Turnbull Government Minister blasts China over Pacific loans
A SENIOR government minister has launched an extraordinary attack on China’s foray into the Pacific, saying its loans were creating “useless buildings” and “roads to nowhere”.
National
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A SENIOR Turnbull Government Minister has launched an extraordinary tirade about China’s foray into the Pacific, accusing the Asian superpower of lending funds to island nations on unfavourable terms and constructing “useless buildings” and “roads to nowhere”.
It comes amid mounting tensions between Australia and China over concerns about foreign interference in Australian politics.
Labor’s foreign affairs spokeswoman Penny Wong has slammed the remarks, saying it was more “clumsiness” from the Turnbull Government in dealing with China.
“Simply lashing out at China every time the Government is in trouble isn’t a good way to deal with a relationship that is of very great economic importance to Australia,” Senator Wong said on ABC radio.
International Development Minister Concetta Fierravanti-Wells had told The Australian China’s influence in the Pacific was “clearly growing” but the country’s financial assistance to island nations was resulting in “white elephants”.
“You’ve got the Pacific full of these useless buildings which nobody maintains, which are basically white elephants … I’ve gone to islands and you’ll be driving along on some back road and all of a sudden you see this Chinese road crew building a road to nowhere and you think ‘Hmm, what’s all that about?’” she said.
She also told the publication there was no doubt China was “duchessing” politicians in the Pacific.
In some cases, politicians had directly benefited from development projects.
The Australian reports Cook Island MPs received free quad bikes as part of a donation of agricultural equipment from the Chinese government in 2015.
The Lowy Institute estimates that China has transferred the equivalent of about $2.3 billion in aid to South Pacific nations over a decade from 2006.
Senator Fierravanti-Wells said there were concerns China’s loans to South Pacific nations had unfavourable terms.
The Minister said there were growing loan applications to the World Bank and the Asian Development Bank by Pacific nations but their terms were clearly set out.
She said: “We don’t know what the consequences are when (nations) have to pay back some of these Chinese loans.”
Senator Fierravanti-Wells also said Pacific countries were struggling to maintain donated facilities and some nations were concerned about the use of foreign workers in aid projects.
“Over my visits, I have come across a number of nonproductive infrastructure where no provision is made for maintenance and therefore the buildings are not used to full capacity,” she said.
Lowy Institute Pacific Islands program director Jonathan Pryke told the publication the Minister had a legitimate point.
“Any of these projects (and there are quite a few) that have ‘sport’ or ‘conference’ in the description, you can guarantee are not going to get you a return on investment, especially if they are built with a loan,” he said.
“The same goes for mammoth government buildings.”
But he said not all Chinese aid was problematic.
“Expanding existing university facilities, rehabilitating ports, expanding road networks in urban areas, improving ICT capabilities of government — all of these appear at least defensible,” he said.
The federal Opposition has raised concerns recently that Australia has not been active enough in the Pacific to stop nations choosing support from China instead.
Read more at The Australian