We need to cut our foreign aid budget to help for the reconstruction of Queensland and to help Queenslanders get back on their feet.

There are three main reasons why we should look for savings within the aid budget.
First, the aid budget is set to undergo a massive increase in the next few years and there is room for cuts. Currently, according AusAID, the agency that hands out our foreign aid, our aid budget is about $4.3 billion. According to AusAID projections, this will increase to $4.84 billion in 2011-12; $5.53 billion in 2012-13; $6.44 billion in 2013-14; $7.42 billion in 2014-15; and $8.49 billion in 2015-16.
Julia Gillard is dead wrong when she says that “there are no easy savings”. It is possible to achieve significant cost savings by simply deferring these large increases for a couple of years until Queenslanders are back on their feet.
Repairing the Australian economy will generate income more quickly and efficiently than any aid dollars will do in less developed countries. Had the Gillard Government been smart it would have saved money here in the first place instead of imposing a new flood tax (levy) on people.
The second reason to look at foreign aid for savings is that, based on past performance it is impossible to justify the current levels of spending, let alone a massive increase. One just has to read the Auditor-General’s reports on foreign aid to realise this.
Perhaps the most shameful recent example of waste was a pilot programme called the Community Call to Action where taxpayer money was splashed on some unbelievably stupid things.
There was the $147,000 given to the ACTU to bankroll an education campaign to explain the importance of the Millennium Development Goals (MDGs). Then there was the $50,000 spent impressing the importance of the MDGs on local government; the New Age types at the Birthing Kit Foundation got $150,000; Business for Millennium Development got $100,000 to host two black tie functions; $100,000 to the Fairtrade Organisation to plug itself.
But the worst grants were the $150,000 handed out to the Australian Council for International Development (ACFID) and the $100,000 given to the Oaktree Foundation to essentially run self-serving campaigns in support of a bigger AusAID budget.
A final thing to be noted about this egregious waste of money is that even though the pilot project was terminated, AusAID’s Programme Review Final Report was a positive one. When one reads an evaluation like this, it does throw into question the veracity of all of AusAID’s evaluations.
More broadly, Papua New Guinea is a neat example as to how badly the Australian foreign aid dollar has been spent. Despite Australian taxpayers pouring billions of dollars into PNG, where Australia has provided the lion’s share of overseas aid, the country is going backward since independence and is little more than a failed state.
If the Australian foreign aid dollar was guaranteed to be spent wisely then calls for cuts would have no basis. Unfortunately, the story of foreign aid is one of mismanagement, waste and corruption. The reality of foreign aid has nothing to do with the misleading foreign aid advertisements on television.
The third reason for looking for cuts in foreign aid is that there is fat in the existing aid budget. AusAID has more money than it knows what to do with judging from some of the questionable things it is funding.
When asked about foreign aid, Gillard said on radio that “I think Australians are a generous nation and we do go to the assistance of other countries for poverty alleviation, kids that are literally at risk of starvation.”
Hiding behind starving children is a familiar trick that defenders of foreign aid use in order to escape scrutiny. Only a tiny portion of the aid budget, maybe two per cent, deals with children at risk of starvation. Much more aid money is being spent ‘buying’ votes for Australia’s bid for a Security Council seat. It’s a waste and must be stopped.
There is something ironic in that one of the themes of Australia’s aid budget is good governance and this country is effectively using our aid budget to bribe Third World countries for their votes for a seat on the Security Council which is really about ultimately helping Rudd in his post-political career.
The fact that our foreign aid non-government organisations (NGOs) have said nothing critical about this reflects poorly about them and is indicative of how they are driven by the pathology of fundraising.
Beyond this, if you go through the aid budget you will be able to find no shortage of silliness being bankrolled by the long-suffering Australian taxpayer. While one undoubtedly finds examples of good projects in the aid budget, one also encounters terrible waste; waste which would make the average person shake their head in disgust. But unfortunately, waste which is not only tolerated in the world of foreign aid but thrives.
The first to complain about this article will be the ACFID, the peak body that represents the $800 million a year foreign aid industry. But given the size of this sector, one has to question why taxpayers have to pour hundreds of thousands dollars into this outfit every year for no real reason?
AusAID has also done silly things like bankroll the Global Poverty Project to the tune of $350,000. No starving children fed with this money, just the pampered activists who run this group.
If one is looking for savings then the AusAID- NGO Cooperation Programme has over the years been a programme with many grants that don’t stand up to scrutiny.
Similarly, there’s money in the $150 million International Climate Change Adaptation Initiative that can be cut. Not all of the grants here are worthy of funding. The $90 million Australia Africa Community Engagement Scheme is a great example of a project that should be scrapped. One of the objectives of this ‘scheme’ is to create publicity or awareness back in Australia.
It’s always a bad sign when valuable Australian taxpayer money is wasted on the recipients being asked to spend resources on propaganda spruiking their work to the Australian public. Australian foreign aid NGOs will undoubtedly love this because in funding them to create awareness of their work back in Australia, taxpayers are effectively bankrolling the fundraising efforts of NGOs.
Australian foreign aid NGOs should NEVER be funded by AusAID to create “awareness” about foreign aid because every year they already spend hundreds of millions doing that already through fundraising and marketing. Australian taxpayers should not be subsidising this.
There are plenty of savings to be found in the aid budget. All it requires is someone to ditch the political correctness and go through the projects and ask the sort of tough questions which AusAID seems incapable of doing.
Our foreign aid budget can sustain substantial cuts which won’t hurt people in the Third World and still allow us to maintain a strong presence in our neighbourhood where there is no shortage of the world’s poorest people. It’s time we stopped making excuses and focussed on our own first.
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