Teresa Gambaro (Brisbane, Liberal Party) Share this | Link to 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.

Jane Prentice (Ryan, Liberal Party) Share this | Link to this | Hansard source

I join with the member for Brisbane in her comments on this report, and note that as chairman of the Joint Standing Committee on Foreign Affairs, Defence and Trade she does work tirelessly across a whole range of topics in this area, and many reports have been undertaken at the moment.

As a member of this joint standing committee, I rise to speak on the foreign affairs and aid subcommittee's most recently tabled report, entitled Partnering for the greater good: the role of the private sector in promoting economic growth and reducing poverty in the Indo-Pacific region.

Australia is a generous aid donor by global standards. In 2015-16 Australia is set to provide an estimated $4 billion in total official development assistance, which makes us approximately the 13th-largest donor among OECD nations. The aid program will continue to reflect the government's commitment to development and economic needs, with a particular focus on encouraging development among our near neighbours in the Pacific and on building economic partnerships across Asia. As a government we are interested in outcomes. We want an aid program that is effective: not merely measured by money spent but also measured in development outcomes achieved in partnership with countries across our region.

Crucial to achieving long-lasting positive outcomes from our aid program is economic development and growth. Such growth, if it is to be permanent, needs to involve the creation of a vibrant private sector as well as the establishment of reliable public institutions. In developing economies, it is the private sector that provides the jobs to lift people out of unemployment or subsistence farming. It is the private sector that provides revenue through taxation to allow governments to fund infrastructure and services and to eventually reduce dependence on foreign aid. Encouraging private sector activity in developing nations should be a focus of the Australian aid budget, and I welcome the committee's recommendation in this respect. A great example of a successful partnership is the role played by the company Oil Search in delivering HIV and AIDS programs in Papua New Guinea as part of their major LNG project. I have been privileged to have done site inspections of the work they are doing with a variety of villages up in the highlands where they have started the LNG project, and how they are delivering community support throughout very difficult areas of Papua New Guinea. I also note that very worthwhile projects like the YWAM boat with a mission, which is delivering medical services to the western part of Papua New Guinea and very difficult to access areas, is doing so with the support of private sector involvement. Everyone involved is a volunteer, but they could not deliver the medical supplies and services without the support of the private sector.

A key part of any attempt to grow economic activity is broadening the size and the skill base of the workforce. In many developing countries in our region, women are underrepresented in the workforce. This can be due to factors including barriers to education for young girls; patriarchal social norms discouraging women venturing beyond the home to work; early marriage and pregnancy and, in some cases, endemic rates of domestic violence.

What this means is that in many developing countries a large proportion of the productive labour capacity is being locked out of the labour market. In this context, I note that recommendation 11 of the report is for the Australian government to support and extend business leadership programs, such as the Business Coalition for Women in Papua New Guinea, a group of companies and corporate leaders who are working together to drive positive change for women and businesses in PNG.

This recommendation also supports the continuation of existing women's leadership programs, including the Pacific Women's Parliamentary Partnerships Project. The PWPP aims to address the continuing underrepresentation of women in parliaments in the Pacific region. Just 13 per cent of positions in unicameral or lower houses of parliament are held by women in the Pacific region. This is the lowest of any region in the world. If we exclude Australia and New Zealand, the figure drops to just 5.4 per cent—although I note that recently in the Bougainville elections, as well as the three reserved seats for women, a woman was also elected in one of the open seats against other men and women candidates.

The major focus of the PWPP forum this year was on ending family violence, and we held a forum in Suva, in Fiji. We had wonderful representation from many of our Pacific neighbours, and we worked together to try and mentor and support the women who have a much more difficult time in their parliaments than we enjoy here in Australia.

As we know, this is a global problem, but one that is endemic in large parts of our region. Ending family violence is vital to improving the economic wellbeing of women in our region. I note that the report also recommends that the PWPP be transitioned to become an initiative where all women's leadership positions are included for development and support. As we know, it is the women in roles in the bureaucracy and in delivering government services that can provide support for other women in their communities, and we must support women in the Pacific nations and our near neighbours and encourage them to participate in this way.

In total, the report makes 37 recommendations relating to the engagement of the private sector in the delivery of the Australian aid budget. The recommendations are wide-ranging, practical and evolutionary in nature. We have an aid budget that is generous and does achieve worthwhile outcomes in many countries in the Asia-Pacific region, but we can always do better. This report provides a set of proposals as to how we can better target our aid program to achieve long lasting outcomes for recipient countries across our region. I particularly congratulate the chairman, the member for Murray, Dr Sharman Stone, and I commend the report to the House.

Debate adjourned.