PM Transcripts

F 77/ 136
4~~ STRLIA~&
PRIME MINISTER
FOR PRESS 14 JUNE 1977
AUSTRALIA TO INCREASE FOOD AID
The Prime Minister, Mr. Malcolm Fraser, said in London today ( 12 June)
that at the Commonwealth Heads of Government meeting this week he
would announce a substantial increase in Australia's food aid
programme and a liberalisation in the terms of Australian project aid.
On the question of food aid, Mr. Fraser said he would tell the
Commonwealth leaders that Australia will:' increase its total aid
in foodgrains from the present minimum level of 225,000 tonnes of
wheat to 400,000 tonnes per annum; increase the level of foodgrain
aid channeled through the world food programme to 20% of Australia's
total foodgrain aid; make an annual contribution of wheat to the
interim reserve for emergencies; establish a bilateral foodgrain
reserve for emergencies; give non-grain foods regularly as part of
its aid.
Taking account of these new initiatives, Australia's additional
expenditure on food aid during the first year of operation of the
new programme, 1977/ 78, will be of the order of $ 6.5 million.
However, the programme will pro-,' ide for dramatic increases in
succeeding years it is expected that it will increase more than
fourfold by 1979/ 80.
Mr. Fraser commented that the Development Assistance Committee of
the OECD has recommended that countries should endeavour to raise
their development assistance to 0.7% of their gross national product.
Australia agrees with this target and he will be assuring the
conference that the Australian Government would maintain this
commitment. On the other hand, he understood the problems recipient countries
had with tied aid. To overcome these problems, he would announce to
the Heads of Government that Australia proposed in future: to untie
aid for bilateral assistance projects where this would substantially
assist local suppliers in the recipient country; to meet a significant
proportion of local costs for least developed country recipients; to
undertake a study of the further untying of procurement for bilateral
aid projects.