Nick Champion (Wakefield, Australian Labor Party) Share this | Hansard source

On behalf of the Joint Standing Committee on Foreign Affairs, Defence and Trade, I present the committee's report entitled Australia's overseas representation: punching below our weight.

In accordance with standing order 39(f) the report was made a parliamentary paper.

This report identifies a chronic underfunding of DFAT over the last three decades which has resulted in a diplomatic network which is seriously deficient and does not reflect Australia's position within the G20 or the OECD. Australia has the smallest diplomatic network of the G20 countries and sits at 25th in comparison to the 34 countries in the OECD. Australia is clearly punching below its weight.

The committee has recommended in this report that a budget priority for overseas representation should be significantly raised because of the benefits that accrue from diplomacy.

In the medium term, Australia should substantially increase the number of its diplomatic posts by at least 20 posts to bring it level with its position in the G20 and the OECD.

In the longer term, funding to DFAT should be increased to a set percentage of gross domestic product sufficient to reflect Australia's standing as a middle power.

There appears to be no overall strategy for Australia's diplomatic engagement with the world or criteria for establishing, continuing or closing diplomatic posts. To address this deficiency, the committee has recommended that the government produce a white paper to set the agenda for Australia's whole-of-government overseas representation.

The committee has received DFAT's priorities for increasing Australia's diplomatic footprint should it receive increased funding, and a number of suggestions from interested parties for opening new diplomatic posts in particular countries. The committee, however, has restricted itself to recommending that there should be additional posts in Asia, and in particular in China and Indonesia.

The committee recognises the valuable activities undertaken abroad by Australia's representatives in promoting Australia's interests, promoting trade opportunities, and through providing consular assistance to Australians abroad.

The committee notes, however, that issues relating to the effect of recent funding cuts on overall effectiveness, resource allocation of any additional funding and the number and performance of locally engaged staff would benefit from further examination and review.

The committee has therefore recommended that there be an external review of DFAT to prepare it for the future, and hopefully the implementation of other recommendations in this report.

The committee has made a number of other recommendations, including funding the ever-increasing demand for consular services from Australians who travel abroad, in part from revenue sources such as increased passport fees and a small tiered levy, structured to take into account those Australians who have taken out travel insurance or who have been unable to obtain travel insurance—that is, particularly, the aged. We have also recommended placing on the COAG agenda discussion of the location, coordination and effective use of state and Commonwealth overseas trade representatives. We have recommended the creation within AusAID of a mediation unit to reduce the potential need for aid and rebuilding assistance and to prevent armed conflict in the region. We have also recommended the establishment of an office of e-diplomacy within DFAT to harness the potential and deal with the challenges of e-diplomacy, particularly in the light of the constantly evolving nature of technology and, in particular, social media.

The operations of our diplomatic network are being challenged by a lack of funding, the growth and development of Australia's economy, the shift of global power towards Asia, the impact of technology and the rising importance of public diplomacy.

This report along with recent reports from the Lowy Institute and, of course, the Asian century white paper highlight the urgent need to rebuild Australia's diplomatic network and enhance our international standing.

Our diplomatic network must be resourced to grow if Australia is to punch above its weight in the world.

In conclusion, I would like to thank all those who provided submissions to the review and who provided evidence at the hearings. I particularly thank the member for Melbourne Ports for his guidance and his active participation in the committee. I also thank the members of the subcommittee and the secretariat, particularly John Carter, Peter Kakogiannis, Jessica Butler and Sonya Gaspar.

I commend the report to the House.

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