Peter Hendy (Eden-Monaro, Liberal Party) Share this | Link to this | Hansard source

I rise today to speak about an issue that has been raised with me directly in my own community. It relates to Australia's level of foreign aid.

The budget delivers on the government's commitment to strengthen our relationships with key partners and refocus our foreign policy on the advancement of Australia's core strategic and economic interests. In government, Labor made grandiose announcements about increasing the aid budget, but then they clawed almost all of that money back. Labor's trick was to push aid figures out beyond the forward estimates, putting them on the never-never. To the extent that they did spend more it was a case of borrowing money from overseas to turn around and send it back overseas as aid. That is unsustainable.

The 2014 budget will support a sustainable, affordable and accountable aid program that invests $5 billion next year to promote prosperity, reduce poverty and enhance stability in our region, the Indo-Pacific region. It will be stabilised at $5 billion in 2015-16, thereafter increasing annually by CPI. And, thank heavens, foreign aid is now in the capable hands of the member for Curtin, Australia's new foreign minister.

Australia's aid budget will be spent where we can make the most difference. The aid program will be guided by a new aid policy and performance framework to better promote Australia's national interests by contributing to economic growth and poverty reduction.