Two of the country's major peak bodies, the Australian Council for Overseas Aid and the Australian Council of Social Service, united on Tuesday to welcome the government's announcement of a levy to pay for Australia's peace keeping effort in East Timor.
"In addition to supporting the equitable design of the levy, ACOSS particularly welcomes the Prime Minister's statement that it would not be fair to solve national budgetary problems by further cutting social expenditure," said Mr Micheal Raper, President of ACOSS.

"We trust that the May 2000 Federal budget will carry through on this important value in all its measures," he added.

"Australians have already shown their support for the people of East Timor by donating over $12 million in cash and kind to Australian non-government organisations involved provided essential emergency relief and development aid to the newly independent country," said acting ACFOA Executive Director, Mr Jim Redden.

"We hope that they will support the one-off levy as the most fair and equitable way of paying for the Australian army's humanitarian mission in East Timor," he said.

"We also hope that in addition to preventing cuts to social services, the levy allows for much needed increases to the Australian aid budget, which last year declined to its lowest point ever."

For information and comment contact:
ACOSS: Ms Betty Hounslow Tel: 02-93104844 (ah) 0419 626 155
ACFOA: Mr Jim Redden or Mr Andrew Nette on 02 6285 1816 (ah) 0414 257 446

Donations from the Australian public to non-government organisations (NGOs) involved in overseas aid and development increased by 20 per cent over 1999, according to the results of an annual statistical survey conducted by the Australian Council for Overseas Aid (ACFOA).
"The increase exposes as a myth claims the Australian public are suffering from so-called compassion fatigue," said ACFOA Executive Director, Ms Janet Hunt. "Instead, these figures reveal the generosity of spirit which we have always known has existed within the Australian community towards those in less fortunate circumstances overseas."

"This generosity continues to be in stark contrast to that of our current Government, which in the last budget allowed foreign aid to shrink to its lowest level ever as a percentage of GNP."

While the Australian Government was forced to increase its actual aid expenditure above the 1999-2000 budgeted level, mainly to deal with East Timor and Kosovo, the Government has given no clear commitments about what will happen in the future."

"In a few months time, the Government will bring down the first budget of the new century," said Ms Hunt. "We would urge the Government to use this as a chance to further increase Australia's aid budget."

"Not only is this economically achievable given the strength of our economy, but the kindness of ordinary Australians demonstrates there would be significant support for it."

The Australian public donated over $259 million in 1999, compared to $216 million in 1998, an increase of just over 20 per cent.

The period covering the increase includes the refugee crisis in the Balkans, appeals relating to the devastating cyclone which hit Orissa, India and the severe flooding in central and south Vietnam, and some but not all of the funds given by the public for the reconstruction of East Timor.

"As of February 2000, a total of almost $12 million had so far been given by the public to Australian NGOs involved in the reconstruction of East Timor, and donations are still coming in," Ms Hunt said.

"This does not even count the considerable number of direct initiatives to assist East Timor being undertaken by individuals and the community," she said.

Australian aid agencies today congratulated Mr Downer for his announcement that an extra $3 million would be spent in the troubled Indonesian provinces of Maluku and North Maluku. The aid is for urgently needed programs such as trauma counselling for the victims of violence and infant feeding for displaced children.
'This announcement sends the right signals to the Government of Indonesia, that Australia is prepared to support the Indonesian community in their transition to democracy and in dealing with the complex humanitarian problems and human rights violations. Australia needs to maintain its development aid commitments to Indonesia in rebuilding our relationship with the Indonesian Government,' said Mr Jim Redden, ACFOA's Policy Director.

While we welcome additional assistance for Ambon, we remain concerned about the plight of refugees in North Maluku and over 100,000 refugees still in camps in West Timor. ACFOA welcomes the decision by the Indonesian government to continue providing daily allowances to the refugees in West Timor on a month by month basis. ACFOA encourages the Australian Government to continue to work with the Indonesian Government, multilateral agencies and NGOs to ensure the following:

1. that sufficient food and medical resources are made available for the refugees in West Timor,

2. that there is sufficient time for refugees to make an informed decision on whether they wish to return to East Timor or resettle in Indonesia.

Mr Redden said, 'It is important for the Australian Government to work with the United Nations High Commission for Refugees, appropriate Indonesian authorities and local communities for a fair resettlement process free of fear and threats. While recognising the need for a resolution to the resettlement process soon, more time and aid needs to be allocated to allow for a just process'.

Contact: Mr Jim Redden at ACFOA on (02) 6285 1816 or (m) 0414 257 446

The Australian Council for Overseas Aid has welcomed the Government's four-year $150m commitment to East Timor's reconstruction and development, but says the rest of the world has been neglected.
"This new commitment to East Timor comes in an aid budget which remains at the lowest ever level - 0.25% GNP ($1599.3m). Last year's crises in Kosovo, East Timor, Mozambique and elsewhere pushed the actual expenditure on development assistance to $1651.1m, or 0.27% GNP.

"We have given the well-off big tax cuts, and foregone the Timor levy, but plan to give less aid in the coming year than we spent in 1999-2000. It is lack of political will like this which is worsening the gap between the rich and the poor worldwide. Can we really not afford to do more?"

"Not only is actual expenditure expected to be lower in 2000-2001, the dollar increase of $100m on last year's budget does not match the growth in our economy, so against the internationally-recognised measure for aid - the percentage of GNP provided - we remain a very ungenerous nation.

"This is not in line with community sentiment. People don't want a world which is so polarised. In 1999 the community raised 20% more funds for international assistance than in the previous year - a total of $260m."

Australia's contribution to the $800m reconstruction costs requested at the Tokyo Donors' conference in December last year will make Australia one of the larger donors to East Timor.

To date only 12% of the funds promised at the December 1999 Tokyo East Timor Donor's Conference have actually been received by the World Bank for its major East Timor Trust Fund.

"Far more funds are being spent on peacekeeping than on helping the Timorese people to rebuild their shattered country", says Executive Director, Janet Hunt.

Contacts: Canberra: Janet Hunt (02) 6281 9216 or (m) 0411 868 174 or
Perth: Sir Ronald Wilson, President, ACFOA, (08) 9364 958

The festive season is upon us and many Australians will give to those less fortunate, both at home and overseas. Our near neighbours, the East Timorese will be high on many lists.
Aid agencies are asking that the generous Australian spirit of giving to East Timor is founded on lasting gifts.

Aid agencies working in East Timor say that the most useful gifts are:

• Donations of money for water, health, agriculture and other programs that meet basic needs
• School supplies such as stationery and notebooks
• Sports equipment such as bats and balls

• Building block toys like Duplo and Lego.

Children in East Timor do not have a history of playing with soft toys and aid agencies request that no soft toys or teddy bears be given as they pose a hygiene risk given the climate and living conditions in East Timor and they are not culturally appropriate.

"Organisations planning on conducting Christmas appeals must also keep in mind the cost of transportation to East Timor and the fact that no more containers will arrive before Christmas" says Ms Chapman.

Australian aid agencies have so far distributed more than $20 million in donations and gifts in kind from the Australian public.

The following agencies are conducting Christmas Appeals to assist the people of East Timor and are signatories to the ACFOA Code of Conduct which requires high standards of public accountability:

Aust. Volunteers International 1800 331 292
Australian Foundation for the Peoples of Asia and the Pacific 02 9906 3792
Australian Red Cross 1800 811 700
Caritas Australia 1800 024 413
Community Aid Abroad 1800 034 034
Marist Mission Centre 02 9816 3187
World Vision Australian 13 32 40

For further comment: Rhonda Chapman 02 6281 9221
Membership Services Director 0402 318 703

Notice of Australian Council for Overseas Aid organised activities
From June 14-15 2001, Canberra will host the international donor meeting on East Timor. The third such gathering since the territory's independence ballot in 1999, this meeting takes place in the lead-up to national elections in East Timor, scheduled for August.

On June 13, ACFOA will also be hosting a number of activities in the lead-up to the donor meeting.

The HON LAURIE BRERETON, Shadow Minister for Foreign Affairs, will launch the first ever guide to East Timor's political parties. 10am: Parliament, House Committee Room 1R3. Mr Brereton will also talk about Labor's policy on East Timor. A guest speaker will be Mr Klaus Roland, World Bank Director, East Asia and the Pacific. Copies of the report, East Timor's Political Parties and Groupings, researched and written by ACFOA, will be available at the launch.

PRESS CONFERENCE: East Timorese NGOs on the elections and independence 2pm: Australian Council for Overseas Aid, 14 Napier Close, Deakin. The Australian Council for Overseas Aid (ACFOA) is hosting three senior East Timorese non-government organisation representatives who will be in Canberra to attend the donor meeting.

Speakers: Mr Arsenio Bano, Director East Timor NGO Forum Mr Aderito Soares, Coordinator, East Timor Jurists Association Ms Aziza Magno, East Timor Women's Network

The East Timorese will discuss concerns over the openness and pluralism of whichever new East Timorese Government emerges from the August vote. They will call on donors to help ensure that the process of building democracy in East Timor goes beyond the first election. They will also speak on the need for a tribunal to prosecute perpetrators of serious human rights abuses.

For more information or to arrange an interview contact: Jim Redden 0414 257 446 Andrew Nette 0438 026277

Australian aid agencies on Thursday welcomed the Australian Labor Party's commitment to adopt a comprehensive plan for foreign policy and development cooperation, in particular its focus on human rights and engagement with Asia.
"The Australian Council for Overseas Aid (ACFOA) welcomes Labor's intention to make the promotion of universal human rights as a 'core foreign policy objective' if they win office on November 10," said Ms Gaye Hart, ACFOA President.

"The announcement that Labor will appoint an Ambassador for Human Rights, establish a Regional Centre for Human Rights Dialogue and Conflict Resolution, ratify key human rights treaties, and continue the present's government's support for an international criminal court, are all positive steps towards this end."

"ACFOA believes that while Australia has done much in the area of human rights, we can and should do more," continued Ms Hart. "In addition to increasing our profile on human rights issues, initiatives such as these also send a signal to our neighbours in the region reinforcing Australia's role as an agent for peace and human security."

Other highlights of the Labor's foreign policy, launched by Shadow Foreign Affairs Minister Laurie Brereton in Sydney on Wednesday, include:

• Humanitarian assistance initiatives aimed at Indonesia, East Timor and the Middle East
• A major expansion of micro credit programs, focused on the South Pacific and East Timor
• Further support for international efforts to relieve the debt burden of the world's poorest nations
• The ratification of the Kyoto Protocol on Climate Change

For further information contact:

Ms Gaye Hart, ACFOA President: 0419 763950

Andrew Nette, ACFOA Policy Officer 0438 026277

Extracted from the ACFOA's submission to the budget 2002 -2003: Reducing Poverty, Creating Human Security :
The Challenge for Australia's Overseas Development Assistance
5.2 I ndonesia

5.2.1 Aid

ACFOA supports the maintenance of a strong aid program to Indonesia, with the involvement of NGOs from both countries, as part of the Australian Government's efforts to repair and strengthen relations with Indonesia and increase links between our two countries. The design of a new AusAID Indonesia Country Strategy for 2004/6 provides an excellent opportunity to review the Australian Government's aid program to Indonesia and respond to key issues, such as the ongoing economic crisis and the persistent high levels of poverty, the need to protect human rights, increasing conflict and the challenges arising from the decentralisation process.

Indonesia will continue to need humanitarian assistance to deal with natural disasters and human-made emergencies, especially outbreaks of communal conflict and civil strife. A priority needs to be strategies to deal with IDPs. The Indonesian Government has no clear policy towards displaced people, preferring to leave the problem to under-resourced district governments to deal with. AusAID should consider reallocating a greater percentage of resources to increase Humanitarian Relief to Indonesia.

Australia's aid program to Indonesia has traditionally concentrated on Eastern Indonesia (NTT, NTB, South and Central Sulawesi and Papua). While there are clear historical reasons for this, ACFOA believes that the 2004/6 Indonesia Country Strategy provides the opportunity to revisit the geographical focus of the Australian aid program, in consultation with the Indonesian Government.

As the debate on regional autonomy develops, it will be even more essential to vary approaches in different areas. Particular emphasis needs to be placed on Papua under the new Special Autonomy arrangement, which will become effective in 2002. This law grants Papuans a large portion of revenue: 80% from forestry and fishing and 70% from oil and gas, and provides the provincial government with control over all aspects of Papuan government (such as health and education), except for foreign affairs and security.

The dramatic increase in regional revenue is likely to result in Papua having one of the highest provincial incomes, but with very poorly trained local officials and poor infrastructure for health and education. The potential for problems resulting from this situation is great. Increased support would not only assist in the development of Papua, but also could also play a significant role in reducing long-running tensions and conflict in the province.

Another key focus area should be the province of NTT that has had to bear the largest burden of people displacement problems resulting from the East Timor crisis. It is continuing to host tens of thousands of East Timorese refugees until a resettlement or repatriation solution is found. NTT is the poorest province in Indonesia and continues to face a volatile political climate with the presence of militias from East Timor and tense relations between Christian and Muslim communities.

ECHO, the European Community's main humanitarian donor, has plans to soon pull out of Indonesia, and the potential strains on funding from other donors as a result of the reconstruction needs of Afghanistan, in addition to the huge development challenges facing Indonesia, present a strong case for the Australian Government to increase real funding to Indonesia. ACFOA therefore recommends an increase in funding to Indonesia of $10m in 2002/3.

Finally ACFOA believes it is critical that AusAID examine how the wider Australia-Indonesia relationship could impact on the achievement of the strategic objectives of the aid program. If theaid program is to have significant impact on poverty, it must give consideration to influencing other aspects of Australian Government policy that impact on development and poverty reduction in Indonesia, including foreign affairs, immigration, defence, human rights and trade.

ACFOA believes that the Australian government's present refugee policy of supporting the detention of asylum seekers in the Pacific and taking a heavy-handed approach to Indonesia over asylum seekers leaving their shores for Australia doesn't acknowledge the huge strains and pressures presently placed on Indonesia as a result of over 1.25 million IDPs in their country.

In this respect, the meeting in February 2002 in Bali to discuss the issue of asylum seekers, co-hosted by Australia, is a positive move. Reaching agreement on a collaborative approach to monitoring and processing asylum seekers in an orderly and humane way gives a clear signal that Australia wishes to tackle regional issues in a collaborative and comprehensive manner.

A comprehensive approach to tackling the issue, bearing in mind the aid program's mandate of reducing poverty, would see Australia consider matters such as revision of the terms involved in the Australian Fishing Zone, assistance at district level for developing better policies to keep large-scale foreign fishers from Indonesian waters and more appropriate methods of dealing with infringement of Australian-Indonesian fishing agreements. Such initiatives, together with assistance for poor fisherfolk, might discourage fisherfolks' involvement with people smuggling.

As is the case with the Pacific, ACFOA would stress that initiatives aimed at assisting Indonesia to directly tackle people smuggling are best dealt with outside the aid program and should not detract from the program's stated anti-poverty focus.

Recommendation 10

ACFOA recommends that the Australian Government:

10.1 Increase funding to Indonesia by $10million in 2002/3.

10.2 Make an increased funding allocation for Humanitarian Relief for Indonesia.

10.3 In the context of the 2004/6 Indonesia Country Strategy, reconsider the geographical focus of Australia's aid program to Indonesia, in consultation with the Indonesian Government. At the very least, consideration should be given to supporting a small number of high profile projects in areas of Western Indonesia that are predominantly Muslim.

10.4 Place greater emphasis on Papua as it develops Special Autonomy, and NTT to deal with the burden resulting from the East Timor crisis.

The World Bank warned in a report in November that high debt service payments limited the Indonesian Government's ability to maintain essential spending on development and poverty reduction. It said concerns about the sustainability of government debt weakened investor confidence in Indonesia and made the country "highly vulnerable to shocks and leaving little margin for error in economic management."

The Indonesian Government will meet with the Paris Club of creditor nations in early 2002 to seek rescheduling of US$2.7 billion in sovereign debt, both principle and interest. This is the first time that Indonesia has requested rescheduling of interest. In 2001, the Paris Club granted Indonesia a rescheduling facility of some US$5.8 billion, but only for debt principle.

ACFOA congratulates the Australian Government on the efforts it is currently making to assist Indonesia manage its debt burden, including the provision of funds under the aid program to assist Indonesia with the task of managing domestic debt and the announcement by the Foreign Minister in August of a study into the debt issue to be carried out by AusAID in cooperation with the World Bank.

ACFOA would, however, encourage the Australian Government to have a greater involvement in advocating for a resolution to Indonesia's debt problem. ACFOA recognises that it is important that any movement on the part of donors or multilateral financial institutions on Indonesia's debt should be consistent with a more concerted effort by the Indonesian government on fighting corruption.

Recommendation 11

ACFOA recommends that the Australian Government to support:

11.1 A rescheduling of Indonesia's debt at the upcoming Paris Club meeting, including a rescheduling on more favourable terms than is currently the case.

11.2 The organisation of a broad international consultation involving all stakeholders on the creditor's as well as the debtor's side to bring about a fair and adequate assessment of the current debt situation in Indonesia, and to agree on a lasting solution to relieve the debt burden on Indonesia.

11.3 Arrangements with the Indonesian Government to ensure that funds freed by debt cancellation are used for poverty reduction programs.

Funding Implication

An increase for Indonesia in 2002/3 of $10m.

5.3 Other Geographic Priorities

5.3.1 East Timor

ACFOA commends the Government for its peace building and development commitment to the people of East Timor. ACFOA supports the maintenance of current levels of real funding to East Timor given the crucial development challenges it faces as it moves toward full independence

5.3.2 The Philippines, the Mekong, Burma, China

ACFOA supports the maintenance of current funding in real terms to the Philippines, the Mekong, Burma and China.

5.3.3 Middle East

ACFOA congratulates the Australian Government's commitment to the Middle East Peace Process (MEPP) over recent years, including additional funding commitments to the MEPP in 2000-2001, and in particular, support for emergency medical assistance to the Palestinian communities. In mid-2001, at the end of a $16 million three-year program, the AusAID Programming Mission to the Middle East (July 2001) recommended that its program of assistance to the Palestinians continue at that current level.

However, since 29 September 2000 conflict has dramatically increased in Israel and the Occupied Palestinian Territories, and hopes on both sides for a continuation or resumption of the peace process have diminished. Approximately 1,000 adults and children have been killed in the conflict and 26,000 people injured. The impacts of this conflict on the labour market and on agricultural production in the Occupied Territories have resulted in over two million Palestinians now living in poverty, with limited access to health, education and social services.

Given current deteriorating circumstances, ACFOA is concerned that the $4.5m over three years allocated to five Australian NGOs for projects in the Middle East Capacity Building NGO Program is far from adequate. ACFOA seeks a further allocation in 2002-2003 of $2m for Australian NGO programs in the Occupied Palestinian Territories for programs focused on poverty reduction, health, education, social services and support for local peace initiatives. ACFOA also urges an additional commitment for Australian NGO projects with the refugee communities in Lebanon, within a designated humanitarian funding round of $1.5m per year.

ACFOA supports maintaining Australian commitments of $3.8m per year to UNRWA, though UNRWA is less and less able to meet the increasingly urgent basic needs of the 3.73 million registered refugees in the Occupied Territories and neighboring countries.

5.3.4 Afghanistan

ACFOA commends the Australian Government for the allocation of $17m in reconstruction assistance to Afghanistan, announced at the international donors meeting in January 2002. This brings total Australian assistance to South West Asia since September 2001 to $40.3m. However much more needs to be done.

Just as it was a member of the international coalition against terrorism, Australia should be a part of the humanitarian coalition to rebuild Afghanistan not just from the recent conflict but also from almost 22 years of continuous war. Donors, including the United Nations, the World Bank and the Asian Development Bank estimate that rebuilding Afghanistan will require approximately US$15 billion over the next 10 years.

The priority though until July 2002 will be the maintenance of a large-scale humanitarian effort in support of 5-6 million Afghans assessed to be in acute emergency. In the longer term, Afghanistan will need assistance with developing a functioning administration, as well as with transport, food security, education and health. De-mining efforts are also fundamental to restoring security and safety, particularly for returning Internally Displaced Persons (IDPs) and refugees, and for the delivery of aid.

In addition to humanitarian concerns, the provision of generous assistance to Afghanistan will help to address the source of the problem regarding illegal people flows to Australia, a significant proportion of whom are from Afghanistan.

5.3.5 Africa and South Asia

Enormous poverty and development challenges still face Africa and South Asia. However, given ACFOA is seeking specific funding in basic social services and for Indonesia and the Middle East, it is requested that for the 2002-03 budget, funding be maintained at real levels. Further recommendations relating to Africa are contained in section 4.1.2 on HIV/AIDS.

Summary Of Recommendations For Other Geographic Prioirites

Recommendation 12

That the 2002/3 Budget adopt the following country-specific priorities for the distribution of Australian aid:

12.1 The maintenance of current real levels of funding to East Timor and the maintenance of current real levels of funding to the Philippines, Mekong, Burma and China.

12.2 An increase in aid to Indonesia of $10 million to assist Indonesia in dealing with the ongoing impacts of the regional economic crisis and to assist with further democratisation and reform.

12.3 An increase in the Australian Government's current commitment to the Middle-East of $5.3m per annum to a total of $8.8m in the 2002/3 financial year. This includes a further allocation of $2 million for NGO programs in the Occupied Palestinian Territories, and an additional commitment of $1.5m for NGO projects focused on Palestinian refugees in Lebanon in the areas of health care and promotion, and support for specific disadvantaged communities.

12.4 Maintain real levels of funding to Africa and South Asia.

Funding Implications

An increase in aid to Indonesia of $10m.

An increase in funds to the Middle East of $3.5m.