I am delighted to announce Australia will establish a $2 million fund to assist transport reform in the Pacific.
Leaders at this week's Pacific Islands Forum have supported a number of Australian recommendations drawn from the Pacific Regional Transport Study, which I initiated at last year's Forum. In particular, they have endorsed the Apia Declaration of Principles on Regional Transport Services.
In their current state, many regional transport services are economically unsustainable and place an excessive burden on the economies of Forum island countries.
The recommendations propose practical measures to improve the economic efficiency and sustainability of the region's aviation and shipping sectors, including through the pooling of scarce regional resources.
The fund will give Forum island countries access to specialist economic, financial and legal expertise to help them make key policy decisions in the transport sector.
The maintenance of regular, reliable and competitive transport services is crucial to the economies of Forum island countries. Recent changes in the transport sector, including the entry of low-cost competitors and new international safety and security requirements, will have significant implications for Pacific services.
Good governance, including sound processes for appointing boards, disclosure of financial statements, awarding of contracts and infrastructure decisions, will be essential to meet these challenges successfully.
Australia will continue to work closely with Forum island countries and the Forum secretariat on this important issue.