Government must come clean on foreign aid budget

World Vision Australia chief executive Tim Costello has condemned the Federal Government’s decision to divert much-needed funding from Australia’s foreign aid program to house refugees being processed in Australia.

“I am stunned by the Government’s plans to divert hundreds of millions of dollars away from its intended purpose,” Mr Costello said.

“Australians are understandably proud of our aid program. We know we are blessed by great fortune and we expect our taxpayer dollars to be used transparently.”

Mr Costello called on the Government to reveal details of its plans for the aid budget, following speculation that deeper cuts are in the pipeline.

“The Government needs to tell us where this $375 million is coming from,” Mr Costello said. “Which communities will go without? Which programs will be placed on hold while these funds are shuffled around?

“Our aid program cannot maintain its effectiveness with constant changes to the forward plans – consistency is critical for success.”

“This diversion of money is more than just an accounting trick. We know aid saves lives – the number of children dying each year has nearly halved over the past two decades. If these funds are siphoned away from health programs, it could literally mean the difference between life and death for some of the world’s most vulnerable people, including those in our own region.”

The announcement marks the second time in less than a year that the Government has shied away from its commitment to the world’s poor. In May, the Government announced it would delay boosting aid spending to 0.5% of a gross national income by 2015 – leaving Australia’s budget allocation at 0.35%.

“The government says Australia has a generous aid program, but in comparison to other wealthy nations, our record is poor. Even the UK, which has suffered significant financial hardship in recent years, will reach 0.7% of GNI next year - almost twice as much as planned in Australia.”

Media contact: Chloe Adams – 0427 413 816 / chloe.adams@worldvision.com.au

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