Pacific

Programs 1.1 and 1.6

Overview

Australia is the major donor and economic and security partner in the Pacific. Our role is critical to the region’s stability, security and prosperity.

High-level visits to Papua New Guinea and the annual ministerial forum further deepened the relationship. The aid program promoted economic growth and human development. We established the Pacific Leadership and Governance Precinct to support Papua New Guinea in building its future leadership and institutional capabilities.

We helped reset the bilateral relationship with Fiji following a period of limited engagement after the 2006 coup. The department supported Fiji’s successful election in September 2014.

The department led Australia’s strong response to the devastation of Tropical Cyclone Pam in Vanuatu. We provided $50 million for immediate relief and longer-term recovery.

We continued to support the Pacific Islands Forum (PIF) as the region’s premier political organisation and were instrumental in securing agreement for a new Framework for Pacific Regionalism.

The department led Australia’s efforts to encourage sustainable economic growth in the region. We helped achieve significant progress in Pacific Agreement on Closer Economic Relations (PACER) Plus negotiations. We worked closely with other government agencies to increase the sectors eligible for the Seasonal Worker Program (SWP) and to ensure the scheme has strong development benefits.

We provided $1.05 billion of development assistance to address the region’s significant development challenges and enhance stability and prosperity. Working in partnership with Pacific governments, and regional and multilateral organisations, we focused on economic growth, encouraging greater private sector engagement, gender equality, education, health, governance and law and justice. The Pacific Women Shaping Pacific Development Program continues to improve the political, social and economic opportunities for women in the region.

The department provided more opportunities for participation in the New Colombo Plan and Australia Awards, expanding people-to-people links in the region. We continued to support Australian volunteers in the Pacific.

New Zealand

The department supported high-level visits, including two by the Prime Minister and others by portfolio ministers. These visits shaped our military partnership in Iraq and further developed the Single Economic Market agenda. They promoted Australian commercial expertise in infrastructure projects in Auckland and Christchurch through a trade mission led by the Trade and Investment Minister. We supported the Australia New Zealand Leadership Forum 10th Annual Meeting in Auckland, held in conjunction with the Closer Economic Relations Leaders’ Meeting, in February 2015. We facilitated New Zealand’s successful participation in the G20 as a guest of Australia during our presidency in 2014.

Australia is the largest source of foreign investment in New Zealand and the department’s strong economic diplomacy efforts are helping to attract greater New Zealand investment in Australia.

The department helped further strengthen already close defence and community links through facilitating joint commemorations to mark the 100th anniversary of the Anzac landings at Gallipoli. Together, our two Governors-General attended the Anzac Day Dawn Service in Wellington and later the Last Post Service in Canberra, and our two Prime Ministers jointly led participation at Anzac Day ceremonies in Turkey.

Papua New Guinea

The department supported high-level engagement with Papua New Guinea, including through visits by the Prime Minister, Foreign Minister and Trade and Investment Minister, which advanced key bilateral and regional priorities.

The 23rd Australia–PNG Ministerial Forum in December agreed on measures to strengthen the relationship, including deepened defence and security cooperation, continued joint work to combat people smuggling, and Australian assistance for PNG’s hosting of APEC in 2018. In May, Mr Robb headed an Australian business delegation to Papua New Guinea, building trade and investment links.

The department led Australian government support for successful elections in the Autonomous Region of Bougainville in May and June. We contributed to the international observer mission to the elections and supported the participation of current and former members of the Australian Parliament.

The department forged people-to-people links, including through the PNG–Australia Network and Emerging Leaders’ Dialogue, which strengthened our ties in business, development and youth.

We promoted the effective operation of the Torres Strait Treaty, including through leadership of multi-agency Treaty Awareness Visits across the Torres Strait and South Fly District of Papua New Guinea.

The department managed bilateral aid of $450.6 million. Australian aid investments focused on governance, health, education, law and justice, women’s empowerment, private sector development and transport infrastructure.

We supported the PNG Government to establish the Pacific Leadership and Governance Precinct. The Foreign Minister signed an MOU with her counterpart ministers on 15 December 2014, committing to deliver a comprehensive program of education and leadership training to build the capacity of PNG’s public and private sector leaders. Since early 2015, over 500 public and private sector professionals have participated.

The department also drove agreement on a new Private Sector Development Partnership to support private sector-led economic growth, including in agriculture, financial inclusion and women’s economic empowerment.

We improved essential infrastructure for economic growth and service delivery. In 2014, we funded the maintenance and rehabilitation of over 2125 kilometres of PNG’s most economically important roads. Agreements were put in place for the next phase of the transport infrastructure program—a five-year, $400 million investment that will support a safe, reliable transport system.

The department supported PNG’s stability through investments in law and justice institutions. Our funding for 15 Family and Sexual Violence Units in police stations enabled 11,272 survivors of violence to access services in 2014. Training for 992 village court officials helped provide better standards of justice.

In December 2014, Ms Bishop announced support under the Pacific Women Shaping Pacific Development Program to enhance women’s engagement in decision-making, leadership and peacebuilding; promote women’s economic empowerment; and work to end violence against women and girls.

Our health program focused on strengthening maternal and child health, HIV, TB, and malaria outcomes. Australia’s support to the TB response in Western Province has contributed to reducing the percentage of patients dying of drug-resistant TB from 25 per cent in 2011 to less than one per cent in 2015.

The department worked with the PNG Government to preserve the Kokoda Track. Through the Kokoda Track Initiative, Australia improves livelihoods and the health and education prospects for communities living along the track.

Fiji

Following a period of limited engagement after the 2006 coup, the department helped reset the bilateral relationship with Fiji, through deeper bilateral engagement with senior members of the government and the public service.

The department assisted Fiji’s successful elections in September 2014 and transition to democracy by supporting and providing technical assistance to the Fijian Elections Office. We co-led the multinational observer mission and, following the elections, we managed the removal of all remaining sanctions against Fiji.

The Foreign Minister visited Suva in October 2014 and announced a new Institutional Partnerships Program ($16 million over four years) to support economic governance, public sector reform and institutional strengthening. Under this program, the department has facilitated a twinning arrangement between the Australian and Victorian Parliaments and the Fijian Parliament.

In March 2015, we supported a visit to Fiji by Parliamentary Secretary Ciobo to strengthen political and business links. During the visit, Mr Ciobo signed an MOU to facilitate Fiji’s SWP participation.

In June 2015, the department led inaugural Senior Officials’ Talks with Fiji’s Ministry of Foreign Affairs. The talks provided an opportunity to discuss global security challenges and regional issues, and strengthen the bilateral trade and investment relationship.

Australia remains Fiji’s largest bilateral donor. The department managed a bilateral aid program of $32.9 million. The program focused on improving access to quality education, strengthening primary health services, and building resilience and economic opportunities in disadvantaged communities. We expanded cooperation with Fiji’s public sector to build public service capacity, improve good governance and facilitate economic growth.

Through the Market Development Facility, the department supported the private sector to innovate and expand business in ways that create jobs and incomes for the poor. Australia has leveraged almost $2 million in private sector investment across the tourism and horticulture sectors and maintained 23 active private sector partnerships in 2014, generating $840,000 in new business activity.

Health and education remained priorities. One hundred and ninety-seven classrooms were renovated through the Access to Quality Education Program, benefitting over 5000 students. In 2014, the department increased the number of trained midwives by 25 per cent through the Fiji Health Sector Support Program.

Solomon Islands

The relationship with Solomon Islands was enhanced through high-level political engagement and visits and cooperation on regional issues. The department managed $120.5 million of development assistance in Solomon Islands, focused on supporting stability, enabling economic growth and enhancing human development.

Together with regional partners, we supported the Regional Assistance Mission to Solomon Islands (RAMSI) in maintaining stability. The department helped RAMSI prepare the drawdown and eventual transfer of its remaining policing responsibilities to the Solomon Islands Police Force (RSIPF).

We worked closely with Solomon Islands authorities to help deliver national elections in October 2014, which resulted in the smooth transition of power to a new government. RAMSI provided close support to RSIPF’s lead role in ensuring a secure and peaceful election process.

In the lead-up to the elections, the department provided $4 million to the UN Development Program to assist the Solomon Islands Electoral Commission develop a new voter registration system, civic education and electoral system reform. Advisory support was provided through a twinning arrangement with the Australian Electoral Commission and eight Australian Civilian Corps experts. We supported 22 Australian observers, including three parliamentarians, who deployed across the country as part of the multilateral observer mission.

In February 2015, Mr Ciobo visited Honiara to give early impetus to relations with the new Solomon Islands Government of Prime Minister Sogavare. Mr Ciobo launched two development initiatives: the jointly-funded National Cocoa Testing Laboratory that allows farmers to certify the quality of beans and maximise export earnings, and the new postnatal ward at Honiara’s National Referral Hospital.

Vanuatu

In March 2015, Vanuatu experienced severe damage and loss of life from the impact of Tropical Cyclone Pam. The department led a whole-of-government response that included humanitarian assistance, consular services and disaster response, and coordinated closely with the Vanuatu Government, regional partners and other donors.

Australia was the largest international contributor to the disaster response with a $50 million response package, including a $35 million package of longer-term support focused on economic recovery, repairing and rebuilding critical public infrastructure, restoring health and education facilities, and supporting gender and disability inclusion. (See Fig. 29.)

The department supported the Foreign Minister’s visit to Port Vila one week after the disaster. Ms Bishop met with the Vanuatu Prime Minister and Foreign Minister to discuss Australia’s commitment to addressing Vanuatu’s immediate needs and supporting its recovery.

As well as the cyclone-related assistance, the department managed a bilateral aid program of $41.5 million, focused on economic governance, infrastructure, health, education and law and justice.

In August 2014, the department hosted a Special Visits Program for then Vanuatu Foreign Minister Sato Kilman to deepen dialogue on key bilateral issues such as the SWP, regional security engagement, Vanuatu’s participation in the New Colombo Plan and development objectives. In 2014–15, 497 ni-Vanuatu participated in the SWP.

We helped the Vanuatu Government improve basic education outcomes and essential health services. Aid programs supported delivery of literacy and numeracy kits to all 460 Vanuatu Year One classrooms and trained 1923 teachers to use them. In 2014, the department facilitated technical and vocational skills training to support agricultural and tourism industry development. In health, we helped Vanuatu lift the measles immunisation coverage rate from 53 per cent in 2013 to 91 per cent by end 2014, and improved the collection and use of health information data.

The department also worked with Vanuatu to build safer communities and maintain security. During the year, we assisted 4685 women and girl survivors of violence to access support services. The aid program trained 932 police and law and justice officials on effective law enforcement approaches.

The Australian National Audit Office (ANAO) completed a performance audit of the aid program in Vanuatu. The audit found the program was effective and met Australian and Vanuatu government priorities. The department agreed to the ANAO’s two recommendations on documenting risk and monitoring and evaluation planning.

Tonga

The department supported Tonga’s November 2014 national elections. Through a joint program with the Australian Electoral Commission, we helped Tonga’s Electoral Commission update the electoral roll, plan for and manage the election. We also supported a nation-wide civic and voter education program ahead of the election and initiatives to encourage women to become more active in politics.

The department facilitated the visits of the Foreign Minister and the President of the Senate to Tonga in April 2015. The visits established productive links with the new Tongan Government and highlighted our strong development, defence and policing partnerships.

Bilateral development assistance to Tonga managed by the department was $16.3 million, supporting a range of Tongan economic and financial management reforms. These efforts helped stabilise Tonga’s debt and fiscal position.

The department worked to strengthen economic growth in Tonga, with a focus on private sector development and labour mobility through a range of initiatives. These included the SWP, the Tertiary and Vocational Education and Training Program, scholarships programs, vanilla industry pilot projects, road maintenance projects and the Pacific Horticultural and Agricultural Market Access Program.

We helped Tonga’s Ministry of Health improve community health services and implement preventative health measures.

Samoa

The department supported the attendance of the Foreign Minister and then Parliamentary Secretary Mason at the UN Small Island Developing States Conference in Samoa, in September 2014. Their participation strengthened the bilateral relationship and advanced Australia’s regional and sustainable development priorities.

The department managed a bilateral program of $22.6 million in development assistance. Improving health services was a major priority; two district hospitals were rebuilt.

Through the Pacific Horticultural and Agricultural Market Access Program, the department continued efforts to increase Samoan exports to Australia. This included work on fumigation systems to enable exporting of fruits, vegetables and matting, and processing techniques to allow products such as breadfruit and frozen taro to be exported to Australia.

To advance our goal of strengthening governance, including the functioning of Samoa’s Parliament, we cooperated closely on the development of a value-for-money design for a new Parliament House.

Kiribati

The department supported Ms Bishop’s visit to Kiribati in March, during which she launched Kiribati’s participation in the New Colombo Plan. Ms Bishop also highlighted Australian assistance for roads, school and health facilities.

In bilateral security partnership discussions in October 2014, we reaffirmed our commitment to Kiribati’s maritime security, including through continued support for fisheries officer training and strengthening surveillance and monitoring capacity.

Australia is the largest donor to Kiribati with the department managing $20.2 million in bilateral aid in 2014–15. Our programs helped Kiribati strengthen the quality of teaching and learning in primary schools. We also assisted the Kiribati Institute of Technology to offer internationally recognised qualifications for over 130 certificate-level students.

The department worked closely with Kiribati and other development partners to increase revenue levels through the introduction of a Value Added Tax in July 2014 and stronger public financial management.

We continued to work with Kiribati and regional organisations to build resilience and manage the impact of climate change, including by improving coastal protection and the management of fresh water supplies. In March 2015, the department supported Kiribati’s recovery from the damage caused by Tropical Cyclone Pam by providing tools to support clean-up and rebuilding activities.

Nauru

The department engaged closely with the Nauru Government to pursue shared interests and strengthen the country’s economy and capabilities. Our support for a visit to Nauru by the Minister for Immigration and Border Protection in February 2015 reaffirmed our mutual commitment to the regional immigration processing partnership and refugee resettlement programs.

The department managed bilateral assistance of approximately $21.1 million. We led planning for the redevelopment of Nauru’s hospital precinct and improvements to health services. The department also helped increase the number of teaching staff with certificate-, diploma- or degree-level qualifications through support for a teacher training program.

We supported the Government of Nauru’s efforts to address gender-based violence by providing an adviser to work with the Nauru Police Force Domestic Violence Unit.

Tuvalu

Australia is Tuvalu’s largest aid donor, with the department managing a bilateral program estimated at $6.6 million in 2014–15. Program funding assisted Tuvalu to strengthen early grade literacy and reform school management. It also included budget support to the Government of Tuvalu to promote important economic and public sector reforms in areas such as revenue collection, budgeting and financial management.

We supported Tuvalu to recover from Tropical Cyclone Pam, working with the Red Cross to provide water and medical supplies.

Cook Islands

In April 2015, Ms Bishop made the first visit by an Australian Foreign Minister to the Cook Islands, where she launched the New Colombo Plan. In June Australia supported Cook Islands’ membership of the International Labour Organisation.

The department managed bilateral aid of approximately $1.9 million, including under a delegated cooperation agreement with New Zealand. Our aid focused on improving water and sanitation, disaster risk management, the promotion of education, and gender equality and disability inclusive development. Our funding also helped upgrade 230 residential septic systems in the Muri lagoon area and to develop a water quality management plan for the lagoon.

Niue

High Commissioner to New Zealand, Michael Potts, became Australia’s first diplomatic representative to be formally accredited to Niue when he visited in August 2014. Assistance to Niue, delivered under a delegated cooperation agreement with New Zealand, totalled approximately $1.4 million. Education and waste management were priorities. Funding was also provided for the design and construction of a new primary school for up to 230 students.

Tokelau

The department is finalising a delegated cooperation agreement with New Zealand to deliver development assistance to Tokelau on early childhood education. This will replace contributions to the Tokelau International Trust Fund.

North Pacific

In July–August 2014, the department assisted Palau host the 45th annual PIF Forum meeting, including participation by the Deputy Prime Minister, Warren Truss, and then Parliamentary Secretary, Senator Mason.

We supported clearance of unexploded ordnances from World War II in Palau and improved water supply and sanitation in the Republic of the Marshall Islands (RMI). We helped the Federated States of Micronesia (FSM) implement economic and budgetary reforms to promote greater economic self-reliance.

In April 2015, the department provided humanitarian supplies on the islands of Yap and Chuuk in FSM following the devastation of Typhoon Maysak.

The department supported efforts to combat violence against women in RMI. This included technical assistance towards establishing a domestic violence counselling centre.

French Collectivities

In November 2014, as part of French President Hollande’s visit to Australia, the department supported integration of the French Territories into Pacific regional institutions. We announced a new emphasis on Australian scholarships to students from French Polynesia, Wallis and Futuna and New Caledonia to develop future leaders, particularly indigenous leaders.

The department supported several bilateral and regional trade activities to promote investment opportunities for Australian companies in New Caledonia, including the 11th Australia–New Caledonia Business Forum, held for the first time in Noumea.

We successfully managed a steep increase in consular workload brought about by the increase in the number of Australians visiting New Caledonia this year on cruise ships. Almost 400,000 Australians visited New Caledonia in 2014–15, up from approximately 260,000 in 2013–14.

Regional engagement

The department supported the Deputy Prime Minister at the PIF Leaders’ Meeting in Palau, in July 2014, which agreed a new Framework for Pacific Regionalism. The framework will inject new dynamism into regional integration through strengthening cooperation on the economic, environmental and development challenges facing our region.

The department supported the Foreign Minister’s consultations with regional leaders and counterparts on ways to strengthen the PIF. We coordinated closely with the PIF Secretariat and the Secretariat of the Pacific Community through biannual high-level consultations. Our understanding of regional priorities and activities helped focus Australia’s significant financial investment in these regional organisations.

Significant progress was made in PACER Plus negotiations. Fiji formally joined the negotiations from September 2014 and hosted a negotiating round in December. In May 2015, parties broadly endorsed roadmaps for exchange of initial offers on market access for goods, services and investment by September 2015. We continued stakeholder consultations on PACER Plus with Australian businesses and participated in a non-state actors dialogue in Nadi, involving interested civil society organisations and businesses.

The department continued to support the Office of the Chief Trade Adviser based in Port Vila to provide independent advice and assist Pacific Island country governments in the PACER Plus negotiations and to contribute to the cost of negotiating meetings (along with New Zealand). We also continued to support Pacific Island governments to conduct independent trade research to inform their negotiating position.

In response to the Ebola outbreak in West Africa, the department contributed to contingency plans, training and equipment for Pacific Island countries in preparation for a potential regional outbreak. We collaborated with donors to improve immunisation rates and supported the countries to strengthen interventions addressing non-communicable diseases.

Domestic violence against women remains a major problem in the region. Through the Pacific Women Shaping Pacific Development Program, the department helped support over 10,000 survivors of violence through regional programs. The Ambassador for Women and Girls hosted two dialogues in the Pacific: the Pacific Women Policy Makers’ Dialogue in Tonga, in July 2014, to identify strategies to improve women policy makers’ leadership; and a dialogue in Fiji, in November 2014, to identify ways the business community can address violence against women.

The department continued to focus on improving tertiary education through our partnership with the University of the South Pacific. We assisted a further 1560 Pacific Islanders (35 per cent women) to graduate from the Australia–Pacific Technical College in 2014 with qualifications in areas of labour market demand. We supported Pacific governments to develop data to inform education policy through research into the financing of technical and vocational education and training in seven countries.

The department formed a new partnership with ANZ to draw on their networks and engagement in the Pacific to promote economic opportunity, skills development and boost regional economies. We continued to work closely with our other corporate partners, Westpac and Carnival Australia.

The SWP delivered significant employment opportunities and remittances across the region. Over the past year we worked with the Department of Employment to help participating countries improve the operation of the scheme, and increase their particiption.

The department provided over $11 million to support regional fisheries management agencies, underpinning direct revenues to the Pacific region of around $350 million. Our initiative also funded the development of a new strategy to scale-up inshore fisheries management essential for food security and livelihoods in Pacific Island countries.

In the 2015 round of the New Colombo Plan, around 270 Australian undergraduates are being supported to study in nine Pacific countries. This includes four scholarship recipients studying and undertaking internships in Fiji, Kiribati and Vanuatu. Australia Awards continued to attract substantial applications from across the Pacific, with over 1200 long-term and short-term scholarships awarded in 2014–15.

Outlook

The department will continue to strengthen the bilateral relationship, including trade and investment ties, with Papua New Guinea. We will assist the PNG Government to progress the redevelopment of the Lae ANGAU Hospital and new Pacific Leadership and Governance Precinct in Port Moresby. The department will step up efforts to coordinate Australia’s support for PNG’s hosting of APEC in 2018.

We will broaden and deepen engagement with Fiji, building on the significant progress of 2014–15.

In the Solomon Islands, we will continue to support the drawdown of RAMSI in an orderly and stable manner.

The department will support the Government of Vanuatu prepare for the 2016 general elections and will provide further support to Vanuatu and other affected countries in the region in the wake of Tropical Cyclone Pam.

In response to the need, following Tropical Cyclone Pam, for better coordination in disaster management and broader efforts to improve regional cooperation, the department will support the Foreign Minister to convene a Foreign Ministers’ Meeting on Disaster Management in July 2015 under the auspices of the PIF.

We will continue efforts to strengthen economic links in the region by encouraging greater uptake of opportunities presented by the SWP and through activities that support private sector development.