(Transcript from SBS World News Radio)
Australia's foreign aid budget could be cut in order to pay for the fight against terrorism.
Treasurer Joe Hockey says he may be forced to look at new savings in December's mid year budget review to pay for tougher counter-terrorism measures and Australia's involvement in Iraq.
Amanda Cavill reports.
(Click on the audio tab above to hear the full report)
There are reports a two year pause in foreign aid increases is being considered to fund the national security measures.
The reports follow comments this week by Joe Hockey, who told the ABC extra spending on initiatives such as tougher security measures and Australia's possible military involvement in Iraq need to be paid for.
But Mr Hockey has so far refused to say just how much they will cost the bottom line or where the cuts will fall.
"There have been a number of initiatives already announced which are very important, such as increased funding for security, we need to indentify the savings that helped to pay for those sorts of new initiatives. You'll see it in the mid-year update, which is in December, because we are again carefully and methodically going through the Budget."
Foreign Minister Julie Bishop says there have been no discussions in cabinet about freezing foreign aid spending.
But Prime Minister Tony Abbott has not specifically ruled out further cuts.
"We have slowed the growth of foreign aid. Foreign aid was slated to explosively grow under the former government. Every year the former government put off the growth. But nevertheless, it was still slated to grow explosively under the former government. We have restrained that growth, essentially to CPI in coming years. I think this is a reasonable change but it certainly means that Australia will continue to have a very strong and effective foreign aid program in the months and years ahead."
Labor says further cuts to foreign aid would be unwise in the current climate.
Labor's foreign affairs spokeswoman Tanya Plibersek says foreign aid can be what she calls an extraordinarily powerful weapon against extremism.
Ms Plibersek says it makes no sense for Australia to be protecting people from Islamic State extremists while refusing to help those same people with food, water, shelter and education.
"The situation in Syria is critical with 200 thousand people now dead. With almost half of the population of Syria having fled their homes. Australia should be doing more in humanitarian assistance for Syria not less. Syria now has lost millions of refugees to neighbouring countries. Countries like Lebanon, Jordan and Turkey. Those countries that are looking after millions of Syrian refugees need more assistance from Australia not less."
Opposition Treasury spokesman Chris Bowen says cutting the foreign aid budget would be shortsighted.
He says the government is just looking for an excuse to again cut aid funding.
"This is a government that has already cut the foreign aid budget massively. And they don't need parliamentary approval to do that. And that is wrong. And they have also cut the foreign aid budget for Iraq. Government's of all pursualions have had to make budgetary allocations for national security operations, defence operations and national security operation. They should not be used as an excuse for further cuts."
The government cut Australian foreign aid spending by $7.6 billion over five years in the May budget.
At the time, the government said it was re-shaping the aid program to ensure it would reduce poverty and promote economic development, while helping the budget return to surplus.
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