Teresa Gambaro (Brisbane, Liberal Party) Share this | Hansard source

As chair of the Joint Standing Committee on Foreign Affairs, Defence and Trade, I have great pleasure in commending this report from the committee's Foreign Affairs and Aid Sub-Committee, entitled Partnering for the greater good. I want to thank my parliamentary colleague Dr Sharman Stone, who chaired this inquiring, and deputy chair Senator Alex Gallacher, for producing a report which not only recognises the need to change the paradigm of foreign aid delivery but also sets out the mechanics on how we can begin to do this much more effectively. It is clear that the way forward is through innovation and partnerships, to strengthen Australia and to strengthen our region. A point that must be noted here is that, in this 44th Parliament, it is the first time we have had a subcommittee of the Joint Standing Committee on Foreign Affairs, Defence and Trade with a particular focus on aid. This has coincided with the major realignment of Australia's aid program, harnessing the power of the private sector, and addressing gender inequalities.

In 2014, the Minister for Foreign Affairs, the Hon. Julie Bishop, launched a new development policy that changed the whole way Australian aid is to be delivered. There is a strong agreement that the private sector is absolutely pivotal to economic growth and also independence for developing countries. As Dr Stone said:

It is in everyone's interest to have a stable and increasingly prosperous region. Stability comes when people within sovereign nations are able to have their basic human rights met, and they are able to contribute to the betterment of their community and country through productive work.

In the course of the past year, we have had many businesses, academics, NGOs, global partnerships, government and public service, as well as the many, many individuals, who have contributed a range of views to the Foreign Affairs and Aid Sub-Committee, on what role the private sector could, and should, play in international development. I know that the committee greatly appreciated the comprehensive and constructive nature of all of the evidence that was collected. It received more than 150 submissions, which is absolutely huge. It heard from 84 diverse organisations and individuals at public hearings. I see the member for Ryan is beside me, and I want to thank her for her contribution on the committee. She did a sterling job attending many of the hearings interstate, and also in Canberra. I know that we all gained a tremendous amount from the many witnesses that came and presented to the committee.

The report found the Australian government, through the Department of Foreign Affairs, Defence and Trade, can tackle the many challenges in the Indo-Pacific region by helping to strengthen governments—land tenure systems, taxation systems and customs. The report also identified the need to address roadblocks which hinder participation of private sector partners and to position government as a hub of information for development partners, potential partners and the Australian public.

In total, there were 37 recommendations in the report. They addressed a whole pile of issues, including donor coordination; engagement with partner nations, the private sector and other key stakeholders; financing for development and infrastructure; and the internal change needed within DFAT. Something that we have had to grapple with in Australia, and in developing countries, is increasing engagement with the private sector. We really need to promote gender equality. We need to refocus our efforts in the Indo-Pacific region. Some of the greatest levels of poverty are in the Indo-Pacific, yet it receives less than a third of the world's aid.

We are now underpinning this great work to reduce poverty through enabling and facilitating growth. One of the priorities that was emphasised by the Minister for Foreign Affairs upon the Abbott government coming to office was the focus on partnering with developing countries across our region. For far too long, many countries have gone out there independently when there should have been greater coordination, and there has been much duplication in this area. In referring this inquiry to the committee, Minister Bishop suggested the committee pay particular attention to what other donors, new and traditional, are doing in this area; the role of women, particularly in the private sector; and the possible return on investment to Australia of private sector partnerships and specific financial instruments.

The report explores best practice , both domestically and internationally , in the public-private partnerships sector in providing finance. It addresses impediments or roadblocks which hinder participation and profit making in the formal economies of developing nations. W e were able to hear submissions from B -g roup comp anies and about s ocial impact financing arrangements.

T hroughout the world , there has been a changing environment and development landscape. T his was recognised by Minister Bishop in her statement from June 2014 , ' Australian a id : p romoting p rosperity, r educing p overty, e nhancing s tability ' , when she said:

Our aid program needs to adapt to new realities. In 2015 the international community will sign up to a new development agenda, replacing the Millennium Development Goals negotiated in 2000. The aid world has changed in fundamental ways since then . T raditional aid approaches are no longer good enough. We need a new development paradigm .

P ositive outcomes in the delivery of foreign aid are not just about more money—it is never just about more money. It is a bout coordinating . It is about targeting that money. It is making sure that the effective work that is already being done by NGOs and the private sector is reinforc ed and that we have foreign aid delivery platforms that are absolutely united, that are not disjointed and not wasted.

Our failure to tackle this problem costs lives . It is a failure that we cannot allow to continue. O ne of the really p ositive dynamics to emerg e from this inquiry is a general acknowledgment and recognition of the need for th e paradigm shift. In regard to this, the evidence provided was, as I said, of a constructive nature. We heard from 84 diverse organisations and individuals and it was great to see them all coming together, particularly for this inquiry.

In terms of focusing on the paradigm shift in the context of partnering with the private sector, I want to briefly highlight two submissions and explain why an explicit focus on partnering with the private sector is needed . G RM Futures Group stated:

We would venture that the private sector effort and intensity in the aid program has been underdone hitherto, and the effect of that has been to miss several significant potential opportunities that the private sector can bring to achieve results at scale that are sustained. We strongly feel that the private sector partnership—the whole idea of integrating the private sector—is not a panacea for all aid but it offers significant potential, particularly in terms of realising value for money in the aid program.

The potential of scalability was another area that was highlighted by the Rt Hon. Stephen O'Brien MP from the United Kingdom, when he came to visit us here at Parliament House in Canberra. He is a global advocate for the Roll Back Malaria Partnership. He said:

In the end, whatever quantum you throw at development, it has now got to be done in partnerships. There is no way you can just look to the bottomless pit of your constituents'—and my constituents'—hard earned taxpayer money and keep throwing it out for public good. You need the efficiency of the private sector to help you view the greatest impact on delivery but, equally, you will never do it at sufficient scale unless the public sector is involved and there is political ownership.

As I have said, there is strong agreement that the private sector is pivotal to growth and economic independence for developing countries. The 37 recommendations and supporting commentary in the report will facilitate putting development of policy into practice.

The report provided an overview of the global aid landscape and examined best practice stakeholder engagement. It also highlighted the work being done by the private sector—an area that has been seriously unrepresented—and the emergence of social responsibility and cross-collaboration in accelerating the pace of economic growth and reducing poverty, as well as the risks and benefits to the enterprises and the nations concerned.

I want to endorse and reinforce the comments made by many of our parliamentary colleagues, including Dr Stone, that our new aid paradigm represents an exciting and important new era of development support in our region. Australia does stand on the threshold of new partnerships with our regional neighbours, some of whom have the greatest need globally, to address gender inequality and poverty. Through innovation and partnerships utilising Australian expertise in the public sector, the private sector and civil society, together we can build a better region. I commend the report to the House.

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