Budget 2020: Extra $300m to assist our Pacific neighbours

Australia will pour more than $300m into Pacific Island countries and East Timor to help them recover from the coronavirus pandemic.

Foreign Minister Marise Payne. Picture: Sean Davey

Australia will pour more than $300m into Pacific Island countries and East Timor to help them recover from the coronavirus pandemic, and has vowed to spend whatever it takes to ensure regional partners get early access to a COVID-19 vaccine.

The commitments come as the official overseas aid budget continues to go backwards in real terms, with total spending on development assistance static at $4bn under a cap that will remain until at least 2022-23.

Amid growing competition for regional influence with China, Australia will establish a new $304.7m COVID-19 Recovery Fund for “Pacific Step-Up” neighbours, to be spent over the next two years.

Foreign Minister Marise Payne said the fund would help address the economic and social costs of the pandemic in the Pacific and East Timor, helping to underpin regional stability.

As the government pivots the aid program towards kickstarting a regional pandemic recovery, the budget cements an earlier pledge by Scott Morrison to support regional partners in accessing a coronavirus vaccine when one is available.

“The Australian government is committed to assist in the procurement and delivery of COVID-19 vaccines to partner countries in the Pacific, East Timor and Southeast Asia,” the budget papers say.

The potential cost of the commitment are listed as “unquantifiable”. The government has allocated an extra $23.2m to support development of national immunisation policies in the Pacific, East Timor and several Southeast Asian countries to ensure the effective delivery of COVID-19 vaccines when they become available.

Senator Payne said: “Early access to safe, effective and affordable vaccines will save lives and underpin Australia’s security by promoting regional stability and economic recovery.”

The vaccine commitment comes on top of an $80m commitment to improve vaccine access for Pacific and Southeast Asian communities.

The budget confirms the government is negotiating with PNG to provide a further budget support loan to the country, after an earlier $440m funding injection into the country that has been offered interest-free during the COVID-19 pandemic.