Queensland Liberal, Senator Russell Trood, said today that the first Rudd Budget fails completely to satisfy the fiscal needs of his own expanded demands on the activities of the Department of Foreign Affairs and Trade (DFAT).
“Measures introduced in yesterday’s Budget statement reduced funding for DFAT and effectively restrains our foreign service from meeting its ongoing commitments, let alone achieving the raft of additional expectations set out in the Department 's Portfolio Statement,” said Senator Trood.
"One of these, the strengthening of our political and economic engagement with the European Union has already been weakened by the removal of ten diplomatic posts throughout Europe” said Senator Trood.
In March, Mr Rudd loudly proclaimed the principle of ‘creative middle power diplomacy’ and the need to ensure Australia’s voice was heard ‘across the various councils of the world’; but his miserly constraints on DFAT funding disavow this commitment.
Senator Trood said that the rot started in December with the imposition of a 3.25% dividend efficiency. Its levy on DFAT’s relatively small budget could not be justified as ‘fiscally responsible’. “Unbelievably, it got worse when in January Mr Rudd ripped $57 million from DFAT’s budget.
“This penny pinching was further exacerbated last night when it was revealed that notwithstanding the Prime Minister’s much-lauded foreign policy expertise, his Government’s first Budget has exposed its lack of commitment to Australia’s Foreign Service. Whilst the Howard Government capably maintained DFAT’s funding at a ten-year average of 0.09% of GDP – in an era of rapidly expanding government receipts – Mr Rudd’s maiden Budget drives DFAT’s funding to a new low of 0.07% of GDP.”
Senator Trood added that 305 staff cut from the very core of DFAT’s function – the protection and advancement of Australia’s national interests will place extraordinary additional stress on a professional and dedicated workforce.
“Rudd’s razor gang has left DFAT chronically under-funded and,” said Senator Trood, “forward estimates offer no ray of hope for responsible funding in the future with a 9% decrease in 2009-10 and a further 5% in 2010-11. Indeed, they emphasise the magnitude of the Government’s failure, and of its lack of understanding what is needed.”
“The Rudd Government’s whole approach to foreign affairs has culminated in an act of fiscal vandalism of the highest order. The cumulative affects of reducing DFAT’s financial and human resources, without doubt, will severely impact on its capacity to advance Australia’s foreign policy agenda and protect the national interest.” Senator Trood said.