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Part 2: Expense Measures (continued)

Foreign Affairs and Trade

Expanding Australia's Diplomatic Representation

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Department of Foreign Affairs and Trade 1.1 3.9 5.5 5.7
Department of Foreign Affairs and Trade 3.7 6.2

The Government will provide $42.3 million (including $16.8 million in capital funding) over five years from 2015—16 to expand Australia's diplomatic network by opening a consulate in Lae (Papua New Guinea) and another post in China as well as extending the interim embassy in Kyiv (Ukraine) until September 2016. An expanded diplomatic network will promote Australia's foreign policy and trade interests. Establishing a further diplomatic presence in China will open new investment opportunities for Australian business following ratification of the China‑Australia Free Trade Agreement.

The Government will fund the establishment of the diplomatic posts in Lae through redirecting funding provided for the establishment of a diplomatic post in Buka (Papua New Guinea), which is no longer proceeding. Continuation of the interim embassy in Kyiv will be met from the existing resourcing of the Department of Foreign Affairs and Trade.

Further information can be found in the press releases of 10 February 2016 and 3 March 2016 issued by the Minister for Foreign Affairs.

Foreign Affairs and Trade Portfolio — efficiencies

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Department of Foreign Affairs and Trade 9.7 19.3 17.1 16.9 ‑13.4
Australian Trade and Investment Commission ‑1.5 ‑6.8 ‑5.1 ‑5.3 ‑5.3
Total — Expense 8.2 12.5 12.0 11.5 ‑18.7

The Government will achieve efficiencies of $74.5 million over five years (including $1.8 million in 2015—16) within the Department of Foreign Affairs and Trade (DFAT) and the Australian Trade and Investment Commission (Austrade).

A range of efficiencies were identified following DFAT's Functional and Efficiency Review, including:

  • streamlining business processes;
  • automating and centralising administrative functions;
  • changing overseas posting arrangements; and
  • removing consular assistance for dual nationals and permanent residents in the countries of which they are citizens.

The Government will also achieve efficiencies from Austrade through reductions in departmental costs and reduced funding for Match Australia.

Provision for this funding has already been included in the forward estimates. The expenditure impact identified against DFAT reflects changes in the timing and nature of the efficiencies since the original saving was provisioned.

The savings from this measure will be redirected by the Government to repair the Budget and fund policy priorities.

Free Trade Agreement Portal — enhancements

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Department of Foreign Affairs and Trade

The Government will provide $1.8 million over four years from 2016‑17 to enhance the online Free Trade Agreement Portal managed by the Department of Foreign Affairs and Trade (ftaportal.dfat.gov.au). This measure will improve the functionality of the portal and allow additional information covering all of Australia's free trade agreements to be available.

The cost of this measure will be met from within the existing resources of the Department of Foreign Affairs and Trade.

This measure builds on the 2015‑16 Budget measure titled Free Trade Agreement Promotion.

International Engagement to Prevent and Disrupt Maritime People Smuggling — continuation

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Department of Foreign Affairs and Trade 2.3 2.3 2.3 2.3

The Government will provide $9.2 million over four years from 2016‑17 to enable the Department of Foreign Affairs and Trade to continue initiatives to prevent people smuggling. This measure provides for the continuation of the People Smuggling Taskforce, the Ambassador for People Smuggling and Human Trafficking, and Ministerial and senior officials meetings of the Bali process to strengthen cooperation in our region.

The cost of this measure will be offset by redirecting funding from the 2016‑17 Budget measure titled Foreign Affairs and Trade Portfolio — efficiencies.

This measure extends the 2014‑15 Budget measure titled International Engagement to Prevent and Disrupt Maritime People Smuggling.

Landing Pads in Innovation Hot Spots

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Australian Trade and Investment Commission 1.2 1.2

The Government will provide $2.4 million over two years from 2016‑17 to bring forward the opening of the Singapore and Berlin Landing Pads from 2018‑19 to 2016‑17. The Landing Pads will support emerging Australian companies in global innovation hotspots.

This measure builds on the 2015‑16 MYEFO measure titled National Innovation and Science Agenda — Global Innovation Strategy.

Further information can be found in the joint press release of 27 April 2016 issued by the Minister for Trade and Investment and the Minister for Industry, Innovation and Science.

Passport Funding Arrangements — additional funding

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Department of Foreign Affairs and Trade 14.0 8.8 10.5 13.5

The Government will provide an additional $46.7 million over four years from 2016‑17 to meet the increased costs of producing and providing passports to Australian citizens.

Re‑opening Australia's Australian Trade and Investment Commission Office in Tehran, Iran

Expense ($m)
2015‑16 2016‑17 2017‑18 2018‑19 2019‑20
Australian Trade and Investment Commission ‑0.2 .. .. ..
Australian Trade and Investment Commission 0.2

The Government will provide $5.3 million (including $0.2 million capital in 2016‑17) over four years to re‑open an Australian Trade and Investment Commission (Austrade) office in Tehran (Iran).

The office will support Australian business to capitalise on export and investment opportunities in agriculture, resources, healthcare, education and water management. The initiative follows the implementation of arrangements to verify that Iran's nuclear industry is being developed for peaceful purposes and the consequent lifting of international sanctions.

The cost of this measure will be offset by redirecting funding from other areas in the Austrade network.

Further information can be found in the press release of 15 March 2016 issued by the Minister for Trade and Investment.