12 May 2010

Australian aid to Pacific set for a boost

8:14 pm on 12 May 2010

The Pacific will receive millions more in aid from Australia, after the Rudd government announced it will fulfill its election promise to boost official development assistance funding.

As part of its budget, the Australian Government says it will increase ODA funding from point-31 percent of gross national income in the last financial year, to point-33 percent in the next year, and point-five percent in 2015.

The Parliament Secretary for International Development, Bob Mc Mullan says that means aid to the Pacific will go up by about 53 million US dollars in the next financial year.

However, Mr McMullan says the Pacific's percentage of aid may decline slightly because the overall budget is growing so quickly.

"Our aid budget is going to double over the next five years. I'm not sure that we could effectively and efficiently double our aid spending in the Pacific. There is big need but you don't want to swamp a country with assistance."

Bob McMullan says the PNG government doesn't want more aid as the LNG project has strengthened its financial positon.