Australia's troubled neighbours will bear the brunt of a big cut in overseas advisers

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Joe Kelly - The Australian - February 15, 2011

Following a review of adviser positions last May, the Gillard government will axe 257 long-term positions from 11 different programs over the next two years.

The AusAid "joint adviser' review, released today, found the highest number of low-priority positions were in PNG and East Timor.

The government will act on the report's findings, cutting 181 advisers from Papua New Guinea and 29 advisers from East Timor.

The review found Australia and other partner governments had been over-relying on the use of advisers and a "refocusing" of assistance was required.

The phase-outs amount to a 37 per cent reduction in the number of Australian aid advisers to PNG, and a 35 per cent cut in PNG.

The reductions will occur primarily in rural development, education, health and HIV prevention.

Savings will be poured back into the same development priorities in PNG, while in East Timor the extra money will be funnelled into rural development and other key areas.

The report stressed the cuts "do not reflect inappropriate use of funds".

"Indeed in some cases, they represent situations where the objectives of the position have been achieved and the position is no longer required," it said.

Foreign Minister Kevin Rudd touted the changes this morning as a more effective use of Australian aid, stressing the government had adopted all five of the review's recommendations.

"Over the past decade, and under the previous Government, the Australian aid program had come to rely increasing on highly paid advisers as its preferred form of aid. That is now changing," he said.

"A quarter of all advisers can be phased out within two years."

Mr Rudd said Australia's in-country adviser budget had already fallen from 42 per cent of overseas aid to an average 34 per cent since 2008.

The Australian reported this morning the Gillard government would end the gravy train for technical advisers, some of whom are on $500,000 tax free salaries more than Mr Rudd was paid as Prime Minister when he announced the review last May.

He said today an "Adviser Remuneration Framework" would ensure that salaries and allowances to AusAid funded advisers were capped at fee levels roughly 25 per cent less than the highest rates currently being paid.
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