Foreign service prepares for budget pain

There will be some pain felt at the Department of Foreign Affairs and Trade flagged in the budget, but it might not fare as badly as previous years.

Australia's cash-strapped diplomats will be hoping their new minister can shield them from a budget bloodbath, but Julie Bishop's warning they won't emerge unscathed.

The Department of Foreign Affairs and Trade has become very good at tightening its belt, having endured repeated cuts by governments of both political persuasions over the past two decades.

Foreign Minister Julie Bishop says she's a "champion" of DFAT and since coming to office last year has vowed to do everything possible to bolster its capacity and influence.

But she's not mincing her words in the lead up to May 13, warning DFAT won't be immune from the government's cuts.

"We're going to wear some pain like every other department's going to wear some pain in the next budget," she said recently.

So where will the axe fall? The government's recent audit of the nation's finances could provide some hints.

The commission of audit recommended scrapping the Australia Network, the federal government's international broadcasting service established to promote Australia's interests in Asia.

The ABC has the current $223 million 10-year contract to run the network, but the commission says the money would be better directed to other areas or returned to the budget.

Given the volley of government criticism hurled at the network earlier this year - including from Ms Bishop who backed a review into the service - it's safe to assume it's on the chopping block.

The aid budget has been plundered for last-minute savings in the past, but is unlikely to be targeted this time.

The government already slashed its aid expenditure in January to $5 billion per year, and says that won't budge an inch above inflation until the nation's finances are back in order.

Ms Bishop is unlikely to tinker further. She's pledged to put stability back into the aid budget, and was critical of Labor promising one amount then chopping and changing it whenever cash was needed.

It will be interesting to see who bears the brunt of any job cuts within DFAT, given the department absorbed Australia's aid agency AusAID - and its roughly 1300 Canberra-based staff - in September.


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Source: AAP


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