Despite high levels of international assistance - $1.1 billion in 2006 - many Pacific island countries still struggled to meet their economic and development challenges, it said.

 

The report, by the Senate's foreign affairs, defence and trade references committee, made 22 recommendations to help Australia to better tailor its aid program.

 

Recommendations included a new strategic plan to ensure assistance is better targeted and the development of a single policy framework to guide its governance program.

 

Liberal backbencher Russell Trood, a former international affairs expert and the chair of the committee, said Australia, as the main aid donor to the Pacific, could the increase the effectiveness of its assistance.

"One of the major challenges for the Australian government is to set a policy framework that provides a clear focus, one that enables it to target its aid to areas that are likely to provide the best means for Pacific island countries to achieve positive, long-term economic and human development," Senator Trood told parliament.

 

 

While many parts of the Pacific has inherent problems that inhibit growth, such as geography and size, Senator Trood said the committee found many Pacific nations had the potential to lift growth yet range of factors prevented them reaching their potential.

 

"One of the main obstacles to increased economic development is inadequate is inadequate investment and planning in key economic infrastructure - things like roads, bridges, ports, the supply of energy, potable water, telecommunications, storage facilities and aviation and shipping facilities," he said.

 

The parliamentary secretary for international development, Bob McMullan, was not immediately available for comment.