International aid agency World Vision Australia has welcomed the Government’s increase to this year’s aid budget under difficult conditions, but is disappointed by yet another delay to reach the long-held promise of 0.5 per cent of national income.
“Australia’s aid program offers the greatest human benefit per dollar spent of any government expenditure so it’s greatly disappointing to discover this morning that the Government intends to once again delay much needed aid spending,” World Vision Australia chief executive Tim Costello said. “This decision will cost lives.”
The Foreign Minister Bob Carr this morning announced that the Government would delay Australia’s overseas aid budget reaching 0.5 per cent of gross national income (GNI) until 2017/2018. It follows a similar delay in last year’s Budget.
Mr Costello said bipartisan support for our aid budget is vital in order for Australia to keep its commitment to the world’s poorest people.
“For a number of years, both the Government and the Opposition promised to raise the aid budget to 0.5 per cent of GNI by 2015/2016, but each year this target is delayed millions more people suffer,” Mr Costello said.
“Some politicians believe that every sector should take a haircut this Budget, but Australia’s aid program has already taken a fair whack. Last Budget, $2.9 billion in aid was cut from the forward estimates – some 17% of total net budget savings even though aid makes up only 1.4% of the budget. Then a few months ago the Government announced it would be diverting $375 million to fund domestic asylum seeker costs.”
This year, the aid sector also believes that up to $400 million of the planned $500 million aid increase will be spent on funding domestic asylum seeker costs, rather than going to overseas programs to tackle poverty.
“Australians are overwhelmingly supportive of our aid program and they rightly expect our aid dollars to be spent helping tackle poverty in the world’s neediest countries, not supporting domestic policy priorities.
“While we welcome the Government’s announcement of a cap on diverting aid money for spending on domestic asylum seeker costs, the cap should be $0.”
Mr Costello also called on the Coalition to stick to the original 0.5 per cent timetable and reconfirm its commitment to eliminate any aid diversion to fund asylum seeker costs.
“Australia’s aid program is an investment in the future and Australians expect our political leaders to govern for the future,” Mr Costello said. “That’s why this Election year, our aid budget should be above politics.”
Media contact: Chloe Adams – 0427 413 816 / chloe.adams@worldvision.com.au