spirited. I know many well intentioned people who have worked there and have simply given up.
  So far our money only keeps corrupt governments in power, so why continue with providing it.
  
  Commenter
  
  PR
  
  Date and time
  
  May 13, 2015, 3:34PM
Hello, in the real world, much of the aid never reaches the poor. Corrupted polies in poor countries get most of the money and spend in the '1st world' while sending their children to 'more prosperous countries'.

Commenter

Realistic_guy

Date and time

May 13, 2015, 11:11AM
Thanks to the $320 billion dollar debt left to taxpayers by Labor foreign aid is now being funded by borrowed money. Australia is in fact borrowing money to donate to poorer countries. Here is an idea, as the money available for foreign aid is being reduced, perhaps all those many thousands of compassionate persons bemoaning the reduction in foreign aid can go to their local banks and borrow a few thousand dollars and donate it to a suitable charity to make up the shortfall. They can do this again next year, and the year after, and continuing doing it until the $320 billion dollar debt left by Labor is paid back and foreign aid does not have to be funded by borrowing.

Commenter

franklin

Date and time

May 13, 2015, 12:16PM
This is a great start and Indonesia has told us they don't need our money anyway..Ans as for Africa, maybe the corrupt leaders should sell a few of their Rolls Royces and gold plated bath taps to top up the kitty for the starving masses?
I agree with Franklin's comment, if anyone is so outraged about the government giving away MY MONEY, go and borrow some from the bank (very low rates available) and give that away, then you can direct it exactly at which country you want.

Commenter

Barney Rubble

Location

Potts Point

Date and time

May 13, 2015, 2:47PM
The only reason to provide aid to Indonesia is to serve Australian interests. They have a much bigger military than we do, so they can do their own savings if they care so much about their poor. They don't even like Australia, so why are we spending so much money there. They are probably also correct in saying that they don't need the money anymore.
We are creating more of our own poor every day by making housing unaffordable. Perhaps they should be a higher priority to us.

Commenter

PR

Date and time

May 13, 2015, 3:38PM