Sharman Stone (Murray, Liberal Party) Share this | Link to this | Hansard source

On behalf of the Joint Standing Committee on Foreign Affairs and Trade, I present the committee's report: Partnering for the greater good: The role of the private sector in promoting economic growth and reducing poverty in the Indo-Pacific region—Report, June 2015.

Ordered that the report be made a parliamentary paper.

On behalf of the Joint Standing Committee on Foreign Affairs, Defence and Trade, I have pleasure in presenting the committee's second report for the 44th Parliament, entitled: Partnering for the greater good.

The inquiry into the role of the private sector in promoting growth and reducing poverty in the Indo-Pacific region coincided with the launch of Australia's new aid development policy paradigm. This provided an opportunity for the committee to consider how to best implement the new aid paradigm: to increase engagement with the private sector, promote gender equity, and refocus on our aid efforts in the Indo-Pacific region.

The Committee greatly appreciated the comprehensive and constructive nature of the evidence provided. We received over 150 submissions, and heard from 84 diverse organisations and individuals at public hearings. And we were very pleased numbers of these people who had made submissions resubmitted information on request or added additional information and we heard from them all over Australia.

The 37 recommendations and supporting commentary in this report will facilitate putting development policy into practice. The report provides an overview of the global aid landscape, and examines best practice stakeholder engagement. It highlights the work being done by the private sector, 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. The report also explores the options for financing development to get the best return on investment for Australians and developing countries within our region.

The private sector is moving ahead, often in partnerships with development agents, to address financing needs. There is growing interest in the social impact investing sector, and while many countries are establishing development finance institutions, the Australian government has shown what can be done by partnering with Australia's world-class financial institutions. The Australian government should look for ways to continue to support these effort rather than trying to compete in the already heavily occupied development bank space at this time.

Australia's business and governance expertise is very well understood, well regarded and in demand in our region. This is an area where we can make a real contribution to promoting economic growth and private sector development across the region. The Australian government's capacity building and twinning programs have supported developing country partners to establish effective public services and improve governance to minimise corruption. Australia's volunteer programs have also made a valuable contribution. However, we think it is time to reflect on these programs to ensure they are supporting businesses to grow. It is the local private sectors that will lift low-income communities, and the men and women within them, out of poverty and provide economic independence.

Supporting the private sector also means addressing infrastructure and social services. Multi-stakeholder partnerships, public private partnerships, and product development partnerships are demonstrating the benefits of coordinating and consolidating resources to achieve greater good.

But to build successful partnerships takes mutual understanding and respect. There is still some work to be done in this area. We strongly encourage the Department of Foreign Affairs and Trade to take immediate steps to build its own capacity to engage with the private sector in a more meaningful way, both here in Australia and through its overseas representatives. On this basis, the committee has recommended that the department foster expertise in building partnerships, work to shift its culture toward a more positive approach to the private sector, and find ways to increase the number of staff with experience working within the private sector.

Complementing this, DFAT needs to invest in an improved communications strategy, including web-based communication platforms that describe all of the programs and projects in play, as well as upcoming opportunities for collaboration and partnering. Potential partners should be able to find a pathway with ease. Likewise the public is entitled to know—and we believe it wants to know—where and how Australia's aid funding is being spent. There are so many good stories that can be told. Not only must our taxpayer funded aid be more transparent, it should be highly visible.

Much more also needs to be done by DFAT to tell the story about the Australian government's aid activities. Australia's aid program needs to be more recognisable and our distinctive Australian identity should be evident across everything we do. It is about badging.

The new aid paradigm represents an exciting and important new era of development support in our region. Australia stands 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. We trust that our report is a great support in this effort.

I commend the report to the House.

Ordered that the report be made a parliamentary paper.

I move:

That the House take note of the report.