Senator HOGG (2:33 PM) —My question is to Senator Alston, representing the Minister for Foreign Affairs. Can the minister confirm that Australia's foreign aid is projected to fall in 2000-01 to 0.25 per cent of GNP? Isn't this the lowest level for foreign aid in more than 30 years—indeed, as far back as comparable statistics extend? Will the minister inform the Senate of the government's target for foreign aid as a percentage of GNP?

Senator ALSTON (Minister for Communications, Information Technology and the Arts) —The figure for overseas aid in 2000-01 is $1.6 billion, which is a nearly $100 million increase over the 1999-2000 budget estimate, which is an increase of four per cent in real terms. This representsan ODA to GNP ratio of 0.25 per cent, which is still above the latest average for all donors of 0.24 per cent. In constant prices, it is larger than the average Australian aid budget over the past 30 years. The government has demonstrated its willingness to respond generously and quickly to emerging needs—additional funding in 1999-2000 for East Timor, the Heavily Indebted Poor Countries Initiative and the East Timorese and Kosovar evacuees in Australia—resulting in an expected ODA outcome of $1.65 billion, with an ODA to GNP ratio of 0.27 per cent. The quantity of ODA is only one aspect of aid flows; the quality of those flows is also important.

Senator HOGG —Madam President, I ask a supplementary question. The question that I posed was not answered by the minister. I asked: what is the government's target for foreign aid as a percentage of GNP? Further, hasn't the government effectively endorsed the view expressed by its 1997 Simons committee review of our foreign aid program that the longstanding 0.7 per cent target should be abandoned?

Senator ALSTON (Minister for Communications, Information Technology and the Arts) —It is fair to say that that figure has been more honoured in the breach by governments around the world, but it is a UN designated target that has been nominally in place now for 25 or 30 years. Governments do their best in the circumstances that apply to them to achieve appropriate outcomes. We regard the aid budget as a very important one. It does provide us with an opportunity to assist a number of developing countries. As I have indicated, the figure that we are expecting to achieve this year is higher than the average level of all other donors. We are not in the business of trying to predict the circumstances of future years. Obviously, circumstances change—in some instances, quite dramatically, and East Timor would be a classic example. At this stage, the ODA to GNP ratio looks set to increase from the previously estimated 0.25 per cent to 0.28 per cent for 1999-2000. However, the latest figures were higher than the forecast growth. (Time expired)