Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Hansard source

I rise to speak on the Official Development Assistance Multilateral Replenishment Obligations (Special Appropriation) Bill 2019, a bill that provides a special appropriation to enable the government to meet its commitments to replenish a range of multilateral development funds over the coming years. It is the case that these funds have long carried out essential work in tackling poverty and promoting economic growth and sustainable development in some of the world's poorest countries. These funds have long been essential, but they have never been more critical. As our world grapples with the worst pandemic in a century, it is the world's developing nations that stand to suffer the most. This is a point I will come back to, but I want to first place this discussion in some context.

It has been clear for some time that Australia's current Prime Minister does not take the same approach to foreign policy that has been the tradition of Australian political leaders. A bipartisanship has characterised the handling of our national interests in the world, but it is a bipartisanship that is strained by Mr Morrison's willingness—in fact, his reflex—to put short-term political marketing ahead of key national interests. Now, in fairness to him, the massive cuts to Australia's ODA that have been contrary to our interests began before Mr Morrison outmanoeuvred Mr Turnbull to become Prime Minister. Since this government came to office in 2013 it has cut in excess of $11.8 billion from Australia's aid programs. As a result, Australian official development assistance is on track to fall to just 0.19 per cent of gross national income. That will be the lowest level of ODA as a share of gross national income since the Commonwealth started publishing data in 1961.

So, under Mr Morrison Australia's international aid is lower as a share of national income than it was under Liberal prime ministers Menzies, Holt, Gorton, McMahon, Fraser and Howard. Australia's aid budget as a share of GNI has fallen from the middle of the pack amongst OECD nations to one of the least generous amongst OECD Development Assistance Committee member countries. Whilst it might look like an Australia-first approach, it is in fact contrary to Australia's interests. It weakens our international standing and some of our most important relationships. Australia is a substantial power, but we are not a superpower, and our international standing matters.

This approach taken by the Morrison government ignores the fact that economic development promotes prosperity, stability and security—things we not only want but need in the region and the world around us. Beyond these pragmatic interests, it's also the wrong thing to do. It's hurting some of the worlds poorest people. And whilst these cuts began under Mr Abbott and Treasurer Hockey, they've been getting deeper under Mr Morrison as Treasurer and Prime Minister, and that's part of a consistent pattern from him. Foreign policy, including international development, is fundamentally about protecting and promoting Australia's interests and Australia's values, but we have a Prime Minister who is willing to play serious foreign policy issues for short-term domestic political marketing purposes.

People might recall that in September he launched his campaign against what he called 'negative globalism', and he claimed that he was going to protect Australia from 'threats to our sovereignty' from international institutions, such as the UN having too much power. He sounds a bit like Senator Rennick, doesn't he? He said this because he thought it would be good marketing to sound tough, perhaps in his party room—perhaps for the Sky News after dark wing of his party room. What he didn't appreciate was that Australia's interests are more than a good headline. He created a fake threat: the United Nations. But soon we were going to face a real threat—a virus to which none of us has immunity and which all of us need to work together to overcome. But, just as before, Mr Morrison wanted to sound tough in the face of this threat, so he called for the UN to have more power so they may be able to step in and stop pandemics from happening in the future.

Unlike what is currently the case—where, contrary to Mr Morrison's negative globalism speech, the UN can't challenge any country's sovereignty without the specific agreement of a majority of the Security Council, including all five of its permanent members—this new proposal would apparently give the UN's health body, the WHO, the ability to conduct inspections wherever they saw fit, whether that be in China, the US or Australia. Now, Labor agrees with Mr Morrison; we need more robust international institutions that enable better cooperation where humanity's common interest is at stake. But it is hard to ignore that Mr Morrison has argued both sides of the same argument in order to sound tough for domestic purposes. So in September he launched his campaign for the UN to have less power; in April he launched his campaign for the UN to have more power. That brings me back to the central point: Mr Morrison's political interests may change but Australia's national interests don't, and you can't and shouldn't play foreign policy for short-term domestic political marketing. We need to be looking to 30-year horizons, not three-year election cycles. As a medium-sized country with an economy reliant on open trade, we always need international cooperation so we don't get steamrolled or sidelined by the great powers.

Australia has benefited greatly from multilateralism under governments of both parties. I can say, in his absence, that I appreciate the contribution from Senator Van. It is unusual to have a coalition senator actually talking about the benefit of multilateralism. It's good to know that there are some on that side who do not belong to the 'Sky after dark' wing of the Liberal Party. Senator Molan is gesticulating too, so it's good that a few people are on board.

A government senator: You should listen to us more!

Well, I do listen to the Prime Minister, who talks about negative globalism, and I listen to Senator Rennick, who is a very interesting character. I don't want to speak ill of him now that he's not in the chamber, but one would not suggest that his views are supportive of multilateralism. You see, we have benefited greatly from multilateralism under the governments of both political persuasions and we shouldn't play partisan politics with our support for it.

Across the Pacific, the pandemic, along with the associated shutdown of tourism sectors and commodity price slumps, will weaken already fragile economies and potentially overwhelm healthcare systems. Indonesia, our closest neighbour, whose stability is critical to our region and to Australia's security, is vulnerable to a dangerous mix of capital outflows, falling growth, reduced exports and a spiralling exchange rate as a result of the pandemic. Australia cannot afford our neighbours to founder and we must stand ready to assist. These are countries that stepped up to help us in the bushfire crisis, so if we genuinely want to be the partner of choice for Pacific island nations and South-East Asian nations, with all the benefits that brings to Australia's national interests, then how we contribute to their COVID-19 challenge in coming months will shape our future in this important region.

You see, flattening the curve at home is only the first step. Our success and our ability to return to normal will be tied to the region's response. Whilst we recognise that Australia alone does not have the resources to play a singular and decisive role to help countries like Indonesia or India navigate financial shocks or improve health infrastructure and supplies across the Pacific, we can play a crucial role in galvanising an effective multilateral response for our key partners and with like-minded countries. Australia has substantial capacity to contribute to this, as was demonstrated by our role in the G20 successful management of the GFC and by our leading public health capabilities. We can take advantage of our location in the fastest-growing region of the world only if the region itself is stable and prosperous. So, whilst Mr Morrison has talked up his attendance at the expanded G7 meeting at President Trump's invitation and has flagged a Five Eyes commercial expansion, what he doesn't have is a plan to help partners in the region; what he doesn't have is a plan to rally a global response that reflects the economic importance of the countries of South-East Asia and the Indo-Pacific, and that is what being a responsible, enduring partner in our region requires.

Labor welcomes this bill because it will support Australia's continuing participation in multilateral development institutions. As such, it will further Australia's interests in a stable, secure and prosperous international environment. Strong international development and active, positive engagement in global institutions is a key part of furthering our national interests. The funds covered by the bills of special appropriation include the International Development Association, which is the World Bank's development arm—one of the main sources of ODA. In addition, the Heavily Indebted Poor Countries Initiative and the Multilateral Debt Relief Initiative are debt relief arrangements which have relieved 36 of the world's poorest countries from a sum of around US$99 billion of debt. In addition, the Asian Development Fund, which provides development grants to low income members of the ADB; the Global Environment Facility Trust Fund, which is administered by the International Bank for Reconstruction and Development to support sustainable development activities around the world; and the Multilateral Fund for the Implementation of the Montreal Protocol.

We supported these funds for many years on a bipartisan basis. In fact, our commitment to the World Bank goes back to the international financial architecture adopted in the aftermath of World War II and the Chifley government's decision in 1947 for Australia to join the Bretton Woods institutions. Under the Hawke government Australia became one of the first countries to ratify the Montreal Protocol. The Howard government committed Australia to the Heavily Indebted Poor Countries Initiative and the Multilateral Debt Relief Initiative in 2005.

Our funding commitments are typically refreshed every three to four years in replenishment pledges which can commit us to providing funding over several years. That is why it is appropriate for parliament to make a special appropriation to support these commitments. An ongoing special appropriation will better reflect the multiple time frames for our commitments to these multilateral funds rather than annual appropriations. But we do know more will be needed.

COVID-19 presents major challenges for Australia, for our place in the world and for the countries in our region. Australia, as a substantial power, recognises the importance of multilateralism, including multilateral development institutions and the contribution they make to stability and prosperity. This is a dynamic reinforced by the pandemic. Australia is a country committed to helping the vulnerable and disadvantaged. In tackling a disease that knows no boundaries it is even more vital that the international community is equipped to respond.

This government's aid cuts have put Australia in a position of weakness to effectively help our region. Not only is that the wrong thing to do; it is directly counter to our national interests. So I say this to Mr Morrison: rather than talking about negative globalism, rather than trying to score domestic political points at the expense of a multilateral system we all rely on and we all benefit from, show some leadership, help navigate the global impacts of the pandemic to improve not only Australia's resilience but that of our region.

I move:

At the end of the motion, add:

", but the Senate:

(a) notes that Australia's Official Development Assistance (ODA) investments are an important way of advancing Australia’s interests, projecting our values and tackling global poverty;

(b) expresses its concern that:

(i) since 2014, Coalition governments have cut $11.8 billion from the foreign aid budget, with the result that Australia's ODA investments are now at a record low as a share of Gross National Income, and

(ii) the Prime Minister's promotion of negative globalism is contrary to Australia's interests in an international rules-based order supported by multilateral institutions, which promote economic growth, global security and human development; and

(c) agrees that active and engaged participation in multilateral institutions, including multilateral development institutions, is essential for advancing Australia’s interests in a stable, secure and prosperous international environment".