ANNUAL REPORT

201 1 –2012
DEPARTMENT OF
FOREI GN AFFAI RS AND TRADE
ANNUAL REPORT
201 1 –2012
ISSN 1032–2019 (print)
ISSN 1839-5147 (online)
ISBN 978-1-74322-031-3 (book)
ISBN 978-1-74322-032-0 (pdf)
ISBN 978-1-74322-033-7 (online)
Creative Commons
With the exception of the Commonwealth Coat of Arms and where otherwise noted (including
photographs protected by copyright), this report is licensed under a Creative Commons Attribution
3.0 Australia licence http://creativecommons.org/licenses/by/3.0/au/.
The report should be attributed as
Department of Foreign Affairs and Trade Annual Report 2011–12.
Use of the Coat of Arms
The terms under which the Coat of Arms can be used are detailed on the It’s an Honour website
http://www.itsanhonour.gov.au/coat-arms/index.cfm.
Acknowledgments
Executive Editor Majell Hind
Coordinating Editor Vanessa Lai
Coordinating Editor Eric Spry
Assistant Editor Charles Prestidge-King
Editorial Consultant Angus Mackenzie
Indexer Michael Harrington
Website
http://www.dfat.gov.au/dept/annual_reports
Contact
Inquiries about the annual report are welcome and should be directed to:
Director, Corporate Planning Section
Executive, Planning and Evaluation Branch
Department of Foreign Affairs and Trade
R G Casey Building, John McEwen Crescent
Barton ACT 0221
Phone 02 6261 3299
Fax 02 6261 3541
Email editor.annualreport@dfat.gov.au
Design by ZOO Advertising
Printing by Blue Star Print

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CONTENTS
Letter of transmittal iii
Guide to the report viii
Section 1: Overviews 1
Secretary’s review 3
Departmental overview 8
Section 2: Performance reporting 15
Outcome 1: The advancement of Australia’s international strategic, security
and economic interests including through bilateral, regional and multilateral
engagement on Australian Government foreign and trade policy priorities 16
Program 1.1: Foreign Affairs and Trade operations 18
Program management (advocacy and protection of Australian interests) 21
1.1.1 North Asia 21
1.1.2 South-East Asia 31
1.1.3 Americas 42
1.1.4 Europe 49
1.1.5 South and West Asia, Middle East and Africa 57
1.1.6 Pacifc 69
1.1.7 Bilateral, regional and multilateral trade negotiations 81
1.1.8 Trade development and policy coordination 94
1.1.9 International organisations, legal and environment 101
1.1.10 Security, nuclear disarmament and non-proliferation 113
Program management (services to other agencies) 119
1.1.11 Services to other agencies in Australia and overseas (including
Parliament, state representatives, business and other organisations) 119
Program management (services to diplomatic and consular representatives) 124
1.1.12 Services to diplomatic and consular representatives in Australia 124
Program management (public information services and public diplomacy) 127
1.1.13 Public information services and public diplomacy 127
Program 1.2: Payments to international organisations 143
Administered item:
Payments to international organisations
Program 1.3: Public information services and public diplomacy 144
Administered items:
International relations grants program
Australia Network
Australia and New Zealand School of Government–China Advanced
Leadership Program
Expositions Special Account

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CONTENTS
Outcome 2: The protection and welfare of Australians abroad and access
to secure international travel documentation through timely and responsive
travel advice and consular and passport services in Australia and overseas 146
Program 2.1: Consular Services 148
Program 2.2: Passport services 157
Outcome 3: A secure Australian Government presence overseas through
the provision of security services and information and communications
technology infrastructure, and the management of the Commonwealth’s
overseas owned estate 164
Program 3.1: Foreign Affairs and Trade operations 166
Program 3.2: Overseas property 173
Section 3: Corporate management and accountability 179
Overview 181
Corporate governance 181
External scrutiny 186
Management of human resources 188
Management of fnancial resources 196
Section 4: Appendixes 201
1 Ministerial responsibilities 203
2 Staffng overview 205
3 Agency resource statement and tables of expenses by outcomes 211
4 Work health and safety 215
5 Inquiries by parliamentary committees 217
6 Matters before courts and administrative tribunals 219
7 Ecologically sustainable development and environmental performance 221
8 Purchaser–provider arrangements 223
9 Advertising and market research 226
10 Grants and contributions 227
11 List of sponsors 230
12 Summary of the overseas network 236
Section 5: Financial statements 245
Independent auditor’s report 247
Statement by the Chief Executive and Chief Finance Offcer 249
Financial statements 250
Notes to and forming part of the fnancial statements 261
Section 6: Glossaries and indexes 323
Glossary of terms 325
Glossary of acronyms and abbreviations 327
List of requirements 330
Index 334

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List of Figures
Figure 1. Executive structure (as at 30 June 2012) 10
Figure 2. Location of Australia-based staff 11
Figure 3. Outcomes and programs framework 12
Figure 4. Portfolio outcomes structure 13
Figure 5. Australia’s trade in goods and services with Japan 24
Figure 6. Australia’s trade in goods and services with China 26
Figure 7. Australia’s trade in goods and services with Taiwan 26
Figure 8. Australia’s trade in goods and services with the Republic of Korea 29
Figure 9. Australia’s trade in goods and services with ASEAN 40
Figure 10. Australia’s trade in goods and services with the United States 44
Figure 11. Australia’s trade in goods and services with the European Union 50
Figure 12. Australia’s trade in goods and services with India 60
Figure 13. Australia’s trade in goods and services with New Zealand 71
Figure 14. Direction of Australia’s exports 2011 94
Figure 15. Travel documents issued 158
Figure 16. 2011 Mystery shopper exercise – customer service satisfaction 161
Figure 17. 2011 Mystery shopper exercise – overall customer experience 162

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CONTENTS
List of Tables
Table 1. Australia’s trade in goods and services with North Asian economies 22
Table 2. Australia’s trade in goods and services with South-East Asia 33
Table 3. Australia’s trade in goods and services with the Americas 45
Table 4. Australia’s trade in goods and services with Europe 56
Table 5. Australia’s trade in goods and services with countries in
South Asia and the GCC 61
Table 6. Services to diplomatic and consular representatives: statistics 126
Table 7. Requests processed under the Freedom of Information Act 1982 139
Table 8. Requests assessed under the Archives Act 1983 141
Table 9. Travellers emergency loans 151
Table 10. Consular services provided to Australian travellers 156
Table 11. Security and information communications technology: statistics 171
Table 12. Consultancy expenditure 197
Table 13. Employees by classifcation, gender and location 205
Table 14. Ongoing and non-ongoing employees, full-time and part-time 206
Table 15. Employees by categories of employment 206
Table 16. Senior executive service by level and location 206
Table 17. Senior executive service by gender 207
Table 18. Senior executive service: gains and losses during the year 207
Table 19. Senior executive service: inter-agency mobility during the year 207
Table 20. Employees by location and gender 208
Table 21. Employees covered by the Enterprise Agreement and Remuneration
Supplementation Agreements 209
Table 22. Performance bonus payments by level 2011–12 210
Table 23. Department of Foreign Affairs and Trade resource statement 2011–12 211
Table 24. Expenses and resources for outcome 1 212
Table 25. Expenses and resources for outcome 2 213
Table 26. Expenses and resources for outcome 3 214
Table 27. Work health and safety statistics 216
Table 28. Advertising and market research 226
Table 29. Grants programs 227
Table 30. Contributions to international organisations and peacekeeping operations 228
Table 31. List of sponsors 230
Table 32. Network of overseas posts 236
Table 33. Consulates managed by Austrade 239
Table 34. Consulates headed by honorary consuls 239
Table 35. Locations where Canada provides consular services to Australian citizens 242
Table 36. Locations where Australia provides consular services to Canadian citizens 243

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GUIDE TO THE REPORT
This is the Secretary’s report to the Minister for Foreign Affairs and the Minister for
Trade and Competitiveness on the performance of the Department of Foreign Affairs
and Trade during the fnancial year 2011–12. The report is prepared in accordance with
the Department of the Prime Minister and Cabinet’s Requirements for Annual Reports,
as approved on behalf of the Parliament by the Joint Committee of Public Accounts and
Audit on 28 June 2012.
Information and statistics, unless otherwise indicated, cover the fnancial year
2011–12, or relate to the situation as at 30 June 2012. All dollars are Australian
unless otherwise specifed.
The report of the Department of Foreign Affairs and Trade uses the same outcome–
program structure as outlined in the Portfolio Budget Statements 2011–12 for the
foreign affairs and trade portfolio.
The report includes a review of the department’s performance in 2011–12 in relation to
the deliverables and key performance indicators of its programs and their effectiveness
in achieving planned outcomes. Readers will fnd the relevant objectives, deliverables
and key performance indicators listed at the beginning of each program. Quantity
measures have been included in reporting against some programs in tabular form where
the information contributes to the overall reporting of the department’s effectiveness in
achieving planned outcomes.
We have included trade statistics covering services as well as goods. The latest goods
and services trade statistics relate to calendar year 2011. They are not part of the
department’s performance reporting but are included as background information for the
beneft of readers.
Section 1 contains:
• the Secretary’s review for 2011–12
• the departmental overview, including:
– role and functions
– organisational structure
– executive structure
– outcomes and programs framework
– portfolio structure.

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GUIDE TO THE REPORT
Section 2 contains the department’s outcome–program performance information
reporting. In line with the Portfolio Budget Statements 2011–12:
• performance is reported by departmental program
• reporting addresses all deliverables and key performance indicators.
Section 3 reports on enabling services that do not appear under the program structure.
It includes reporting on corporate governance, external scrutiny and management of
human and fnancial resources.
Section 4 includes appendixes providing reports required under specifc legislation and
other useful additional information.
Section 5 contains the audited fnancial statements for 2011–12.
Section 6 contains glossaries and indexes.
Further information
Publications Portfolio Budget Statements 2011–12 and 2012–13
Portfolio Additional Estimates Statements 2011–12
Portfolio Supplementary Additional Estimates Statements 2011–12
Website http://www.dfat.gov.au
x
The Minister for Foreign Affairs, Senator Carr,
with Vietnamese Minister for Foreign Affairs,
Mr Pham Binh Minh, in Hanoi in March 2012.
Photo: Tran Thanh Hai
The then Minister for Foreign Affairs, Mr Rudd,
with the then French Minister for Foreign and
European Affairs, Mr Alain Juppé, at the French
Foreign Ministry in Paris in January 2012. Photo:
Alistair Miller
1
OVERVI EWS
SECTI ON 1
Prime Minister Gillard and the Minister for Trade and Competitiveness,
Dr Emerson, meet Chinese Commerce Minister, Chen Deming, at Parliament
House in Canberra in April 2012. Photo: Auspic/David Foote
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Secretary’s review
Departmental overview

Overviews
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OvERvIEwS SECRETARy’S REVIEW
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The Secretary, Mr Dennis Richardson AO.
Photo: Norman Plant
SECRETARy’S REVIEW
The Secretary’s Review normally provides an overview of achievements. I am breaking
with that tradition to provide a better sense of the department itself and of the people
who pursue the national interest in this part of government. This Review will therefore
repeat some of the themes and information conveyed in different speeches I have given
over the past couple of years.
The Review will also highlight some of the obvious challenges ahead.
The Department
By and large, people in and outside government see the Department of Foreign Affairs
and Trade as a ‘policy department’. This is true, but it is only part of the story, as
the department is anything but mono-dimensional. Indeed, the extent to which the
department is both a policy and a functional department is often under appreciated.
The Department of Foreign Affairs and Trade provides the following functional services:
• Passports, with some 1.7 to 1.8 million now issued each year. This function is a big
one, involving over 20 per cent of the department’s A-based staff.
• Consular, with over 1,500 cases active at any one time, in the context of a widening
gap between the expectations and reality of what government can and can’t do
for Australians abroad. Dedicated consular offcers number only about 160 of
the department’s 4,598 employees (i.e. permanent, part-time and contractors).
However, offcers from across the department are trained in consular matters
and are brought in to assist in times of crises. For instance, as mentioned in the
2010–11 Annual Report, 34 per cent of all Canberra-based staff were involved in
responding to the simultaneous crises in early 2011 in New Zealand, Japan and the
Middle East.
• Managing the $1.6 billion of government owned property abroad through the
Overseas Property Offce.
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• Providing and maintaining the government’s global classifed communications system.
• Providing common services for departments and agencies represented at Australian
Missions abroad.
Taken together, these functional activities embrace over 40 per cent of the department’s
total staff.
The department’s corporate and policy activities are also more complex than might
appear at frst sight. Corporate management in the Department of Foreign Affairs
and Trade involves the usual activities of human resource and fnancial management.
In addition, there is a component of psychological, medical and security activities well
above that which would be found in domestic agencies. Staff deployed to Kabul, Tarin
Kowt, Kandahar, Baghdad and some other places must be extensively tested to ensure
they are able to meet the obvious demands and challenges. Security, which is a high
cost commodity, must be taken especially seriously in many places around the world.
And staff deployed to some locations are entitled to expect access to a minimum of
medical care. So the department’s corporate costs are higher than what one would fnd
in a normal government department.
The so-called policy work of the department involves a lot of hands-on activity, which
is as much doing as thinking. For instance, organising prime ministerial and ministerial
visits, high level business and trade delegations, and public diplomacy activities.
A successful DFAT offcer must be able to be as much a visits organiser and an events
manager as a policy thinker.
It is against this background that care needs to be exercised in examining the
percentage of staff posted abroad and the percentage of staff with a foreign language.
In point of fact, many DFAT staff work in areas where a posting is not part of the job and
where a foreign language is not required.
As of 30 June 2012, there were 2,479 A-based offcers in the department i.e. excluding
contractors. Of these, 1,140 were policy offcers or what popular perception might see
as so-called ‘diplomats’.
Of the 1,140 policy offcers, 559 (49 per cent) were working with the department in
Australia, 397 (35 per cent) were overseas and 184 (16 per cent) were off-line. The
latter encompasses the 50–70 offcers who are, at any one time, working in other parts
of government or at Parliament House; offcers on language training in Australia; offcers
accompanying spouses on overseas postings; and offcers on maternity or other leave.
Offcers in the department are increasingly indicative of the Australia they represent.
In recent years, for instance, graduate trainees have been born, not only in Australia,
but in countries as diverse as Indonesia, China, the Sudan, Somalia, Afghanistan, India,
South Africa, Lebanon, Malaysia, South Korea, Sri Lanka, Bahrain and Italy.
The department has continued to improve gender balance at senior levels, the
employment of Indigenous Australians and people with disabilities, but still has some
way to go to be even satisfactory on such measures.
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OvERvIEwS SECRETARy’S REVIEW
Overseas Representation
The balance of policy and non-policy offcers abroad has changed signifcantly since 1996.
In 1996 there were 680 A-based offcers posted abroad, of whom 370 (54 per cent)
were policy offcers. Despite the fact that, as of 30 June 2012, the number of offcers
posted abroad had reduced to 594, the number of policy offcers on posting had actually
increased by 27 to 397 (67 per cent). So the department has already undergone
the sort of rebalancing which the Foreign Offce in the UK has undertaken with its
downsizing over the past couple of years and which the New Zealand Foreign Service is
currently undergoing.
Relative to Australia’s size and our global interests and regional priorities, the
department’s resources are thinly spread, although the spread does refect those
interests and priorities. For instance, about 52 per cent of the department’s staff
abroad are in Asia/Pacifc, 16 per cent are in Europe, 11 per cent are in the Americas,
15 per cent are in the Middle East and Africa and six per cent are engaged in
multilateral work e.g. UN, WTO, IAEA etc.
And the location of staff has changed over time to refect global and regional changes.
In 1996 there were 83 DFAT policy staff in Europe; in 2012 there are 58, a decrease of
30 per cent, despite the fact that the EU remains one of Australia’s most important and
signifcant economic partners, both in terms of trade and investment.
Cut another way, over 70 per cent of DFAT staff abroad are in G20, APEC, EAS and
Pacifc island countries.
To give an idea of the thinness of the spread of our representation, 72 per cent of our
Missions abroad have six or fewer A-based DFAT staff, with 35 per cent having three or
fewer A-based DFAT staff.
The Policy context
The department’s work is being progressed within a global and regional environment
being reshaped by changing economic and strategic relativities. And nowhere is this
more important than in respect of the key Trans-Pacifc relationships involving the
United States, China, Japan and India. It is the interplay between these relationships,
especially between the US and China, which will fundamentally shape the politico
strategic environment in which we, as a country, live. Indeed, at the time graduates now
joining the department retire, the dynamic will still be being played out. It is the dynamic
which will dominate our world for longer than the Cold War dominated the second half of
the 20th Century.
We are also seeing big changes in the institutions the world uses to organise itself.
Organisations like the UN and the IMF are under structural pressure. And the WTO is
struggling with trade liberalisation. Newer forums like the G20 and proto-groups like the
BRICS refect the changing order. But nothing is yet fxed and the system is in fux.
Closer to home our interests in South East Asia and the South Pacifc are enduring and
always require close and consistent engagement.
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The challenge
Organisations always have multiple challenges. There is never an end point and there
is never a point of perfection which, once reached, does not require adjustment. There
are always moving parts, so needs and requirements are always changing. At present,
in addition to the challenge outlined above in ‘the policy context’, there are four big
challenges which stand out.
The frst challenge concerns our own capacity as a nation to seize the opportunity of
the forums to which we now belong and to develop integrated strategies in the pursuit
of our national interests. Twenty years ago the two forums which Australian Heads of
Government attended on a regular basis were the Commonwealth Heads of Government
Meeting (every two years) and the Pacifc Islands Forum (annually). Today Australian
Prime Ministers attend annually the APEC Leaders’ Meeting, the East Asia Summit and
the G20 Leaders’ Meeting.
It is important to stand back and refect on what this means. For the frst time,
Australian leaders now sit at the same table, a minimum of three times a year, with
each of the leaders of the United States, China, Japan, Russia, Korea and Indonesia.
We are at the same table a minimum of twice a year with the leader of India. For the
frst time Australian leaders are now involved in annual meetings with the leaders of
important emerging countries such as Brazil, Turkey and South Africa, and with the
leaders of the UK, France, Germany and Italy.
APEC, the EAS and the G20 each have a specifc purpose but a country such as
Australia should not view them as exclusive domains covering economic, strategic
and fnancial matters. They are much more than that. The new forums which
Australian leaders now attend should be seen as opportunities to further particular
bilateral relations and to pursue particular multilateral objectives. They should not be
pigeon-holed and be seen as separate and distinct from each other.
The second big challenge is to secure a global and regional environment in which the
private sector can prosper. This means not just turning back the forces of protectionism,
but also supporting Australian businesses in their efforts to trade and invest in global
supply chains and tap into areas of high economic growth. This challenge is even more
important as the Australian economy undergoes profound changes. The Department
of Foreign Affairs and Trade has a key role in opening markets and working with
businesses as they seek to compete in an increasingly integrated global economy.
It is important in the changing global landscape to see trade agreements in both
economic and broader terms, for instance with countries such as India and Indonesia.
The third big challenge is to continue to manage our near neighbourhood relations with
deftness and sensitivity, consistent with our national interests. This is a challenge which
confronts successive generations of Australian foreign policy advisers and decision
makers. We have had mixed success. But the environment is changing. It is only a
matter of time before we have a neighbour in Indonesia which has a bigger economy
in nominal terms than our own. We are not used to that. As Indonesia grows wealthier
and more confdent it will become increasingly diffcult for Australia to gain the attention
of Indonesian decision makers to the extent that we think our interests might warrant.
In other words, we may need to become more selective in what we push and what we
ask for.
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OvERvIEwS SECRETARy’S REVIEW
The fourth big challenge is the obvious one of resources. It is clear that the fscal
environment will remain tight for some time to come. The Department of Foreign
Affairs and Trade will need to continue to absorb its fair share of pain. And the pain
for the department will be more acute than for some other parts of government,
given that we did not grow during the times of plenty in the late 1990s and the early
2000s. Australia’s under representation abroad compared to other countries has
been well documented in studies by the Lowy Institute and others. The challenge will
reside, in large part, within the department itself. In recent years, the department has
excluded training and staff development, including language training, from budget cuts.
The department has also managed to grow the number of offcers abroad despite the
budget cut-backs. The department has done this through its own internal management
processes, recognising that the value it brings to the table in government is the value
derived from its global network. That network will face increasing diffculties over the
next few years, especially given the fact that the cost of keeping someone abroad is
so much greater than the cost of employing someone in Canberra. So the challenge
for the department will be to maintain a clear sense of balance and perspective about
its purpose.
Based on past performance, the department can be expected to maintain that balance
and perspective.
Dennis Richardson
Secretary
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DEPARTMENTAL OVERVIEW
Role and functions
The department is responsible for advancing the interests of Australia and Australians
internationally. The department’s staff in Canberra, in our state and territory offces
and around the world work to achieve the department’s three outcomes, outlined in our
Portfolio Budget Statements 2011–12 and presented in Figure 3 on page 12:
• the advancement of Australia’s international strategic, security and economic
interests including through bilateral, regional and multilateral engagement on
Australian Government foreign and trade policy priorities
• the protection and welfare of Australians abroad and access to secure international
travel documentation through timely and responsive travel advice and consular and
passport services in Australia and overseas
• a secure Australian Government presence overseas through the provision of security
services and information and communications technology infrastructure, and the
management of the Commonwealth’s overseas owned estate.
To support the achievement of these outcomes in a challenging international
environment, the department deployed its staff and other resources in a targeted and
fexible manner (see Section 3 for more information).
Organisational structure
The Secretary and four deputy secretaries constitute the department’s executive.
Supported by the department’s senior executive service, they manage the department
and provide leadership on foreign and trade policy, consular and corporate issues.
The executive shapes the values and culture of the department, promotes the highest
professional standards of service to the Government and to Australia, and provides a
fair and professionally rewarding working environment for staff.
The department’s organisational structure is outlined in Figure 1. In Canberra, as at
30 June 2012, the department was made up of 14 divisions, the Australian Passport
Offce, the Overseas Property Offce and Services, the Australian Safeguards and
Non-Proliferation Offce and three stand-alone branches.
The department manages a network of 95 overseas posts (for more information see
Appendix 12). Each overseas post is attached to a parent division in Canberra. In
addition to headquarters in Canberra, the department maintains offces in all Australian
state and territory capital cities. These offces provide consular and passport services
to the Australian community and liaison services to state and territory governments and
Australian business. We also maintain a Passport Offce in Newcastle and a Liaison
Offce on Thursday Island in the Torres Strait. Details of our offces in Australia are
provided inside the back cover of this report.
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OvERvIEwS DEPARTMENTAL OVERVIEW
The Secretary and Deputy Secretaries of the Department of Foreign Affairs and Trade (as at 30 June 2012).
L-R (seated): Deputy Secretary, Mr Paul Grigson, the Secretary, Mr Dennis Richardson AO
L-R (standing): Deputy Secretaries Dr Heather Smith, Mr Bruce Gosper, Ms Gillian Bird
Photo: Norman Plant
The department also engages people overseas to act as honorary consuls. Honorary
consuls provide consular assistance on behalf of the department to Australian travellers
in locations where the Australian Government does not maintain other representation
(see Appendix 12 for more information).
Policy Planning Branch
The Policy Planning Branch (PLB) encourages fresh, critical thinking on political,
economic and strategic challenges for Australian international policy.
PLB produces strategic policy papers and briefs that identify emerging issues,
assess international trends and their implications for Australia and propose policy
options to advance and protect Australia’s national interests and values.
It also produces speeches for the department’s ministers, parliamentary
secretaries and senior executive. In 2011–12, the branch drafted 118 speeches.
Both the policy planners and speechwriting unit collaborate with divisions,
posts and other stakeholders in developing their work, but both also retain
critical independence.
The branch tries to question policy assumptions and stimulate critical thinking.
It liaises with Australia’s wider foreign, economic and security policy community,
both inside and outside of government.
PLB regularly invites external experts to present seminars on emerging foreign,
trade and security policy issues.
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FiGURe 1. eXeCUTiVe STRUCTURe (AS AT 30 JUNe 2012)
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OvERvIEwS DEPARTMENTAL OVERVIEW
FiGURe 2. LOCATiON OF AUSTRALiA-BASeD STAFF
Structure of the Foreign Affairs and
Trade Portfolio
The foreign affairs and trade portfolio supports the Minister for Foreign Affairs, the
Minister for Trade and Competitiveness, the Parliamentary Secretary for Trade and the
Parliamentary Secretary for Pacifc Island Affairs and Parliamentary Secretary for Foreign
Affairs in the conduct of Australia’s foreign and trade policy.
Six agencies make up the portfolio:
• Department of Foreign Affairs and Trade
• AusAID (Australian Agency for International Development)
• Australian Trade Commission (Austrade)
• Australian Secret Intelligence Service (ASIS)
• Australian Centre for International Agricultural Research (ACIAR)
• Export Finance and Insurance Corporation (EFIC).
Figure 4 outlines the portfolio structure and each agency’s outcomes.
NB: EFIC is not included for outcome reporting purposes in Figure 4 because it is
covered by the Commonwealth Authorities and Companies Act 1997 (CAC Act).
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FiGURe 3. OUTCOMeS AND PROGRAMS FRAMeWORK 2011–12
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OvERvIEwS DEPARTMENTAL OVERVIEW
FiGURe 4. PORTFOLiO OUTCOMeS STRUCTURe – FOReiGN AFFAiRS AND TRADe PORTFOLiO
AS AT 30 JUNe 2012
14
The then Minister for Foreign Affairs, Mr Rudd, with
the Russian Foreign Minister, Mr Sergey Lavrov, in the
gardens of NSW Government House in January 2012.
Photo: Jack Atley
During her offcial visit to the Gambia in March 2012,
the Prime Minister’s Special Envoy, Ms Joanna
Hewitt, and High Commissioner to the Gambia,
Mr Ian McConville, pose with benefciaries of the
Australia–Africa Community Grants Scheme project
on food security.
15
The Minister for Trade and Competitiveness, Dr Emerson, welcomes negotiators
and stakeholders to Melbourne for the 11th round of the Trans-Pacifc Partnership
Agreement negotiations, March 2012.
PERFORMANCE
REPORTI NG
SECTI ON 2
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OUTCOME 1

The advancement of Australia’s international strategic,
security and economic interests including through
bilateral, regional and multilateral engagement on
Australian Government foreign and trade policy priorities
Program 1.1: Foreign Affairs and Trade operations
Program management (advocacy and protection of Australia’s interests)
1.1.1 North Asia
1.1.2 South-East Asia
1.1.3 Americas
1.1.4 Europe
1.1.5 South and West Asia, Middle East and Africa
1.1.6 Pacifc
1.1.7 Bilateral, regional and multilateral trade negotiations
1.1.8 Trade development and policy coordination
1.1.9 International organisations, legal and environment
1.1.10 Security, nuclear disarmament and non-proliferation
Program management (services to other agencies)
1.1.11 Services to other agencies in Australia and overseas (including Parliament,
state representatives, business and other organisations)
Program management (services to diplomatic and consular representatives)
1.1.12 Services to diplomatic and consular representatives in Australia
Program management (public information services and public diplomacy)
1.1.13 Public information services and public diplomacy
Program 1.2: Payments to international organisations
Administered item:
Payments to international organisations
Program 1.3: Public information services and public diplomacy
Administered items:
International relations grants program
Australia Network
Australia and New Zealand School of Government–China Advanced Leadership Program
Expositions Special Account
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OUTcOME 1
PERFORMANCE INFORMATION FOR
OUTCOME 1
Outcome 1 strategy
The department will assist the Government to meet its foreign, trade and economic, and
security objectives over 2011–12 and forward years through:
• developing further Australia’s relations with key international partners and countries
of growing signifcance to Australia’s national interests
• working multilaterally to address global challenges relating to peace and security,
climate change, sustainable growth and human rights and to advance Australia’s
interests through the United Nations, G20 and signifcant regional forums
• promoting and strengthening regional and global cooperation and governance in
countering terrorism, people smuggling and nuclear proliferation
• contributing to national prosperity by maximising Australia’s trade opportunities and
market access gains through multilateral, regional and bilateral means
• developing and implementing programs and projects to enhance international
awareness and understanding of Australia and Australian policies to advance our
national interests.
As the lead agency managing Australia’s external affairs, the department will also
continue to provide leadership at Australia’s diplomatic missions overseas, manage
and maintain Australia’s diplomatic network, including the provision of services to
other agencies represented overseas, and deliver services to diplomatic and consular
representatives in Australia.
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PROGRAM 1.1: FOREIGN AFFAIRS
AND TRADE OPERATIONS
Program 1.1 Objectives
• To protect and advance the national interest through engaging in effective
advocacy in Australia and overseas that promotes Australia’s foreign, trade and
economic, and international security interests
• To deliver accurate and timely policy advice to Ministers and other high-level
clients that addresses the challenges of an evolving international environment
• To promote a whole-of-government approach to pursuit of Australia’s interests
abroad, including through leadership at overseas missions and coordination of the
overseas diplomatic network
• To ensure the security and protect the dignity of the diplomatic and consular
corps serving in Australia by delivering a quality service and upholding Australia’s
obligations under the Vienna Conventions.
Program 1.1 Deliverables
• Australia’s foreign and trade policy interests and international standing are
advanced through:
– strengthened key international relationships, including a strong alliance
with the United States, high-level political and economic engagement with
Japan, China, India, Republic of Korea, and the countries of South-East
Asia, a stronger partnership with the European Union and its members, and
continued close ties with New Zealand and Canada
– sustained engagement with Pacifc island countries, the Middle East, Africa
and Latin America and the Caribbean to meet shared challenges and to
promote global and regional stability, security and prosperity
– strong participation in the United Nations and other multilateral forums,
including international support for Australia’s election to the UN Security
Council for the 2013–14 term, promotion of effective international climate
change action and sustainable development, and advocacy of human rights
– contribution to enhanced regional architecture through the East Asia Summit
(EAS), the Asia-Pacifc Economic Cooperation (APEC) forum and dialogue with
the Association of Southeast Asian Nations (ASEAN)
– support for Australia’s hosting of the Commonwealth Heads of Government
Meeting in Perth in 2011
– promotion of high-quality public diplomacy, international media and cultural
visit programs which improve understanding of Australia and Australian
Government foreign and trade policies.
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PROGRAM 1.1: FOREIGN AFFAIRS AND TRADE OPERATIONS
Program 1.1 Deliverables
• Australia’s trade and economic opportunities are maximised, including through:
– effective participation in the World Trade Organization (WTO), including
through the Doha Round and leadership of the Cairns Group of agricultural
exporting countries, and through G20 processes
– effective leadership in advancing Australia’s free trade agreement (FTA)
agenda, including negotiating and implementing FTAs, and exploring
opportunities where appropriate for new bilateral or regional FTAs.
• An enhanced environment for security and development, including through:
– effective whole-of-government efforts to promote stability and development in
Afghanistan
– promotion of nuclear non-proliferation and disarmament, and
counter-proliferation and arms control efforts, including in arms trade treaty
negotiations and as chair of the Australia Group
– participation in counter-terrorism programs and activities, including in South
Asia, South-East Asia, the Middle East, eastern Africa, and in the new Global
Terrorism Forum
– contribution to whole-of-government efforts bilaterally and regionally to
counter people smuggling, in particular through the Bali Process on People
Smuggling, Traffcking in Persons and Related Transnational Crime.
• Australia’s international and portfolio responsibilities are met through:
– effective coordination and sound advice to Ministers, members of
parliament, government agencies, state and territory governments, business,
non-governmental organisations, media and members of the public
– sound advice on compliance with international legal obligations and
contribution to the development of a strong international legal framework
– effective leadership of, and provision of advice and support to, other
government agencies at overseas missions in line with the Prime Minister’s
Directive on the Guidelines for the Management of the Australian Government
Presence Overseas and service level agreements
– quality service and support to the diplomatic and consular corps serving in
Australia, including facilitation of accreditation and diplomatic visas, and the
security and protection of dignity of diplomatic missions and their personnel,
upholding Australia’s obligations under the Vienna Conventions
– management of the EFIC National Interest Account.
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Program 1.1 Key performance indicators
• High level of satisfaction of Ministers and other stakeholders with the quality and
timeliness of advice, briefng and support in relation to Australia’s foreign, trade
and economic, and international security interests.
• The department’s advocacy, negotiation and liaison on Australia’s foreign, trade
and economic, and international security interests contributes positively to
bilateral, regional and multilateral outcomes that help ensure the security and
prosperity of Australia and Australians.
• Government agencies at overseas missions are satisfed with service provided
in accordance with the Prime Minister’s Directive on the Guidelines for the
Management of the Australian Government Presence Overseas and service level
agreements in place.
• The diplomatic and consular corps posted or accredited to Australia are satisfed
with the level of service provided, including in terms of responsiveness and
timeliness in meeting Australia’s obligations under the Vienna Conventions.
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1.1.1 NORTH ASIA
PROGRAM MANAGEMENT
(ADVOCACy AND PROTECTION OF
AUSTRALIAN INTERESTS)
1.1.1 North Asia
Overview
The department continued to shape Australia’s relations in North Asia, a region key
to our long-term security and prosperity. We worked to promote stability, security and
strategic dialogue with regional partners, including through the signing of an information
security agreement with Japan and by hosting the third round of the Australia–China
Strategic Dialogue. We pursued with Japan shared non-proliferation objectives in
multilateral forums, and contributed to the inaugural dialogue between the Minister for
Defence, Mr Smith, and his counterpart from the Republic of Korea (ROK).
A number of high-level visits facilitated by the department and posts—including by the
Prime Minister, the Deputy Prime Minister, the Minister for Foreign Affairs, the Minister
for Trade and Competitiveness, and the Minister for Resources and Energy and Minister
for Tourism—advanced Australia’s security and economic interaction with the region.

The Minister for Foreign Affairs, Senator Carr, and his Japanese counterpart, Mr Koichiro Gemba, during the signing
ceremony for the Australia–Japan Information Security Agreement at the Iikura guest house in Tokyo on 17 May 2012.
Photo: AFP/Getty Images
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With North Asian markets accounting for over half of Australia’s merchandise exports,
the department continued efforts to expand trade and investment ties in the region,
including through negotiations on free trade agreements (FTAs) with Japan, China and
the ROK. We worked with Austrade and the business community to target economic
opportunities in China, including through a trade mission focused on fast-growing
second-tier cities and an inaugural Services Sector Promotion Forum.
The Government announced it would expand Australia’s presence in North Asia by
establishing a new consulate-general in Ulaanbaatar to service our growing mining,
investment and services interests and a consulate-general in Chengdu, to open
in 2013, to take advantage of new growth areas in western China.
TABLe 1. AUSTRALiA’S TRADe iN GOODS AND SeRViCeS WiTH NORTH ASiAN eCONOMieS
(a)
exports exports imports imports
Goods and services 2010 2011 Trend growth
2006–2011
2010 2011 Trend growth
2006–2011
$m $m % $m $m %
China 64,295 77,117 28.1 40,907 43,938 10.3
Japan 45,665 52,384 7.4 20,405 20,076 0.4
Republic of Korea 22,381 25,024 11.7 7,706 7,644 2.2
Taiwan 8,930 9,670 7.5 3,883 3,977 -3.5
Hong Kong 4,856 4,765 0.7 3,075 3,151 -1.2
Other
(b) (c)
58 90 0.9 18 16 -8.4
Total North Asia 146,185 169,050 15.0 75,994 78,802 5.1
(a) Goods data on a recorded trade basis, services data on a balance of payments basis.
(b) Goods data only. Services data is not published by the ABS for these countries.
(c) Other comprises Democratic People’s Republic of Korea, Macau and Mongolia.
Based on DFAT STARS database and ABS catalogue 5368.0.55.004.
Japan
As Japan recovered from the natural disasters of March 2011, the department’s focus
shifted from emergency assistance to advancing the broadly-based bilateral relationship.
The department supported visits by both the Minister for Foreign Affairs, Senator Carr,
and the Minister for Trade and Competitiveness, Dr Emerson, to Japan in May 2012.
Senator Carr signed an information security agreement to provide a framework for
deeper strategic cooperation. Dr Emerson participated in the third Australia–Japan Trade
and Economic Ministers Dialogue. The department also facilitated a visit by Dr Emerson
to Japan in October 2011 to sign the Anti-Counterfeiting Trade Agreement.
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Japan was our second-largest trading partner in 2011 and our third-largest source
of foreign investment. The department continued to advance bilateral trade and
investment, including through negotiations on a high-quality, comprehensive free
trade agreement (FTA) (also see Bilateral, regional and multilateral trade negotiations
1.1.7). We also worked to ensure that our differences on whaling did not disrupt the
broader relationship.
The department worked closely with the Department of Defence and other agencies
to extend our strategic cooperation with Japan. Under the department’s Special Visits
Program, upper house member and former senior vice-minister of defence, Kazuya
Shimba, visited Australia in May 2012 for meetings on security and defence issues.
The department also facilitated a number of other high-level visits to and from Japan.
These included visits by the Parliamentary Secretary for Pacifc Island Affairs and
Parliamentary Secretary for Foreign Affairs, Mr Marles, in May 2012 for the Pacifc
Islands Leaders’ Meeting; the Minister for Resources and Energy and Minister for
Tourism, Mr Ferguson, in July and September 2011; the Minister for Agriculture,
Fisheries and Forestry, Senator Ludwig, in December 2011 and Cabinet Secretary
and Parliamentary Secretary for Climate Change and Energy Effciency, Mr Dreyfus,
in April 2012. The embassy supported Australia’s participation in the Asia-Pacifc
Parliamentary Forum in January 2012.
We engaged Japanese counterparts to achieve shared objectives in regional and
multilateral forums, including the East Asia Summit, APEC, the World Trade Organization,
the G20 and the United Nations. Demonstrating our shared commitment to eliminating
the spread of nuclear weapons, Australia and Japan co-chaired the Non-Proliferation and
Disarmament Initiative in New York in September 2011, and the ASEAN Regional Forum
Inter-Sessional Meeting on Non-proliferation and Disarmament in Sydney in March 2012.
The department also facilitated the transfer of historical records of former Australian
prisoners of war, held by the Japanese during the Second World War, to the National
Archives of Australia.
In November 2011, we hosted the seventh Australia–Japan Conference in Brisbane,
bringing together senior representatives from politics, business and academia to explore
ways to advance the relationship. The work of the Australia–Japan Foundation (AJF)
focused on assisting the people of Tohoku to recover from the March 2011 earthquake
and tsunami (also see Public information services and public diplomacy 1.1.13).
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FiGURe 5. AUSTRALiA’S TRADe iN GOODS AND SeRViCeS WiTH JAPAN
(a)
China
The department worked to promote a comprehensive, constructive and cooperative
relationship with China. We engaged China closely in regional and multilateral forums
to take forward our shared interests in regional stability and prosperity. Bilaterally we
pursued economic, political and strategic issues, including on sensitive matters such
as human rights, consular issues and commercial disputes. Senator Carr’s frst visit to
China as foreign minister in May 2012, where he met Foreign Minister Yang Jiechi and
Vice-Premier Li Keqiang, provided a further opportunity to advance our interests.
Total trade with China grew by 15 per cent to $121 billion in 2011. The Government
announced it would establish a consulate-general in Chengdu, to support Australia’s
growing commercial interests in central and western China.
The department continued FTA negotiations with China (also see Bilateral, regional
and multilateral trade negotiations 1.1.7) and launched the next phase of economic
engagement with China, targeting opportunities presented by China’s emerging middle
class and growing urbanisation. We organised with Austrade the Australia–China
2.0 trade mission in August 2011, led by the Minister for Trade, Dr Emerson and
the Parliamentary Secretary for Pacifc Island Affairs, Mr Marles which focused on
opportunities in rapidly developing second-tier cities. More than 100 representatives
from Australia’s services sector accompanied the minister.
The Services Sector Promotion Forum, a new business-led bilateral policy dialogue,
met in Beijing in May 2012 to take forward the agenda set during the Australia–China
2.0 trade mission. The department also led an ongoing joint study with China on
strengthening bilateral cooperation in investment and technology in agriculture to
address global food security concerns.
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(R–L) The Minister for Trade and Competitiveness, Dr Emerson, Chinese Commerce Minister Chen Deming, the
Minister for Infrastructure and Transport, Mr Albanese, and Chinese Ambassador, His Excellency Mr Chen yuming,
following the signing between Australia and China of the Memorandum of Understanding on Enhancing Cooperation
in Infrastructure Construction at Parliament House, April 2012. Photo: Auspic/David Foote
The department assisted Dr Emerson in his hosting of visits to Australia by Chinese
Commerce Minister Chen Deming and Party Secretary of Guangdong Province Wang
Yang in April and June 2012. Under the Special Visits Program, the department
coordinated the visit to Australia of Vice-Mayor of Kunming, Mr Ruan Fengbin.
We continued to support cultural and artistic exchanges, including a program of events
in advance of the 40th anniversary of diplomatic relations between Australia and China
on 21 December 2012. The Experience China events in Australia in 2011–12 followed
the highly successful Imagine Australia Year of Australian Culture in China. Together with
the Australian National University, the department convened the inaugural meeting of
the Australia–China Forum, a one and a half-track dialogue to discuss the entirety of the
bilateral relationship including political, strategic, business, cultural and media aspects.
Economics and trade, education and science and culture and society were priority
areas for the Australia–China Council (ACC) which continued to shape relations between
Australia and China, Hong Kong, Macau and Taiwan (also see Public information
services and public diplomacy 1.1.13).
The department administered a grant of $3 million to the Australia and New Zealand
School of Government (ANZSOG) to deliver a three-year China Advanced Leadership
Program, a collaboration between ANZSOG and the Central Organisation Department
of the Communist Party of China. The program seeks to expose future Chinese leaders
to best practice governance in Australia and New Zealand, and to establish positive
relationships with them.
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FiGURe 6. AUSTRALiA’S TRADe iN GOODS AND SeRViCeS WiTH CHiNA
(a)
BALANCE IMPORTS EXPORTS
$

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Taiwan
Taiwan was Australia’s sixth-largest merchandise export market in 2011, valued at
$9 billion. In January 2012, CPC Corporation entered into a ffteen-year contract for
the supply of 1.75 million tonnes of Australian LNG per year worth $30 billion – the
largest-ever Australian trade deal with Taiwan. The department assisted Mr Ferguson
on a private visit to Taiwan to encourage growing investor interest in Australian resource
projects. Bilateral economic consultations hosted by the department in June 2012
made headway on investment strategies, reaffrmed the joint focus on clean energy and
advanced cooperation on food safety and science and technology.
FiGURe 7. AUSTRALiA’S TRADe iN GOODS AND SeRViCeS WiTH TAiWAN
(a)
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1.1.1 NORTH ASIA
Hong Kong and Macau
Hong Kong is Australia’s leading business base in Asia and our seventh-largest source
of foreign investment. The department maintained high-level engagement with Hong
Kong in support of Australian commercial interests. The department facilitated visits
to Hong Kong by Deputy Prime Minister Swan, Minister for Transport and Infrastructure
Albanese and Parliamentary Secretary for Trade Elliot. The consulate-general in Hong
Kong continued to provide assistance to Australian business in Macau, supporting the
frst Australian Food Festival in Macau in May 2012.
Personal Profle:
Brendan Berne
In his role as Deputy Head of Mission at the Australian
Embassy in Seoul, Brendan Berne works closely with the
Ambassador to promote Australia’s interests in the Republic
of Korea (ROK), North Korea and Mongolia. In 2011, Brendan
helped to deliver a series of cultural events marking 50
years of diplomatic relations between Australia and the ROK.
In 2012, he oversaw the visit by Prime Minister Julia Gillard
to Seoul to attend the Nuclear Security Summit. Brendan
also led a delegation to Pyongyang in June to press for
denuclearisation and economic reform.
In 2010–11, Brendan ran the department’s APEC Branch where he shaped
Australian policy through the key Japan and United States host years. A key
milestone was the assessment Brendan led of APEC members’ performance
against the Bogor Goals of achieving free trade and investment by 2010. He also
helped shape a new vision for APEC of a Seamless Regional Economy, which the US
adopted as its theme for its host year in 2011.
After serving as Deputy Permanent Representative to the OECD in Paris from 2005
to 2008, Brendan returned to Sydney to run Government and Industry Relations for
the Export Finance and Insurance Corporation where he helped secure Australian
fnancial support for a new LNG facility and pipeline in PNG, the world’s largest
project fnance transaction, which is projected to increase substantially the
country’s GDP and reduce poverty. Before joining DFAT, Brendan spent several
years as an economist with the Reserve Bank of Australia.
“DFAT has given me the opportunity to work on issues of critical importance to
Australia, to apply my expertise while branching into new areas and to work with a
top‑class team of professionals dedicated to serving the national interest.”
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Republic of Korea
The department led whole-of-government efforts to advance Australia’s key political and
economic interests in the Republic of Korea (ROK), a long-standing security partner and
Australia’s fourth-largest trading partner.
We facilitated high-level visits to the ROK, including the Prime Minister’s visit to Seoul
in March 2012 for the Nuclear Security Summit, and participation by Dr Emerson in
Australia’s feature day at the Yeosu Expo in May 2012 (also see Public information
services and public diplomacy 1.3). The department also supported visits to the ROK
by Mr Ferguson in July 2011, to promote trade and investment in resources; the then
Foreign Minister, Mr Rudd, in November 2011 to attend the Fourth High Level Forum on
Aid Effectiveness in Busan; Senator Ludwig in December 2011 to promote Australian
agricultural exports; the Minister for Industry and Innovation and Minister for Climate
Change and Energy Effciency, Mr Combet, in April 2012 to broaden cooperation on
climate change issues; and the Minister for Broadband, Communications and the Digital
Economy, Senator Conroy, in May 2012 to promote Australia’s information technology
and skills at the Korea–Australia–New Zealand (KANZ) Broadband Summit and the
World Information and Communications Summit.
Working closely with other agencies, the department further strengthened Australia’s
trade links with the ROK, our third-largest export market for goods and services. We
encouraged ROK investment in Australia which is growing rapidly and includes POSCO’s
$1.3 billion stake in Hancock Prospecting’s Roy Hill iron ore project in the Pilbara. We
also led Australia’s FTA negotiations with the ROK (also see Bilateral, regional and
multilateral trade negotiations 1.1.7).
Prime Minister Gillard and the President of the Republic of Korea, Mr Lee Myung-bak, at a welcoming ceremony for
the Nuclear Security Summit in Seoul, Republic of Korea, in March 2012. Photo: Getty Images
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The department, with other agencies, gave practical effect to the 2009 bilateral
Leaders’ Statement on Enhanced Global and Security Co‑operation with the ROK
and continued to build cooperative links between Australian and ROK agencies. We
contributed to the inaugural Defence Ministers’ Dialogue between Mr Smith and his ROK
counterpart, Kim Kwan-jin, in December 2011. The department led the Government’s
engagement with, and support for, the ROK on Korean Peninsula security matters
(see below item on DPRK), including facilitating a visit to Canberra by ROK Six-Party
Talks negotiator, Mr Lim Sung-nam, in June 2012. We also organised a dialogue on
security cooperation involving senior Australian and ROK offcials, academics and
analysts in Canberra in October 2011.
The department continued to promote deeper people-to-people links between Australia
and the ROK. Our embassy in Seoul led several Year-of-Friendship activities celebrating
the 50th anniversary of bilateral diplomatic relations in 2011. The Australia–Korea
Foundation (AKF) also supported Year-of-Friendship activities and promoted deeper
engagement between Australia and Korea (also see Public information services and
public diplomacy 1.1.13).
FiGURe 8. AUSTRALiA’S TRADe iN GOODS AND SeRViCeS WiTH THe RePUBLiC OF KOReA
(a)
Mongolia
Mongolia presented new opportunities for enhanced engagement. The department
supported a visit in November by Mongolian Deputy Prime Minister Enkhbold to study
Australia’s social welfare system. The Government opened the Austrade-managed
consulate-general in Ulaanbaatar in March 2012 to service a rapidly developing trade
and investment relationship. Regular high-level engagement was maintained through
the Australian Embassy in Seoul, with a focus on resource development issues,
the development of Mongolia’s foreign investment regime and the development of
Australia’s aid program to Mongolia.
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Democratic People’s Republic of Korea
Relations remain constrained with the Democratic People’s Republic of Korea (DPRK)
as a result of its threatening behaviour on the Korean Peninsula, and its nuclear
weapons and missile programs. The department made representations directly to
the DPRK, and at international meetings, such as the ASEAN Regional Forum, urging
compliance with its obligations to cease nuclear, missile and proliferation activities.
We also urged the DPRK to engage in constructive dialogue, particularly with the ROK
and the United States. Senator Carr called for a robust response by the UN Security
Council to the DPRK’s launch of a long-range missile on 13 April 2012 in defance of
UN Security Council resolutions, and called for an end to further provocations, including
that the DPRK not conduct a third nuclear test. Following the death of Kim Jong Il in
December 2011, the department pressed the DPRK to abandon its nuclear and missile
activities and address human rights abuses. We supported AusAID’s humanitarian
activities in the DPRK, particularly its efforts to help vulnerable mothers and children.
Outlook
The department will strengthen Australia’s strategic engagement in the North Asian
region by building on existing cooperative arrangements and bilateral dialogues. In
particular, we will further develop strategic cooperation with Japan, including through
the Australia–Japan foreign and defence ministers 2+2 mechanism and the Australia–
Japan–United States Trilateral Strategic Dialogue. We will also seek to conduct an
inaugural Australia–Republic of Korea 2+2 meeting of foreign and defence ministers.
The department will further promote Australia’s economic interests in North Asian
markets, particularly by continuing to lead FTA negotiations with the ROK, Japan and
China. We will take forward Australia’s trade and investment strategy with China,
including in services and agriculture, and deepen our relationships with key Chinese
provinces, including with Guangzhou through a new economic cooperation agreement,
and with Sichuan and neighbouring provinces in western China with the opening of the
new consulate-general in Chengdu. We will support development of closer economic
cooperation with Japan, including on infrastructure through the Australia–Japan
Infrastructure Dialogue, and the ROK. Australia’s growing ties with Mongolia will be
supported through our new consulate-general in Ulaanbaatar.
The department will continue to focus its advocacy efforts on key issues with the
region’s major global players, China, Japan and the ROK: issues such as climate
change, international fnancial governance, and regional architecture. We will continue
to co-chair with Japan the Non-Proliferation and Disarmament Initiative to advance
global nuclear disarmament and non-proliferation objectives. We will work with regional
partners and the United States to encourage a negotiated settlement of the DPRK
nuclear issue.
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1.1.2 South-East Asia
Overview
Australia’s prosperity and security are inextricably linked to the resilience and depth of
our relationships with the countries of South-East Asia.
Over the past year Australia celebrated 60 years of diplomatic relations with Thailand
and Laos, and 10 years of diplomatic relations with Timor-Leste. The department
supported observers to Timor-Leste’s presidential election and watershed by-elections
in Myanmar. Continuing reform in Myanmar led to Australia lifting travel and fnancial
sanctions, some of which had been in place since the 1990s.
Australia’s two-way trade with South-East Asia totalled $88 billion in 2011. The
department focused on continuing to open markets and liberalise trade in the region.
Signature of the Malaysia–Australia Free Trade Agreement (MAFTA) (also see Bilateral,
regional and multilateral trade negotiations 1.1.7) was a signifcant achievement. We
also, alongside other agencies, ensured there would be continued access for Australian
agricultural exports to Indonesia.
The department strengthened relationships with South-East Asian leaders by supporting
a large number of visits to and from the region. The Prime Minister, Mr Rudd and
Dr Emerson all visited Indonesia. Australia hosted the frst ever ‘2+2’ meeting with
Indonesian Foreign and Defence Ministers. The Prime Minister also visited Singapore
and hosted her counterparts from Thailand, Yingluck Shinawatra, and Timor-Leste,
Xanana Gusmão; then Foreign Minister Mr Rudd visited Timor-Leste, the Philippines,
Myanmar and Singapore, and Dr Emerson visited Vietnam and Malaysia. Senator Carr
visited Cambodia, Vietnam, Singapore and Myanmar.
We worked to deepen Australia’s close relationship with the Association of Southeast
Asian Nations (ASEAN) and to strengthen the East Asia Summit (EAS) to address
regional challenges. Our policy initiatives and advocacy at EAS and ASEAN Regional
Forum (ARF) meetings led directly to an Australia–Indonesia initiative in the EAS to help
improve regional responses to natural disasters, and an expansion of the work of the
ARF in preventive diplomacy.
indonesia
The department played a key role in realising a new framework of high-level meetings
with Indonesia, including supporting the Prime Minister’s attendance at the inaugural
Annual Leaders’ Meeting in Bali in November 2011, which focused on our common
interests in the stability, security and prosperity of our region. This was one of four
meetings the Prime Minister had with President Susilo Bambang Yudhoyono over the
year. We also coordinated the inaugural ‘2+2’ meeting in Canberra in March 2012 at
which Foreign and Defence Ministers discussed evolving regional and global strategic
issues. This is the only such dialogue held by Indonesia; Australia holds meetings in this
format with the United States, United Kingdom and Japan. We supported participation
at an inaugural Australia–Indonesia Dialogue hosted by Indonesia in October 2011
– a roundtable meeting of Australian and Indonesian business and civil society
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leaders. The department worked closely with Indonesia in its capacity as chair of the
EAS in 2011 to take forward our shared EAS priorities, including disaster response.
We continued to work closely and collaboratively with other Australian agencies and
Indonesian counterparts on a wide range of issues, including countering terrorism and
people smuggling, disaster relief and promoting human rights.
The department continued to identify and foster commercial opportunities for
Australian businesses in Indonesia. We supported visits by Dr Emerson, including one
accompanied by a high-level business delegation, which stimulated greater commercial
interest, built support for the Indonesia–Australia Comprehensive Economic Partnership
Agreement (also see Bilateral, regional and multilateral trade negotiations 1.1.7) and
furthered discussion of bilateral economic partnerships. The department, in close
coordination with the Department of Agriculture, Fisheries and Forestry, worked with
Indonesian agencies to ensure continued access for Australian horticulture exports. The
two departments managed the successful resumption of live cattle exports to Indonesia
under new export arrangements, including the frst investigation and resolution of a
breach of the arrangements.
The department received $450 000 in administered funding for Australia’s contribution
to the Bali Peace Park in 2011–12. The contribution is contingent on the land in Bali
being offered for sale to the Bali Peace Park Association. It will be used as a memorial
for the victims of terrorist attacks. Negotiations on this matter are progressing and
it is anticipated that the funds will be spent in 2012–13. The Australia–Indonesia
Institute (AII) worked to develop our people-to-people linkages, including through
education collaboration, media visits and youth and religious exchanges (also see
Public information services and public diplomacy 1.1.13).
The Minister for Foreign Affairs, Senator Carr, at a media conference following the inaugural Australia–Indonesia 2+2
Ministerial Dialogue in Canberra in March 2012. (L–R) Indonesian Minister of Foreign Affairs, Dr Marty Natalegawa, Senator
Carr, Indonesian Minister of Defence, Dr Purnomo yusgiantoro, and Minister for Defence, Mr Smith. Photo: Mark Graham
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TABLe 2. AUSTRALiA’S TRADe iN GOODS AND SeRViCeS WiTH SOUTH-eAST ASiA
(a)
exports exports imports imports
Goods and services 2010 2011 Trend growth
2006–2011
2010 2011 Trend growth
2006–2011
$m $m % $m $m %
Singapore 7,443 9,526 3.7 14,167 18,157 1.7
Thailand 6,862 7,725 8.5 12,955 10,732 8.5
Indonesia 5,733 6,662 4.9 7,134 8,167 9.2
Malaysia 5,292 6,134 7.1 10,237 9,891 5.2
Vietnam 2,475 2,958 9.6 3,816 3,586 -9.1
Philippines 1,673 1,984 8.9 936 965 -3.3
Other ASEAN
(b)
332 322 5.3 1,311 1,580 0.9
Total ASeAN 29,810 35,311 6.2 50,556 53,078 3.6
Timor-Leste
(c)
62 30 5.1 1 1 -7.9
Total South east Asia 29,872 35,341 6.3 50,557 53,079 3.6
(a) Goods data on a recorded trade basis, services data on a balance of payments basis.
(b) Other ASEAN comprises Brunei, Myanmar, Cambodia and Laos.
(c) Goods data only. Services data is not published by the ABS for these countries.
Based on DFAT STARS database and ABS catalogue 5368.0.55.004.
Personal Profle:
Angky Septiana OAM
Angky served at the consulate in Bali during the Bali
bombings before moving to Jakarta to work as the
embassy’s Human Resources Manager, where she
managed hundreds of locally engaged staff across
multiple agencies. Angky was selected by the late Liz
O’Neill to fll the position of senior media offcer in the
Embassy’s Public Affairs Section.
Angky supports the Counsellor (Public Affairs) in
handling media queries on a bilateral relationship that
encompasses complex and diffcult issues and has
a high profle in Indonesia. Indonesia is home to a
vibrant, competitive and fast-moving media industry,
as well as a large Australian media contingent. Angky
is one of the highest-ranked locally engaged staff in our missions in Indonesia. She
received a Group Bravery Citation in August 2005 for her work during the Australian
Embassy Jakarta Bombing.
“The people I work with have made my time with DFAT enjoyable and memorable.
I have made life‑long friends and this is something that I cherish and will always
be thankful for.”
Ms Angky Septiana OAM (right)
with Ms Devianti Faridz (left),
winner of the Elizabeth O’Neill
Journalism Award 2011 at a
reception in April 2012.
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Thailand
The highlight of the celebrations of the 60th anniversary of diplomatic relations
was the visit to Australia in May 2012 by Thai Prime Minister Yingluck Shinawatra,
whose Government took offce in August 2011. Refecting the breadth of the bilateral
relationship, Prime Minister Yingluck was accompanied to Australia by Foreign Minister
Surapong Tovichakchaikul, Commerce Minister Boonsong Teriyapirom, Education
Minister Suchart Thadathamrongvech and Industry Minister Pongsvas Svasti.
We worked to implement outcomes of the visit, including a commitment by Prime
Ministers to work together in 2012 to complete a general review of the Thailand–
Australia Free Trade Agreement (TAFTA) and a review of its provisions on special
agricultural safeguards. At the third meeting of the TAFTA Joint Commission held in
Bangkok in June 2012, the department-led delegation and the Thai delegation agreed to
a process for completing the reviews by the end of 2012.
Through the Australia–Thailand Institute (ATI), the department worked towards a new
initiative announced by Prime Ministers for cooperation between Thai and Australian
schools. The ATI coordinated a range of projects to celebrate the 60th anniversary
by expanding people-to-people links (also see Public information services and public
diplomacy 1.1.13).
The department played a central role in developing other outcomes announced by Prime
Ministers in the joint communiqué issued in Canberra on 28 May 2012, including a new
exchange program for young political leaders and commitments to deepen cooperation
on disaster management, energy, food safety, security and regional issues. We also
contributed to whole-of-government efforts to assist Thailand’s recovery from severe
foods in the second half of 2011 that claimed over 800 lives.
Malaysia
The signing of the Malaysia–Australia Free Trade Agreement (MAFTA) on 22 May 2012 in
Kuala Lumpur was a signifcant bilateral milestone. The department led negotiations and
supported Dr Emerson’s visit to Malaysia in March 2012 to conclude MAFTA, meeting
the ambitious one-year deadline for MAFTA agreed by Prime Ministers in March 2011
(also see Bilateral, regional and multilateral negotiations 1.1.7).
We also developed, in conjunction with the Department of Industry, Innovation, Science,
Research and Tertiary Education, a three-year package of scholarships, fellowships,
awards and exchanges in support of Malaysia’s economic reform, which was announced
at the MAFTA signing in May 2012.
The department supported Dr Emerson at the 16th Malaysia–Australia Joint Trade
Committee Meeting in Kuala Lumpur in January 2012. Dr Emerson and his counterpart,
Dato’ Sri Mustapa Mohamed, reviewed the progress of MAFTA negotiations and
discussed opportunities for cooperation in logistics, economic reform, Islamic fnance,
and sustainable and green construction. The Australia–Malaysia Institute also furthered
our bilateral economic linkages, including through education collaboration and training
(also see Public information services and public diplomacy 1.1.13).
We were also active in senior offcials’ engagement with Malaysia, including on
combating people smuggling and hosting the Malaysia–Australia Working Group on
Counter-Terrorism in April 2012.
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The Minister for Trade and Competitiveness, Dr Emerson, signing the Malaysia–Australia Free Trade Agreement with
Malaysian Minister of International Trade and Industry, Dato’ Sri Mustapa Mohamed, in Kuala Lumpur, 22 May 2012.
Singapore
The department supported a visit to Singapore by Prime Minister Gillard in April 2012,
marking the 70th anniversary of the fall of Singapore. During the visit, leaders agreed to
hold a regular leaders’ level meeting and that the Singapore–Australia Joint Ministerial
Committee should report back to the two Prime Ministers on ways to deepen our
cooperation, including on trade and investment. We also managed visits to Singapore
by Mr Rudd in October 2011 and by Senator Carr in March 2012 as part of his frst
international visit as Foreign Minister. These visits underscored the continuing strength
of Australia’s longstanding relationship with Singapore.
We facilitated the entry into force of amendments to the Singapore–Australia Free Trade
Agreement (SAFTA) in September 2011, stemming from the second ministerial review.
Myanmar
The department played a central role in the Government’s increased engagement with
Myanmar, including supporting ministerial visits by Senator Carr in June 2012 and
Mr Rudd in July 2011. We provided advice on Myanmar’s political reform process, which
informed the Government’s decision to normalise the trade and investment relationship,
lift targeted fnancial and travel sanctions and signifcantly increase aid.
We engaged extensively with the international community on policy approaches to
Myanmar. The department facilitated the deployment of an election observer mission
to watershed by-elections in April 2012. We continued to raise human rights concerns
directly with the Myanmar Government and in international forums, including the UN
Human Rights Council. We also hosted the frst-ever Special Visits Program participant
from Myanmar, Presidential Political Adviser, Ko Ko Hlaing.
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The Philippines
The department built on the positive momentum of the third Philippines–Australia
Ministerial Meeting (PAMM), held in Canberra in June 2011, to strengthen further
Australia’s expanding bilateral relationship with the Philippines. We worked to implement
outcomes of the PAMM, including holding an inaugural dialogue on climate change in
Manila in September 2011.
We supported visits to the Philippines by Mr Rudd in October 2011 and the
Governor-General in April 2012. The visits provided opportunities to reiterate
Australia’s support for the Philippine Government’s active agenda to tackle corruption
and improve governance; and to promote Australian investment in the Philippines,
particularly in the mining sector.
We continued to play a coordinating role in Australia’s support for security and stability
in the Philippines. Australia’s support included development assistance, defence and
counter-terrorism cooperation, advocacy of adherence to international human rights
norms, and support for the Mindanao peace process.
Vietnam
In line with the Comprehensive Partnership agreement that underpins bilateral ties, the
department supported a number of senior visits. This included Dr Emerson’s visit to
Hanoi in December 2011 to co-chair the tenth meeting of the Australia–Vietnam Joint
Trade and Economic Cooperation Committee (JTECC) and to undertake a range of bilateral
meetings. JTECC considered strategic directions for the trade and investment relationship.
Senator Carr’s visit to Vietnam in March 2012 featured discussions on the breadth of the
bilateral relationship, highlighting Australia’s aid program and cooperation on education
in particular. Senator Carr raised human rights issues and advocated on behalf of
the Australia Network to ensure ongoing access to the Vietnamese television market.
The department led Australia’s delegation to the ninth Australia–Vietnam Human Rights
Dialogue in April 2012.
The Minister for Foreign Affairs, Senator Carr, and Singaporean Prime Minister, Mr Lee Hsien Loong, in Singapore in
March 2012.
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In April 2012 in collaboration with AusAID and relevant UN agencies, we supported the
visit to Australia by the Deputy Prime Minister, Nguyen Xuan Phuc, to study Australia’s
response to HIV, drug use and sex work. During the visit, Australia and Vietnam signed
an Extradition Treaty and a memorandum of understanding on legal cooperation in
criminal matters that will boost efforts to fght crime in the region.
In February 2012, the department co-hosted with the Department of Defence in Canberra
the inaugural Australia–Vietnam Strategic Dialogue at Vice-Minister/Deputy Secretary
level—the frst political-military talks between the two countries—which provided a
frank and comprehensive exchange of views on bilateral, regional and global issues.
Australia–Vietnam Consular Consultations were held in Hanoi in December 2011.
Timor-Leste (east Timor)
The department was active in supporting the diverse and extensive Australian
Government engagement in Timor-Leste, covering development assistance, defence
and police cooperation and development of shared oil and gas. We advocated for the
renewal until the end of 2012 of the UN Integrated Mission in Timor-Leste (UNMIT) and
supported a visit by the Head of UNMIT, Ameerah Haq, to Canberra.
We supported activities marking the 10th anniversary of Timor-Leste’s independence,
including facilitating the attendance of the Governor-General at the offcial celebration.
The department arranged Australia’s 10th anniversary gift to Timor-Leste, a project
with the National Film and Sound Archive to identify important archival material from
Timor-Leste’s cultural heritage.
We supported Australian parliamentary observers to Timor-Leste’s Presidential elections
in March and April 2012.
The then Minister for Foreign Affairs, Mr Rudd, with then Timor-Leste Minister for Foreign Affairs, Mr Zacarias da Costa,
in Dili, July 2011.
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Other bilateral relationships
Senator Carr visited Cambodia in March 2012 in his frst offcial visit overseas
as Foreign Minister. His meetings with Prime Minister Hun Sen and other senior
government representatives reinforced a positive bilateral relationship. Senator Carr
visited Australian aid projects in Siem Reap and witnessed the ongoing trial of former
Khmer Rouge leaders in the Extraordinary Chambers in the Courts of Cambodia (ECCC),
underlining Australia’s ongoing support for the ECCC.
The department supported a visit by Brunei’s Deputy Minister of Defence, Dato
Paduka Haji Mustappa bin Haji Sirat, to Australia in February 2012 to discuss defence
cooperation and regional architecture.
The 60th anniversary of diplomatic relations between Australia and Laos was marked
in 2012. We supported a visit by the Lao Deputy Prime Minister and Minister for Foreign
Affairs, Dr Thongloun Sisoulith, in February 2012. The Vice-President of the Lao National
Assembly, Dr Xaysomphone Phomvihane, also visited Australia in November 2011 to
develop links between the two parliaments. We led Australia’s delegation to the third
Australia–Laos Human Rights Dialogue in Vientiane in April 2012, which provided an
open and constructive forum to discuss human rights issues.
The Minister for Foreign Affairs, Senator Carr, is shown around the Australian-funded Cambodian Midwife Project at
the Khmer-Russian Friendship Hospital in Phnom Penh by Mrs Pen Khimny, Vice Chief of Midwifery and Cambodian
Health Minister, Dr Mam Bun Heng, in March 2012. Photo: Nick Sells
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Personal Profle:
Lynda Worthaisong
As Ambassador to the Lao PDR, Lynda is responsible for overseeing Australia’s
bilateral relationship with Laos, spanning a signifcant and growing development
assistance program and increasing government and parliamentary relations. She
arranged a number of special events to mark the 60th anniversary of bilateral
relations between Australia and Laos in 2012 – the longest unbroken relationship
Laos has had with any country.
Lynda has worked on, or in, South-East Asian countries for most of her career
since joining the department in 1990, where her frst job was as Myanmar desk
offcer. Among other things she has completed a posting to Thailand, has headed
sections in Canberra responsible for ASEAN, Singapore, Malaysia and Brunei,
and is currently serving her second term at the Australian Embassy in Laos. She
participated in recovery efforts in Phuket after the Boxing Day tsunami. Lynda has
an Asian Studies degree and speaks Thai and Lao.
“I love working in South‑East Asia, which is such a dynamic, important and
culturally‑rich region on Australia’s doorstep. As Ambassador to Laos my work is very
diverse and I’m proud to see the contributions that Australia and Australians have
made here over many years. This is a particularly exciting time to be in Laos, which
is hosting the Asia–Europe Meeting in 2012 in which Australia now participates as a
member of the Asian group.”
Australian Ambassador to Lao PDR, Ms Lynda Worthaisong (centre), with Embassy staff in Vientiane.
Photo: Khamphone Saypaseuth
east Asia Summit, ASeAN and regional issues
The leaders’ summit in Bali in November 2011 marked the beginning of a process
of consolidation and strengthening of the EAS, with the United States and Russia
attending for the frst time. Australia worked closely with Indonesia, as EAS Chair, and
others to achieve this expansion of the EAS membership in order to bring the region’s
key players into an East Asian grouping with a mandate to discuss the full range of
regional economic, political and security issues. The department led the development
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of strategy and policy initiatives and supported both Mr Rudd’s participation in the EAS
foreign ministers’ meeting in July 2011 and the Prime Minister’s participation at the
leaders’ summit. We led development of an initiative with Indonesia to improve regional
responses to natural disasters, and built support among members for a political and
security agenda for the EAS, with discussions among leaders and foreign ministers on
issues such as maritime security and non-proliferation.
We continued to support linkages between the Australian Human Rights Commission
and the ASEAN Intergovernmental Commission for Human Rights (AICHR). The
department supported outreach to the AICHR and the ASEAN Commission for the
Promotion and Protection of the Rights of Women and Children (ACWC) on gender
issues through the Global Ambassador for Women and Girls (also see Advancing Gender
Equality section).
Australia joined Indonesia, New Zealand and the Philippines in holding the 6th Regional
Interfaith Dialogue (RID) in Semarang, Indonesia, in March 2012. The department
supported the participation of the Australian delegation, led by former Deputy Prime
Minister and former Ambassador to the Holy See, Mr Tim Fischer, and assisted
participation by developing countries. The RID developed a plan of action to guide
regional grassroots interfaith activities.
The department hosted and co-chaired with the Philippines and Japan a meeting
of the ARF on non-proliferation and disarmament which promoted best practice in
preventing the proliferation of weapons of mass destruction. We also hosted and
co-chaired with Indonesia a meeting on disaster relief that agreed to the development
of a new ARF disaster relief work plan. Australia worked actively with Timor-Leste and
other ARF members to support the ARF sending an observer mission to Timor-Leste’s
parliamentary elections in July 2012 and, with Indonesia and Singapore, led drafting of
a preventive diplomacy work plan adopted by ministers in July 2011.
FiGURe 9. AUSTRALiA’S TRADe iN GOODS AND SeRViCeS WiTH ASeAN
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Outlook
The department will continue to deepen relations with South-East Asia. We will support
further high-level engagement with Indonesia, lead negotiations for a Comprehensive
Economic Partnership Agreement and, with the Indonesian Government, support a
service to mark the 10th anniversary of the frst Bali bombings on 12 October 2012
(also see Consular services 2.1). We will continue to promote events celebrating the
60th anniversary of diplomatic relations with Thailand and foster our evolving relations
with Myanmar. The department will support the Singapore–Australia Joint Ministerial
Committee meeting and is planning an inaugural bilateral strategic dialogue with the
Philippines. The department will support the implementation of the Malaysia–Australia
Free Trade Agreement, which is expected to enter into force in early 2013. We will
engage with the new government in Timor-Leste to broaden the focus of the bilateral
relationship following the expected drawdown of international forces at the end of 2012.
In the EAS, we will promote practical cooperation in the priority areas of health,
education, energy and the environment, disaster management and fnance, and
a strengthened leaders’ dialogue on security issues. The department will work to
support regional economic integration initiatives, including the ASEAN-led Regional
Comprehensive Economic Partnership. In the ARF, we will continue to promote
preventive diplomacy as well as confdence-building activities. We will also co-chair
meetings on non-proliferation and disarmament and disaster relief, and from 2013,
on counter-terrorism and transnational crime.
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1.1.3 Americas
Overview
High-level political engagement, including the historic visit to Australia by President
Barack Obama and the Australia–United States Ministerial (AUSMIN) consultations,
further strengthened Australia’s bilateral relationship with the United States. The
department worked closely with the United States to progress Australia’s security,
political and economic interests globally and in the region. We worked actively to
maintain the broad trade agenda with the United States, including through the
architecture of the Australia–United States Free Trade Agreement (AUSFTA).
The department advanced Australia’s shared interests and high-level cooperation with
Canada. Recognising the growing signifcance of Latin America and the Caribbean to
Australia’s interests, we supported enhanced engagement with regional organisations,
high-level visits, AusAID programs in the region and the inaugural Latin America Down
Under conference.
United States
The department supported a large number of high-level visits that progressed Australia’s
foreign policy, security and economic interests with our most important strategic and
economic partner.
The department worked with the Department of the Prime Minister and Cabinet and other
agencies in support of President Barack Obama’s visit to Australia in November 2011.
The visit, his frst to Australia as President, marked the 60th anniversary of the ANZUS
Alliance. During the visit, Prime Minister Gillard and President Obama announced
signifcant initiatives to expand and deepen cooperation between Australia and the
United States, including on defence and security cooperation, education, and energy
effciency. In his address to a joint sitting of Parliament on 17 November, President
Obama underscored the Asia-Pacifc as a top priority for the United States.
Prime Minister Gillard and US President Barack Obama at a news conference at Parliament House in Canberra on
16 November 2011. Photo: Getty Images
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Senator Carr visited the United States in April 2012, his frst visit as Foreign Minister, to
continue Australia’s close engagement with Secretary of State Hillary Clinton and other
senior Administration and Congressional fgures on key global and regional issues and
bilateral cooperation. The then Foreign Minister, Mr Rudd, visited the United States in
September 2011 to attend World Bank and G20 meetings. Mr Rudd again visited the
United States in December 2011 and February 2012 for bilateral discussions.
We strengthened Australia’s alliance with the United States through the AUSMIN
consultations in San Francisco in September 2011. The meeting commemorated the
60th anniversary of the alliance, with the participation of Mr Rudd, the Minister for
Defence, Mr Smith, and their US counterparts, Secretary of State Clinton and Secretary
of Defense Panetta. AUSMIN outcomes included enhanced defence cooperation and
interoperability, strengthened joint development cooperation, and closer collaboration
on cyber issues, demonstrating that the alliance is continually adapting to meet
contemporary and evolving strategic challenges.
The department worked closely with the United States in support of our shared foreign
policy objectives in the Asia-Pacifc region. Australia welcomed the United States and
Russia to the East Asia Summit, for the frst time, in November 2011. The department,
together with the Department of Defence and the Department of the Prime Minister and
Cabinet, supported the implementation of the frst phase of the Australia–US joint force
posture initiatives announced in November 2011.
We maintained close dialogue with the United States on the conduct of the international
mission in Afghanistan, on democratic reform in Myanmar, and on international
responses to violence in Syria and the nuclear ambitions of Iran and the DPRK.
The Minister for Trade, Dr Emerson, with US Trade Representative, Mr Ron Kirk, at the APEC meetings in Honolulu,
Hawaii, November 2011.
The department advanced a broad trade agenda with the United States, advocating
a strong commitment to trade liberalisation in the WTO and Trans-Pacifc Partnership
Agreement (TPP) negotiations. We worked closely with the United States to support its
objectives as Asia-Pacifc Economic Cooperation (APEC) host in the lead up to the APEC
Leaders’ Summit, held in Honolulu in November 2011.
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The United States remained Australia’s largest investment partner in 2011.
US investment in Australia was worth $556 billion while Australia’s investment in the
United States was valued at $411 billion in December 2011. The United States also
continued to be Australia’s largest two-way services partner, with trade valued at
$16 billion in 2011, and was Australia’s third-largest trading partner in 2011, with goods
and services trade worth $54 billion.
The department monitored US legislative proposals to stimulate the economy and
actively advocated on the importance of avoiding protectionism and unnecessary
regulatory barriers. We also highlighted the value of liberalising outcomes as US
legislators renegotiate the US Farm Bill in 2012.
The department continued to utilise mechanisms provided by AUSFTA including through
participation in the AUSFTA Agriculture, and Sanitary and Phytosanitary Committee
meetings in March 2012. We worked closely with the United States on the frst
treaty-level amendment to AUSFTA, which entered into force on 1 June 2012. The
amendment will deliver benefts to Australian textile manufacturers by allowing them
to access the preferential tariff treatment when exporting certain yarns to the United
States (also see Bilateral, regional and multilateral trade negotiations 1.1.7).
We assisted with the January 2012 visit to Australia by two US Congressional
delegations, and the March 2012 Special Visits Program visit by Everett Eissenstat,
the Chief International Trade Counsel to the Ranking Member of the US Senate Finance
Committee, Senator Orrin Hatch.
Australian business, innovation, tourism, flm industry, culture and capability in the
green economy were promoted in the United States by over 30 G’Day USA 2012 events
in eight cities (Chicago, Dallas, Houston, Los Angeles, New York, San Diego, San
Francisco and Washington DC).
The department continued its strong support of the Australian-American Fulbright
Commission through its representation on the Fulbright Board. The department
sponsored the Fulbright Professional Scholarship in Australia–US Alliance Studies. We
continued to engage with academic institutions and think tanks, including the United
States Studies Centre at the University of Sydney.
FiGURe 10. AUSTRALiA’S TRADe iN GOODS AND SeRViCeS WiTH THe UNiTeD STATeS
(a)
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TABLe 3. AUSTRALiA’S TRADe iN GOODS AND SeRViCeS WiTH THe AMeRiCAS
(a)
exports exports imports
(b)
imports
(b)

Goods and services 2010 2011 Trend growth
2006–2011
2010 2011 Trend growth
2006–2011
$m $m % $m $m %
United States
(c)
14,297 14,898 -1.6 35,221 39,281 3.4
Canada 2,009 2,306 -2.8 2,535 2,570 -2.9
Mexico 789 1,187 5.5 1,458 1,826 9.5
Total NAFTA 17,095 18,391 -1.5 39,214 43,677 3.2
Central America &
Caribbean
(d)
404 304 -2.6 972 1,067 5.8
Brazil
(e)
1,570 1,391 10.4 758 825 -3.7
Chile 449 673 12.9 1,132 1,162 30.0
Argentina
(e)
340 380 20.7 286 550 19.4
Total South America 3,561 3,554 12.4 2,708 3,023 10.5
Total Americas 21,060 22,249 0.2 42,894 47,767 3.6
(a) Goods data on a recorded trade basis, services data on a balance of payments basis.
(b) Imports total excludes imports of ABS confdential items (mainly aircraft) from September 2008 onwards.
(c) 2010 and 2011 based on unpublished ABS data and includes confdential items (incl. aircraft) imports.
(d) Excluding Mexico.
(e) Goods data only. Services data is not published by the ABS for these countries.
Based on DFAT STARS database, ABS catalogue 5368.0.55.004 and unpublished ABS data.
Canada
The department strengthened the bilateral relationship between Australia and Canada
through broader and more structured engagement.
We led the inaugural bilateral strategic dialogue in Ottawa in March 2012, covering a
broad range of political and security issues on which Canada and Australia cooperate.
Australia strengthened aid cooperation with Canada through a memorandum of
understanding signed in November 2011. The MOU is a blueprint for development
cooperation with initial priority on multilateral aid effectiveness, mining for development,
and food security and nutrition.
Strong investment, particularly in mining and energy, is a notable feature of the bilateral
trade relationship. Canada’s investment in Australia was worth $25 billion in 2011,
a 34 per cent increase from 2010. Australia’s investment in Canada also rose to
$43 billion, an increase of 16 per cent. In May 2012, the Australian Industry Group and
its Canadian counterpart, the Canadian Council of Chief Executives, released a Joint
Statement of 11 recommendations for enhancing the bilateral trade and economic
relationship with Canada. Many of the recommendations will be relevant to our
discussions with Canada in the TPP, which Canada was invited to join in June 2012.
The department supported the visit to Australia by the Canadian Trade Minister Edward
Fast in April 2012, and participation by Canadian Prime Minister Stephen Harper
and Foreign Minister John Baird at Perth CHOGM in October 2011. We supported
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Dr Emerson’s visit to Saskatchewan in September 2011 to chair the Cairns Group
Ministerial meeting. The department also supported visits to Canada by the Minister
for Home Affairs, Jason Clare, and the Minister for Families, Community Services and
Indigenous Affairs, Jenny Macklin.
Refecting the depth and importance of Australia’s longstanding relationship with
Canada, the department worked with Canada in numerous regional and multilateral
contexts, including the G20, the UN, APEC and the Commonwealth.
The consular assistance Canada provided to Australians in Syria highlighted the
importance of the bilateral consular sharing arrangement under which Canada and
Australia provide consular services on each other’s behalf in 40 locations around the
world (also see Consular services 2.1).
Latin America and the Caribbean
The department supported the Prime Minister’s visit to Brazil for the UN Conference
on Sustainable Development (Rio+20). This was the frst visit by an Australian Prime
Minister to Brazil. The Prime Minister and Brazilian President Dilma Rousseff agreed to
elevate the bilateral relationship to a ‘Strategic Partnership’, including a commitment
to a regular leaders’ meeting and a strategic dialogue. The Prime Minister announced
an Australia–Brazil second track dialogue, supported by the Council on Australia Latin
America Relations (COALAR), to take place in 2013 (also see Public information services
and public diplomacy 1.1.13).
Prime Minister Gillard with the President of Brazil, Ms Dilma Rousseff, on the frst trip to Brazil by an Australian Prime
Minister in June 2012. Photo: Auspic/David Foote
In April 2012, Dr Emerson, accompanied by a business delegation, visited São Paulo to
attend an Australia–Brazil business forum and witness the signing of a memorandum of
cooperation between the Australian Industry Group and the São Paulo State Federation
of Industries. He also visited Brasilia to meet ministers responsible for Education,
Foreign Affairs, International Trade, Mining and Energy and the Central Bank President.
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Refecting the increasing importance of Mexico to Australia, in September 2011
Mr Rudd and Mexican Foreign Minister Patricia Espinosa signed a Plan of Action on
political, trade, economic and development cooperation. The department led senior
offcials’ talks in November 2011 and senior trade offcials’ talks in February 2012
during a visit by Economy Minister Dr Bruno Ferrari.
We facilitated visits to Mexico by Mr Rudd in February 2012 for the informal G20 Foreign
Ministers’ Meeting, Dr Emerson in April for the informal G20 Trade Ministers’ Meeting
and the Prime Minister for the G20 Leaders’ Summit in June.
Dr Emerson visited Chile to support Australian business involvement in a major mining
conference, ExpoMin; and Colombia, accompanied by a business delegation, to advance
Australia’s commercial interests. The department supported visits to Australia by Chilean
Defence Minister Andrés Allamand, Social Security Minister Evelyn Matthei and Mining
Minister Hernán di Solminihac. We facilitated the signing of a framework on political
consultations and a bilateral development assistance memorandum of understanding
with Peru. Australia continued to negotiate with Chile and Peru in the TPP negotiations
and welcomed the admission to that initiative of Canada and Mexico. We supported
deeper bilateral links with ecuador, including signing of an MOU on political consultations
by Mr Rudd and Foreign Minister Ricardo Patiño in New York in September 2011. We
helped resolve technical market access and quarantine issues with Latin America.
The department, with Austrade and the Department of Resources, Energy and Tourism
(DRET), strengthened engagement with Latin America through support for the inaugural
Latin America Down Under conference in Sydney in May 2012. Senator Carr spoke and
met journalists from Brazil, Colombia, Peru and Uruguay on a departmental International
Media Visits Program. We organised a session ‘Australia-Latin America Relations: The
Big Picture’; and provided side programs for Uruguay’s Minister for Industry, Energy
and Mining, Roberto Kreimerman, Peru’s Vice Minister for Mining Guillermo Shinno and
Nicaragua’s Presidential Delegate for Investment Promotion and Foreign Trade, General
Alvaro Baltodano.
The department facilitated Mr Rudd’s visit to el Salvador in December 2011 to attend
the Central American Integration System Leaders’ Summit. We assisted AusAID in
developing a cooperation program with Central America.
The department coordinated visits by Mr Marles, Parliamentary Secretary for Pacifc
Island Affairs and Parliamentary Secretary for Foreign Affairs, to attend the Mercosur
and Caribbean Community (CARICOM) Foreign Ministers’ meetings in Montevideo,
Uruguay in December 2011 and in Suriname in May 2012 respectively, as well as
bilateral visits to Cuba in July 2011 and to Barbados, Grenada, Guyana, Jamaica,
St Lucia, St Vincent and the Grenadines and Venezuela in January–February 2012.
We facilitated deeper bilateral links with the Caribbean, supporting visits to Australia
from Caribbean leaders and foreign ministers to attend the Australia–CARICOM and
Commonwealth and Developing Small States meetings held at Perth CHOGM. We
established an Honorary Consul in Jamaica in January 2012, and hosted a visit to
Australia in June 2012 by St Lucia Foreign Minister Alva Baptiste.
The department continued to support COALAR’s work to promote business, education,
sustainability, tourism and cultural linkages. We facilitated the Council’s work with major
partners, including Austrade, Department of Industry, Innovation, Science, Research
and Tertiary Education, Department of Resources, Energy and Tourism, Latin American
diplomatic missions and the Australia–Latin America Business Council (also see Public
information services and public diplomacy 1.1.13).
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The Minister for Foreign Affairs, Senator Carr, addresses the Center for Strategic and International Studies (CSIS) in
Washington DC in April 2012. Photo: yuri Gripas
Outlook
The department will continue to work closely with the United States, including in the
Asia-Pacifc region. AUSMIN 2012 will provide an important opportunity to maintain the
strong momentum in the bilateral relationship. The department will continue to engage
Australian and US business interests, including utilising the AUSFTA to enhance and
strengthen trade and investment links. We will be particularly focused on ensuring the
Government is well positioned to pursue Australia’s broad-ranging interests, following
the US presidential and congressional elections in November 2012.
The department will support the second Australia–Canada Economic Leadership Forum
to be hosted in Toronto in July 2012. The Forum will bring together academics, business
fgures and journalists from both countries to identify opportunities to further develop
the bilateral relationship.
New rounds of bilateral political and trade consultations with Latin America are
scheduled to take place in 2012–13. The department will seek to strengthen
engagement with Latin America and the Caribbean through dialogue with regional
organisations, participation in major industry events and support for two-way visits.
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1.1.4 EUROPE
1.1.4 Europe
Overview
Over the last year, a sovereign debt crisis has created political turmoil in Europe and
driven the region into economic downturn. Still, the imperative for stronger engagement
with the European Union (EU) remains unaltered; as a bloc, it continues to be our
second largest trading partner and largest investor. We have worked hard to maintain
the momentum in Australia–EU relations.
The department led negotiations on an Australia–EU Framework Agreement, aiming to
give further impetus to our broad-based cooperation and dialogue with the EU on global
challenges, trade and economic issues.
We secured substantive outcomes from major visits to Australia, including by the
President of the European Commission, the EU High Representative for Foreign Affairs
and Security Policy, and ministers from Russia, Portugal, France and Ireland.
During the June 2012 visit to Australia by the Secretary-General of the North Atlantic
Treaty Organization (NATO), we signed an historic Joint Political Declaration on our
partnership’s strategic rationale and future cooperation.
Our relationship with France was elevated to the level of a Strategic Partnership,
providing a framework for deeper bilateral cooperation in the future. We began work
towards a similar Strategic Partnership with Germany.
Continuing our close and cooperative relationship, the fourth round of Australia–United
Kingdom Foreign and Defence Ministers’ consultations (AUKMIN) was held in London in
January 2012.
The then Minister for Foreign Affairs, Mr Rudd, and Minister for Defence, Mr Smith, meeting British Prime Minister,
Mr David Cameron, Foreign Secretary, Mr William Hague, and Defence Secretary, Mr Philip Hammond, at AUKMIN in
London, January 2012. Photo: Andrew Parsons/i-images.
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Our relationship with Turkey was advanced through Prime Minister Gillard’s April visit,
during which she and her Turkish counterpart announced a year of cultural exchange
between our two countries in 2015.
Our embassy in Moscow supported a number of ministerial and offcial visits, as
Russia prepares to host the 2012 Asia-Pacifc Economic Cooperation (APEC) Summit in
September 2012.
FiGURe 11. AUSTRALiA’S TRADe iN GOODS AND SeRViCeS WiTH THe eUROPeAN UNiON
(a)
european Union
The department assisted in arrangements for the frst-ever offcial visits to Australia by
European Commission President Manuel Barroso and EU High Representative for Foreign
Affairs and Security Policy Catherine Ashton (September and October 2011 respectively).
We worked with the Department of the Prime Minister and Cabinet, AusAID, the
Department of Climate Change and Energy Effciency and other agencies to secure
substantive outcomes from these visits, including decisions to establish a senior
offcials’ climate change dialogue, and to implement arrangements for delegated aid
cooperation to deliver aid more effectively in the Pacifc and Africa.
The department, in collaboration with the EU Delegation, hosted a well-attended Europe
Day event in May to mark the 50th anniversary of Australia’s diplomatic relations with
the EU. Senator Carr delivered the keynote address.
The department led cross-government negotiations with the EU on a treaty-level
Framework Agreement, which will provide a strengthened framework for bilateral
relations and for cooperation on a broad range of global challenges.
We also led negotiations on an agreement to facilitate Australian participation in EU
Crisis Management Operations, working closely with the Department of Defence, the
Attorney-General’s Department and other agencies.
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Our embassy in Brussels conducted effective advocacy to encourage the smooth
passage of the revised Passenger Name Record Agreement through the European
Parliament and Council. The Agreement, which is important to Australia’s border
security, came into effect on 1 June 2012.
We continued to step up our engagement with the European Parliament, in recognition
of its increased powers under the Lisbon Treaty. In April 2012, the department
supported an Australian parliamentary visit to EU institutions and, in May, a visit to
Australia by Alexandre Stutzmann, diplomatic adviser to the new President of the
European Parliament, Martin Schultz.
The department worked with partners in Europe and Asia to resolve Australia’s regional
group status in the Asia–Europe Meeting (ASEM). Australia was admitted into ASEM’s
Asian group at the Copenhagen ASEM senior offcials’ meeting in March 2012.
We engaged EU offcials and leaders on developments in the Asia-Pacifc, including in
relation to Myanmar, Fiji and PNG.
Through regular ministerial, parliamentary and offcial-level contact in Canberra,
Brussels and in EU member state capitals, the department worked constructively
on bilateral and multilateral trade issues, including promoting ‘new pathways’ in the
WTO Doha round. The department hosted the annual senior offcials-level Trade Policy
Dialogue in Canberra in February 2012.
Our embassy in Brussels hosted a seminar on trade in services in January 2012 which
brought together policy makers, academics and industry representatives to investigate
barriers that could be restricting trade in that area between the EU and Australia.
Posts in Brussels, Berlin and The Hague organised and supported a senior-level
European Australian Business Council visit to Belgium, Germany and the Netherlands
in June 2012. The visit deepened ties between business communities and promoted
Australia as an attractive trade and investment partner.
The Minister for Foreign Affairs, Senator Carr, with NATO Secretary General, Mr Anders Fogh Rasmussen, after the
International Security Assistance Force Foreign Ministers’ meeting at NATO Headquarters in Brussels in April 2012.
Photo courtesy of NATO.
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european security
During the June 2012 visit to Australia by NATO Secretary-General Anders Fogh Rasmussen,
Australia and NATO signed a high-level Joint Political Declaration. The Declaration sets out
the strategic rationale of the Australia–NATO partnership, encapsulating our cooperation in
Afghanistan and beyond. It is the frst Declaration of its kind signed by NATO.
In a further sign of our strengthening relationship, Australia’s Ambassador to the
EU, Dr Brendan Nelson, was given the concurrent role of Australian Ambassador to
NATO. The department also supported Senator Carr’s attendance at the April 2012
NATO Foreign Ministers’ Meeting in Brussels. In January 2012, then Foreign Minister,
Mr Rudd, spoke at the North Atlantic Council, NATO’s highest decision-making body.
The department supported Mr Rudd’s attendance at the February 2012 Munich Security
Conference and December 2011 Organization for Security and Cooperation in Europe
(OSCE) Ministerial Meeting in Vilnius, Lithuania. The OSCE has been in the vanguard of
regional security confdence-building initiatives and continues to play an important role
in Central Europe and the Balkans. Partnership through the OSCE is also a major plank
in our relationships with the countries of Central Asia.
We continued our contribution to the OSCE’s efforts to promote human rights, fght
human traffcking and tackle money laundering. An Asian Partner for Cooperation of
the OSCE since 2009, Australia will for the frst time host the annual Asian Partners
Conference in 2013.
Personal Profle:
Peter Nagy
As First Secretary at the Australian Embassy in Moscow,
Peter reports on political developments in Russia and how
they impact on Australia’s interests. During Russia’s March
parliamentary elections, Peter was invited by the Russian
Government to join other diplomats as an international
observer. He also works on human rights, crime and
social issues.
Russia’s importance to Australian foreign policy is increasing
both bilaterally and multilaterally. Bilateral trade is growing,
and a range of agreements are under negotiation. Russia is also hosting APEC
in 2012 and the G20 in 2013; and is a permanent UN Security Council member
and a member of the East Asia Summit.
“It has been a unique opportunity to be able to focus on a country as complex and
interesting as Russia, particularly at a time when its future still involves a lot of
guesswork. Speaking to political and NGO contacts, my work often feels like that
of an investigative journalist on the trail of an elusive story. But a better strategic,
political and cultural understanding of Russia can advance many of Australia’s
interests, be they in agriculture or arms control.”
Prior to his posting to Moscow, Peter worked on the Japan Desk in Canberra; at the
Australian Embassy in Belgrade; and undertook a fve-week mission to Antarctica,
supporting the Australian Antarctic Division’s engagement with Russia and other
countries active on the continent.
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europe – bilateral relationships
We continued to build on our close and cooperative relationship with the United Kingdom.
The fourth round of AUKMIN, held in London in January 2012, enabled deeper cooperation
and dialogue on issues of common interest, including developments in the Arab world,
economic and security challenges in the East Asian and the Indian Ocean regions,
transition in Afghanistan and the Iranian nuclear program.
The High Commission in London supported a large number of ministerial and offcial
visits to the UK and worked effectively on preparations for the Queen’s Diamond Jubilee
celebrations and London Olympic and Paralympic Games.
Reciprocal visits by Mr Rudd and former Foreign Minister Alain Juppé developed a
stronger basis for cooperation between Australia and France. Mr Juppé’s visit in
September 2011 was the frst by a French foreign minister since 1983. The two
ministers signed a bilateral Joint Statement, which elevated the relationship to the level
of a Strategic Partnership during Mr Rudd’s subsequent visit to France in January 2012.
The Statement captures the strengths and maturity of contemporary Australian–French
engagement and provides a solid basis for the future evolution of the relationship. The
Australia France Foundation continued to support development of cultural ties (also see
Public information services and public diplomacy 1.1.13).
We continued to strengthen relations with Germany, Europe’s leading economy, by
supporting a number of visits by ministers and senior offcials. These included a visit
to Germany by Mr Rudd in January 2012 and senior offcials’ talks in Canberra in
March 2012. In January 2012, Foreign Ministers announced a commitment to work
towards a bilateral Strategic Partnership, which will provide a framework for deeper
bilateral cooperation into the future. The department also worked with German
counterparts to develop a program of events and activities to mark the 60th year
anniversary of diplomatic relations between Australia and Germany in 2012.
We advanced Australia’s economic, security and political interests through strengthened
cooperation with other European partners, including the Netherlands, Switzerland and
Belgium. This was achieved by support for visits, advocacy in capitals and intensifed
offcials-level dialogue.
The department supported a visit to Australia for St Patrick’s Day 2012 by ireland’s
Minister for Justice, Equality and Defence, Alan Shatter. The visit highlighted the depth
of bilateral people-to-people links and provided an opportunity to exchange views in the
lead-up to Ireland’s EU presidency in the frst half of 2013.
In 2012, we marked the 70th anniversary of Australia’s diplomatic relations with Russia.
During a January 2012 visit to Australia by Foreign Minister Sergey Lavrov, ministers
agreed to enhance bilateral exchange and capitalise on opportunities in the period
ahead, including Russian hosting of APEC in 2012 and our shared membership of
the G20 troika in 2013–14. Our intensifed engagement with Russia has enabled us
to reinforce Australian views on regional issues, as well as on international issues of
concern, such as Syria and Iran.
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The Parliamentary Secretary for Trade, Mrs Elliot, after the launch of ‘Future Unlimited’, an international education
initiative, in Vladivostok, Russia, March 2012.
During her visit to Turkey in April 2012, Prime Minister Gillard joined Prime Minister
Erdogan in designating 2015 as the Year of Australia in Turkey and the Year of Turkey in
Australia. The Prime Ministers also announced the establishment of a joint coordinating
body to identify and carry out activities that will enhance historical, social and cultural
links. The consulate in Çanakkale oversaw the completion of crucial preservation works
at Anzac Cove.
The department supported the visit of the Governor-General to Cyprus in June 2012.
In addition to discussions with President Christofas and senior Cypriot offcials, the
Governor-General met with the 15-strong Australian contingent deployed in the United
Nations peacekeeping force in Cyprus.
The Prime Minister’s Special Envoy, Dr Russell Trood, undertook visits to Latvia,
Lithuania, Slovakia, Slovenia, Bosnia and Herzegovina, Ukraine, Georgia, Armenia
and Azerbaijan. Dr Trood also attended the Sixth Bled Strategic Forum in Slovenia.
The department worked closely with Dr Trood to develop a program that underscored
Australia’s commitment to broader engagement with Europe and in particular with
Central and Eastern European states.
Australia’s commitment to relations with smaller European states was emphasised
by Parliamentary Secretary Marles’ visit to Albania, San Marino and Andorra, the
frst such visit by a member of an Australian Government. Mr Marles’ discussions
built on increased ministerial engagement in recent years and focused on our growing
cooperation in international forums.
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1.1.4 EUROPE
In October 2011, the department supported a visit to Australia by Georgia’s Foreign
Minister Grigol Vashadze. The visit preceded the appointment of Georgia’s frst
Ambassador to Australia in March 2012. A visit in May 2012 by Azerbaijan’s Deputy
Foreign Minister Khalafov was an opportunity to showcase Australian experience in
transport infrastructure.
The department contributed to the visit by the President of Portugal, President Aníbal
Cavaco Silva, the frst by a Portuguese President in a decade. We also supported
Senator Carr’s program of calls in Malta on his frst visit to Europe as Foreign Minister.
With italy, the department hosted a visit by Dr Enrico Letta, Deputy Secretary of the
centre-left Democratic Party. Dr Letta, a former Minister for European Affairs, met with
a range of public, private and academic institutions, as well as with key government
ministers. The department expanded its cooperation with Montenegro through
participation in the 2011 Summer School for Young Diplomats in Podgorica.
With AusAID, the department enabled an Australian contribution of $1.2 million to the
Chernobyl Shelter Fund, which will support Ukraine’s transformation of the Chernobyl
site into a safe and secure area.
In recognition of the vital role of Poland’s Auschwitz-Birkenau Foundation in
ensuring the horrifc events of the Holocaust are never forgotten, Australia made a
$500 000 contribution to its work. Contributions from Australia and other countries
will ensure the Foundation can carry out conservation works on the grounds of the
Auschwitz-Birkenau Memorial.
In November 2011, Australia assumed its role as Chair of the International Institute
for Democracy and Electoral Assistance (IDEA), an organisation based in Sweden.
In cooperation with AusAID, the department is helping International IDEA boost its
engagement in the Asia-Pacifc.
Australia had the opportunity to work closely in Afghanistan with Slovakia, with whom
we share a role in Uruzgan Province. In May 2012, the department hosted a visit by
Slovakia’s Deputy Minister for Defence, which provided an opportunity for in-depth
discussions about the future of Uruzgan and the transition to Afghan-led security.
In November 2011, Hungary welcomed Molly and Wally, two Tasmanian wombats,
making Budapest Zoo one of only four European zoos to exhibit wombats. The new
arrivals joined other members of the Zoo’s ‘Australian House’, which is showcasing
the wildlife and culture of the Australian region and highlighting aspects of
nature conservation.
In May 2012, our embassies cooperated to bring soprano, composer and author
Deborah Cheetham and accompanist Toni Lalich on a visit to Roma communities
in Hungary, Serbia and Croatia. Ms Cheetham ran workshops and spoke about
her Australian Aboriginal experience, focusing on themes of empowerment, cultural
self-determination and aspiration.
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TABLe 4. AUSTRALiA’S TRADe iN GOODS AND SeRViCeS WiTH eUROPe
(a)
exports exports imports
(b)
imports
(b)

Goods and services 2010 2011 Trend growth
2006–2011
2010 2011 Trend growth
2006–2011
$m $m % $m $m %
United Kingdom 12,394 11,462 -1.6 10,590 11,547 -0.8
Netherlands 3,089 3,948 0.9 2,555 2,901 6.6
Germany 2,862 3,281 5.9 11,935 12,006 2.8
France
(b)
1,841 1,831 -1.1 4,832 4,833 -1.2
Italy 1,459 1,589 -7.1 5,832 6,128 2.8
Total european Union 27
(b)
27,034 27,882 -1.8 51,149 53,500 1.4
Russian Federation 965 1,096 6.8 450 1,086 42.4
Other Europe 2,461 2,837 0.2 6,050 6,664 7.8
Total europe
(b)
30,460 31,815 -1.5 57,649 61,250 2.3
(a) Goods data on a recorded trade basis, services data on a balance of payments basis.
(b) Imports total excludes imports of ABS confdential items (mainly aircraft) from September 2008 onwards.
Based on DFAT STARS database and ABS catalogue 5368.0.55.004.
Outlook
With the likelihood of continued political and economic uncertainty in Europe, we will need
to work hard to maintain the momentum achieved over the past year in strengthening
Australia–EU relations and continue to advocate our value as a partner for Europe.
The department will again lead negotiations for a treaty-level Australia–EU Framework
Agreement and a Crisis Management Agreement. Once negotiations are concluded, we
will engage in advocacy to support their passage through European institutions.
We will continue to promote Australian interests and work with business on trade
and investment issues in Europe, including assessing the implications on Australian
interests of evolving economic developments in Europe.
Our hosting of the OSCE Asian Partners Conference in 2013 will be an important
opportunity to engage European and Central Asian partners on traditional and human
security, as well as good governance.
We will take the opportunity to increase engagement with Russia in the G20 and APEC
contexts, in order to continue to build the bilateral relationship. Our embassy in Moscow
will support Australian attendance at the remaining APEC meetings, including the
Leaders’ Summit in Vladivostok.
As 2015 draws nearer, we will continue to work closely with Turkey on developing a
program of events to commemorate the Gallipoli centenary and to celebrate the diversity
of the contemporary relationship.
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1.1.5 South and west Asia, Middle East and Africa
Overview
The department played a lead role in shaping key international decisions on security
transition in Afghanistan, announced at the Chicago Summit in May 2012, and on the
commencement of transition in Uruzgan.
We continued to coordinate Australia’s inter-agency engagement with Pakistan, including
defence training, law enforcement and counter-terrorism capacity building, strategic
dialogue and development assistance.
The department led the frst three rounds of negotiations for the Comprehensive
Economic Cooperation Agreement with India and supported business-to-business links
between Australia and India through the frst CEO Forum in March 2012.
In line with Australia’s interests in seeing the emergence of a stable and democratic
Middle East and North Africa region, we sustained our intensifed engagement with
Egypt and Tunisia and supported transition in Libya. Senator Carr undertook the
frst visit to Morocco and Algeria by an Australian Foreign Minister in June 2012. The
department led the Government’s response to continuing unrest and violence in Syria.
The department continued its strong support for a negotiated two-state solution
between Israel and the Palestinian Territories. We continued to expand engagement
with the Gulf, including through support to the frst visit by an Australian Foreign Minister
to Oman in June 2012. Engagement was signifcantly enhanced with key regional
institutions, including the Arab League, Organisation of Islamic Cooperation and Gulf
Cooperation Council.
Australia enhanced its diplomatic presence in Africa, refecting our growing commercial
and political interests in the region. The department supported increased engagement
with African leaders, including at CHOGM, and strengthened business and commercial
engagement. We continued to shape Australia’s response to the evolving political
situation in Zimbabwe and supported international efforts to address the situations in
Somalia and Sudan/South Sudan.
Afghanistan
The department worked to advance Australia’s interests in Afghanistan, and to support
Afghanistan’s stability and security.
The department played a key role in coordinating the whole-of-government effort
through our embassy in Kabul and the Provincial Reconstruction Team (PRT) in Uruzgan
province. Through our staff in the PRT—including the Senior Civilian Representative—
the department coordinated civilian efforts in Uruzgan, promoted peace and
reintegration initiatives, and created programs and plans to support development. The
department continued to participate in Australia’s detainee monitoring efforts, which
ensure Australian-apprehended detainees are treated in accordance with Australia’s
international obligations.
The department negotiated a Comprehensive Long-Term Partnership between Australia
and Afghanistan, which was signed by the Prime Minister and Afghanistan’s President
Karzai at the NATO/ISAF Chicago Summit in May 2012. During the Summit, the Prime
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Minister announced a signifcant increase in Australia’s aid commitment to Afghanistan,
and our fnancial support for the Afghan National Security Forces following transition.
Over the past year, the department played a lead role in shaping key international
decisions on the security transition in Afghanistan, announced at the Chicago Summit,
and on the commencement of transition in Uruzgan.
The department supported the Prime Minister’s visit to Afghanistan in November 2011
and the Governor-General’s visit in April 2012. The Prime Minister opened the new
Australian embassy chancery building in Kabul. The department supported participation
by Australia’s Special Envoy for Afghanistan and Pakistan, Mr Ric Smith, in the
International Contact Group on Afghanistan meetings and in the Istanbul Process for
Regional Reconciliation Conference in June 2012. Through this participation, Australia
helped shape international approaches to Afghanistan, including election planning,
reconciliation initiatives and the establishment of a regional process for supporting
Afghanistan’s development.
Personal Profle:
Adrian Lochrin
Adrian Lochrin is head of the Uruzgan
Provincial Reconstruction Team (PRT).
Numbering some 180 civilian and
military personnel, the PRT includes
representatives from Australia, the United
States and Slovakia. As head of the PRT,
Adrian coordinates the PRT’s political and
development engagement in Uruzgan.
Through stabilising communities and
building administrative capacity, basic
services and essential infrastructure, the efforts of the Australian-led Uruzgan PRT
will assist the Government of Afghanistan to continue to develop Uruzgan beyond
transition. Australian civilian PRT members routinely conduct meetings off-base,
throughout the province, with support provided by the PRT’s Australian Defence
Force and US military elements.
In a typical week, Adrian holds discussions with the provincial Governor, tribal
leaders, and development partners, as well as with other coalition civilian and
military leaders, ensuring that the PRT’s activities are well coordinated with Afghan
and coalition partners alike. A unique posting experience, serving within the PRT
provides Australian civilians from DFAT and AusAID the opportunity to work in a
challenging and complex civil-military environment. Adrian’s previous posting was
to Port Moresby. Prior to joining the Department in 2006, he held positions in the
Department of the Prime Minister and Cabinet and the Department of Defence.
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Pakistan
The department advanced Australia’s interests in continued engagement with Pakistan,
including a lead role in the coordination of whole-of-government activity and policy
development. The department facilitated a visit by Prime Minister Yousuf Raza Gilani
and Foreign Minister Hina Rabbani Khar to Australia for CHOGM in October 2011. In
June 2012, the department hosted Pakistan’s Foreign Secretary Jalil Jilani for senior
offcials’ talks on the Australia-Pakistan relationship.
In March 2012, Australia and Pakistan examined further trade ties when the department
hosted the Australia–Pakistan Joint Trade Committee meeting. A delegation of Pakistani
parliamentarians visited Australia in June 2012 to forge links with the Australian
parliament and to learn more about the Australian federal system.
The department also provided support for continued strategic dialogue,
including through support to the Special Envoy for Afghanistan and Pakistan and the
Department of Defence-led Australia–Pakistan one and a half-track Security Dialogue
held in Rawalpindi in November 2011.
india
The department continued to add depth to the Australia–India Strategic Partnership
agreed by our Prime Ministers in 2009.
In 2011, India was Australia’s fourth-largest export destination. Two-way goods and
services trade totalled $20.3 billion. Indian investment interest in Australia increased
dramatically over the period. Approvals totalled $11 billion (mainly in energy and
resources development), up from $1.5 billion the previous year.
The department facilitated the inaugural Australia–India CEO Forum in New Delhi, in
March 2012. Chaired by Mr Lindsay Fox AC (Linfox) and Naveen Jindal (Jindal Steel and
Power), the Forum addressed ways to facilitate bilateral trade and investment. India was
also the partner for Australia’s major IT fair, CeBIT, in May.
The department achieved good progress in negotiations for a bilateral Comprehensive
Economic Cooperation Agreement, with the third round of talks completed in May 2012.
Government-to-government links are strong and the department facilitated ministerial
and senior offcial visits in both directions over the past year, expanding the dialogue
between India and Australia on key bilateral, regional and global issues.
Working with state and territory governments, the department promoted international
student safety and welfare. Indian student visas granted increased by 43 per cent to
25 700 (our second-largest international source) in the past year.
The Australia–India Council (AIC) commemorated its 20th Anniversary with an exhibition
and publication of Kindness/Udarta, which produced a record of AIC supported cultural
exchanges (also see Public information services and public diplomacy 1.1.13).
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FiGURe 12. AUSTRALiA’S TRADe iN GOODS AND SeRViCeS WiTH iNDiA
(a)
The then Minister for Foreign Affairs, Mr Rudd, and Indian Minister of External Affairs, Mr Somanahalli Mallaiah
Krishna, at the 11th Indian Ocean Rim Association for Regional Cooperation’s Council of Ministers meeting in
Bangalore, November 2011.
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TABLe 5. AUSTRALiA’S TRADe iN GOODS AND SeRViCeS WiTH COUNTRieS iN SOUTH ASiA AND THe GCC
(a)
exports exports imports imports
Goods and services 2010 2011 Trend growth
2006–2011
2010 2011 Trend growth
2006–2011
$m $m % $m $m %
India 19,529 17,386 13.1 2,620 2,952 11.5
Bangladesh
(b)
582 579 31.0 143 244 50.1
Pakistan
(b)
540 414 6.6 163 173 2.5
Other South Asia
(b) (c)
265 286 8.5 126 123 5.7
Total South Asia 20,916 18,665 13.2 3,052 3,492 11.8
United Arab Emirates
(b)
2,147 2,244 -2.9 2,230 4,133 17.9
Saudi Arabia
(b)
1,564 1,531 -7.8 406 387 -22.2
Kuwait
(b)
507 613 1.8 366 428 11.7
Oman
(b)
477 418 7.5 35 62 101.1
Qatar
(b)
287 407 15.0 501 463 13.2
Bahrain
(b) (d)
175 165 5.7 47 108 -13.0
Total GCC
(b)
5,157 5,380 -2.6 3,584 5,582 7.4
(a) Goods data on a recorded trade basis, services data on a balance of payments basis.
(b) Goods data only. Services data is not published by the ABS for these countries.
(c) Other South Asia comprises Bhutan, Maldives, Nepal and Sri Lanka.
(d) Excludes exports of alumina (aluminium oxide) to Bahrain which are confdential in ABS trade statistics.
Based on DFAT STARS database and ABS catalogue 5368.0.55.004.
Central Asia
As growing energy powers and neighbours to an Afghanistan in transition, the Central
Asian region (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan) is
increasingly important to Australia’s interests.
In 2012, the department facilitated the frst visit of an Australian parliamentary
delegation to Kazakhstan in April. Inaugural senior offcials’ talks were held with
Kazakhstan and Uzbekistan in April and with Tajikistan in May.
Bangladesh, Bhutan, Maldives, Nepal, Sri Lanka
The department continued building links with Bangladesh in our 40th year of diplomatic
relations. This included advancing trade and commercial interests, with two-way
merchandise trade reaching $823 million. The department actively supported AusAID’s
growing development assistance program ($92 million in 2011–12).
Our relationship with Bhutan is based primarily on development assistance, with
141 scholarships provided for Bhutanese students in 2012. An inaugural bilateral
policy dialogue was held in January 2012. Special Envoy, Mr Tim Fischer, participated
in Bhutan’s High Level Meeting on Happiness and Wellbeing, in New York in April.
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The Australian Volunteers Program for Bhutan was launched to facilitate greater
people-to-people links.
The department played an active role supporting the Maldives following a transfer
of power in February 2012. The Secretary of DFAT participated in a Commonwealth
Ministerial Action Group (CMAG) fact-fnding mission to the country. Senator Carr (as
Vice-Chair of CMAG) supported a Commonwealth approach to addressing the situation
during CMAG meetings.
The Parliamentary Secretary for Pacifc Island Affairs, Mr Marles, attends a South Asian Association for Regional
Cooperation (SAARC) Summit in the Maldives in November 2011.
Our embassy in Kathmandu continued to monitor the transition in post-confict Nepal.
To support the democratic process, the department assisted the Australian Electoral
Commission to open an Electoral Education and Information Centre in May 2012.
The department closely monitored developments in Sri Lanka, advocating political
reconciliation and accountability for alleged human rights violations. Australia
co-sponsored a UN Human Rights Council resolution calling on Sri Lanka to implement
the recommendations of its Lessons Learnt and Reconciliation Commission report,
released in December 2011.
indian Ocean Rim Association for Regional Cooperation
The department played an integral role in fostering cooperation through the Indian
Ocean Rim Association for Regional Cooperation (IOR-ARC). Then Foreign Minister,
Mr Rudd, became the frst Australian Foreign Minister to attend an IOR-ARC Council
of Ministers’ meeting in November 2011, when Australia took over as Vice-Chair of
IOR-ARC (Australia becomes Chair in late 2013).
Australia took forward regional projects on trade and customs facilitation, fsheries
cooperation and seasonal climate forecasting. This included hosting an IOR-ARC
Trade Policy Workshop in May.
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The Minister for Foreign Affairs, Senator Carr, and the Foreign Minister of Oman, Mr yousef bin Alawi bin Abdullah, at
the Oman Ministry of Foreign Affairs, Muscat, during the frst-ever visit to Oman by an Australian Foreign Minister in
June 2012.
Middle east and North Africa
In line with Australia’s interests to see the emergence of a stable and democratic Middle
East and North Africa region, the department enhanced its engagement with countries
undergoing political transition. We continued our leadership of Government efforts in
support of Libya, including through participation in Libya Contact Group Meetings; support
to Libyan students in Australia; implementation of autonomous sanctions measures; and
in supporting a Foreign Ministerial visit to Tripoli in December 2011. Our engagement was
strengthened by agreement to hold regular senior offcials’ talks with Libya as a means
to advance mutual interests. In enhancing Australia’s bilateral relations with key North
African countries, the department also supported the frst-ever visit by an Australian
Foreign Minister to Algeria and Morocco in June 2012 and led inaugural senior offcials’
talks with Tunisia as well as senior offcials’ talks with egypt.
In leading the Government’s response to continuing unrest and violence in Syria,
the department participated in all meetings of the Friends of the Syrian People and
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implemented robust autonomous sanctions measures to pressure the Assad regime to
end the bloodshed and commit to a durable, inclusive political resolution to the confict.
The department continues to work closely with AusAID in delivering humanitarian
assistance to Syrians affected by the confict.
Refecting the depth of our bilateral relationship with Lebanon, the department
supported the visit of the Lebanese President, Michel Sleiman, to Australia in
April 2012, the frst by a Lebanese head of State.
Personal Profle:
Pauline Okai-Davies
As First Secretary and Consul at the Australian Embassy in
Abu Dhabi, Pauline Okai-Davies works to promote Australia’s
growing bilateral relationships with the United Arab Emirates
(UAE) and Qatar – important partners for Australia in
managing defence, security, trade and political relationships
in the region.
Pauline had the added responsibility of coordinating high-level
visits by the Prime Minister, Governor-General and several
Ministers during the year. The embassy’s consular workload
is also signifcant, due to large numbers of Australians using one of the two major
airlines of the UAE for transits to Europe, Africa and the Middle East.
“I arrived in Abu Dhabi during the ‘Arab Spring’, a time when our embassy played
an important role in providing consular and passport services to Australians caught
up in the turmoil. Ensuring we take a coordinated approach with other posts in the
region in assisting Australian citizens is central to our contingency planning and the
provision of consular and passport services.”
We continued our strong support for a negotiated two-state solution between israel
and the Palestinian Territories, including through engagement with AusAID in providing
targeted budget support for Palestinian institution-building. The department supported
the frst-ever visit by the Director-General of the United Nations Relief and Works Agency
for Palestine Refugees in the Near East (UNRWA) to Australia, which culminated in
the signing of a $90 million fve-year partnership agreement with UNRWA. Australia’s
substantial fnancial support for Palestinian development was recognised through an
invitation of membership to the Ad Hoc Liaison Committee (AHLC) in September 2011,
a 15-member committee that serves as the principal policy-level coordination mechanism
for development assistance to the Palestinian people. The department together with
AusAID represented Australia at AHLC meetings in September 2011 and March 2012.
In support of our growing strategic, commercial and people-to-people links with the Arab
Gulf States, the department facilitated several high-level visits to the region, including
a state visit by the Governor-General to the UAe in April 2012. The frst-ever visit by an
Australian Foreign Minister, Senator Carr, to Oman in June 2012 provided impetus to our
growing ties and followed the appointment of an Australian honorary consul to Oman in
December 2011. The Foreign Minister’s visit to Saudi Arabia in June 2012 reaffrmed
the value we place on engagement with this country which plays an important role in
regional and global affairs.
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The department also supported incoming visits to Australia from the Gulf, including by
the Saudi Minister for Petroleum and Mineral Resources; the UAE Foreign Minister to
CHOGM; and the UAE Trade Minister who delivered the keynote address at the second
annual Business Forum and Expo of the Australia Arab Chamber of Commerce and
Industry in June 2012. We provided extensive practical support to the second Australian
Gulf Council business mission to the region (Oman, Qatar and the UAE) in early 2012.
We advanced our relations with iraq through annual bilateral senior offcials’ talks
in Baghdad in November 2011, and our hosting of a visit by the Chair of Iraq’s
Parliamentary Foreign Affairs Committee.
Refecting Australia’s continuing deep concern about the nature of iran’s nuclear
program, the department implemented additional autonomous sanction measures to
urge Iran to comply with relevant United Nations Security Council (UNSC) resolutions and
cooperate fully with the International Atomic Energy Agency. We supported continued
dialogue with Iran on issues of mutual concern including Afghanistan, people smuggling
and counter-narcotics.
Despite ongoing security challenges, International Women’s Day 2012 assumed special signifcance in Baghdad when
the Australian Ambassador, Ms Lyndall Sachs (ffth from the right), hosted the Embassy’s frst-ever get together of
around 40 prominent Iraqi women.
The department continued to strengthen its engagement with the key institutions of the
Middle East and North Africa. The signing of the Australia–Arab Dialogue Agreement with
the Arab League in September 2011 was consolidated in inaugural senior offcials’ talks
with the Arab League in February 2012 in Cairo. We advanced cooperation and built on
outcomes from the regular Gulf Cooperation Council (GCC)–Australian Foreign Ministers
Strategic Dialogue through senior offcials’ talks with the GCC in Riyadh in June 2012.
The frst offcial visit by an Organisation of islamic Cooperation Secretary-General to
Australia, in February 2012, concluded with the agreement of a bilateral Framework
of Cooperation refecting our interest in increased links with this key institution,
representing the collective voice of the global Muslim community.
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Africa
The department supported the strengthening of Australia’s diplomatic relations with
Africa. Australia announced it would open a new embassy in Dakar, Senegal, which will
be Australia’s frst resident diplomatic representation in French-speaking West Africa
and will help support our growing commercial and diplomatic interests in that region.
Australia appointed Honorary Consuls in Angola, Botswana, Namibia and Tanzania over
the past year, helping to strengthen business links with those countries. Australia held
senior offcials’ talks with South Africa in October 2011 in Pretoria.
Supported by the department, Mr Rudd attended the 18th African Union Summit in
Addis Ababa, Ethiopia, in January 2012, continuing our pattern of growing engagement
with the African Union. He also inaugurated the Australian Embassy chancery project
in ethiopia and signed a memorandum of cooperation with Mozambique to enhance
bilateral relations. The department supported the hosting of a large number of African
Heads of Government, ministers and their delegations in Perth in October 2011 for
the Commonwealth Heads of Government Meeting (CHOGM) and the Commonwealth
Business Forum which helped strengthen business ties. In addition, the department
provided support to the Africa Down Under conference in Perth in September 2011 and
Mining Indaba in Cape Town in February 2012. We also supported the visit to Australia
by the President of Gabon, Mr Ali Bongo Ondimba, in March 2012.
The then Minister for Foreign Affairs, Mr Rudd, and then Chairman of the African Union Commission, Dr Jean Ping, in
Addis Ababa, Ethiopia, January 2012. Photo: Jiro Ose
The department led Australia’s response to the evolving political situation in Zimbabwe
by continuing to advocate for full implementation of the Global Political Agreement,
adjusting our sanctions in line with developments on the ground, and attending various
‘Friends of Zimbabwe’ meetings. We also supported regional and global efforts to
address the situations in Somalia and Sudan/South Sudan and other areas of peace
and security concern in Africa.
The Government supported the emergence of a newly independent state in South Sudan.
Working with the international community, we supported the referendum on independence,
including the participation of people in Australia eligible to vote. We moved quickly to
recognise South Sudan as an independent state and to establish diplomatic relations.
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Personal Profle:
Lisa Filipetto
As Australia’s frst Ambassador to the African Union, Lisa Filipetto is responsible for
building relations with this continental institution. As Ambassador to Ethiopia, Lisa works
to strengthen Australia’s relations with the second most populous country in Africa.
“It is a great privilege to be building Australia’s relations with the African Union
and its member states at a time when Africa is rising. Seeing how Africa works to
promote economic and social development, regional integration and peace and
security, including on such issues as Somalia and Sudan, gives me a sense of
history in the making. Ethiopia hosts over 350 000 refugees, and visiting refugee
camps on the borders with Somalia and Eritrea (which Australia helps to support) is
a very humbling experience. Travelling through the breathtaking scenery in Ethiopia
and meeting people who have a ferce pride in their country and ancient cultures is
one of the benefts of living in Addis Ababa.”
Ambassador to Ethiopia, Ms Lisa Filipetto (centre), with awardees of Australian Scholarships at a pre-departure
briefng for the 2012 intake, Addis Ababa, Ethiopia, October 2011.
Lisa joined the department as a graduate trainee in 1985. She has been posted
to Brunei, Ireland, Vietnam, Cambodia and Kenya. As Consul-General in Ho Chi
Minh City she built business, development and veteran relationships with southern
Vietnam from 1997–2001. Lisa was Ambassador to Cambodia from 2004 to 2007,
during which the tribunal to bring Khmer Rouge leaders to trial was established.
While based in Kenya as High Commissioner from 2007 to 2010, she became
Australia’s frst Ambassador to Burundi, Djibouti and Rwanda as well as being
Ambassador to Ethiopia and Eritrea and High Commissioner to Tanzania and
Uganda. She took up her appointment as resident Ambassador to Ethiopia in
September 2011, where she has been establishing the new Embassy.
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Ambassador to Afghanistan, Mr Paul Foley, Governor of Uruzgan Province, Amir Mohammad Akhundzada, and
Special Envoy for Afghanistan and Pakistan, Mr Ric Smith AO PSM, in Tarin Kowt, Afghanistan, in June 2012.
Outlook
The department will continue to support the democratic processes underway in a
number of countries and Australia’s growing development assistance programs across
these regions.
The department will be actively engaged in managing the transition of Australia’s role in
Afghanistan. We will continue to consolidate Australia’s relations with Pakistan, including
through Australia’s support to Pakistan ahead of its upcoming general elections.
The department will continue to support ministerial and high-level visits between
Australia and India to add further depth to the strategic partnership between the two
countries. We will continue to work with other countries of the Indian Ocean rim to foster
regional integration and cooperation on issues including regional security, fsheries
management and trade facilitation.
The department will continue to support international efforts, particularly through
sanctions, to persuade Iran to comply with UNSC resolutions on its nuclear program.
We will also work with the international community, including through the Group of
Friends of the Syrian People, to seek a peaceful, durable and inclusive resolution to the
confict in Syria.
The department will work to strengthen relations with Africa, building on our enhanced
diplomatic presence, and to promote growing trade and investment.
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1.1.6 Pacifc
Overview
The work of the department was central to Australia’s leadership role in promoting
sustainable economic development, stability and security in the Pacifc region.
An intensive program of high-level visits highlighted Australia’s strong engagement in
the region. The department supported visits by the Governor-General, Prime Minister,
Ministers for Foreign Affairs and Defence, and Parliamentary Secretaries for Pacifc
Island Affairs and Foreign Affairs and Defence. The Global Ambassador for Women and
Girls focused her international engagement on gender issues in the Pacifc (also see
Advancing Gender Equality).
The department contributed to further progress in implementing the economic
integration agenda with New Zealand. We led Australia’s close cooperation in the region
with New Zealand during its year as chair of the Pacifc Islands Forum.
The department steered Australia’s relations with Papua New Guinea through a year
of political volatility, with a focus on support for the national elections in mid-2012. In
cooperation with regional and international partners, the department led Australia’s
efforts to encourage and build on initial steps towards Fiji’s return to democracy. We
coordinated development of a transition strategy for the Regional Assistance Mission to
Solomon Islands (RAMSI).
Advancing regional economic integration was a priority for the department. We led
Australia’s participation in the Pacifc Agreement on Closer Economic Relations (PACER)
Plus negotiations, contributed to the expansion and transition to a permanent program
of the Pacifc Seasonal Worker Pilot Scheme (PSWPS), and made progress towards
concluding a new treaty to protect Pacifc fsheries.
Regional engagement
The department contributed to the participation of Prime Minister Gillard in the Pacifc
Islands Forum Leaders’ meeting in Auckland in September 2011, which marked the
40th anniversary of the Forum. We also supported attendance by the Parliamentary
Secretary for Pacifc Island Affairs, Mr Marles, who represented Australia at the
Post-Forum Dialogue.
In support of the Forum’s theme of sustainable economic development, we worked
with other departments to facilitate the Prime Minister’s announcement at the Forum
of the expansion of the Pacifc Seasonal Worker Pilot Scheme (PSWPS) to include
Samoa, Solomon Islands, Nauru, Tuvalu and Timor-Leste. More than 1350 workers have
participated in the Scheme since its inception. The department also helped ensure a
smooth transition to the permanent Seasonal Worker Program, which was announced in
December 2011 and will replace the PSWPS on 1 July 2012.
Forum Leaders agreed that progress in the PACER Plus negotiations was a priority. The
negotiations were advanced by the department’s chairing of an offcials’ meeting in
Australia in March 2012. This progress was built on at the Pacifc Islands Forum Trade
Ministers’ Meeting (FTMM) in May 2012. With support from the department, Mr Marles
represented Australia at the FTMM and reached agreement with regional counterparts
on a work program to intensify the PACER Plus negotiations.
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Forum Leaders also reaffrmed the importance of effective management and protection
of the region’s fsheries. The department worked with the Department of Agriculture,
Fisheries and Forestry to achieve further progress in the negotiation of a regional treaty
to strengthen maritime surveillance and other mechanisms to protect and develop
Pacifc fsheries. A substantial amount of the draft treaty text has been negotiated, in
order to meet the completion date of late 2012 set by Forum Leaders.
The department coordinated Australia’s contribution to the development of effective
regional responses to climate change, environmental issues and natural disasters. The
Pacifc Islands Leaders Meeting (PALM 6) in Japan in May 2012, attended by Mr Marles,
reached agreement to enhance cooperation with Japan on these issues.
Mr Bob Carr, shortly before his swearing-in as Minister for Foreign Affairs, with New Zealand Foreign Minister,
Mr Murray McCully, in Auckland, March 2012. Photo: Emma Voerman
New Zealand
Australia’s close cooperation with New Zealand in the Pacifc was further strengthened
during New Zealand’s year as chair of the Pacifc Islands Forum. The department
supported Foreign Ministers’ talks on the Pacifc in July 2011 and a visit to New Zealand
by the Minister for Foreign Affairs, Senator Carr, in March 2012, during which our shared
interests in the Pacifc were discussed and collaborative action agreed.
The department contributed to the implementation of outcomes to advance
trans-Tasman cooperation from the annual Australia–New Zealand leaders’ meeting
between Prime Ministers Gillard and Key in January 2012, including further action to
deepen economic integration and enhance security cooperation.
The department worked with other agencies to implement amendments to the Closer
Economic Relations Agreement’s rules of origin and contributed to progress in delivering
results from the Single Economic Market agenda.
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In collaboration with the Department of Innovation, Industry, Science, Research and
Tertiary Education, the department promoted Australia and New Zealand’s successful
joint bid to host the Square Kilometre Array radio telescope, with hosting to be shared
with South Africa.
With support from the department, the business-led Australia–New Zealand Leadership
Forum was held in Sydney in April 2012. The Forum discussed ways to further liberalise
trans-Tasman investment and identifed opportunities for Pacifc development.
FiGURe 13. AUSTRALiA’S TRADe iN GOODS AND SeRViCeS WiTH NeW ZeALAND
(a)
Papua New Guinea
In a year marked by political volatility and constitutional tensions, the department was
at the forefront of Australia’s broad and intensive engagement with Papua New Guinea,
including in response to political and security developments and in support of elections
scheduled for mid-2012.
Following a visit to Papua New Guinea in September 2011 by the then Foreign Minister,
Mr Rudd, we organised the bilateral Ministerial Forum in Canberra in October 2011, which
was held at the same time as a Guest-of-Government visit by Prime Minister O’Neill.
The department coordinated key policy and practical outcomes from the Forum,
including commencement of negotiations on an economic cooperation treaty, further
assistance for the establishment of the PNG Sovereign Wealth Fund, endorsement of
the reshaping of the aid program, and increased cooperation to build the capacity of the
PNG security forces.
The High Commission in Port Moresby was effective in Australia’s advocacy of timely
elections and coordinated the successful delivery of Australia’s substantial practical
assistance for the preparation and conduct of the elections.
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The then Minister for Foreign Affairs, Mr Rudd, greets people in the village of Moreguina, Abau District, Papua New
Guinea, in October 2011. Photo: AusAID
The department supported visits to Papua New Guinea by Mr Marles in October 2011
and March 2012. These visits followed up outcomes of the Ministerial Forum, supported
stronger business ties, deepened people-to-people links through education and sport,
and promoted adherence to constitutional and electoral processes.
The department helped deliver Mr Marles’ initiative to build the profle of Papua New
Guinea in Australia. We organised the inaugural PNG Independence Day Oration by
former Prime Minister Namaliu at Parliament House in September 2011 and worked
with AusAID to support Mr Marles in hosting, with Deakin University, the second PNG
Symposium in April 2012.
Solomon islands
Strengthening Australia’s bilateral relationship with Solomon Islands was a priority for
the department, including after the election of Prime Minister Lilo in November 2011.
The visit of the Governor-General, accompanied by Mr Marles, in April 2012 was warmly
welcomed in Solomon Islands as an expression of the importance Australia attaches
to the relationship. We also facilitated three other visits by Mr Marles and visits by the
Defence Minister, Mr Smith, the Parliamentary Secretary for Defence, Senator Feeney,
and two parliamentary delegations.
The department supported initiatives to increase trade links between Australia and
Solomon Islands. We facilitated participation by the Parliamentary Secretary for Trade,
Mrs Elliot, in the Australia–Solomon Islands Business Forum in October 2011. We
worked with Austrade to assist the visit of an Australian trade delegation to Solomon
Islands in February 2012.
The department negotiated with Solomon Islands a memorandum of understanding
on its participation in the Pacifc Seasonal Worker Pilot Scheme. Mr Marles signed the
memorandum during his visit in December 2011 as leader of a bipartisan group of
Australian parliamentarians.
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The Parliamentary Secretary for Pacifc Island Affairs and Parliamentary Secretary for Foreign Affairs, Mr Marles,
with Solomon Islands Police Minister, Mr David Tome, in Fouia Village, Malaita Province, Solomon Islands, May 2012.
In consultation with the Solomon Islands Government, regional partners and other
Australian agencies, the department coordinated Australia’s leadership of the Regional
Assistance Mission to Solomon Islands (RAMSI) and initiated a consultation process for
the development of a transition strategy for RAMSI.
The department supported Mr Marles’ participation in the Forum Ministerial Standing
Committee meeting on RAMSI in May 2012. The main outcome of the meeting was
agreement on the foreshadowed withdrawal in the second half of 2013 of RAMSI’s
military component and planning for transitioning civilian programs to bilateral donors
in 2013.
We supported Mr Marles’ visit to Solomon Islands in September 2011, accompanying
UN Secretary-General Ban Ki-moon. The visit enabled Mr Ban to see RAMSI’s work in
restoring stability and achieving a more prosperous future for Solomon Islands. It also
strengthened Australia’s cooperation with the United Nations in the Pacifc.
Fiji
The department continued to lead Australia’s efforts to encourage Fiji’s return
to democracy.
Following some initial positive steps by the Fiji interim government in early 2012,
the department supported Senator Carr’s participation in the Pacifc Islands Forum
Ministerial Contact Group (MCG) visit to Fiji in May 2012. The MCG was encouraged by
the steps taken towards elections in 2014, including the constitutional consultation
process. The department coordinated practical assistance provided by Australia to the
constitutional and electoral processes.
The department worked with Australia’s regional and international partners to maintain
solidarity in support of Fiji’s return to democracy. The Pacifc Islands Forum Leaders’
meeting in September 2011 reconfrmed Fiji’s suspension from the Forum. The
department supported participation by Mr Rudd and Senator Carr in Commonwealth
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Ministerial Action Group meetings in September 2011 and April 2012 respectively,
which maintained Fiji’s suspension from the Commonwealth.
We also continued to draw attention to the economic, social and human rights
situation in Fiji, including through statements at the UN Human Rights Council and the
International Labour Organization.
In line with Australia’s continuing support for the people of Fiji, the department
coordinated the Government’s decision to extend until 31 December 2014 the South
Pacifc Regional Trade and Economic Cooperation Agreement – Textile, Clothing and
Footwear scheme (SPARTECA-TCF). The scheme provides duty free access to Australia
for certain textile, clothing and footwear products from Fiji and underpins the livelihood
of thousands of Fiji’s workers.
Personal Profle:
Sarah Linton
As Second Secretary at the Australian High Commission, Port Moresby, Sarah
Linton reports on domestic politics, human rights and constitutional issues in
Papua New Guinea, and contributes to promoting bilateral ties between the two
countries. She also served on the Head of Mission Direct Aid Program committee,
which administers funds for small-scale community projects in PNG. In June 2012,
Sarah also worked on Australia’s assistance package to PNG’s national elections.
“It has been a privilege to work in Papua New Guinea during a period of considerable
change, both domestically and in terms of the bilateral relationship. Papua New
Guinea’s rich and diverse cultures, robust democracy and rapidly developing
economy make it truly unique in the Pacifc and the world. Observing Papua New
Guinea’s 2012 national elections has been the highlight of my career to date.”
Sarah joined the department as a graduate trainee in 2009. She did six-month
rotations in the Consular Information Section, Pacifc Division and APEC Branch
prior to taking up her posting to Papua New Guinea in 2010.
Ms Sarah Linton, Second Secretary at the Australian High Commission in Port Moresby, on election observing
duties for Papua New Guinea’s national elections in 2012.
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The Parliamentary Secretary for Pacifc Island Affairs, Mr Marles, Ms Sala Robert, Caretaker, and Australian High
Commissioner, Mr Jeff Roach, at the Melanie Jewson Memorial Chapel in Vanuatu, February 2012.
The chapel was built to honour 18 year old Melanie Jewson who was killed in a car accident near Geelong in 2004.
A year before her death, Melanie had visited Vanuatu with her mother and the country and its people had a huge
impact on the teenager. After Melanie’s death, her parents established the Melanie Jewson Foundation, raising funds
to build the chapel in the hospital grounds and provide continuing support to the hospital and local schools.
Vanuatu, Tonga, Samoa, Nauru
The department worked with other agencies in using bilateral development partnership
and security meetings to advance Australia’s interests in Vanuatu. We supported two
visits to Vanuatu by Mr Marles, including a visit in February 2012 that resulted in the
establishment of a regular high-level dialogue to advance development priorities. The
department helped Vanuatu establish its High Commission in Canberra in March 2012.
The department managed Australia’s response to the decision by the Vanuatu
Government in May 2012 to cease Australian Federal Police capacity building for the
Vanuatu Police Force and cooperation on law enforcement.
We worked with other agencies and the Tongan Government to advance bilateral
priorities, including through a visit to Australia by Prime Minister Lord Tu’ivakano.
Tonga’s continued active participation in the Pacifc Seasonal Worker Pilot Scheme was
a particular highlight. The department supported the visit of the Governor-General to
represent Australia at the funeral of the late King George Tupou V in March 2012.
In Samoa’s 50th year of independence, the department supported a visit to Samoa
by the Governor-General, accompanied by Mr Marles, in March 2012 and Mr Marles’
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attendance at independence anniversary celebrations in May 2012. We also supported
visits by a bipartisan group of parliamentarians led by Mr Marles in December 2011 and
a Commonwealth parliamentary delegation.
We deepened the bilateral relationship by negotiating a memorandum of understanding
to enable the participation of Samoan workers in the Pacifc Seasonal Worker Pilot
Scheme, which Mr Marles signed during his visit in December 2011. The department
led Australia’s delegation at inaugural security partnership talks in August 2011.
The department supported high-level engagement with Nauru, including visits by the
Governor-General and Mr Marles. We concluded negotiations for Nauru’s participation in
the Seasonal Worker Program and participated in Partnership for Development talks in
May 2012.
Other countries and entities
The department supported the Governor-General’s visits, accompanied by Mr Marles,
to Federated States of Micronesia, Kiribati, Tuvalu and New Caledonia in March and
April 2012.
The department also supported separate visits by Mr Marles to the Republic of Marshall
islands, Wallis and Futuna, Kiribati, Federated States of Micronesia and Tuvalu. These
visits reinforced Australia’s strong engagement throughout the region. Gender issues,
maritime surveillance and protection of the region’s fsheries resources were key
themes in many of the discussions.
The Governor-General, Her Excellency Ms Quentin Bryce AC, with Mr Martin Quinn, Ambassador to Federated States
of Micronesia (to her left), and embassy staff.
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1.1.6 PACIFIC
We worked with AusAID to conduct inaugural Partnership for Development talks
with Palau, Federated States of Micronesia and the Republic of Marshall Islands.
The talks integrated the North Pacifc countries more strongly into Australia’s
regional engagement.
The department led inaugural whole-of-government security partnership talks with
Kiribati in July 2011. We supported the visit to Kiribati in September 2011 by UN
Secretary-General Ban Ki-moon, accompanied by Mr Marles, which enabled Mr Ban to
witness frst-hand the vulnerability to climate change of a small Pacifc atoll state.
We concluded a memorandum of understanding with Tuvalu on its participation in the
Pacifc Seasonal Worker Pilot Scheme.
Outlook
The department’s bilateral and regional efforts will continue to focus on ensuring a
strong Australian contribution to the region’s stability, security and prosperity. The
Pacifc Islands Forum Leaders meeting in Cook Islands in August 2012 is a priority.
The department will lead and coordinate Australia’s engagement with the newly
elected government in Papua New Guinea, including through assisting the government
in implementing accountable and transparent management of Papua New Guinea’s
resources wealth and improving services to the people.
The department will continue to work with New Zealand and other regional partners
and the international community to encourage and provide assistance for a return to
democracy in Fiji.
In Solomon Islands, we will steer the continuing drawdown of RAMSI and the transition
of civilian elements to donors.
The department will focus on regional economic growth and integration through
intensifed negotiations towards a PACER Plus agreement and assisting implementation
of the Seasonal Worker Program. The department will also contribute to Australia’s
efforts to strengthen gender equality in the region and the conclusion of negotiations on
the treaty to strengthen fsheries protection by late 2012.
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Advancing Gender Equality
The department gave new focus to its work to promote gender equality in 2011–12.
Global Ambassador for Women and Girls
In September 2011, the Government appointed Australia’s frst Global Ambassador for
Women and Girls. The Ambassador is responsible for high-level promotion of Australian
Government policies and programs to advance the political, economic and social
empowerment of women and girls, particularly in the Asia-Pacifc region. Operating as
a focal point within the department for Australia’s international advocacy on behalf
of women and girls, the ambassador works closely with AusAID and the Australian
Government Offce for Women.
Ambassador for Women and Girls, Ms Penny Williams, addressing the Australia–US Pacifc Women’s Empowerment
Policy Dialogue, Canberra, November 2011.
Bilateral advocacy
The department initiated programs to expand Australia’s partnerships in the Asia-Pacifc
region to promote gender equality, and high-level visits ensured sustained advocacy.
Supported by the department, the Governor-General visited eight Pacifc countries in
March–April 2012, promoting the role of women in national development. Visits to
nine countries in the region enabled the Global Ambassador for Women and Girls to
meet with senior offcials and civil society and development agency representatives to
advance cooperation on gender issues.
Improving the lives of Afghan women and girls remained a major priority for Australia’s
civilian engagement in Afghanistan with positive results achieved in health, education
and community development sectors in 2011–12. The department monitored human
rights developments closely and made representations on Afghan women’s legal, social
and economic rights. In May 2012, Australia and Afghanistan signed a Long Term
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Comprehensive Partnership in which both governments committed to promoting and
protecting the rights of women and girls in Afghanistan.
The department’s engagement with China on gender issues encouraged Chinese
partner agencies to pursue major legislative and policy reform programs, including
new draft domestic violence legislation and pilot programs on reform of China’s family
planning system. We continued to promote women’s rights through our annual human
rights dialogues with China, Vietnam and Laos.
Multilateral and regional advocacy
The department supported whole-of-government and civil society engagement in
a range of multilateral and regional gender policy conferences. With other senior
representatives, the Global Ambassador for Women and Girls participated in
international forums to advocate for gender equality and demonstrate the importance
Australia attaches to women’s empowerment.
These events included: the APEC Women and the Economy Forum (September 2011);
side events on women at the United Nations General Assembly (September 2011); the
October 2011 Commonwealth Heads of Government Meeting side event on women’s
empowerment; the 56th Session of the UN Commission on the Status of Women
(CSW 56) (February–March 2012); and the Rio+20 Women Leaders’ Forum (June 2012).
The department began engaging with ASEAN on gender issues through the ASEAN
Intergovernmental Commission for Human Rights and the ASEAN Commission for the
Promotion and Protection of the Rights of Women and Children (ACWC).
The department supported AusAID in organising the Australia–US Pacifc Women’s
Empowerment Policy Dialogue: Stopping Violence Against Women, in Canberra in
November 2011 attended by 130 representatives from the Pacifc.
Australia co-sponsored and gave strong support to resolutions on women’s rights in the
UN Security Council, the UN Third Committee and the Human Rights Council. Sexual
violence in armed confict was a focus. The department participated in a study tour to
Australia in March 2012 by the UN Special Rapporteur on Violence Against Women.
We contributed to the work of the UN Secretary-General’s High-level Panel on Global
Sustainability and engaged with APEC and the OECD to improve women’s access to
markets, fnance and technical assistance. Our involvement in whole-of-government
efforts assisted in securing references throughout the Rio+20 outcomes document to
gender equity as an essential cross-cutting issue in sustainable development.
National initiatives
The department cooperated extensively with the Offce for Women to develop the
National Action Plan on Women, Peace and Security on implementing UN Security Council
Resolution 1325 and related resolutions to protect and empower women and girls in
fragile, confict and post-confict situations. Launched in March 2012, the Plan is a major
step forward in Australia’s contribution to the UN agenda on women, peace and security.
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Outreach
We initiated closer cooperation with civil society to promote partnership on issues such as
the eradication of violence against women, early and forced marriage and traffcking and
servitude. In Australia and overseas, we supported the following campaigns: White Ribbon
Day; the 16 Days of Activism Against Gender Violence; and International Women’s Day (IWD).
Visits by the Global Ambassador for Women and Girls to Papua New Guinea for White
Ribbon Day and Fiji for IWD, and by the Parliamentary Secretary for Pacifc Island Affairs
and Parliamentary Secretary for Foreign Affairs to PNG for IWD, assisted in focusing
attention on the elimination of violence against women, and on women’s political and
economic empowerment in the Pacifc. The appointment of all Australian male heads
of mission posted to the Pacifc as White Ribbon Ambassadors (in the lead up to White
Ribbon Day on 25 November 2011) underscored Australia’s commitment to engaging
men and boys in the elimination of domestic violence. In Canberra and at our overseas
missions, the department actively promoted IWD using the event to focus attention on
women in diplomacy, rural women’s economic empowerment, elimination of discrimination,
and strengthening girls’ rights.
Consistent with the department’s work to further integrate gender considerations across
its programs, we updated guidelines for the Direct Aid Program (DAP) administered by
posts and the International Relations Grants Program administered by Foundations,
Councils and Institutes (FCIs) to encourage particular consideration of activities that
address gender equality and women’s empowerment.
In 2011–12, the department funded around 360 DAP projects that supported gender
equality (to a combined value of $4.2 million of the total DAP budget of $10 million).
Projects to improve women’s health included: a cervical and breast cancer screening
program in Nepal; a mobile medical clinic for women in Iraq; and obstetric emergency
care in Bangladesh. Women’s economic empowerment was a focus with funding of
community-based beekeeping and piggery projects in Nigeria and Solomon Islands
respectively. In Jericho, we provided security infrastructure at a women’s centre for
women seeking shelter from family violence. In Kenya, the department supported a
campaign against sexual and gender-based violence. Under the Human Rights Grants
Scheme, we funded the Organization of Women’s Freedom in Iraq, providing women’s
shelters in locations across the country.
Refecting stronger engagement by FCIs on gender issues, in 2011–12, the Australia–
Thailand Institute supported bilateral cooperation on women’s leadership through a
study tour of Australia by young Thai female members of parliament. The Australia–India
Council supported a high-level forum on Women in Agriculture in New Delhi and ensured
representation by women in the Council’s Authors Tour and Young Media Fellowships.
The Council for Australian–Arab Relations supported a breast cancer symposium in
Saudi Arabia in February 2012. The department provided women and girls in China,
Japan and Korea with development opportunities through projects run by the Australia–
Japan Foundation, the Australia–Korea Foundation and the Australia–China Council.
These projects included Media Interns Programs, Next Generation Leaders Programs,
Scholarships Programs, Internship programs, and the Australia–China School Teacher
Development Program and Youth Dialogue.
Consular support
The department updated its consular case management systems to provide more
targeted support for victims of forced marriage.
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1.1.7 BILATERAL, REGIONAL AND MULTILATERAL TRADE NEGOTIATIONS
1.1.7 Bilateral, regional and multilateral trade
negotiations
Overview
The department supported the Government’s strong commitment to advancing global
trade reform and liberalisation. It supported the Government’s participation in the G20,
APEC and the OECD to strengthen international support for trade liberalisation and
advocated ‘new pathways’ in World Trade Organization Doha Round negotiations to
achieve some key outcomes for the Round in the near future. We supported the Minister
for Trade and Competitiveness, Dr Emerson, in his efforts to combat protectionism,
including helping to secure strong anti-protectionist pledges from G20 and APEC leaders
as well as a group of 50 countries at the WTO Ministerial Meeting in December 2011.
The department also pursued an active, wider multilateral trade agenda, including
leading exploratory discussions on a new trade reform initiative in services and
advocating the conclusion of a trade facilitation agreement, participation in WTO
disputes and the ongoing monitoring and transparency requirements associated with
the WTO Agreements.
Consistent with the Government’s 2011 trade policy statement, the department
supported negotiations for high-quality, truly liberalising bilateral and regional trade
agreements that do not detract from, but support, the multilateral system.
We are working to advance deeper regional economic integration, including through
advocating trade facilitation and economic reform. The department pursued this agenda
through participation in APEC and ASEAN-related forums, as well as through free trade
agreement (FTA) negotiations such as the Trans-Pacifc Partnership Agreement (TPP).
The Minister for Trade and Competitiveness, Dr Emerson, addresses the media following a meeting of OECD
trade ministers hosted by Dr Emerson in Paris. He is fanked by Mr Pascal Lamy, Director-General of the World
Trade Organization (left), and Mr Ron Kirk, US Trade Representative (right), with Mr Ed Fast, Canadian Minister of
International Trade and Minister for the Asia-Pacifc Gateway (far left), May 2012.
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Multilateral trade liberalisation and the WTO Doha Round
negotiations
Eleven years of talks to conclude the Doha Round has prompted a re-evaluation of the
traditional approach taken to the negotiations. During 2011–12, the department played
a leading role in progressing Australia’s interests including advocating a new approach
to the WTO Doha Round.
Australia was vocal in promoting the need for ‘new pathways’ to achieve an outcome in
the Doha negotiations. The proposed approach included the Round being broken into
more manageable components with a view to early implementation of those elements
close to completion and the possibility of pursuing plurilateral (or multi-country)
negotiations on other aspects where feasible.
The Cairns Group Ministerial Meeting in Saskatoon, Canada, in September 2011
provided a stage for the frst ministerial-level discussion of the need for a new approach
to the Round. The meeting communiqué recognised the need for fresh thinking on
common problems in the Round and acknowledged the need to develop a realistic
pathway to capitalise in particular on the substantial progress already made in the WTO
Doha Round agriculture negotiations. The department continued to lead Cairns Group
work in Geneva in support of re-engagement in the WTO agriculture negotiations and in
reinvigorating and reviewing the priorities of the WTO Regular Committee on Agriculture.
The department’s efforts aimed to ensure that agriculture remained central to the
multilateral trade reform agenda.
The Prime Minister won support for Australia’s idea of ‘new pathways’ for the Doha
Round, including at the G20 and APEC Summits in late 2011. Dr Emerson pursued
these ideas at the WTO Eighth Ministerial Conference in Geneva in December 2011 and
the World Economic Forum in January 2012. The department played an active role in the
Government’s efforts to secure international support for these approaches.
In the margins of the Eighth Ministerial Conference, Australia also took the lead in a
group of over 50 countries making a pledge to combat protectionism. The pledge called
in the strongest terms on governments to fght all forms of protectionism, including
barriers to trade in goods and services, new export restrictions or implementing WTO
inconsistent measures in all areas including those that stimulate exports.
The department was responsible for organising an informal ministerial gathering on the
WTO, hosted by Dr Emerson, in the margins of the OECD Ministerial Council Meeting in
Paris in May 2012. The meeting highlighted some possible areas for early conclusion
in the Round, in particular the negotiations for an agreement on trade facilitation, and
improving access to the WTO for the world’s least developed economies. Further work in
the services sector was also discussed.
The department has been active in progressing a global agreement on trade facilitation.
Such an agreement would lead to WTO Members adopting more modern, effcient
customs clearance procedures and would encourage greater cooperation between
customs and other border agencies of WTO Members. This would markedly reduce
the time it takes for goods to be processed and cleared, resulting in real reductions
in trading costs. It is estimated that a trade facilitation agreement could account for
44 per cent of all the potential benefts of the Doha Round, with two-thirds of these
accruing to developing countries.
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Given the growing role of services in economic growth and development, the department
has been leading new exploratory talks on global services trade reform. These
discussions have focused on a plurilateral initiative to advance liberalisation in the
services sector. The initiative is currently being discussed among those WTO members
genuinely interested in services reform. Our objective is to broaden participation in the
initiative over time and provide impetus for further multilateral reform.
Negotiations on an expanded Information Technology Agreement (ITA) were launched
in Geneva in May 2012. The department has played an active role in the negotiations
which have focused to date on expanding the product coverage of the ITA to eliminate
tariffs on new IT products and developing non-binding principles on non-tariff barriers.
The department continued to advocate global trade reform as a way to support
developing countries’ sustainable development by helping them better reap the
benefts of international trade. In addition, we worked closely with AusAID to continue
the Government’s strong support for trade-related development assistance that
helps developing countries engage in the multilateral trading system and regional
trade initiatives. In December 2011, the Government announced $16 million in new
trade-related development assistance (or aid for trade) to help developing and least
developed countries to beneft through global trade, including in key areas such as trade
development and building productive capacity.
The department managed the process for Australia to become a member of the Advisory
Centre on WTO Law, an intergovernmental Geneva-based organisation that provides
legal services on WTO law to developing countries, including support in WTO dispute
settlement proceedings. Trade offcials from South-East Asia, Africa and Latin America
were invited to Canberra for the biannual Trade Policy Course, which included a focus on
development issues.
Supporting trade liberalisation in other international bodies
The department was active in pursuing the Government’s trade liberalisation goals in
the G20, APEC and the OECD. We supported Dr Emerson’s and the Prime Minister’s
involvement in these forums, where they highlighted the positive linkages between trade,
growth and jobs, as well as the risks of protectionism in an increasingly inter-connected
global economy (also see Trade development and policy coordination 1.1.8).
We also supported Dr Emerson during the annual OECD Ministerial Council Meeting in
Paris, where he focused on the contribution trade can make to global economic growth
and jobs (also see Trade development and policy coordination 1.1.8).
The department was active in pursuing positive outcomes on trade issues at the
UN Conference on Sustainable Development (Rio+20) in June 2012, and participated
in negotiations on trade-related matters at the United Nations Framework Convention
on Climate Change meeting in Durban in November–December 2011. We worked with
the Department of Agriculture, Fisheries and Forestry to take forward work on the
Government’s Illegal Logging Prohibition Bill 2011.
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Other multilateral trade policy issues
Compliance and dispute settlement
The department leads Australia’s participation in the WTO dispute settlement system.
In August 2011, Australia adopted relevant measures in relation to the import of apples
from New Zealand to enable resolution of the dispute over Australia’s quarantine
measures for apples from New Zealand.
In the second quarter of 2012, Australia held dispute settlement consultations
with Ukraine and Honduras, at their request, in relation to Australia’s measures
on tobacco plain packaging. Consultations are the frst step in formal dispute
settlement proceedings.
Australia participated as a third party in key WTO disputes in which Australia has
commercial and policy interests. These included a dispute involving the United States,
Canada and Mexico in respect of country of origin labelling requirements applicable to
beef products; a dispute involving Canada, Japan and the European Union relating to
the provision of subsidies to the renewable energy sector; and a dispute between the
United States and China concerning the provision of electronic payment services.
The department managed Australia’s active engagement in the negotiations on
the review of the WTO’s dispute settlement system. We provided advice to other
Commonwealth Government agencies, and to state and territory governments,
on Australia’s commitments under the WTO and free trade agreements, and their
applicability to policy proposals or amendments.
WTO accessions
The department was heavily involved in concluding bilateral negotiations respectively
with Russia, Vanuatu and Samoa for their accession to the World Trade Organization.
The successful accession of Russia, which offcially became a WTO Member in
August 2012, completed 18 years of negotiations, and will result in signifcant
market access opportunities for our agriculture, resources and services sectors. The
department’s efforts in assisting Vanuatu and Samoa to conclude their respective
WTO accessions continues a long history of Australian support for the Pacifc region in
terms of trade development and promotion. Samoa became an offcial WTO Member in
May 2012, and Vanuatu became a Member in August 2012.
In line with the Doha Development Agenda, Ministers at the Eighth Ministerial
Conference in Geneva recognised the importance of enhancing the ability of the world’s
poorest countries to join the World Trade Organization and enjoy the benefts of the
global trading system. In July 2012, WTO Members adopted guidelines to this end.
Australia played an active and constructive role in negotiating these guidelines.
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intellectual property
Following the conclusion of negotiations in 2010, Dr Emerson signed the
Anti-Counterfeiting Trade Agreement (ACTA) in Tokyo on 1 October 2011. The treaty
was tabled in Parliament on 21 November 2011 for consideration by the Joint Standing
Committee on Treaties (JSCOT). The department appeared twice before JSCOT, which
tabled its report on ACTA on 27 June 2012. We are now working with other agencies to
assist the Government in preparing its response to the Committee’s recommendations.
Working closely with other agencies, we continued our active participation in
negotiations on intellectual property issues in the WTO, the World Intellectual Property
Organization (WIPO) and in bilateral and plurilateral FTAs. Australia supported an
extension of the mandate of WIPO’s Intergovernmental Committee on Genetic
Resources, Traditional Knowledge and Traditional Cultural Expressions, with a view to
the committee making recommendations on appropriate international arrangements
in these areas. On 15 June 2012, Australia’s Ambassador to the WTO signed a
memorandum of understanding with WIPO Director-General Dr Francis Gurry, detailing
how a $2 million Australian contribution would assist least-developed and developing
countries improve their intellectual property systems.
Assistant Secretary of East Asia Branch, Mr John Langtry (third from right), with Mr Liu Linlin (fourth from right),
Counsellor, Department of American and Oceanic Affairs, Chinese Ministry of Commerce attend the inaugural Services
Sector Promotion Forum in Beijing in May 2012, with (from right to left) Mr Samuel Hurley, DFAT, Mr Trevor Holloway and
Dr Kylie Brown, Australian Embassy Beijing, Mr Fang Hao, Chinese Ministry of Commerce, Ms Christine Schaeffer, DFAT,
and Mr Wang Bo, Chinese Ministry of Commerce.
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Personal Profle:
Michael Mugliston PSM
As Special Negotiator in the Free Trade Agreement Division, Michael Mugliston
has, since 2005, led Australia’s trade negotiations with South-East Asia, including
the successful conclusion of free trade agreements with ASEAN and New Zealand
(AANZFTA, 2005–09), and Malaysia (MAFTA, 2005–06 and 2009–12).
Michael’s contribution to advancing Australia’s trade agenda was recognised in 2010
with the awarding of the Public Service Medal for leading the AANZFTA negotiations.
Michael is currently heading Australia’s involvement in the implementation work
program for AANZFTA and is lead negotiator for Australia’s Comprehensive
Economic Partnership Agreement with Indonesia. He is also leading Australia’s
participation in talks between ASEAN and its six FTA partners on possible next
steps in regional economic integration.
Before taking up his current duties Michael held a number of senior positions in
Canberra and overseas, including Deputy Head of Mission in Brussels (2001–04)
and Counsellor at Australia’s Mission to the GATT, Geneva (1991–94).
Mr Michael Mugliston PSM, with Mr J Jayasiri, Multilateral Policy and Negotiations Division, Ministry of
International Trade and Industry Malaysia, and Mr Mohammad Radhi Abdul Razak, Trade Practices, Ministry of
International Trade and Industry Malaysia, at MAFTA negotiations in May 2012.
“The opportunity to lead Australia’s teams negotiating regional trade agreements
over the past seven years has been both challenging and rewarding. While long
experience working on trade policy was helpful in preparing for the FTA negotiations,
managing the complexity of the issues and policies engaged by such negotiations
was not something I think anyone can anticipate. I, and DFAT, have been fortunate
to have had such a highly professional team of colleagues who have risen to every
challenge. Working on FTAs with a diverse range of countries, at such a dynamic
time for the region, and for our relations with it, has been particularly satisfying.”
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1.1.7 BILATERAL, REGIONAL AND MULTILATERAL TRADE NEGOTIATIONS
Free trade agreement negotiations
Australia continues to advance an active free trade agreement agenda through
negotiating and implementing FTAs. The department is responsible for leading
whole-of-government negotiating teams and consulting extensively with domestic
stakeholders including the state and territory governments.
As at 30 June 2012, Australia had in force bilateral FTAs with New Zealand, Singapore,
Thailand, the United States and Chile; and a regional agreement with New Zealand
and ASEAN. In May 2012, the Malaysia–Australia Free Trade Agreement was signed by
both governments and procedures are underway with the aim of bringing it into force by
early 2013. As at 30 June 2012, the department was pursuing FTA negotiations with the
Republic of Korea (ROK), China, Japan, India, Indonesia, the Trans-Pacifc Partnership
Agreement negotiating parties, the Pacifc Island Forum countries (PACER Plus) and the
Gulf Cooperation Council (GCC).
The department was involved in preparatory work on ASEAN’s proposed Regional
Comprehensive Economic Partnership—an ASEAN-centred regional FTA—aimed initially
at including ASEAN countries plus ASEAN’s existing FTA partners (Australia–New
Zealand, China, Japan, the ROK and India) in a new trade agreement.
Malaysia Free Trade Agreement
The signing of the Malaysia–Australia Free Trade Agreement (MAFTA) was a signifcant
milestone in Australia’s economic relationship with Malaysia, our tenth-largest trading
partner. We supported Dr Emerson in fnalising MAFTA negotiations and preparing for
treaty signature.
Negotiations concluded at Dr Emerson’s meeting with his Malaysian counterpart, Dato’
Sri Mustapa Mohamed in March 2012 – within the timeframe agreed by Prime Minister
Gillard and Malaysian Prime Minister Najib Razak in March 2011. Dr Emerson signed
the treaty in Kuala Lumpur on 22 May 2012. Industry reactions were overwhelmingly
positive.
The department was involved in fnalising and verifying the treaty text and schedules of
commitments on tariffs, services and movement of natural persons. We also prepared a
series of industry fact sheets detailing the main MAFTA outcomes which were released
on the department’s website immediately after the Agreement was signed, together
with a full copy of the text of the Agreement. MAFTA will enter into force as soon as both
Australia and Malaysia have completed their respective domestic approval processes
(also see South-East Asia 1.1.2).
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Key outcomes for Australia from MAFTA
The Malaysia–Australia Free Trade Agreement (MAFTA) improves on Malaysia’s
commitments to Australia under the regional ASEAN–Australia–New Zealand FTA,
including through signifcant market access gains for Australian goods exporters
and services suppliers, and greater ease of doing business in Malaysia.
From MAFTA’s entry into force, tariff-free access will apply to 97.6 per cent of
2009–11 average imports into Malaysia from Australia, increasing to 98.9 per cent
in 2016 and 99 per cent in 2017. Specifc outcomes include:
• for the automotive sector, elimination of all tariffs on large cars and virtually all
tariffs on auto parts on entry into force of the agreement, with tariffs on smaller
cars eliminated by 2016, and removal of quantitative restrictions on motor
vehicle imports from Australia;
• on iron and steel, tariff-free treatment for 96.4 per cent of recent imports
into Malaysia from Australia by 2016, rising to 99.9 per cent by 2017 and
100 per cent by 2020;
• on plastics, chemicals, and a range of processed foods and manufactured
products, elimination of virtually all tariffs from entry into force;
• for Australian milk exporters, access to additional quota; and
• for Australian rice exporters open access from 2023 and complete elimination
of all tariffs by 2026.
MAFTA has business friendly rules of origin provisions. Goods exported from
Australia will be able to claim MAFTA tariff treatment solely on the basis of a
declaration of origin by the exporter.
Australian entities will be able to acquire majority ownership in companies supplying
services across a wide range of sectors in Malaysia. This includes:
• higher education services provided by privately funded institutions and a range
of other education services;
• investment banking and direct insurance services;
• telecommunications services;
• accounting, auditing, bookkeeping and management consulting services; and
• mining-related services, taxation services, tourism and travel related services,
and research and development services.
Under MAFTA, more Australian executives and senior managers will be able to work in
Malaysia and stay for longer periods. MAFTA will also provide stronger protection for
intellectual property rights; establish a framework for mutual recognition of qualifcations
and licencing requirements for professionals; and facilitate electronic commerce.
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Ongoing negotiations
Republic of Korea Free Trade Agreement
Since negotiations commenced in May 2009, the department has continued to engage
very closely with the Republic of Korea. The department led negotiating sessions in
July, September, October 2011 and May 2012. Although we were unable to meet
the timeframe set out by Prime Minister Gillard and Korean President Lee Myung-bak
in April 2011 to conclude FTA negotiations by the end of 2011, both leaders have
reaffrmed the commitment to conclude negotiations as soon as possible.
The department has supported signifcant ongoing ministerial contact in support of the
FTA throughout the year. Now that the Korea–United States Agreement has entered
into force and the Korean National Assembly elections have concluded, we expect to
intensify our negotiations to fnalise a comprehensive, high-quality and liberalising deal
with Korea. With most of the agreement text agreed, negotiations are in the concluding
stages (also see North Asia 1.1.1).
China Free Trade Agreement
The Government continued to pursue an FTA with China, which would further strengthen
our commercial relationship. The department led Australia’s negotiating team during
three more rounds of negotiations (July and November 2011 and March 2012). Australia
hosted two of these rounds. Departmental offcials conducted additional high-level
discussions in February and May 2012.
We supported high-level political engagement with Chinese leaders to discuss options
for accelerating the FTA, in particular Dr Emerson’s meetings with China’s Commerce
Minister Chen Deming in Canberra in April 2012, Beijing and Paris in May 2012 and in
June on the margins of the APEC meetings (also see North Asia 1.1.1).
Japan Free Trade Agreement
Following a slowdown in negotiations after the devastating earthquake and tsunami
that hit Japan (March 2011), Prime Minister Gillard and Japanese Prime Minister Noda
reaffrmed their goal of a high-level FTA at the East Asia Summit (EAS) in November 2011.
FTA negotiations with Japan intensifed during 2012. Leading an inter-agency team, the
department continued to make steady progress with Japan across our comprehensive
negotiating agenda. Four further rounds of negotiations were held (in December 2011,
and February, April and June 2012). Australia hosted two of these rounds. The department
supported continued discussion at ministerial-level including during Senator Carr’s and
Dr Emerson’s visits to Japan in May–June 2012 (also see North Asia 1.1.1).
india Comprehensive economic Cooperation Agreement
By the end of June 2012, the department had led three negotiating rounds for the
Australia–India Comprehensive Economic Cooperation Agreement. The inaugural round
of negotiations was hosted by India in July 2011; subsequent rounds were hosted by
Australia in November 2011 and May 2012. Initial rounds made useful progress on the
broad structure of the agreement. Stakeholder consultations on the proposed agreement
have been conducted across the states and territories. The department will continue
to accept submissions from stakeholders to help inform Australia’s approach to market
access priorities (also see South and West Asia, Middle East and Africa 1.1.5).
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indonesia Comprehensive economic Partnership Agreement
The department engaged in stakeholder consultations for the Indonesia-Australia
Comprehensive Economic Partnership Agreement (IA–CEPA) and received written
submissions from interested parties. The Agreement Establishing the ASEAN–
Australia–New Zealand Free Trade Area’s (AANZFTA) entry into force for Indonesia
on 10 January 2012 meant that pre-negotiation consultations could move to formal
negotiations. The IA–CEPA will cover trade, investment and economic cooperation
issues and will build upon both parties’ AANZFTA commitments. Australia and Indonesia
implemented IA–CEPA economic cooperation activities over the pre-negotiation period.
In May 2012, the department welcomed the collaborative support of Australian and
Indonesian chambers of commerce and bilateral business associations who agreed
to form a joint Business Partnership Group to support the negotiations (also see
South-East Asia 1.1.2).
Trans-Pacifc Partnership Agreement
We continued to lead Australia’s participation in the Trans-Pacifc Partnership Agreement
(TPP) negotiations, with 13 rounds completed since March 2010. Leaders of TPP
countries announced in November 2011 that agreement on the broad outlines of the
TPP had been reached and endorsed the report that had been received from TPP trade
ministers, including a commitment to a comprehensive, ambitious TPP which eliminates
tariffs and other barriers to trade and investment. TPP negotiations are on track to
substantially conclude a signifcant proportion of the legal text in 2012. The department
actively pursued domestic consultations regarding the interest of Canada, Mexico and
Japan joining the TPP negotiations. In June 2012 current parties to the agreement—
Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore, the United States and
Vietnam—agreed by consensus to Canada and Mexico joining the initiative.
Gulf Cooperation Council Free Trade Agreement
The department has been working to secure an early resumption of free trade
agreement negotiations with the Gulf Cooperation Council (GCC) – a customs union
comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
We commenced free trade agreement negotiations with the GCC in 2007 and there
have been four negotiating rounds. Negotiations have been suspended since June 2009
owing to the GCC’s internal review of its FTA negotiations with all partners. The review
has been completed and its recommendations have been submitted to GCC ministers
for consideration. The department will continue to lobby for resumption of negotiations,
as the GCC remains an important market for a diverse range of Australian goods and
services exports, and an important source of foreign investment (also see South and
West Asia, Middle East and Africa 1.1.5).
Pacifc Agreement on Closer economic Relations (PACeR) Plus
Pacifc Islands Forum Leaders agreed in September 2011 that progress in the PACER
Plus negotiations was a priority. The department hosted and chaired negotiations at
the follow-up session in Australia in March 2012. With support from the department,
Mr Marles, Parliamentary Secretary for Pacifc Island Affairs and Parliamentary
Secretary for Foreign Affairs, represented Australia at the Pacifc Islands Forum Trade
Ministers’ Meeting in May 2012 and reached agreement with regional counterparts on a
work program to intensify the PACER Plus negotiations (also see Pacifc 1.1.6).
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Personal Profle:
Rachel Dunstone
Rachel Dunstone left Hong Kong’s
investment banking world in 2005 and
joined DFAT as a trade and economic
policy specialist. She served a stint in
Canberra working on trade policy then
returned to her home town of Sydney as
Deputy Director in the New South Wales
State Offce.
Now working as First Secretary at
the Embassy in Jakarta’s economic
section, Rachel has put her private
sector background to good use in pursuing Australia’s interests in the high stakes of
Indonesia’s complex trade and economic policy environment, especially as talks move
ahead on the Indonesia–Australia Comprehensive Economic Partnership Agreement.
“For Australia, there’s great potential to expand our trade and investment
relationship with Indonesia.”
“The variety of work we do here is incredible. In any week, the topics that cross our
desks can be anything from bilateral trade, agriculture, mining, forestry and fsheries
to sea law, climate change, the WTO and the G20.”
“But the most unexpected outcome of my posting to Jakarta—as a city girl—has
been the opportunity to become an expert on the live cattle trade in Indonesia.
I’ve really enjoyed working with representatives of the livestock industry.”
Framework for Regional Comprehensive economic Partnership
The department has been taking a keen interest in Association of Southeast Asian
Nations (ASEAN) approaches to further economic integration. In November 2011,
ASEAN leaders endorsed a Framework for Regional Comprehensive Economic
Partnership (RCEP). The RCEP would be a regional FTA, building on the AANZFTA,
including initially ASEAN and its FTA partners. It would be open to broader participation
in the future. At their April 2012 Summit, ASEAN leaders committed to the
establishment of working groups on trade in goods, services and investment as soon as
possible and to the launch of negotiations by the end of 2012 towards an RCEP.
implementation of existing free trade agreements
The Agreement Establishing the Association of Southeast Asian Nations (ASEAN)–
Australia–New Zealand Free Trade Area (AANZFTA) entered into force for Indonesia
on 10 January 2012. The Agreement is now in force for all twelve signatories. We
supported Australia’s role as host of the fourth meeting of the AANZFTA Committee on
Trade in Goods, including a workshop reviewing non-tariff measures, in December 2011.
The department also supported Australia’s role as co-chair of the fourth meeting of the
FTA Joint Committee in Brunei in May 2012 to oversee implementation of AANZFTA.
Rachel Dunstone (left) and Austrade colleague
Julianne Merriman (right) on a visit with the
Ambassador to a local community health centre in
East Java.
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We pursued Australia’s interests in resolving practical implementation issues and
developing economic cooperation activities to support effective implementation and
further regional economic integration.
The department continued to oversee implementation of the Australia–Chile FTA which
entered into force in March 2009. The department worked with Chilean authorities
to clarify Spanish language labelling requirements for beef exported to Chile under
the 2010 Beef Grading MOU that was a commitment under the FTA. Beef was
Australia’s second-largest export to Chile in 2011.
We continued to utilise mechanisms provided under the Australia–United States Free
Trade Agreement (AUSFTA), now in its eighth year of operation. In collaboration with the
Department of Agriculture, Fisheries and Forestry, the department hosted meetings
of the AUSFTA Agriculture, and Sanitary and Phytosanitary Committees in Canberra in
March 2012 to advance resolution of a number of market access issues relating to
agricultural and food products.
We concluded the frst treaty-level amendment to AUSFTA, which modifes the Rules
of Origin for certain clothing yarns traded with the United States to deliver benefts to
Australian manufacturers. The department continued to work with both federal and state
and territory authorities to review the operation of the government procurement chapter
under AUSFTA (also see Americas 1.1.3).
The department led Australia’s delegation to the third Thailand–Australia Free Trade
Agreement (TAFTA) Joint Commission held in Bangkok in June 2012, which advanced
the general review of TAFTA and the review of its provisions on special agricultural
safeguards (also see South-East Asia 1.1.2).
In 2011–12 the department completed formal domestic treaty processes leading
to the entry into force of amendments from the second Ministerial Review of the
Singapore–Australia FTA (SAFTA) on 2 September 2011 (also see South-East Asia 1.1.2).
The department also played a major role in negotiating the outcomes of the 2008–2010
review of the Australia–New Zealand Closer Economic Agreement (ANZCERTA) Rules
of Origin amendments to Article 3. New legislation was enacted (on 30 April 2012) to
simplify bilateral trade rules to make them more consistent with Australia and New
Zealand’s other free trade agreements (also see Pacifc 1.1.6).
Outlook
While a conclusion to the entire Doha Round may not be feasible in the short term, the
department will continue to pursue possible outcomes of various components of the
agenda in line with the Government’s ‘new pathways’ approach. The department will
work towards a conclusion to negotiations on trade facilitation and continue to play
a lead role in efforts at the WTO to pursue liberalisation of global services markets.
We will actively participate in negotiations underway to expand the WTO Information
Technology Agreement. In addition, the department will continue to advocate conclusion
to WTO discussions on improved accession processes for the world’s poorest countries.
Working with other Government agencies and WTO Members, the department will
continue to support the institution of the WTO and the many important functions it
carries out in oversight of the global trading system, including its role in resisting
protectionist tendencies and promoting open markets.
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The department will lead the processes required for the entry into force of the
Malaysia–Australia FTA (expected early 2013). We will continue negotiations across the
FTA agenda and seek to conclude the Korea–Australia FTA. The department will continue
to lead Australia’s participation in the Trans-Pacifc Partnership Agreement negotiations
and work to achieve signifcant progress during 2012. Bilateral negotiations with Japan
and China will intensify and the department will seek to progress negotiations with India
and the GCC. Now that AANZFTA has entered into force for Indonesia, the Indonesia–
Australia Comprehensive Economic Partnership Agreement negotiations will commence.
The Minister for Trade, Dr Emerson, with Canada’s Minister for Agriculture, Mr Gerry Ritz, at the Cairns Group
Ministerial Meeting in Saskatoon, Canada, in September 2011.
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1.1.8 Trade development and policy coordination
Overview
Australia’s economy remains resilient, despite fragile global economic and fnancial
conditions, underpinned by a record pipeline of resources investments and solid growth
in commodity exports. Australia outperformed most other advanced economies, growing
2.2 per cent in 2011. But Australia is not immune from events in Europe and elsewhere,
and domestic conditions remain uneven with global economic weakness, the strong
Australian dollar and cautious household spending weighing on some sectors.
Australia’s total goods and services trade reached new highs in 2011, growing
10 per cent to top $600 billion for the frst time. Exports expanded, refecting strong
demand for raw materials in developing regional economies.
The department actively pursued Australia’s interests in multilateral economic forums,
including the G20, APEC and the OECD, supporting the participation of the Prime
Minister, the Trade Minister and other ministers in these groupings.
FiGURe 14. DiReCTiON OF AUSTRALiA’S eXPORTS 2011
(a)
(a) Goods data on a recorded trade basis, services data on a balance of payments basis.
Based on DFAT STARS database and ABS catalogue 5368.0.55.004
Totals may not add due to rounding.
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G20
As global economic recovery faltered over the year, largely due to developments in the
Euro zone, the department contributed to Australia’s efforts to use the G20 to bolster
confdence, and strengthen growth and job creation.
At the G20 Leaders’ Summit in Cannes in November 2011, Australia played a key role in
building support for a new, practical approach to advance the WTO Doha negotiations.
Dr Emerson participated in the frst-ever G20 trade ministers’ meeting in April 2012,
which highlighted the positive linkages between trade, growth and jobs, and made
important progress in building support for an outcome on trade facilitation in the Doha
negotiations. The department supported the Prime Minister’s participation at the Los
Cabos G20 Summit in June 2012. Leaders agreed to extend to 2014 the standstill
commitment to resist protectionism and called for deeper analysis of how trade and
investment restrictions affect global supply chains.
Prime Minister Gillard meeting the President of Mexico, Mr Felipe Calderón, at the G20 Leaders Summit, Los Cabos,
Mexico, in June 2012.
We supported then Foreign Minister, Mr Rudd, at an informal meeting of G20 foreign
ministers in Los Cabos in February 2012. The meeting explored the social and political
implications of the global economic downturn, and discussed ways to manage them.
The department worked to advance Australia’s G20 agenda and to shore up support for
the G20 process. We contributed to work on a number of trade, development and food
security issues. Our posts engaged G20 countries to build support for our objectives.
We worked closely with France in 2011 and Mexico in 2012 as G20 hosts to help deliver
successful Leaders’ meetings and practical outcomes. An offcer of the department was
seconded to the Mexican Ministry of Foreign Affairs in 2012 to assist with G20 issues.
At the Cannes Summit, G20 Leaders agreed that Australia would host the G20 in 2014,
following Russia in 2013. Since then, the department has contributed to planning for
Australia’s year as G20 host.
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The Parliamentary Secretary for Trade, Mrs Elliot, discussing study opportunities in Australia with students from the
Australian Society at Moscow State University in March 2012.
APeC
APEC plays an important role in strengthening practical collaboration on economic and
trade issues in the Asia-Pacifc. APEC’s 21 member economies account for 56 per cent
of the world’s GDP and over 70 per cent of Australia’s trade in goods and services.
Australia made a signifcant contribution to the positive outcomes achieved at the
annual APEC Leaders’ Meeting in Honolulu in 2011. These included commitments
to liberalise trade in environmental goods, to reduce region-wide energy intensity, to
facilitate structural reform, and to lower the transaction costs of doing business in
the region. Useful outcomes were also achieved on streamlining regulations and on
strengthening supply chains. On services, the department is leading work to develop
a database on information needed by companies, especially small and medium-sized
enterprises (SMEs), seeking to export to the region. Australia also played a lead role in
efforts to strengthen regional fnancial markets and to develop APEC guidelines that will
make it simpler for accountants to work across the region.
The department has also been closely engaged in APEC’s work on issues such as
disaster management, anti-corruption and illegal logging. We supported Mr Rudd’s
participation in an APEC meeting on Disaster Resiliency in Hawaii in November 2011.
We helped coordinate the work of over 20 government agencies on specifc APEC
activities in 2011–12 and collaborated with the APEC Business Advisory Council, as well
as other stakeholders.
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We supported Dr Emerson’s participation in the Ministers Responsible for Trade meeting
in Kazan, Russia, in June 2012, which delivered a strong signal of support for the
Doha negotiations and made useful progress on a number of issues, including higher
education, food security, services liberalisation and structural reform.
APEC plays an important role in building capacity in the region and the department
worked closely with AusAID and other agencies to deliver assistance. For example,
we organised a workshop for 19 APEC economies to identify and implement structural
reform priorities. We also facilitated regulatory impact analysis training by the Offce of
Best Practice Regulation for Russian offcials.
The then Minister for Foreign Affairs, Mr Rudd, and Indonesian Foreign Minister, Dr Marty Natalegawa, listen as US
Secretary of State Hillary Clinton addresses the Asia-Pacifc Economic Cooperation (APEC) Women and the Economy
Summit in San Francisco, September 2011. Photo: Justin Sullivan/Getty Images
OeCD
The OECD helps governments design and implement better policies across a wide range
of issues and makes a valuable contribution to the work of the G20, the WTO and other
economic forums. The department supported Dr Emerson’s participation in the annual
OECD Ministerial Council Meeting in Paris in May 2012. Useful outcomes included
building a stronger, shared understanding of the contribution trade makes to global
economic growth and job creation, as well as agreement that the OECD should continue
to monitor the effects of protectionist measures on global trade.
To mark the OECD’s 50th anniversary in 2011, the department organised an exhibition
highlighting Australia’s engagement with the Organisation over the 40 years since we
joined, particularly in the areas of economic reform, trade, agriculture, education, social
policy, tax and anti-bribery.
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Trade fnance
The department coordinates policy advice relating to the Export Finance and Insurance
Corporation (EFIC), a statutory corporation that provides trade fnance and insurance
services to support Australian exports. EFIC’s mandate is to provide such services
where the private sector does not.
We made a submission to a Productivity Commission inquiry into Australia’s export
credit arrangements in the second half of 2011. The Commission’s report was tabled
in Parliament in June 2012. The report makes a number of recommendations aimed
at reorienting EFIC’s focus to addressing information-related fnancial market failures
affecting newly exporting small and medium-sized enterprises and improving the
transparency of its activities and performance. The department is coordinating, with
other agencies, a draft response to the report for the Government’s consideration.
The department represented Australia in the OECD’s Working Party on Export Credits
and Credit Guarantees. The group recently fnalised an agreement to improve
environmental outcomes by allowing more favourable terms and conditions for export
credits related to renewable energy, climate change mitigation and water projects.
The group also agreed that infrastructure projects supported by OECD members’
export credit agencies should meet established international standards for evaluating
environmental impacts.
enhancing trade competitiveness
The department—supporting Dr Emerson in his role as Minister for Competitiveness—
contributed to the development of a range of policies aimed at enhancing Australia’s
economic performance. We provided assistance to the Prime Minister’s Manufacturing
Task Force, and advised portfolio ministers on a range of issues, including tax,
international education, carbon pricing and foreign investment issues. The department
also continued to work closely with the Department of Resources, Energy and Tourism
on energy security issues.
Sustainable mining and confict diamonds
The department played an active role on sustainable mining issues. We led work on the
current review of the Kimberley Process, which is designed to prevent diamonds from
confict zones being used to fund armed rebel groups. We also supported the Extractive
Industries Transparency Initiative, which aims to reduce corruption associated with
resources projects, particularly in developing countries where government structures
and regulatory systems could be enhanced.
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1.1.8 TRADE DEVELOPMENT AND POLICy COORDINATION
Resources Diplomacy
Australia’s current resources boom has been accompanied by a rapid expansion of
Australia’s mining, oil and gas companies internationally. The department’s role in
assisting business and addressing resources policy issues has grown accordingly.
Minerals and energy comprised 61 per cent of Australia’s merchandise exports
in 2011, while Australian mining companies held assets overseas worth $158 billion.
Nearly 600 Australian mining, oil and gas companies now operate or have interests in
projects in some 120 countries, spread across all regions of the world.
The department and its overseas network helps Australian mining companies
through advice on local economic and political conditions; making representations
on policy and regulatory issues; facilitating access to decision-makers; and
providing consular support to Australians working overseas.
We work with other agencies at international mining events to strengthen contact
between Australian industry and other governments and to promote Australia’s
mining credentials. These events include the Africa Down Under Conference in
Perth, the Mining Indaba in South Africa, and the Latin America Down Under
Conference, held for the frst time in Sydney in May 2012.
The department is also engaged in international initiatives to promote corporate
responsibility and sustainable mining, which have become integral to many
Australian companies’ business practices.
The Kimberley Process, which works to eliminate trade in confict diamonds, and the
Extractives Industry Transparency Initiative (EITI), which promotes transparency in
revenues received by government from mining and oil companies, are two initiatives
on which the department takes an active role internationally, in close collaboration
with the Department of Resources, Energy and Tourism. We also liaise closely
with AusAID in relation to its Mining for Development program, which seeks to help
developing countries to maximise benefts and opportunities of mining.
Ambassador to Mexico, Ms Katrina Cooper, addresses the Latin America Down Under Conference in Sydney
in May 2012.
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UNCTAD
The department supported the Parliamentary Secretary for Pacifc Island Affairs and
Parliamentary Secretary for Foreign Affairs, Mr Marles, in leading Australia’s delegation
to the Ministerial meeting of the United Nations Conference on Trade and Development
(UNCTAD) in April 2012. Mr Marles highlighted the importance of open markets for
economic development. He encouraged UNCTAD to cooperate with other international
organisations including the WTO, OECD and G20, and to work on the linkages between
trade, employment, innovation and growth.
Outlook
The global economic outlook continues to be marked by uncertainty, particularly
regarding the situation in the Euro zone, and slowing activity in key economies. Against
this backdrop, the department will continue to play an active role in multilateral
economic forums to resist protectionism as a serious risk to growth, and to maximise
market access and trade competitiveness gains for Australia. In the lead-up to hosting
the G20 leaders’ summit in 2014, we will work closely with the Department of the Prime
Minister and Cabinet and the Treasury to make a strong contribution to global economic
and fnancial reform and economic growth.
In our region, we will continue to work with APEC economies to promote trade and
investment openness, including through collaboration on structural reform, services
liberalisation, regulatory coherence and stronger supply chains. We will support the
Government’s competitiveness agenda and position Australia as a global leader in
sustainable mining.
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1.1.9 INTERNATIONAL ORGANISATIONS, LEGAL AND ENVIRONMENT
1.1.9 International organisations, legal and
environment
Overview
The department made a strong and constructive contribution to the United Nations (UN),
the Commonwealth and other multilateral forums on a broad range of issues, including
human rights, international security and environmental issues.
We supported Australia’s hosting of the Commonwealth Heads of Government Meeting
(CHOGM) and supported Australia’s efforts in securing strong policy outcomes including
agreement to strengthen the Commonwealth Ministerial Action Group (CMAG).
Promotion of Australia’s strong credentials for a non-permanent seat on the United
Nations Security Council (UNSC) remained a priority. We led Australia’s advocacy on
human rights issues through the United Nations General Assembly, the United Nations
Human Rights Council and bilateral human rights dialogues. The department supported
Australia’s participation in the United Nations Conference on Sustainable Development
(Rio+20) and advanced Australian priorities including on oceans and food security.
We fostered strong regional cooperation on people smuggling and traffcking in persons.
A key achievement was agreement by the Bali Process on People Smuggling, Traffcking
in Persons and Related Transnational Crime to establish a Regional Support Offce in
Bangkok to help address these issues.
The department continued to advocate an end to all forms of commercial whaling and
contributed to the Government’s action in the International Court of Justice against
Japanese whaling. We provided legal advice to the Government on international sea
and environmental law issues. We also hosted and chaired the 35th Antarctic Treaty
Consultative Meeting (ATCM).
Public consultations were conducted on Australia’s autonomous sanctions regulatory
framework and on the signifcant expansion of Australia’s autonomous sanctions
regimes targeting Iran and Syria.
United Nations
Australia continued its deep engagement in the UN. The department promoted
Australia’s national interests in major international negotiations and debates, and
supported the engagement of the Foreign Minister at the UN General Assembly and
other multilateral forums.
We continued to lead an active campaign to secure a non-permanent seat on the UNSC
for the 2013–14 term. With elections scheduled to take place in October 2012, the
tempo of the campaign increased over the past twelve months. Australia’s diplomatic
missions, in particular Australia’s Permanent Mission to the UN in New York, have been
engaged in promoting Australia’s candidacy. In 2013–14, the UNSC will deal with issues
directly relevant to Australia’s interests, including Afghanistan.
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RAMSI Special Coordinator, Mr Nicholas Coppel, briefs UN Secretary-General, Mr Ban Ki-moon, in Honiara, Solomon
Islands, in September 2011. Photo: Tom Perry
The department worked closely with the Australian Civil Military Centre to produce
a report entitled ‘Partnering for peace: Australia’s peacekeeping and peace building
experiences in the Autonomous Region of Bougainville in Papua New Guinea, and in
Solomon Islands and Timor-Leste’. Former President of Timor-Leste, José Ramos-Horta,
and the Parliamentary Secretary for Defence, Mike Kelly, were keynote speakers at the
offcial launch of the report in New York on 5 June 2012.
With AusAID, we continued to promote awareness of the Responsibility to Protect (R2P)
principle in our region and through the UN. R2P is aimed at preventing the four mass
atrocity crimes of genocide, war crimes, ethnic cleansing and crimes against humanity.
We supported the hosting of a regional conference on R2P in Bangkok by the
Asia-Pacifc Centre for R2P at the University of Queensland, in conjunction with
Chulalongkorn University, in May 2012. The conference explored approaches to R2P in
the region and among ASEAN countries. On 19 June 2012, Australia co-hosted a panel
event in Geneva, moderated by Professor Gareth Evans, to explore further the potential
role of the Human Rights Council in advancing R2P. The department represents
Australia on the R2P Group of Friends in New York.
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1.1.9 INTERNATIONAL ORGANISATIONS, LEGAL AND ENVIRONMENT
The department worked with the UN Alliance of Civilizations (AoC) to advance its agenda
of fostering mutual respect and understanding among religions and cultures. We
supported then Foreign Minister Rudd’s participation in the Fourth AoC Forum in Doha
in December 2011. This included co-hosting with Turkey a special session of the Forum
on the ‘AoC: A New Paradigm to Manage Intercultural Relations’. We also participated
in the AoC Partners Forum in Turkey in May 2012, and announced that Australia
would contribute $250 000 to support AoC interfaith and intercultural projects in the
Asia-Pacifc region.
The department led Australia’s engagement with the United Nations Educational,
Scientifc and Cultural Organization (UNESCO) through our mission in Paris and
supported the Australian National Commission for UNESCO.
Australian Ambassador and Permanent Representative to the UN, Mr Gary Quinlan (second from left),
Parliamentary Secretary for Defence, Dr Mike Kelly (right), and former Chair of Solomon Islands National Peace
Council, Mr Paul Tovua (left), listen as the former President of Timor-Leste, Dr José Ramos-Horta, shares his
experiences at a seminar hosted by the Australian Mission to the United Nations in New york on peacekeeping and
peacebuilding, June 2012. Photo: Paulo Filgueiras
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Perth Commonwealth Heads of Government Meeting (CHOGM)
The department worked closely with the Department of the Prime Minister and
Cabinet and the Commonwealth Secretariat to support Australia’s hosting of the
Perth CHOGM in October 2011. With a theme of ‘Building National Resilience,
Building Global Resilience’, CHOGM attracted some 4000 delegates from 50
Commonwealth countries for the week-long event.
Perth CHOGM delivered signifcant outcomes designed to reform and strengthen
the Commonwealth to ensure its continued relevance. A new strengthened
mandate for the Commonwealth Ministerial Action Group (CMAG) was agreed to
enable CMAG to more effectively address the full range of serious or persistent
violations of Commonwealth values.
Agreement was reached to conclude in 2012 a ‘Charter of the Commonwealth’,
as proposed by the Commonwealth Eminent Persons Group (EPG). Thirty EPG
recommendations to reform the Commonwealth were agreed as well as a process
to consider the remaining EPG recommendations. The department worked with
other agencies and Commonwealth partners to secure agreement to the Perth
Declaration on Food Security Principles.
We supported a number of side events at CHOGM hosted by then Foreign Minister
Rudd, including separate meetings with Caribbean, Pacifc and African Foreign
Ministers and a meeting of Indian Ocean Rim countries to discuss piracy. In
partnership with AusAID, the department organised the Commonwealth and
Developing Small States Foreign Ministers Meeting, chaired by Mr Rudd. The
meeting was a platform for small states to exchange views on the major challenges
to their sustainable development, particularly the impact of climate change and
threats to the marine environment.
(L-R) Prime Minister Gillard, Her Majesty The Queen, Commonwealth Secretary-General, Mr Kamalesh Sharma,
and Prime Minister of Trinidad and Tobago, Ms Kamla Persad-Bissessar, arrive for the CHOGM 2011 Opening
Ceremony in October 2011 in Perth. Photo: Getty Images
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Commonwealth
We worked actively to implement the commitments made by Leaders at the Perth
CHOGM. We have led the Commonwealth process to take forward the Charter of
the Commonwealth and the remaining EPG recommendations. The department also
facilitated Australia’s national consultations on the Charter in early 2012.
The political situation in the Maldives was the frst test of the strengthened CMAG
mandate, and we supported the Foreign Minister’s participation in CMAG discussions
on the Maldives. The Secretary of the department participated in a high-level CMAG
mission which visited the Maldives in February 2012.
The department supported Mr Rudd and Senator Carr’s participation in CMAG meetings
in September 2011 and April 2012 respectively. We supported Senator Carr’s chairing
of a meeting of a Commonwealth Ministerial Task Force in June 2012, which progressed
the text of the Charter and consideration of remaining EPG recommendations.
Human rights
Australia continued its strong support of multilateral efforts to promote and protect
human rights. The department led Australia’s participation in the UN General
Assembly’s Third Committee, preparing Australia’s national statement on human rights,
contributing to negotiations on a range of matters and co-sponsoring 33 resolutions,
including on Myanmar, Iran, the DPRK, gender issues, the rights of Indigenous peoples,
disabilities and children.
Australia co-sponsored the inaugural presentation to the Third Committee of the
Organisation of Islamic Cooperation’s consensus resolution on combating intolerance
and discrimination based on religion or belief, refecting our support for international
interfaith and intercultural dialogue.
The department led Australian participation in the UN Human Rights Council (HRC) in
Geneva. Australia co-sponsored numerous HRC resolutions, including resolutions on the
rights of the child, participation in political and public life by persons with disabilities
and freedom of religion or belief. Australia led a resolution on national human rights
institutions, which was widely co-sponsored, and co-hosted a well-attended event on the
HRC’s role in supporting the practical implementation of the Responsibility to Protect.
Australia co-sponsored the HRC’s March 2012 resolution on Sri Lanka. The resolution
called on Sri Lanka to implement the recommendations of Sri Lanka’s Lessons Learnt
and Reconciliation Commission report.
Australia continued to engage strongly in the Universal Periodic Review (UPR) process
in the HRC, recognising it as a unique opportunity to engage with other countries on
human rights, both to highlight Australia’s concerns and to acknowledge improvements.
The UPR was established by the UN General Assembly in 2006 as a process through
which the human rights records of the 193 Member States of the UN would be reviewed.
There were two UPR sessions in 2011–12 and Australia participated in 30 of the
31 country reviews at those sessions.
We engaged in other thematic UN meetings, including assistance to Australia’s
delegation to the 56th Session of the Commission for the Status of Women in
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February–March 2012. Australia’s Ambassador and Permanent Representative to the
United Nations and to the Conference on Disarmament, Geneva, led the delegation
for Australia’s appearance before the UN Committee on the Rights of the Child in
June 2012.
An Australian delegation, including two Indigenous DFAT offcers, attended the 11th
session of the UN Permanent Forum on Indigenous Issues in New York in May 2012.
Australia’s Ambassador and Permanent Representative to the United Nations in New
York spoke at the high-level commemoration of the ffth anniversary of the adoption of
the UN Declaration on the Rights of Indigenous Peoples in May 2012. Benson Saulo,
the 2011 Australian Youth Representative to the UN, was the frst Indigenous Australian
to hold this role. Mr Saulo delivered a statement on behalf of Australia to the UN
General Assembly’s High-Level Meeting on Youth in July 2011.
The department led Australian delegations to the Australia–Vietnam Human Rights
Dialogue in Hanoi and the Australia–Laos Human Rights Dialogue in Vientiane, both in
April 2012. The dialogues facilitated exchanges on human rights matters, including:
individual cases of concern; arrest and detention of political dissidents; freedoms of
speech, assembly, the press, association and demonstration; prison conditions; use of
the death penalty; legal and judicial reform; and other civil, political, economic, social
and cultural rights.
In advance of these Human Rights Dialogues, in April 2012 the department invited
submissions from, and held consultations with, Australian NGOs on Vietnam and Laos.
Following the April 2012 Human Rights Dialogues with Vietnam and Laos, we held
consultations with NGOs to brief them on the Dialogues.
The department provided input into the Joint Standing Committee on Foreign Affairs,
Defence and Trade’s inquiry into Australia’s Human Rights Dialogues with China
and Vietnam.
We worked closely with AusAID on the Human Rights Grants Scheme, which in 2011–12
included providing $3.7 million for projects in the Asia-Pacifc, the Middle East and
Africa. We also worked closely with the Attorney-General’s Department on the National
Human Rights Action Plan.
People smuggling and traffcking in persons
The department continued to foster regional engagement as co-chair of the Bali
Process on People Smuggling, Traffcking in Persons and Related Transnational Crime.
Together with the Department of Immigration and Citizenship and the Attorney-General’s
Department, we worked to deliver an active work program aimed at strengthening
member countries’ border management and document integrity processes, legislative
frameworks and victim protection and support. Signifcantly, the Bali Process agreed
to establish a Regional Support Offce to implement practical measures to enhance
capacity across the region to better respond to irregular migration, people smuggling
and traffcking in persons and protect the victims of these crimes.
The Ambassador for People Smuggling Issues advanced Australia’s interests in building
effective and practical international cooperation to combat people smuggling and
traffcking in persons, particularly in the Asia-Pacifc region, including as co-chair of the
Bali Process.
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The department continued to encourage strong international responses to traffcking
in persons and support for protection of victims through bilateral dialogues, the
Bali Process, advocacy in the UN on human rights issues and the work of the
Global Ambassador for Women and Girls. Domestically, we engaged in Australia’s
whole-of-government anti-traffcking strategy through the Anti-People Traffcking
Inter-departmental Committee and the fourth National Roundtable on People
Traffcking in November 2011 which was attended by the United Nations Special
Rapporteur on Traffcking in Persons, especially in women and children. We took this
opportunity to highlight to the Special Rapporteur and civil society Australia’s work on
people traffcking.
environment
Sustainable development
The department, together with the Department of Sustainability, Environment, Water,
Population and Communities, led the Government’s preparations for the UN Conference
on Sustainable Development (Rio+20), held in June. Rio+20 marked the 20th
anniversary of the original Rio ‘Earth Summit’ and brought together world leaders and
ministers to agree a new global framework for sustainable development – ‘The Future
We Want’. The Prime Minister led Australia’s delegation to Rio+20. In the lead-up to
Rio+20, we promoted Australia’s priorities including on oceans, food security, disaster
risk reduction, women’s economic empowerment, Indigenous knowledge, mining for
sustainable development, and sustainable development goals. Commitments agreed at
Rio+20 refected Australia’s contributions in these areas.
Australia contributed in particular to Rio+20’s call on states to eliminate fsheries
subsidies that contribute to overfshing and overcapacity, and to refrain from introducing
any such new subsidies. We also contributed directly to Rio+20’s commitment to
reduce signifcant marine debris and Rio+20’s recognition of the importance of
ocean acidifcation and the need for increased international cooperation in this
area. The department supported efforts to reform the UN institutions responsible
for sustainable development, including replacing the Commission on Sustainable
Development with a new high-level political forum and strengthening the United Nations
Environment Programme.
The department supported Mr Rudd’s participation on the UN Secretary-General’s
High-level Panel on Global Sustainability. The Panel’s report ‘Resilient People Resilient
Planet’ was launched on 30 January 2012 and was an input to Rio+20.
Ocean and marine conservation initiatives
The department supported the Government’s increased engagement on regional
marine conservation initiatives, including the Coral Triangle Initiative (an Asia-Pacifc
conservation partnership for food security and economic development) and the Pacifc
Oceanscape Framework (an initiative aimed at establishing an integrated framework for
oceans governance, food security, poverty alleviation and impacts of climate change in
the Pacifc). We also worked with AusAID in its engagement with the World Bank’s Global
Partnership on Oceans, launched in February 2012.
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We advocated the Government’s opposition to all forms of commercial whaling. We
contributed to the Government’s action against Japanese whaling in the International
Court of Justice. Japan fled its written submission with the Court on 9 March 2012.
Australia’s submission was made in May 2011. Oral hearings are expected to be
scheduled in the latter half of 2013, at the earliest. The department conveyed
Australia’s concerns about the entry of Japanese whaling-related vessels into Australia’s
territorial waters and exclusive economic zone to Japan. We provided consular
assistance to three Australian anti-whaling protesters who boarded a Japanese vessel
on 8 January 2012 and worked with the Japanese authorities to help secure their
transfer to an Australian vessel. Australia continued to work within the International
Whaling Commission to improve whale conservation and to promote an end to all
commercial whaling.
Climate change
The department worked with the Department of Climate Change and Energy Effciency
to support the Government’s objectives of securing a global response to climate
change. We participated in negotiations under the United Nation Framework Convention
on Climate Change, including the UN Climate Change Conference in Durban, South
Africa, in November–December 2011. Australia played an active role in these talks
which achieved a longstanding Australian objective, a mandate to negotiate a new legal
agreement covering all countries. The negotiations on the new agreement are scheduled
to be completed by 2015, with the new agreement to come into effect from 2020.
We supported Mr Marles’ participation in a UN Security Council debate on the impact of
climate change on peace and security. Mr Marles highlighted the particular vulnerability
of Pacifc island countries to the effects of climate change.
The Parliamentary Secretary for Pacifc Island Affairs, Mr Marles, attends a UN Security Council Meeting on the
impact of climate change on peace and security in New york, July 2011. Photo: UN Photos
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Convention on Biological Diversity
The department worked with the Department of Sustainability, Environment, Water,
Population and Communities, to facilitate Australia’s signature of the Nagoya Protocol to
the Convention on Biological Diversity on Access to Genetic Resources and the Fair and
Equitable Sharing of Benefts Arising from their Utilization. The Nagoya Protocol is an
international regime to facilitate access to and share the benefts of genetic resources
and associated traditional knowledge. Australia’s Ambassador to the United Nations in
New York signed the Nagoya Protocol on 20 January 2012.
Sea law, environment law and Antarctic policy
The department advocated Australia’s interests in relation to the international law of
the sea through multilateral and bilateral channels. This included: contributing to the
ongoing negotiation of an international rebuilding strategy for southern bluefn tuna
stocks; negotiations on a subsidiary agreement to the Niue Treaty on Cooperation
in Fisheries Surveillance and Law Enforcement to enhance regional cooperation on
fsheries enforcement; and work through the UN on rules relating to maritime areas
beyond national jurisdiction. We also contributed to Australia’s proclamation of
11 million square kilometres of continental shelf on 24 May 2012.
We provided legal advice to the Government on international sea and environmental
law issues. These included Australia’s rights and obligations under the legal framework
established by the Timor Sea Treaty to promote the joint development of petroleum
resources with Timor-Leste; Australian activities in areas adjacent to our maritime
boundaries; and the establishment of marine protected areas within Australian waters.
We advocated, and secured agreement to, the establishment of marine protected areas
in the Southern Ocean under the Convention on the Conservation of Antarctic Marine
Living Resources.
We provided legal and policy leadership on Australia’s substantial involvement in
Antarctica, working closely with Australia’s Antarctic Division on Australia’s strategy for
the future in Antarctica. Australia hosted, and the department’s Senior Legal Adviser
chaired, the 35th Antarctic Treaty Consultative Meeting (ATCM) in Hobart in June. The
ATCM is the primary forum for the discussion of Antarctic matters and plays a key role in
ensuring ongoing cooperation on environmental protection, peaceful use and scientifc
research. Australia has consistently been at the forefront of Antarctic research and
cooperation, as well as having a strong interest in maintaining Antarctica as a pristine
environment. The ACTM agreed to develop a Multi-Year Strategic Work Plan to guide the
future work of the Meeting.
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Departmental Senior Legal Adviser, Mr Richard Rowe (centre), Australia’s Head of Delegation, Dr Greg French (far
right), and Heads of Delegation to the 35th Antarctic Treaty Consultative Meeting in Hobart. Photo: Richard Jupe/
Australian Antarctic Division
Sanctions and transnational crime
Sanctions
The department arranged for amendments to Australian law to refect UNSC sanctions
in relation to Côte d’Ivoire, Libya and Somalia. We contributed an expert to international
meetings relating to sanctions including on Iran, convened by the United Nations Panel
of Experts on Iran in Singapore in April 2012, and on Proliferation Financing, convened
by the Government of South Korea in Seoul in May 2012.
We continued to progress reform of Australia’s autonomous sanctions legislative
framework. Throughout August and September 2011, the department conducted public
consultations on the new Autonomous Sanctions Regulations, including briefngs for
industry, the tertiary education sector and state governments in Adelaide, Brisbane,
Canberra, Melbourne, Perth and Sydney and considered written submissions from the
public. The regulations were made in December 2011. The fnal transition of autonomous
sanctions measures to the new regulations was completed in March 2012 with the transfer
of responsibility for targeted fnancial sanctions from the Reserve Bank to the department.
From 1 March 2012, the department assumed responsibility for administering new
restrictions on fnancial transactions involving Iran under the Anti-Money Laundering and
Counter-Terrorism Financing Regulations 2008. In February and May 2012 we briefed
Australian banks on the operation of the restrictions.
We conducted public consultations throughout May and June 2012 on new autonomous
sanctions on Syria and Iran. The consultations took the form of industry briefngs in
mainland state capitals and consideration of written submissions from the public.
The regulations are expected to be in place in August 2012.
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1.1.9 INTERNATIONAL ORGANISATIONS, LEGAL AND ENVIRONMENT
The department handled a doubling in the number of formal inquiries and applications
for permits in relation to Australia’s sanction laws, largely due to the commencement
of the Autonomous Sanctions Regulations 2011 on 15 December 2011 and the
introduction of fnancial countermeasures targeting Iran on 1 March 2012.
Transnational crime and counter-terrorism fnancing
Over the past 12 months, the department continued to raise awareness of Australia’s
laws criminalising bribery in international business transactions through its ‘trading with
integrity’ outreach program. In November 2011 and May 2012, we partnered with the
Global Compact Network Australia to deliver anti-corruption seminars in Sydney and
Melbourne. In May 2012, we delivered a similar seminar in Brisbane with the Australian
Centre for Corporate Social Responsibility. We provided training to departmental staff
posted in Africa, the Middle East and Europe on Australia’s anti-bribery laws and other
Australian extraterritorial offences.
In November 2011, the department made its frst report to the Independent National
Security Legislation Monitor (INSLM) on the operation of the counter-terrorism fnancing
sanctions regime under Part 4 of the Charter of the United Nations Act 1945. The INSLM
is appointed under the Independent National Security Legislation Monitor Act 2010 to
review the operation, effectiveness and implications of Australia’s counter-terrorism and
national security legislation on an ongoing basis.
We initiated a project to deliver best practice guidance to APEC economies to combat
terrorism fnancing vulnerabilities in non-fnancial businesses and professions, such as
lawyers, accountants and trust services companies.
international law
The department, together with the Attorney-General’s Department, supported the
International Criminal Court in its efforts to end impunity for the most serious crimes of
concern to the international community. Australia played an active role in conjunction
with other member states to support the operations of the Court. We co-hosted, with
the New Zealand Ministry of Foreign Affairs and the Commonwealth Secretariat, an
outreach event for Pacifc island states to promote accession to the Rome Statute of
the International Criminal Court and the implementation of Rome Statute obligations
under domestic law.
We continued to lead Australia’s contribution to an international regulatory framework
for private security companies, including through efforts to establish an Independent
Governance and Oversight Mechanism for regulating the private security industry in
complex security environments.
We provided legal advice both internally and to other agencies on issues of public
international law, including international humanitarian law, international criminal law and
international human rights law. We also provided legal advice to government agencies
on negotiating agreements and arrangements on a range of topics, including taxation,
social security, air services and flm co-production.
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Treaties
The department continued to support the Parliament’s Joint Standing Committee
on Treaties (JSCOT). We provided briefng for JSCOT’s review of 38 new treaties. We
also facilitated the signing of 23 treaties, including the Malaysia–Australia Free Trade
Agreement, the Extradition Treaty with Vietnam and a plurilateral Anti-Counterfeiting
Trade Agreement, along with nearly 160 memorandums of understanding. We supported
consultation with the Australian states and territories on treaties under negotiation,
consideration or review, and government agencies were advised on treaty implementation
and interpretation, including through an information seminar for government offcials.
Outlook
Australia will be the CHOGM Chair-in-Offce for 2012–13. Delivering on the commitments
made in Perth CHOGM during Australia’s term as Chair will be a priority for
the department.
We will maintain our active engagement in UN forums on human rights and continue
to work with international and regional partners to strengthen human rights. We will
continue our bilateral engagement on human rights issues, including through our Human
Rights Dialogues. The department will lead Australia’s delegation to the 14th Australia–
China Human Rights Dialogue in July 2012. We will continue to engage with Australia’s
NGOs on international human rights issues.
If Australia is elected to the UN Security Council for a two-year term (2013–14), a priority
for the department will be to support an effective contribution by Australia to the work of
the Council, starting in January 2013.
In this tenth anniversary year of the Bali Process, we will continue to work closely
with regional partners to implement the work program of the Regional Support Offce,
including the delivery of foundation projects which will help develop regional responses
to people smuggling and traffcking in persons.
The department will contribute to discussions in the UN to take forward the agreements
reached at Rio+20, particularly on oceans and the development of universal sustainable
development goals. We will support the Government’s engagement on regional and
global oceans conservation initiatives, including efforts through the UN General
Assembly to strengthen the conservation and sustainable management of marine
biodiversity on the high seas.
The department will support work on negotiating a new legally-binding agreement on
climate change and on building bilateral and regional cooperation on climate change.
We will lead with Belgium the development of the Multi-Year Strategic Work Plan to be
considered by the Antarctic Treaty Consultative Meeting in 2013 hosted by Belgium.
We will continue to support work on the International Court of Justice Whaling case.
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1.1.10 SECURITy, NUCLEAR DISARMAMENT AND NON-PROLIFERATION
1.1.10 Security, nuclear disarmament and
non-proliferation
Overview
The department pursues Australia’s international security interests in a complex
strategic environment shaped by new power dynamics, shifts of economic weight
to Asia, and continuing aftershocks of the global fnancial crisis. In this context of
transformation, we face enduring challenges such as international terrorism, weapons
of mass destruction, and arms proliferation, and new threats to space systems and
in cyberspace. We are addressing these challenges through multilateral networks,
bilateral initiatives and enterprising project and advocacy activities. We have deepened
Australia’s multilateral and bilateral engagement on cyber and space security.
Consistent with Australia’s strong record of global action on non-proliferation and
disarmament, we have pressed forward with practical initiatives to strengthen the
global non-proliferation regime. Our diplomacy over the last twelve months has
included co-leadership with Japan of the Non-Proliferation and Disarmament Initiative
and our chairing of the Nuclear Non-Proliferation Treaty (NPT) Preparatory Committee
Meeting, setting the scene for the next review of the NPT, the cornerstone of global
non-proliferation and disarmament efforts.
The Minister for Foreign Affairs, Senator Carr, attending the Fourth Ministerial Meeting of the Non-Proliferation and
Disarmament Initiative in Istanbul in June 2012, hosted by Turkey’s Foreign Minister, Professor Ahmet Davutoglu
(right). Second from the left is Ms Alison Edye, DFAT.
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We continued to make progress in calibrating our diplomatic response to the new
capabilities and characteristics of terrorism. The Global Counter-Terrorism Forum,
launched by the United States and Turkey in September 2011, is a major new
cooperative initiative. We co-hosted with Indonesia the inaugural meeting of the Forum’s
South-East Asia Working Group in March 2012, focused on a key regional challenge –
managing terrorist detainees. We continued support for regional programs to counter
violent extremism, promote social cohesion and support dialogue and understanding
between different religious groups.
Nuclear non-proliferation and disarmament
Australia has given new impetus to global efforts on non-proliferation and disarmament
through its co-leadership with Japan of the Non-Proliferation and Disarmament
Initiative (NPDI). The NPDI promotes practical measures to ensure wide commitment
to non-proliferation and disarmament goals. During the year, the NPDI focused on
measures to improve the transparency of nuclear weapons holdings, promote the entry
into force of the Comprehensive Nuclear-Test-Ban Treaty and advocacy for adherence to
key nuclear non-proliferation agreements.
The then Minister for Foreign Affairs, Mr Rudd, with Afghan Foreign Minister, Dr Zalmai Rassoul, and Chinese Vice
Foreign Minister, Mr Zhang Zhijun, at the Munich Security Conference in February 2012.
We continued efforts to bolster support for nuclear non-proliferation norms and treaty
frameworks. Australia’s Ambassador for Disarmament chaired the NPT Preparatory
Committee in May 2012, the frst of three meetings that play key roles in preparing
for the 2015 NPT Review Conference. The meeting re-affrmed NPT State Parties’
commitments made at the 2010 NPT Review Conference.
Australia took an active role in international efforts to address the threat posed by
nuclear terrorism. The department contributed to the participation of Prime Minister
Gillard in the Seoul Nuclear Security Summit in March 2012, which renewed the
international community’s commitment to strengthening nuclear security and reducing
the threat posed by nuclear terrorism. At the Summit, the Prime Minister announced
Australia’s ratifcation of the Nuclear Terrorism Convention.
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National security and strategic policy
A strong United States presence in the region is key to continuing regional peace
and security. The department was closely involved in enhanced defence cooperation
initiatives with the US, announced by Prime Minister Gillard and President Obama in
November 2011.
The department was closely engaged in Defence policy development processes,
including the ADF Posture Review and Defence Planning Guidance. We also advised
the Department of Defence on strategic and foreign policy considerations affecting
sensitive defence and dual-use export proposals, including through the Advisory Panel
on Prohibited Exports process.
Mr Peter Woolcott, Ambassador and Permanent Representative to the United Nations in Geneva and to
the Conference on Disarmament, chairs the 2012 meeting of the Preparatory Committee for the 2015
Nuclear Non-Proliferation Treaty Review Conference in Vienna. Seated to his right is Ms Angela Kane, the
UN High Representative for Disarmament Affairs, and to his left Mr Thomas Markram from the UN Offce of
Disarmament Affairs.
We supported then Foreign Minister, Mr Rudd, and Senator Carr in high-level strategic
and national security coordination in the National Security Committee of Cabinet, as
well as through the Secretaries Committee on National Security, the Strategic Policy
Coordination Group, and the National Security Policy Coordination Group.
As space security has gained increasing prominence on the international agenda,
Australia has intensifed its efforts to build effective international norms for space.
The department has been closely engaged in the development of a draft International
Code of Conduct for Outer Space Activities. During the year, we strengthened bilateral
dialogue with the United States on space security, established a trilateral dialogue with
the United States and Japan to improve like-minded coordination and policy exchange,
and held exchanges on space security with Russia.
Driving diplomatic efforts to develop international norms of behaviour for cyberspace
is a new priority for the department. We have expanded Australia’s cyber engagement
in multilateral and regional forums, including the London Cyberspace Conference held
in November 2011. Refecting our activism in this feld, Australia was selected by the
UN to participate in the UN Group of Governmental Experts on Developments in the
Field of Information and Telecommunications in the context of International Security,
which will commence in August 2012. At the regional level, the department has engaged
in efforts to strengthen practical cyber security cooperation through the ASEAN Regional
Forum (ARF).
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Civil-military operations in complex environments continued to be a focus for the
department, including current operations in Afghanistan and Solomon Islands. We
expanded collaborative exercises with the ADF, AFP, AusAID and other government
agencies, on post-confict stabilisation scenarios in fragile states. In 2011, we
participated in the biennial Australia–United States defence exercise ‘Talisman Sabre’,
focusing on post-confict transition issues.
Counter-proliferation and export controls
Building on international momentum for measures to address illegal trade in
conventional weaponry, we have led efforts to develop a robust, legally binding Arms
Trade Treaty. Australia is one of the seven original co-sponsors of the Treaty, along with
Argentina, Costa Rica, Finland, Japan, Kenya and the United Kingdom. The Treaty would
impose controls on cross-border dealings in all conventional weapons. The department
has strengthened the participation in the Treaty process of those African, Caribbean
and Pacifc countries, affected by illegal weapons trade.
The department continued to drive Australia’s strong engagement in global and
regional efforts to prevent the spread of weapons of mass destruction (WMD) and
their precursor materials. Through the ARF Inter-sessional Meeting on Non-Proliferation
and Disarmament, hosted by Australia in March 2012, we promoted best practice in
preventing the proliferation of WMD in the region. During the year, we conducted further
outreach to ARF members to strengthen regional cooperation on WMD non-proliferation
and improving export control arrangements.
We worked to increase adherence to the Anti-Personnel Landmines Convention and
the Convention on Cluster Munitions throughout the year, focusing particularly on the
Asia-Pacifc region. Australia continued to provide substantial mine action assistance
and strong support for the humanitarian aspects of the conventions through its
promotion of land clearance, victim assistance and stockpile destruction initiatives.
In its role as permanent chair and secretariat of the Australia Group, the department
continued to drive efforts to prevent proliferators from exploiting differences in national
export control systems to obtain the materials and technology for the production of
chemical and biological weapons. At the June 2012 plenary meeting, we helped forge a
common stance in addressing Syria’s proliferation activities.
Complementing efforts with the export control regimes, Australia worked to strengthen
the effectiveness and enhance implementation of the Biological Weapons Convention
and the Chemical Weapons Convention.
Adherence to treaty commitments and strong export controls are crucial to stemming
the spread of pernicious weapons. During the year, Australia worked to strengthen
controls on trade in sensitive chemical and biological materials, while reinforcing
the norms established by the Chemical Weapons Convention and the Biological
Weapons Convention.
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1.1.10 SECURITy, NUCLEAR DISARMAMENT AND NON-PROLIFERATION
Counter-terrorism
Transnational terrorism, including al Qaeda-led, associated or inspired terrorism,
remains an enduring security threat for Australia. Terrorism is changing in its geographic
spread, security consciousness, and modes of operation. Developing measures to
address the threat posed by terrorism, including the possibility of a terrorist attack
involving WMD, is a key priority for the department.
The Global Counter-Terrorism Forum, launched by the United States and Turkey in
New York in September 2011, represented a major new cooperative initiative on
counter-terrorism. We co-hosted with Indonesia the inaugural meeting of the Forum’s
South-East Asia Working Group, held in March 2012 in Semarang, Indonesia. The
meeting focused on managing terrorist detainees, a key challenge for the region.
The department promoted multilateral counter-terrorism cooperation in the region by
participating in the Seventh Trilateral Strategic Dialogue Counter-Terrorism consultations
with the United States and Japan.
We continued our support for regional programs to counter violent extremism, promote
social cohesion and support dialogue and understanding between different religious
groups. Support for Indonesia’s program of reform in its prisons system and for local
initiatives to build tolerance and cohesion in the southern Philippines and southern
Thailand remained key priorities. During the year, the department hosted bilateral
counter-terrorism talks with Indonesia and Malaysia. We also supported regional
workshops on biosecurity; the management of risks posed by home-made explosives;
and co-sponsored a Global Initiative to Combat Nuclear Terrorism workshop on
combating nuclear smuggling.
In South Asia, we provided ongoing support for local initiatives in Pakistan to counter
the infuence of intolerance and extremism, including through substantial support for
a UN project to promote reform and capacity-building in Pakistan’s prison system. The
Ambassador for Counter-Terrorism, with Australia’s Chief of the Defence Force, met
senior Pakistan offcials to coordinate counter-terrorism objectives, including initiatives
to help address pre-cursor explosive chemicals.
The department continued to strengthen counter-terrorism partnerships in the Middle
East through engagement with the Friends of Yemen process, and policy consultations
with key partners. We assisted African countries to strengthen counter-terrorism
capabilities through supporting workshops on border security in Kenya and Nigeria, and
a workshop on security challenges in Ghana for Sahel countries.
We pursued Australia’s objectives in countering the growing piracy threat in the
Indian Ocean and South-East Asia through discussions with regional countries. In
October 2011, Mr Rudd co-hosted with European Union High Representative for Foreign
Affairs and Security Policy, Catherine Ashton, a Forum on Indian Ocean Piracy in the
margins of the Commonwealth Heads of Government Meeting.
The department actively supported capacity-building activities by the United Nations
and the Pacifc Islands Forum (PIF). We led a program to assist PIF countries in meeting
obligations under relevant United Nations Security Council resolutions.
Australia contributed to South-East Asian security through capacity-building assistance
to address the potential for use of chemical, biological, radiological and nuclear
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materials in terrorist attacks. We also supported programs to counter violent extremism
and discourage radicalisation within South-East Asian communities. The department
provided substantial support to the sixth meeting of the Regional Interfaith dialogue
held in Semarang, Indonesia.
Outlook
Against the background of a changing regional and global security landscape,
the department will continue to work for a safer region, and world, for Australia
and Australians.
We will continue to press for further progress on nuclear disarmament and stronger
non-proliferation measures, including at NPDI ministerial meetings in New York in
September 2012 and in the Netherlands in the frst-half of 2013.
To advance our interests in cyberspace, we will pursue efforts to develop norms for
cyberspace, including in the United Nations context and the London Cyberspace process.
In addition to helping shape the development of the International Code of Conduct on
Outer Space Activities, we will work to strengthen the capacity of regional partners to
contribute to the development of international space norms by hosting an ARF Space
Security Workshop.
The department will continue its efforts to secure a comprehensive Arms Trade Treaty to
reduce the fow of conventional weapons to non-state actors.
The department will support the development of nuclear policy towards India, as key
nuclear suppliers, including the United States, continue to encourage India’s acceptance
into the broader non-proliferation regime.
We will pursue our interest in countering piracy through the hosting of a major
international conference in Perth in July 2012, which will consider measures to address
piracy off the coast of Somalia and in the Gulf of Guinea.
We will continue to respond to the changing nature of terrorism. A particular challenge
will be to address the increasing diversity and sophistication in terrorist attack
methodologies, for example, the greater resort to kidnapping for ransom.
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1.1.11 SERVICES TO OTHER AGENCIES
PROGRAM MANAGEMENT
(SERVICES TO OTHER AGENCIES)
1.1.11 Services to other agencies in Australia
and overseas (including Parliament, state
representatives, business and other organisations)
Overview
The department maintained a high level of service to the Parliament, ministers
and Cabinet.
We provided fnancial, human resources and property management services to
28 government departments and agencies with overseas representation, including to
the New Zealand Government. We provided information and communications technology
(ICT) services to 50 agencies in Australia and overseas.
The department worked with business and state and territory governments to advance
the Government’s trade policy, promotion and development goals, through engaging key
stakeholders and contributing to whole-of-government outcomes.
The then Minister for Foreign Affairs, Mr Rudd, with South African Minister of International Relations and
Cooperation, Ms Maite Nkoana-Mashabane, before the pre-CHOGM Foreign Ministers’ Working Lunch in October 2011.
Photo: Patrick Hamilton
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The Australian Parliament
The department continued to give high priority to providing services to Parliament,
ministers and Cabinet. We facilitated engagement between federal parliamentarians and
ministers and their counterparts across the globe. We also continued to fulfl our public
accountability responsibilities by presenting information to parliamentary committees.
Parliamentary travel
We assisted with 52 overseas visit programs for individual federal parliamentarians
and parliamentary delegations, enhancing links between parliamentary institutions and
giving parliamentarians the opportunity to study developments in relevant felds. We
recommended and scheduled appointments with relevant offcials, and provided written
and oral background briefngs on foreign and trade policy. We facilitated overseas
visits for parliamentary delegations to Germany, Austria, Vietnam, Thailand, Singapore,
Indonesia, Timor-Leste, United Kingdom, Japan, Cambodia, Malaysia, Sri Lanka, South
Africa, Switzerland, France, United States, Brunei, Trinidad and Tobago, Senegal,
Netherlands, Poland, Uganda, Hungary, Kazakhstan, Papua New Guinea, Spain,
Turkey, China, Belgium, Israel, Afghanistan, Pakistan, Seychelles, Laos, Myanmar, the
Philippines, Namibia, Nigeria, Mongolia, Argentina, New Zealand, the Republic of Korea,
Cyprus, Lebanon, Brazil and Italy.
incoming delegations
We assisted the Parliament with seven visits to Australia by parliamentary delegations
from other countries. We also provided the Presiding Offcers with briefng for use in
their meetings with visiting parliamentarians and offcials.
Parliamentary committees
The department briefed and appeared before a range of parliamentary committees,
as outlined in Appendix 5.
Questions on notice
We assisted portfolio ministers on responses to 108 written parliamentary Questions
on Notice. Of these, 44 were from the House of Representatives and 64 from the
Senate. In addition, we answered 759 questions submitted in writing or taken on notice
during Senate Estimates hearings.
Ministerial submissions and briefngs
During 2011–12, the department produced 1298 ministerial submissions, 280 meeting
briefs, 204 cabinet briefs and 36 cabinet submissions.
Ministerial correspondence
We received and processed 9654 ministerial letters in 2011–12, compared with 9596
in 2010–11. Portfolio ministers use such correspondence to communicate government
policy on foreign and trade-related matters to the Australian community and foreigners.
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1.1.11 SERVICES TO OTHER AGENCIES
Services to attached agencies
The Service Level Agreement (SLA) sets out the obligations of the department and other
agencies for management services and determines service delivery standards in the areas
of fnancial, human resources and property management for Australia-based employees
and locally engaged staff in posts managed by the department. Feedback from clients was
positive. A revised SLA was negotiated for three years commencing 1 July 2012.
Under the SLA, the department provided management services, on a cost-recovery
basis, to 28 government departments, agencies and federally-funded bodies with
overseas representation, as well as to the New Zealand Government. These services
are provided in accordance with the Prime Minister’s Directive on the Guidelines for the
Management of the Australian Government Presence Overseas.
We also provided information and communications technology services to 42 agencies
in Australia and overseas under separate memorandums of understanding and an
additional four agencies under a cost recovery arrangement. ICT MOU negotiations are
underway with these agencies. Payroll services were provided to 14 agencies overseas
(also see Appendix 8).
Services to state governments and other agencies overseas and
in Australia
The department provided briefng, advice and other support for Australian Government
agencies on international aspects of their agendas.
As part of whole-of-government activities, the department arranged visit programs, took
part in negotiations led by other agencies, and facilitated representation by Australian
offcials at meetings in Australia and overseas.
Through our overseas posts and state and territory offces (STOs), we played a
substantial role in supporting visits overseas by state and territory ministers,
parliamentarians and offcials, as well as Federal ministers and parliamentarians.
The department’s STOs remained instrumental in maintaining close communication with
state and territory governments on foreign and trade policy issues.
Services to business
Trade policy coordination, business liaison and state and territory offces
With Austrade, the department assisted business to understand and compete in the
international business environment and to increase market access.
The department worked closely with the Department of Agriculture, Fisheries and
Forestry to implement the new regulatory arrangements for the export of Australian
live animals. The regulations are designed to ensure that appropriate animal welfare
standards are met and that the trade is sustainable.
Our STOs held seminars and consultations with state governments, industry,
non-government organisations and tertiary institutions on trade negotiations and other
business issues, for example:
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• the Perth offce assisted with the Commonwealth Heads of Government
Meeting in October 2011 and facilitated the hosting of mining ministers from
13 African countries at Africa Down Under, Australia’s pre-eminent forum for
promoting Australian resources sector trade and investment with Africa, in
August/September 2011
• the Sydney offce partnered with the Royal Agricultural Show in April 2012 to
showcase NSW’s agricultural sector to the NSW Consular Corps and potential
international markets
• the Melbourne offce helped organise the 11th negotiating round of the
Trans-Pacifc Partnership Agreement in Melbourne in March 2012, attended by
over 500 negotiators and stakeholders, and organised formal consultations on the
Malaysia–Australia FTA and economic relations with India.
Market information and research
The department published country fact sheets and trade statistics publications on the
website, which provided valuable information on Australia’s trade performance and
trade relationship with other countries. A range of analytical articles were published,
including Australia’s outward fnance and insurance foreign affliates trade in services,
the economic and trade impact of the March 2011 Japanese earthquake, Australia’s
trade in services with the United States, and Australia’s trade performance. A new trade
data time series dissemination tool was made available on the website, using Excel
pivot table spreadsheets.
Personal Profle:
Matthew Harrison
Matthew joined the department as a policy graduate in 2005.
He was Second Secretary (Political) at the Australian
Embassy in Manila (2007–10) and has worked in Canberra
at various times on Australia’s bilateral relations with
Afghanistan, Canada and the Philippines. He has also worked
in APEC Branch and Corporate Management Division.
As the Deputy Director in the Queensland State Offce,
Matthew is currently responsible for raising awareness
and understanding about foreign affairs, trade and
consular issues at the state level, and providing advice to assist the Queensland
Government with its international activities. He also supports the foreign Consular
Corps in Queensland with protocol services and manages a small team that
legalises Australian documents for presentation overseas.
“In many ways, the work of the Queensland State Offce is similar to that of our
overseas posts. I spend a great deal of time engaging government and business
representatives seeking DFAT’s advice about specifc foreign and trade policy
issues, whether it be technical information about a Free Trade Agreement or queries
concerning Australian and UN sanctions. I enjoy speaking with students about the
diversity of my work and the sort of career only DFAT can offer.”
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Outlook
The department will continue to give high priority to providing services to Parliament.
This includes prompt and effcient management of parliamentary Questions on Notice
and ministerial correspondence. Federal parliamentarians, parliamentary delegations
and committees will be kept informed of the Government’s foreign and trade policy
priorities and supported in their efforts to advance Australia’s interests overseas.
Support will continue for state and territory governments, other agencies and the
business community in Australia and overseas. This will include consultation on trade
policy issues.
Management services will continue for other government agencies in our overseas
network in line with commitments under the revised Service Level Agreement
commencing 1 July 2012.
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PROGRAM MANAGEMENT
(SERVICES TO DIPLOMATIC AND
CONSULAR REPRESENTATIVES)
1.1.12 Services to diplomatic and consular
representatives in Australia
Overview
The department provides visa, accreditation and other services to diplomatic and
consular representatives and their offces in Australia. Despite an increase in the size
of the diplomatic and consular community (including dependants) to nearly 5300, we
met the demand in this area quickly and effciently, with few exceptions. The department
received positive feedback from the corps on our promptness and responsiveness in
providing support consistent with Australia’s obligations under the Vienna Conventions.
We placed a high priority on protecting the security and dignity of diplomatic and
consular representatives in Australia. Productive working relationships with agencies,
in particular the Security Coordination Branch, Attorney-General’s Department, the
Australian Federal Police (AFP) and the Department of Immigration and Citizenship,
ensured the department responded to issues of concern voiced by missions and posts.
Services to the diplomatic and consular corps
Protocol Branch provided services to 99 diplomatic missions resident in Canberra,
37 non-resident diplomatic missions, and 350 consular posts (a total of 153 countries),
as well as nine international organisations with offces in Australia. Twenty-three
new resident and ten non-resident heads of mission presented their credentials.
We worked closely with Government House to ensure the smooth handling of
credentials ceremonies.
The department liaised with other Australian Government agencies to assist the corps
on issues such as security, immigration, employment, airport security, customs and
quarantine matters, land and premises for foreign missions, taxation and motor vehicle
ownership and disposal. We worked closely with agencies on their frequent requests for
VIP airport facilitation.
A total of 41 bilateral employment arrangements were managed that regulate
employment of dependants of diplomatic offcers in the host country. Negotiations for
new arrangements were completed with Austria and Switzerland.
We facilitated the establishment of diplomatic representation by Qatar, Georgia and
Paraguay, and preparations by other countries to establish missions in Canberra. We
also facilitated the establishment of three new consular posts, as well as 12 new
honorary consular posts.
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The department continued to liaise closely with the ACT Government and the
National Capital Authority on issues of importance to the diplomatic corps, including
managing the diplomatic estate, environmental protection, and building standards and
certifcation requirements.
Protection of diplomatic and consular missions
The right of freedom of expression and peaceful political protest is a key part of
Australia’s system of democracy. The department worked with the AFP and local
authorities to ensure that the safety and dignity of missions was respected and
protected on the occasion of such protests.
The department ensured that Australia met its obligations under international law to
protect the security of diplomatic missions and consular posts in Australia. We worked
closely with agencies to respond promptly to specifc security issues raised by various
missions during the reporting period, notably following a protest that damaged the
Syrian Embassy premises.
We supported the AFP and local authorities in seeking waivers of immunity to assist
investigations of alleged criminal offences. In the interests of safety on public roads, we
supported local authorities by bringing to the attention of heads of mission individual
diplomats with poor traffc infringement records.
The Minister for Trade, Dr Emerson, delivers
the biennial Sir Alan Westerman Lecture on
Australian Trade Policy at the Department
of Foreign Affairs and Trade, Canberra,
November 2011.
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engagement with the diplomatic and consular corps
The Minister for Trade, Dr Emerson, delivered the biennial Sir Alan Westerman Lecture
on Australian Trade Policy in November 2011, on the topic of ‘Can Free Trade Be Fair?’.
The event was well attended by members of the diplomatic corps. In March 2012, we
hosted a reception to enable the diplomatic corps to meet the new Foreign Minister,
Senator Carr, following his appointment.
Outlook
The department will continue to provide high-quality, effcient protocol services to
diplomatic and consular staff throughout Australia. Protocol guidelines are continually
reviewed with an aim to facilitate and expedite the delivery of protocol services to
diplomatic missions in Australia. Efforts to increase the number of bilateral employment
agreements for dependants of diplomatic offcers will continue. We also intend to make
better use of available information technology resources to streamline the handling of
forms in Protocol Branch.
TABLe 6. SeRViCeS TO DiPLOMATiC AND CONSULAR RePReSeNTATiVeS: STATiSTiCS
2009–10 2010–11 2011–12
Number of diplomatic representatives for whom the
department provides services
1016 1068 1148
Number of consular representatives for whom the
department provides services
936 950 1023
Number and category of services provided:
visas issued for the corps 2111 2330 2925
arrivals and departures processed 1279 1226 1692
identity cards issued 1278 1274 1362
presentation of credentials 25 22 33
exequaturs issued 18 21 33
facilitation of purchase, registration and
disposal of cars by privileged personnel
960 1384 1057
requests processed for foreign awards to
Australian citizens
65 59 91
requests processed for dependants seeking
permission to work
104 99 111
approvals for new foreign missions in Australia
(includes diplomatic missions, consular posts
and offces of international organisations)
8 9 19
approvals for defence advisers/attachés 14 14 13
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PROGRAM MANAGEMENT
(PUBLIC INFORMATION SERVICES
AND PUBLIC DIPLOMACy)
1.1.13 Public information services and
public diplomacy
Overview
The department supported Australia’s foreign and trade policy priorities through public
diplomacy to help shape positive international perceptions of contemporary Australia. In
addition to a focus on overseas audiences, our Public Diplomacy Strategy for 2011–12
included a renewed emphasis on domestic advocacy to engage stakeholders across the
Australian community, arts, business, education, science and media sectors in support
of our international objectives.
The Australia–Korea Year of Friendship highlighted the 50th anniversary of one of
Australia’s most signifcant bilateral relationships. The department’s advocacy and targeted
media visits supported Australia’s campaign for a seat on the UN Security Council as well
as Australia’s successful bid to co-host the Square Kilometre Array radio telescope project.
We enhanced our online presence by building on our existing YouTube and Twitter
profles to establish Facebook pages for a select range of posts, upgrading the
smartraveller and post websites enabling access to public diplomacy material on the
department’s main website. Our engagement with the media in Australia and overseas
helped promote accurate and balanced reporting of the Government’s foreign and trade
policies and achievements.
We continued to prepare publications on Australian diplomatic history, including a new
work on Australia and the United Nations.
The department continued to revise internal procedures to ensure compliance with
reforms to the Freedom of Information Act 1982 under the Freedom of Information (FOI)
Amendment (Reform) Act 2010. There has been a major increase in FOI applications,
following the November 2010 reforms.
The Australia Awards Board worked to establish a single recognisable brand, developed a
consolidated alumni database and strategy, and started to investigate partnerships with
business, industry and universities to enhance opportunities for Australia Award scholars.
international public diplomacy
Consistent with our Public Diplomacy Strategy for 2011–12, the department’s efforts
focused on supporting Australia’s relations with major strategic trading partners,
including the United States, Japan, China, India, the Republic of Korea (ROK) and key
ASEAN countries.
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Through the Australia International Cultural Council (AICC), the department coordinated
a joint Year of Friendship with the ROK in 2011 to mark the 50th anniversary of
diplomatic relations. This program successfully highlighted one of Australia’s most
signifcant bilateral relationships, with dynamic media, arts and cultural interactions
profling contemporary Australia and supporting the development of partnerships in a
range of public diplomacy activities.
Highlights of this whole-of-government Australian promotion included the Sydney
Symphony Orchestra’s inaugural tour to the ROK, which delivered a sell-out performance
and an outreach program for young musicians at Seoul National University. Australia’s
strong presence at the Korea International Art Fair, as guest country for the Fair’s tenth
anniversary, was coordinated by the Australian Commercial Galleries Association with
performances by Back to Back Theatre and contemporary circus company, Circa, at
the Seoul Performing Arts Festival. Separately, Australia’s engagement in the 2012
International Expo in Yeosu, the Republic of Korea, showcased Australia’s strengths in
sustainable management of oceans and the coastline.
The Minister for Trade and Competitiveness, Dr Emerson, opens the Australian Pavilion at Expo 2012, yeosu, in
May 2012, with Mr Kevin Nixon, Head, yeosu Expo 2012 Secretariat, (L), Australia’s Ambassador to the Republic of
Korea, Mr Sam Gerovich, (at back) and Australian Pavilion Goodwill Ambassadors (L-R) Ms Jessica Mauboy, Ms yeojin
Bae, and Ms Jessica Gomes.
We supported Washington embassy’s series of public diplomacy activities to celebrate
the 60th anniversary of the ANZUS Treaty. In Japan, we participated in initiatives to
support recovery following the devastating earthquake and tsunami in March 2011,
including a ‘recovery market’ held in the town of Minami Sanriku, and support for school
visits from disaster-affected areas to Australia. We also supported the reconstruction
of Australia House, a base for cultural exchange, artist-in-residence programs and
art exhibitions in Japan’s Echigo-Tsumari region, which had collapsed in a powerful
aftershock in March 2011.
The AICC grants program included a range of activities that followed from Imagine
Australia, the Year of Australian Culture in China in 2010–11. We partnered with Musica
Viva and Asialink to present performances, exhibitions and workshops across Asia,
including in India, Bangladesh, Laos, Thailand and Malaysia. We advanced preparations
for Oz Fest, a major Australian cultural diplomacy program in India in 2012–13.
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We increased our focus on science diplomacy, organising visits by eminent Australian
scientists to China, India and the Philippines. With the Department of Industry,
Innovation, Science, Research and Tertiary Education, the department’s sustained
advocacy and media engagement contributed to Australia’s success in securing the
right to co-host the Square Kilometre Array radio telescope project.
Personal Profle:
emily Hill
Prior to joining the graduate trainee program in 2011, Emily gained experience
working in the Domestic Legal and Middle East Branches, as well as the Sydney
Passports Offce as an Indigenous Cadet.
Emily currently works in the Human Rights and Indigenous Issues Section, with
primary responsibility for gender and Indigenous issues. She prepares statements
and advice on these issues for Australia’s participation in United Nations forums,
including the Human Rights Council and the UN General Assembly, and, in
consultation with the Global Ambassador for Women and Girls, helps to implement
the department’s obligations under the National Action Plan on Women, Peace
and Security 2012–18. Emily is also engaged in Australia’s reporting under the
Convention on the Elimination of Racial Discrimination.
In May 2012, Emily undertook a short term mission as Assistant Commissioner to
the Australian Pavilion at the International Expo – Yeosu, Republic of Korea. At the
Yeosu Expo, Emily was involved in coordinating celebrations for Australia’s National
Day, including co-hosting Australia’s cultural performances and hosting ministerial
and business delegations in the Australian Pavilion.
“I was grateful and proud to have been given the opportunity to represent Australia
at the Yeosu Expo. The Expo enabled Australia to showcase our unique and
diverse country and its assets – in line with the Expo’s theme – ‘The Living Ocean
and Coast’. The experience I gained at the Expo developed my management and
analytical skills, which will be of great use throughout my career in Australia and
overseas.”
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Media services
The department’s work continued to attract substantial public and media attention.
We responded to around 9260 enquiries from domestic and foreign media organisations,
of which over 30 per cent were received outside business hours.
There was sustained media interest in the department’s provision of consular
assistance to Australians, including: the sinking of the cruise ship, Costa Concordia,
off the Italian coast; foods in Fiji; the detention of an Australian lawyer in Libya; the
kidnapping of an Australian in the southern Philippines; and several high-profle consular
cases in Bali, China, the UAE, Saudi Arabia, the UK and elsewhere.
We provided strategic and logistical support for media aspects of high-level visits to
and from Australia and other major events, including: the Commonwealth Heads of
Government Meeting (CHOGM) in Perth in October 2011; President Obama’s visit to
Australia in November 2011; the Nuclear Security Summit in Seoul; the Australia–
Indonesia Inaugural 2+2 Dialogue in Canberra, and the Trans-Pacifc Partnership
Agreement negotiations in Melbourne, all in March 2012; Anzac Day commemorations
at Gallipoli; and the G20 Summit in Los Cabos and Rio+20 Conference in Rio de Janeiro,
both in June 2012.
The department delivered 139 background briefngs and interviews to the media,
on issues such as Afghanistan, China, Timor-Leste, Indonesia, the Pacifc, the
G20, free trade negotiations, new diplomatic posts, International Women’s Day and
cultural affairs.
We issued 372 media releases and public statements for portfolio ministers,
parliamentary secretaries and the department itself. We also issued 47 notes to the
media to provide advance notice of overseas events and media opportunities, and
distributed 423 transcripts of interviews, press conferences and speeches for ministers.
We continued to strengthen media skills across the department through in-house
training on media engagement. This included targeted programs for new heads of
mission and other staff going on overseas postings, consular and public affairs offcers
in Canberra and at posts, graduate trainees and other new recruits.
Website services and social media
The department’s web presence continued to support departmental and ministerial
communications and to reinforce foreign policy, trade, consular and public diplomacy
messages. In 2011–12, the main departmental website averaged 340 000 unique
visitors per month and the smartraveller website averaged 360 000 unique visitors each
month. The department’s combined overseas post websites, numbering more than 90,
received 565 000 unique visitors each month on average.
We launched two new campaign websites, one in support of Australia’s candidacy
for the United Nations Security Council in 2013–14, and the other to promote the
Australian Pavilion at the 2012 World Expo in Yeosu, Republic of Korea. We refreshed
the smartraveller website, including important enhancements to online registration and
the rollout of a mobile-friendly version. We modernised the design and layout of post
websites to make information easier to fnd.
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The department conducted extensive online user research in April 2012 to
assess satisfaction with the content, format and utility of all departmental and
ministerial websites. This research will inform a planned program of improvements
through 2012–13 to meet public expectations and comply with the Web Accessibility
National Transition Strategy.
We expanded our social media program beyond Twitter and YouTube to include
Facebook pages for selected posts. Our posts in Beijing and Seoul both established
local-language social media platforms to strengthen engagement with growing online
public audiences. The Imagine Australia cultural micro-blogging site in China was
recognised in the annual Chinese internet portal Sina’s Weibo awards.
Trade advocacy and outreach
The department worked to build understanding and support for Australia’s trade policies
domestically and internationally. We produced our annual trade publication Trade at
a Glance and Trade Matters brochures to explain the value of trade and investment
liberalisation and to focus on the importance of trade for each of the states and
territories. We explained trade agreements, such as the Malaysia–Australia Free Trade
Agreement, in straightforward language in order to maximise public awareness of their
outcomes (also see Publications Register in 1.1.13).
The department also provided detailed advice on trade and other economic statistics
to ministers’ offces, other agencies, business and the general public. Eleven statistical
publications were produced and made available free of charge on the website. These
were downloaded around 81 000 times in 2011–12 and we handled over 3500 statistical
enquiries. The department revised its website pages on trade issues to make them more
user-friendly and has increased its use of Twitter to deliver timely information.
Treaties
The department maintained the Australian Treaties Database, which is an online public
resource for researching treaties to which Australia is a signatory, or where Australia
has taken other treaty action. It can be accessed at www.info.dfat.gov.au/treaties. We
also maintained the Australian Treaties Library, which also makes available the texts of
all treaties Australia has signed, and those that have entered into force for Australia.
Special Visits Program
Our Special Visits Program brings emerging leaders and opinion-shapers to Australia for
meetings in their areas of interest with government, business and community fgures. It
gives participants an understanding of Australia’s culture and policy environment, and has
increased our network of international foreign and trade contacts. Eighty-four individuals
visited Australia under the Special Visits Program in 2011–12 (also see North Asia 1.1.1.
through to Security, nuclear disarmament and non-proliferation 1.1.11 for highlights).
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international Media Visits
We organised nine fully funded and two partially funded innovative programs for
35 journalists from India, Japan, the ROK, Germany, Kenya, Nigeria, Jamaica, Egypt,
Tunisia, Bangladesh, Nepal, Pakistan, Cambodia, Myanmar, Laos, Papua New Guinea,
Indonesia, Colombia, Brazil, Peru and Uruguay. By targeting international media visits
toward specifc sectors and events, such as innovation and resources and CHOGM, we
ensured resources were effciently matched with policy objectives.
We increased our focus on science diplomacy, funding outward visits by eminent
Australian scientists Dr Veena Sahajwalla to China and India, and Professor Terry
Hughes to the Philippines.
We supported the development of journalism in our region. We arranged an internship
for a Vietnamese journalist through the John Doherty Asia Pacifc Journalism Internship
with Australia Network, and for a journalist from Palau through the Douglas Gabb
Australia Pacifc Journalist Internship with the Australian Broadcasting Corporation. We
facilitated the exchange of a journalist from Australia and a journalist from Indonesia
under the annual Elizabeth O’Neill Journalism Award.
The Secretary, Mr Dennis Richardson AO, with Indian High Commissioner, His Excellency Mr Biren Nanda, at the
opening of Kindness/Udarta, an exhibition to mark 20 years of the Australia–India Council, in May 2012.
Cultural diplomacy
international cultural visits
To profle the diversity and quality of Australia’s contemporary culture, we invited
21 high-level international cultural leaders under the International Cultural Visits (ICV)
program. We supported targeted participation at the Australian Performing Arts Market
and the 5th World Summit on Arts and Culture. Twelve of the participants were from
Asia, two from South America, two from the Pacifc and fve from Europe.
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One of the key objectives of the ICV program is to foster networks that lead to
international collaborations and new opportunities. This year, for example, the visit to
Australia by Dr Félix Alfonso, Vice Dean of San Geronimo College of Havana, led to the
frst Indigenous art and photographic exhibition in Cuba through the Australian Journey
Festival in January 2012.
Australia international Cultural Council (AiCC) grants program
The AICC grants program supported 21 cultural projects in 2011–12, including to China,
Timor-Leste, Malaysia, Vanuatu, Ethiopia and North America. The program funded
eight projects to the ROK for the Australia–Korea Year of Friendship in 2011, and
six projects to India as part of the focus on that country in 2012. Projects included:
AusHeritage’s development of a conservation management plan and assistance with
museology aspects of Kamaraj House in India; Indigenous band East Journey’s tour to
Vanuatu to perform at the music festival Fest Napuan; a collaboration between Snuff
Puppets and local Indonesian artists and communities to tour the physical performance
work Wedhus Gembel in Indonesia; and Multicultural Arts Victoria’s tour to Ethiopia
of Dereb Desalegn’s band, incorporating performances as well as collaborations with
local musicians.
indigenous Australian arts and culture
The department continued to deliver public diplomacy programs designed to profle
Indigenous art and culture. The department simultaneously toured two Indigenous
exhibitions, developed with Artbank. Audiences across Latin and Central America, and
New York viewed Balgo: Contemporary Australian Art from the Balgo Hills. The Foreign
Minister launched Message Stick: Indigenous Identity in Urban Australia during National
Aborigines and Islanders Day Observance Committee (NAIDOC) week in Canberra,
before the exhibition commenced a tour of the Pacifc and Africa.
Our posts celebrated NAIDOC Week in July 2011 with a range of cultural activities,
performances and workshops. We marked Reconciliation Week (27 May–3 June) with
a presentation on Indigenous cultural and intellectual property rights to the diplomatic
corps in Canberra.
Presenting Australian visual arts and music overseas
Working in conjunction with Musica Viva and Asialink, we continued our music and visual
arts touring programs to present performances and exhibitions targeting audiences in
Asia. Highlights included touring Band of Brothers to India and Bangladesh and the Idea
of North to Laos, Thailand and Malaysia.
Australian Sports Outreach Program
The Australian Sports Outreach Program (ASOP), jointly managed with the Australian
Sports Commission and funded by AusAID, continued to deliver very positive public
diplomacy outcomes for Australia. Under ASOP, posts in the Pacifc, Caribbean,
Southern Africa and India supported sports programs for disadvantaged community
groups to improve health and social inclusion through sport.
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Fostering people-to-people links
The International Relations Grants Program (IRGP) is the largest grants program
the department administers. We provide secretariats for, and work closely with, ten
foundations, councils and institutes (FCIs) to promote people-to-people links and
positive images of Australia in support of the Government’s foreign and trade policy
goals. FCIs manage the majority of the grant programs funded under the IRGP.
Council for Australian–Arab Relations
The department continued to foster people-to-people and cultural links with the countries
of the Arab League through the Council for Australian–Arab Relations (CAAR). This year
the Council sponsored the Australia Arab Chamber of Commerce and Industry forum in
Sydney, and visits to Australia by Egyptian and Tunisian journalists. CAAR also established
links with regional cultural organisations, including the El Sawy Culture Wheel in Egypt, the
Dubai Centre for Arts and Culture and the Maquamat Dance organisers in Lebanon.
Australia–China Council
The Australia–China Council (ACC) continued to promote relations between Australia
and China, Hong Kong, Macau and Taiwan in the priority areas of economics and
trade, education and science, and culture and society. ACC is a key partner of the
new Foundation for Australian Studies in China, established to broaden the support of
Australian Studies Centres in China and to provide assistance to the BHP Billiton Chair of
Australian Studies at Beijing University. ACC sponsored 31 projects in 2011–12, including
the Lowy Institute’s Changing China lecture by the leading economist, David Daokui Li.
Warwick Smith took up his new position as Chair of the ACC in September 2011.
ACC renewed the focus on fostering the next generation of Asia-literate leaders. The
Australia-China Youth Dialogue and AustCham China Scholarship Program co-funded by
ACC are now premium national public diplomacy and youth exchange initiatives.
Australia France Foundation
The Australia France Foundation was created in 1989 as the major element of Australia’s
offcial contribution to the celebration of the Bicentenary of the French Revolution.
Highlights in 2011–12 included the 13th annual Australia–New Zealand flm festival
in St Tropez; the second round of the Australia–France one and a half-Track Strategic
Dialogue; an exhibition at the Australian Embassy on Australians on the Western Front
for Anzac Day 2012; and the ongoing provision of the Sadlier-Stokes scholarship for
schools from the north of France, awarded on Anzac Day 2012 in Villers-Bretonneux.
Australia–india Council
The Australia-India Council (AIC) continued building links between Australia and India.
Commemorating its 20th Anniversary in 2012, the Council’s exhibition and publication
of Kindness/Udarta, produced a record of AIC-supported cultural exchanges. Funding
was provided for the Lowy Institute’s Australia–India Roundtable, a one and a half-track
dialogue on the state of Australia–India relations, held in September 2011. In June,
Dr Kaushik Basu, India’s Chief Economic Adviser, delivered the 2012 KR Narayanan
Oration. In February, environment expert, Dr Don Blackmore, visited India to engage
with industry, academics and NGOs on water management, focused on the Ganges
river system.
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Australia–indonesia institute
The Australia–Indonesia Institute (AII) implemented a number of dynamic programs to
strengthen people-to-people links, including a new program to fund Indonesian arts
residencies in Australia, and a visit by ten Australian senior editors to Indonesia to
strengthen linkages between senior media in both countries. The AII developed a pilot
university partnerships project modelled on the successful Australia–Indonesia BRIDGE
school partnerships project. BRIDGE continued to be the AII’s largest program with
signifcant funding from AusAID and the Myer Foundation. The AII successfully ran its
two other fagship programs, the Australia–Indonesia Youth Exchange Program and the
Muslim Exchange Program, which work to build links between young Australians and
Indonesians. The AII’s discretionary grants program funded projects in priority areas,
including arts and culture and education. Science and technology and women and girls
were added as new priority areas.
Australian participants for the Australia–Indonesia Institute’s Muslim Exchange Program (L-R) Mr Ayman Islam,
Mr Kemal Brkic, Ms Sana Zahra Gillani and Ms Assmaah Helal sharing their experience exploring Islam in Indonesia
during a reception to mark the tenth anniversary of the program in May 2012.
Australia–Japan Foundation
The Australia–Japan Foundation (AJF) supported over 40 projects in Australia and
Japan. Key projects focused on ways to assist the people of Tohoku to recover from the
March 2011 earthquake and tsunami. Initiatives included supporting the design and
rebuilding of Australia House, a signifcant cultural exchange venue that had collapsed in
an aftershock. The new Australia House will open in July 2012 as the centrepiece of the
third Echigo-Tsumari Arts Triennale. The AJF supported the highly successful visit to the
Gold Coast of 24 young students from the tsunami-devastated town of Minami-Sanriku.
The students stayed with Australian families; attended classes at Helensvale High
School; and experienced Australian cultural and recreational activities. The AJF also
funded a playground for kindergarten children evacuated from their village close to the
Fukushima nuclear power plant.
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Australia–Korea Foundation
In 2011–12, the Australia–Korea Foundation (AKF) supported the Australia–Korea
Year of Friendship 2011, marking the 50th anniversary of diplomatic relations. The
AKF funded 45 projects in priority areas, building linkages in science and technology,
environment, education, youth, and society and culture. It supported 17 young
Australians to study in Korea through scholarships. The AKF also continued to
support three fagship capacity-building programs for business and media interns and
next-generation leaders. It sponsored the 2nd Australia–Korea Dialogue in October
2011, which explored cooperation on security issues. The AKF also supported the
Australian Academy of Technological Sciences and Engineering and the National
Academy of Engineering of Korea (ATSE–NAEK) Australia–Korea Green Growth
International Workshop in May 2012; and DIGICON, a digital-content mission for
children’s television, in September 2011.
Council on Australia Latin America Relations
The Council on Australia Latin America Relations (COALAR) strengthened links with Latin
America through support for 21 projects in priority areas. Visits by the COALAR Chair
to Latin American countries raised Australia’s profle with key business, investment
and education sector representatives. COALAR supported collaboration in the mining
sector, the annual Australia Latin America Business Awards, the inaugural Latin America
Down Under conference and an industry mission to São Paulo. COALAR also supported
exchange programs between universities and research institutions, and commissioned
research by Tourism Research Australia.
Australia–Malaysia institute
The Australia–Malaysia Institute (AMI) contributed to the bilateral relationship with
Malaysia funding 25 grants in public policy, arts and culture, sports cooperation and
education. The AMI initiated a new grant program to support sister school relationships.
For the second time, the AMI supported the Australia–ASEAN Emerging Leaders Program,
which brought together twenty-fve emerging leaders from Australia and ASEAN countries
for intensive discussions on regional challenges on the margins of the Asia-Pacifc
Roundtable in Kuala Lumpur, organised by the Institute of Strategic and International
Studies Malaysia. The AMI expanded its Elite Sports Program with the fourth Malaysian
recipient undertaking an athletics coach placement with Athletics Australia. The AMI
funded two vocational education and training programs in the automotive sector.
Australia–Thailand institute
The Australia–Thailand Institute (ATI) targeted grant projects to celebrate the 60th
anniversary of the establishment of diplomatic relations in 2012. The ATI supported
a number of visits to Australia including by Thai sports journalists and by young Thai
community leaders which focused on multiculturalism and social participation. It also
launched a new program under which three young female Thai MPs visited Australia.
The ATI worked to strengthen education linkages to encourage more Australian students
to study in Thailand by sponsoring a visit to Australia by representatives from Thai
universities. The ATI funded 19 grants focused on promoting economics and trade, public
administration, arts and culture, education, and science, technology and innovation.
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Deputy Head of Mission, Mr Simon Farbenbloom (fourth from the right), and First Secretary, Ms Amelia Henty (ffth
from the right), at an Australia–Thailand Institute-funded Australian Lifesaving Association training in Phuket.
Australia Awards
The Australia Awards is a whole-of-government initiative combining the capacity
and opportunity of Australia’s leading government scholarship programs to promote
knowledge, education links and enduring ties between Australia, its neighbours and the
global community.
Offcially launched in May 2011, the initiative has provided unique educational
opportunities for international and Australian scholars from more than 160 countries.
In 2011, the Government spent $273.2 million enabling over 4400 scholars to undertake
further study, research and professional development in Australia and overseas.
In 2011–12, the Australia Awards Board progressed work to establish a single
recognisable Australia Awards brand. It also developed a consolidated alumni database
and strategy to help foster Australia’s links with a strong network of Australian-educated
leaders regionally and globally, highlighting the international profle of Australia’s education
system. The Board is also beginning to explore partnerships with business, industry and
universities to provide additional opportunities for Australia Awards scholars.
A Secretariat, based in the department, supports the work of the Board by coordinating
policy development on priority areas with Australia Awards implementing agencies
(AusAID, the Department of Industry, Innovation, Science, Research and Tertiary
Education and the Australian Centre for International Agricultural Research).
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Direct Aid Program
The Direct Aid Program (DAP) is a fexible small grants program, funded by AusAID and
administered by DFAT through 60 of the department’s posts. It supports projects in
over 80 developing countries, with a particular focus on small-scale projects at the
community level.
The bulk of the DAP funding is allocated to regions in which Australia does not have a
signifcant bilateral aid profle, including emerging priority regions such as Africa, Latin
America and the Caribbean, and Central and South Asia.
The program aims to advance Australia’s national interests by helping developing
countries to achieve sustainable development, while raising Australia’s community
and public profle. Typical projects address community health, gender equality, rural
development, environmental issues and youth and education. Successful projects
in 2011–12 included support for vocational training for rural women in the Palestinian
Territories; construction of a borehole water facility for a small town in Nigeria; and a
sustainable community farming project in Nicaragua.
In 2011–12, the DAP budget increased from $8 million to $10 million, with most of the
additional $2 million used to support multilateral development projects in cooperation
with international partners.
Freedom of information
The department fnalised 204 freedom of information (FOI) applications (see table 7),
61 more than in 2010–11. Requests often involved a substantial volume of information
or covered complex and sensitive topics. The volume or sensitive nature of the
documents requested sometimes made it diffcult to achieve an access decision within
the statutory deadline. The FOI caseload was managed by liaising with applicants on
the content and processing of all requests. The department takes a broad approach to
requests for information by providing information outside the formal processes of the
FOI Act when appropriate, for example, offering media briefngs.
The number of applicants requesting predominantly personal information has been
steady, while other applications tripled. Nine requests for internal review of access
decisions were received, and decisions were made on all the requests. Nine appeals to
the Offce of the Australian Information Commissioner against an access decision were
lodged in 2011–12.
Since May 2011, agencies subject to the Freedom of Information Act 1982 (FOI Act)
have been required to publish information to the public as part of the Information
Publication Scheme (IPS). This requirement is in Part II of the FOI Act, and has replaced
the former requirement to publish a section 8 statement in an annual report. Each
agency must display on its website a plan showing what information it publishes in
accordance with the IPS requirements. DFAT’s IPS is online at: http://www.dfat.gov.au/
foi/ips.html.
The department was active in contributing to government-wide consideration of FOI
reform and information policy. We made a number of submissions on specifc and
general information policy topics in the context of reviews, led by the Offce of the
Australian Information Commissioner.
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TABLe 7. ReQUeSTS PROCeSSeD UNDeR THe FREEDOM OF INFORMATION ACT 1982
2009–10 2010–11 2011–12
Requests for information
Access granted in full 13 26 35
Access granted in part 52 57 84
Access refused 11 21 28
Requests transferred or withdrawn 22 39 57
Total 98 143 204
Requests subject to review or legal appeal
Requests for internal review (s.54) 6 8 9
Appeals lodged with the Administrative Appeals Tribunal (s.55) 1 1 0
Ombudsman 1 1 0
Requests for reviews lodged with the Offce of the
Australian Information Commissioner
n.a. 4 9
n.a. not applicable
Publications Register
The department has a range of documents either for sale or free of charge.
The list is provided below and is available online at http://www.dfat.gov.au/ and at
http://www.dfat.gov.au/publications/.
Publications: 1st July 2011–30th June 2012
Arrested or jailed overseas
Australian Safeguards and Non-Proliferation Offce Annual Report 2010–11
Australia’s trade by state and territory 2010–11
Australia’s trade with Africa and the Middle East 2010
Australia’s trade with East Asia 2010
Australia’s trade with the Americas 2010
Australia’s trade with the European Union 2010
Backpacking overseas
Composition of trade Australia 2010–11
Consular list January 2012
Consular services charter
Death overseas
Department of Foreign Affairs and Trade Annual Report 2010–11
How we can assist your business: Victoria
Living and working overseas
Message Stick: Indigenous identity in urban Australia
Missing overseas
Portfolio additional estimates statements 2011–12
Portfolio budget statements 2012–13
Portfolio supplementary additional estimates statements 2011–12
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Registration postcard
Sexual assault overseas
Subscription postcard
The APEC region trade and investment 2011
Trade at a glance 2011
Trade in primary and manufactured products Australia 2010–11
Trade in primary and manufactured products Australia 2011
Trade in services Australia 2010
Trade in services Australia 2010–11
Trade matters 2011
Travel insurance postcard
Travelling dual nationals
Travelling parents
Travelling seniors
Travelling well
Travelling women
Historical Publications and information
As part of its public diplomacy program, the department continued to prepare
publications on the history of Australia’s relations with the world. Such publications
shed light on the nature of the department’s work, and provide an indispensable source
for scholars, students and members of the public, interested in Australia’s engagement
with the global community.
The department made signifcant progress in preparing the most authoritative and
up-to-date history of Australia’s engagement with the United Nations, which will be
published in 2012–13. We have also started work on other commissioned volumes
in the Documents on Australian Foreign Policy series. We will publish Australia and
the Nuclear Non‑Proliferation Treaty in 2012–13. Other volumes under preparation
include Australia and Apartheid in South Africa and White Minority Rule in Rhodesia,
1950–1980; Australia in War and Peace, 1914–1919; Australia and South Asia,
1945–1973; and Australia and the Middle East, 1950–1980.
We also responded to 155 requests for historical information from public and
offcial inquirers.
Archival examination
Public researchers can access archival records under Section 40 of the Archives Act 1983
on application to the National Archives of Australia (NAA). The NAA refers relevant
records to the department to assess whether or not they should be exempt from public
release in light of sensitivities relating to intelligence, security or international relations
of the Commonwealth of Australia. The department is also responsible for approving
applications for Special Access to Commonwealth records under section 56(2) of the
Archives Act 1983.
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Table 8 below outlines requests completed by the department in 2011–12 under the
Archives Act 1983. These included fles or documents relating to:
• Papua New Guinea – Post Independence – Defence Negotiations; Defence and
Intelligence relations with Australia; Relations with other countries
• Nigeria – relations with Australia
• Pakistan – Economic relations with Australia
• Cambodia – Foreign Policy – General
• Former Yugoslav Republic of Macedonia (FYROM) – relations with Australia
• Kampuchea (Cambodia) – relations with Vietnam
• India/China Border Dispute – Aid for India
• Cambodia/Vietnam relations 1968.
The number of requests completed rose from 422 in 2010–11 to 1055 in 2011–12,
as a result of increased public interest – see Table 8 below. This increase prompted the
department to review and streamline its procedures and resources for managing such
requests. Of the 1055 requests completed, we recommended 523 fles or documents
for at least one exemption from release on national security or international relations
grounds, and a further six for total exemption. We recommended that 532 fles or
documents be released in full.
TABLe 8. ReQUeSTS ASSeSSeD UNDeR THe ARCHIVES ACT 1983
2009–10 2010–11 2011–12
Requests completed 456 422 1 055
Number of folios assessed 82 413 94 067 208 219
Open Access 214 162 532
Wholly or partially exempt 242 260 523
Subject to review 2 0 4
Subject to appeal 4 0 3
Recordkeeping
We completed the Electronic Document and Records Management System (EDRMS)
project this year, delivering a new electronic document and records management system
to all DFAT users. The implementation of EDRMS included a successful program of visits
to divisions, state and territory offces and overseas posts to help them prepare for the
transition to digital recordkeeping.
Approximately 4800 staff worldwide are using EDRMS which is delivering effective and
effcient records management. It is signifcantly increasing our ability to manage our
electronic records in compliance with legislative recordkeeping obligations.
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The records management section continues to complete action items under the
Strategic Plan for DFAT Records Management 2008–13, including the archival transfer
of the department’s fles to the National Archives of Australia (NAA). One hundred and
twenty-four linear metres of fles are being transferred to NAA for permanent storage,
and a further 88.6 linear metres are awaiting transfer approval from NAA.
H V evatt Library
The H V Evatt Library continued to provide a complete library and information service
for departmental staff, both in Australia and at post, including a prompt and effcient
reference service and alerts to new resources. The library increased the scope of
personalised email alerts sent to offcers by around 20 per cent, and introduced a new
service targeting individual work areas. The library completed a project to scan and
load on to the departmental intranet press releases from 1972 to 1994. New electronic
reading devices were added to the library collection, enabling clients to access a
wider range of published material in a timely manner. The library initiated an exchange
program to enable departmental staff, in particular those embarking on postings, to
share books with colleagues.
Outlook
The department will continue to promote a positive image of contemporary Australia in
support of our foreign and trade policy priorities, through public diplomacy programs and
activities in Australia and overseas, through an enhanced online presence, including
increasing engagement in social media, and through domestic outreach.
Oz Fest, the key AICC program for 2012–13, will be the largest ever staged Australian
cultural festival in India, with a curated program that showcases an innovative and
diverse Australia. Oz Fest will be a major Government investment involving the support
of over 20 partners across both countries.
We will work with local partners to deliver an ambitious celebration of the 40th
anniversary of diplomatic relations in 2013 – the Year of Vietnam. We will commence
planning and the development of partnerships in support of the forthcoming Years of
Indonesia (2014), Turkey (2015) and Brazil (2016) – major vehicles for Australian public
diplomacy, involving ministerial engagement as well as grassroots collaboration.
We will continue to publish books of historical interest and signifcance in 2012–13,
including the new history of Australia and the United Nations.
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PROGRAM 1.2: PAyMENTS TO
INTERNATIONAL ORGANISATIONS
Program 1.2 Objective
• To enable Australia to advance its foreign, trade and economic, and security
interests through participation in international organisations.
Program 1.2 Deliverable
• Australia retains membership of relevant international organisations and provides
voluntary contributions as appropriate.
Program 1.2 Key performance indicator
• Payments to international organisations and of voluntary contributions are timely
and within budget.
Administered item:
• Payments to international organisations
The department made payments totalling $222.9 million, consisting of $83.2 million
to 30 international organisations and international treaty secretariats, including the
United Nations, and $139.7 million to 15 United Nations peacekeeping operations
(see appendix 10). These payments were made in full and on time.
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PROGRAM 1.3: PUBLIC INFORMATION
SERVICES AND PUBLIC DIPLOMACy
Program 1.3 Objective
• To project a positive and contemporary image of Australia and promote a clear
understanding of government policies and objectives through the department’s
public diplomacy, cultural and media activities.
Program 1.3 Deliverables
• An independent, credible and reliable voice and image in the region through
effective management of the new contract for Australia’s international television
broadcasting and associated digital media services.
• Promotion of people-to-people links and a contemporary and positive image of
Australia and support for the Government’s international policy goals, including
through grants and other support to bilateral foundations, councils and institutes.
Program 1.3 Key performance indicators
• An accurate and contemporary image of Australia, an understanding of the
Government’s foreign and trade policies; and strengthened people-to-people links
and trade and economic ties.
• Showcasing Australia’s industries and cutting edge science and research in the
marine environment, providing trade and economic opportunities and boosting
Australia’s tourism and education sectors through participation in the 2012 World
Expo in Yeosu, Republic of Korea.
Administered items:
• International relations grants program
• Australia Network
• Australia and New Zealand School of Government – China Advanced Leadership Program
• Expositions Special Account
The department administered grants in 2011–12 of $12.464 million in accordance with
the Commonwealth Grant Guidelines. See Appendix 10 and www.dfat.gov.au/dept/grants.
The department continued to manage the ABC’s delivery of the Australia Network
Asia-Pacifc television service. Following the Government’s decisions in late 2011 to
terminate the tender process for a new ten-year contract and to make the Australia
Network a permanent feature of the ABC, the department extended existing contractual
arrangements with the ABC through to August 2012, pending fnalisation of long-term
arrangements with the ABC.
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PROGRAM 1. 3: PUBLIC INFORMATION SERVICES AND PUBLIC DIPLOMACy
The department provided a grant of $3 million to the Australia and New Zealand
School of Government (ANZSOG) to deliver a three-year China Advanced Leadership
Program, a collaboration between ANZSOG and the Central Organisation Department
of the Communist Party of China. The program seeks to expose future Chinese leaders
to best practice governance in Australia and New Zealand, and to establish positive
relationships with them.
The department managed Australia’s participation at International Expo 2012 in Yeosu,
the Republic of Korea. The expo, themed ‘The Living Ocean and Coast’, ran from 12 May
to 12 August 2012. The Australian Pavilion showcased the importance of Australia’s
coast as a gateway for national wealth through resources, tourism and education.
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OUTCOME 2

The protection and welfare of Australians abroad and
access to secure international travel documentation
through timely and responsive travel advice and consular
and passport services in Australia and overseas
Program 2.1: Consular services
Program 2.2: Passport services
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OUTcOME 2
PERFORMANCE INFORMATION FOR
OUTCOME 2
Outcome 2 strategy
With more Australians travelling overseas each year, the department will continue
to give high priority to delivery of effective consular services. The department will
help Australians make informed decisions about their security, safety and wellbeing
by maintaining its comprehensive system of travel advisories. The department’s
consular outreach program will continue in 2011–12, promoting safe travel
messages and delivering accurate and timely travel advice, including through the
smartraveller campaign.
Practical planning for contingency and rapid crisis response will remain a focus through
2011–12. The department will work to enhance its ability to respond quickly to consular
incidents, particularly in remote locations or where consular representation is less
concentrated. It will also continue to lead whole-of-government responses to future
consular crises and serious incidents overseas, activating the department’s Crisis
Centre as needed.
The department will commence work on the detailed design and scheduling of the next
passport series to ensure the Government can continue to deliver a contemporary,
secure travel document. The department will continue to take forward the National
Security – Improved Passport Integrity and Strengthened Issuance Systems program,
announced in 2010–11, to enable it to meet the projected increase in demand for
passport services in forward years.
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PROGRAM 2.1:
CONSULAR SERVICES
Program 2.1 Objective
• To support and assist Australian travellers and Australians overseas through
high-quality consular services, including accurate and timely travel advice,
practical contingency planning and rapid crisis response.
Program 2.1 Deliverables
• High-quality consular services to an increasing number of Australian travellers
and Australian citizens living overseas, including notarial services and assistance
with welfare issues, whereabouts inquiries, arrest or detention matters, deaths,
medical emergencies and payment of travellers emergency loans to Australians
in need.
• High-quality travel advisory services, including issuing travel information on travel
destinations, promoting this information through continuation of the smartraveller
campaign and effectively managing an online travel registration service.
• Effective consular contingency planning for major events or high-risk scenarios,
including through regular reviews of procedures and available resources,
training of staff, and coordination with other government agencies and foreign
governments.
• Coordination of whole-of-government responses to large-scale crises involving
confict, civil unrest, natural disasters or terrorist incidents.
Program 2.1 Key performance indicators
• The department’s delivery of consular services is effective, effcient, timely and
responsive, and within the scope of Australian Government responsibility.
• Accurate and timely travel advisories which provide clear guidance to a broad
audience of potential risks and the extent of Australian Government assistance,
and continued growth of public use of the smartraveller website and the online
registration service.
• Consular contingency planning accurately anticipates high-risk events and
scenarios, necessary resources for response are readily available, procedures and
networks remain valid and viable, and plans are tested and reviewed regularly.
• Timely and effective consular support to Australians through well-coordinated
implementation of whole-of-government responses to large-scale crises.
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Program 2.1: consular Services
Overview
With over 8 million overseas departures by Australian residents in 2011–12—
an 11 per cent increase since 2010–11—consular services remained central to the
department’s work. The department and its overseas posts assisted 14 574 Australians
in diffculty overseas, often in remote locations and challenging circumstances. Although
there were fewer international crises compared with 2010–11, a number of high-profle
incidents and complex cases placed unforeseen demands on the department’s services.
Acting on lessons learned from the 2011 crises, the department increased staffng
of our crisis-response mechanisms, improved training and led inter-agency teams
to assist posts with contingency planning in the Pacifc, South-East Asia, the Middle
East, Africa and Latin America. We also supported preparations for major sporting
and commemorative events overseas, and commenced development of an Emergency
Response Team corps which will be prepared and equipped to deploy overseas in the
event of a crisis.
The department reviewed ways to enhance our support to the most vulnerable
Australians overseas, including victims of violent crime, kidnapping, forced marriage and
child abduction. At the same time, we continued to underline the limits of the consular
service we can provide, and the individual responsibility of Australian travellers to take
measures to safeguard their wellbeing.
The department launched the third phase of the smartraveller public information
campaign, utilising both traditional and new media to encourage travelling Australians to
convert awareness of safety and security conditions in other countries into action. We
continued to accord a high priority to the accuracy and timeliness of the travel advice
delivered through the smartraveller website. A thorough review and revamp made the
website clearer and more accessible, including to web-enabled mobile devices.
Signifcant time was invested in strengthening Australia’s links with traditional and new
consular partners, with a particular focus on those in Asia.
Consular services
At 30 June 2012, Australians had access to consular services around the world through:
• 89 diplomatic and consular missions, and 60 honorary consulates managed by
the department
• 14 consular missions and 5 honorary consulates managed by Austrade (as at
30 June 2012, the Consulate in Tripoli was temporarily closed)
• the Australian Offce in Taipei
• the Australian Representative Offce, Ramallah
• 17 Canadian diplomatic missions, under Australia’s Consular Sharing Agreement
with Canada.
Australians also had access to notarial services through our state and territory offces
in Adelaide, Brisbane, Darwin, Hobart and Perth, and through our passport offces in
Sydney, Melbourne, Newcastle and Canberra.
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Australians were able to access consular services 24 hours a day, seven days a week
through the Consular Emergency Centre located in Canberra. The centre received
42 866 calls in 2011–12, down from 44 545 calls in 2010–11. The drop in the volume
of calls refected the lower number of overseas crises affecting Australians over the
reporting period.
The department used the network of Regional Consular Offcers and Special Consular
Offcers in Abu Dhabi, London, Mexico, New Delhi, Pretoria and Shanghai to bolster
consular capacity where required, including in response to crises.
Work continued on a new consular management information system to support services
to travelling Australians. This project will continue in 2012–13.
Personal Profle:
Claire McComish
After spending about half of her DFAT career on postings
overseas, Claire McComish now heads up one of the Consular
Operations Teams in Canberra – the department’s ‘front line’
in dealing with the Australian public.
Responding to high profle consular cases can be an intense
but rewarding experience, involving coordination within and
across agencies, consultation with the Foreign Minister’s
Offce, and focused media attention.
“It is a great team of people, all of whom value the sense of reward they get from
helping people, and there is rarely a dull moment in our day”.
Since joining the department, Claire has gained experience in a diverse range of
placements, from security operations to reporting on trade barriers and human
rights issues, organising international meetings and, most recently, managing the
budget, human resources and property of a large overseas post.
“The chance to diversify within the department has kept me interested and
motivated. The specialist training on offer, as well as the opportunity to advance
my fuency and knowledge of the languages I studied at university, adds to a very
fulflling and enjoyable job. I never stop learning!”
Assisting Australians overseas
In 2011–12, consular staff provided a total of 202 723 consular services, compared
to 201 660 in 2010–11. Our consular caseload continued to be diverse, complex and
challenging, refecting the increasing number of Australians travelling, including to
remote and exotic locations.
Our consular staff provided assistance and support to 1507 Australians arrested or
imprisoned overseas, by ensuring they had access to legal assistance, attending trials
to ensure they were not discriminated against, and conducting regular visits to ensure
they were treated properly and had access to adequate food and medical care in places
of detention. We provided support and advice to grieving families on the repatriation of
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the remains of loved ones who had passed away while overseas. In consultation with
agencies such as the Australian Federal Police, we provided a high level of advice and
assistance to family members affected by the kidnapping of a relative overseas, while
maintaining the Government’s strict and longstanding policy of not paying ransoms.
We continued to devote considerable resources to locating Australians overseas, where
there were well-founded concerns for their welfare. In 2011–12, consular staff received
4154 overseas whereabouts enquiries (down from 12 899 in 2010–11).
Travellers emergency loans
The department used funds available through travellers emergency loans to provide
$218 470 in assistance to 365 Australians in 2011–12. This compares to $356 246
in loans issued to 345 Australian travellers in the previous year.
Loans were provided case-by-case, following assessment of clients’ needs and their
ability to access alternative fnancial sources. All loan recipients were required to sign
legally enforceable deeds of undertaking-to-repay, although loans are issued according
to need, not according to clients’ capacity to repay.
Travellers emergency loans also included the Prisoner Loans Scheme, under which
$63 947 was loaned to 60 Australians imprisoned overseas to ensure their access to
adequate food and other essentials.
We continued efforts to improve loan recovery rates by following up promptly with
debtors and offering a range of repayment options, including repayment by instalments.
The undertaking-to-repay signed by each loan recipient also links eligibility for a new
passport to the repayment of an outstanding loan. Under this system, $207 963
was recovered from Australians who had been issued loans, compared to $136 564
in 2010–11.
TABLe 9. TRAVeLLeRS eMeRGeNCY LOANS
2008–09 2009–10 2010–11 2011–12
Number of Australian travellers assisted by
emergency loans
334 286 345 365
Amount provided in emergency loans $415 767 $320 456 $356 246 $218 470
Amount recovered in debt recovery activities $181 789 $196 447 $136 564 $207 963
Consular emergency services
The department granted payments of $93 372 to a small number of Australian travellers
under the consular emergency services fnancial support mechanism, which enables
payment of in-kind services to Australians in need, and covers funeral costs, when it is
not practical or legally possible for consular clients or their family members to sign an
undertaking-to-repay.
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Consular cooperation
The department built on Australia’s consular relationships, continuing our close practical
cooperation with Canada, New Zealand, the United Kingdom and the United States,
to enhance delivery of consular services. We strengthened consular cooperation
with several countries through annual consular dialogues with China, Indonesia, the
United Arab Emirates and Vietnam, and by making available opportunities to share
consular training.
We co-hosted with the Department of Defence a meeting of the non-combatant
evacuation operation coordination group in Sydney, to strengthen the effcient use
of assets in major evacuations and to share best practice in regard to contingency
planning. The meeting brought together representatives from our consular partner
countries (United States, United Kingdom, Canada and New Zealand), as well as France,
Germany, Belgium, Italy, Netherlands, Spain and Portugal.
Consular policy
In consultation with agencies such as the Attorney-General’s Department and the
Australian Federal Police as well as non-government organisations, we examined ways
to strengthen the department’s consular response to Australian victims of violent crime,
kidnapping, forced marriage and child abduction overseas. For example, we reviewed
the level of advice and support we provide to families of Australian victims of kidnapping
overseas, including in light of the report of a Senate inquiry on this topic and the
independent review of the kidnapping of Nigel Brennan in 2008–09.
The department reviewed the Consular Handbook and published it on the DFAT website.
The plain-English handbook explains the consular services provided by the department
in Canberra and our overseas posts.
Consular training
We expanded our ‘crisis cadre’ by training over 180 staff to coordinate the
whole-of-government response to an incident overseas. This training included
scenario-based role-plays involving external partners. We also began preparing and
equipping a new consular emergency response team (ERT) corps of 18 departmental
volunteers who will be ready to deploy overseas to assist posts in their consular
response. The department developed the ERT proposal in close consultation with other
agencies with similar crisis-deployable capabilities, including Defence, the Australian
Federal Police, AusAID and Emergency Management Australia, as well as through
benchmarking against international best practice.
We continued to develop the skills of Australian consular offcials preparing for overseas
service and serving overseas, by providing over 30 training courses for locally engaged
staff overseas, Honorary Consuls and Austrade staff in Canberra, the Americas and
Europe. Over 100 new consular offcers completed our training programs in 2011–12.
We also provided consular training to offcials from Singapore, China and Indonesia. In
all, we provided non-crisis consular training in Canberra to some 350 individuals.
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We held regional contingency planning workshops for staff based in the Americas
and Europe, while posts around the world conducted exercises to test their plans,
occasionally with support of regional posts and Canberra.
Responding to and preparing for consular crises
The department has refned its response mechanism for crises affecting Australians
overseas on the basis of experience of major crises over more than ten years and
through the continual implementation of lessons learned. At the core of this mechanism
lies our Canberra crisis centre, which can be activated at very short notice to operate
on a 24-hour basis. When activated, the centre is staffed on rotation by 180 trained
departmental volunteers, in addition to teams on standby duty throughout the year
and others rostered onto shifts at short notice. The crisis cadre was expanded to its
current size from 120 in 2011, implementing one of the lessons learned from the series
of crises in the frst half of that year. The department comprehensively reviewed the
centre’s standard operating procedures and aligned our capability more closely with that
of other agencies.
We activated the crisis centre in December for a kidnapping in the Philippines, until
the establishment of a standing task force to handle the case in cooperation with the
Australian Federal Police and other agencies. The crisis centre was used in response to
the foods in Fiji in March, which also called for close consultation with AusAID to ensure
consular and humanitarian aspects of our response were complementary. We also
activated the crisis centre in response to the detention of an Australian lawyer in Libya
in June. We used other aspects of our crisis mechanism, including the Emergency Call
Unit, to answer queries from the public regarding the Costa Concordia sinking in Italy,
the grounding of Qantas fights, and an earthquake off Aceh.
Our global network of overseas posts continued to provide exceptional assistance
to Australians in distress. For example, our Embassy in Rome moved quickly to
confrm the welfare of Australians following the Costa Concordia incident, while our
Consulate-General in Honolulu worked with local authorities to arrange emergency
accommodation for Australian travellers stranded when their airline entered
receivership. Our High Commission in Port Moresby worked to ascertain whether
Australians had been affected by a landslide in the southern highlands and supported
the Papua New Guinean Government’s response to its own nationals involved in the
sinking of a ferry. This included facilitating the involvement of the Australian Maritime
Safety Authority.
We continued a focused program to test and refne posts’ plans to respond to incidents
that could affect the safety and welfare of Australians. Contingency Planning Assistance
Team (CPAT) visits underpin preparedness and the capacity to deliver effective
responses to risk scenarios. Working with the Department of Defence, we sent CPATs
to New Caledonia, Vanuatu, Kenya, South Sudan, Israel, Saudi Arabia, Chile, Peru, and
Indonesia in 2011–12. We liaised closely with the private sector, both during crises and
in contingency planning.
Contingency planning for Anzac Day events in Gallipoli and Villers-Bretonneux is an
annual priority, managed with the Department of Veteran Affairs and other agencies. We
sent consular support staff to these locations to provide assistance to the large numbers
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of Australians who attended commemorations there. We also sent extra consular staff to
New Zealand to assist Australians attending the Rugby World Cup in New Zealand, while
continuing our contingency planning for the London Olympic and Paralympic Games and
commencing planning for the tenth anniversary of the Bali bombings.
Keeping Australians informed
During 2011–12, the department continued to enhance our travel advisory services,
aimed at providing accurate and up-to-date information to help Australians make
well-informed decisions about travelling overseas.
We implemented a major review of the advice provided to Australian travellers, replacing
the previous fve-level system for country advice with a risk-based four-level system
(exercise normal security precautions; exercise a high degree of caution; reconsider
need to travel; do not travel).
We issued 888 updates to travel advisories for 167 destinations as well as travel
bulletins, refecting changes in the security situation and other signifcant developments.
We also maintained our systematic three-monthly review of all advisories. In addition,
we amended travel bulletins regularly in response to developments for major events
and issues, including the collapse of Air Australia, foods in Fiji, Anzac Day in Turkey and
France, and the 2012 Olympic and Paralympic Games in London.
Our advice drew on information from a range of sources, including diplomatic and
intelligence reporting. We continued to work on a principle of no double standards:
our advice to the public is the same as our advice to staff and to the private sector;
whenever possible, we pass on credible and specifc threat information to the public.
Then Foreign Minister, Mr Rudd, launched Phase III of the smartraveller public
information campaign in November 2011. In this phase, we aim to convert Australian
travellers’ existing awareness of smartraveller into action: encouraging them to register
their travel plans; to read and subscribe to travel advice at www.smartraveller.gov.au;
and to take out comprehensive travel insurance. Accompanying the campaign launch,
we refreshed the main smartraveller website to include the four-level advice system, as
well as clearer layout and navigation features. We also launched a mobile version of the
website for users of web-enabled mobile devices, including smartphones.
The campaign commenced with a round of media advertising in December 2011 on
television, radio and print media and online. A second round of media advertising ran from
late April to mid-June 2012. The campaign has also included digital search advertising
focused on key words and destinations, linked to the relevant smartraveller advice pages.
The smartraveller campaign returned to Australia’s larger international airports in
June 2012 with advertising and sponsorship of the free Wi-Fi at Sydney, Melbourne and
Brisbane airports. This advertising took advantage of the opportunity provided by the
proliferation of web-enabled mobile devices, combined with the availability of free Wi-Fi
and the launch of the smartraveller mobile website.
Demonstrating the effectiveness of the campaign in turning awareness into action,
smartraveller registrations have increased markedly to an average of 3700 per day in
the month of June 2012, compared with 2105 per day in June 2011. Smartraveller
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subscriptions also steadily increased, reaching 84 807 as at 30 June 2012, compared
to 70 683 as at 30 June 2011.
We continued to work with the travel industry to promote travel advice and the
smartraveller campaign messages. We convened two meetings of the Smartraveller
Consultative Group to seek industry feedback on the development and performance of
the campaign. We launched an online e-learning tool for travel agents. We also attended
21 travel expos, reaching out to individual travel service providers and bringing the
smartraveller message directly to the travelling public.
Consular Service Charter
The department continued to receive feedback on ways to improve its consular services
to Australians overseas. We obtained feedback in a variety of ways in accordance
with the Consular Services Charter, including the feedback form on the smartraveller
website, ministerial correspondence and feedback provided to our staff via email, over
the phone or at the counter, both in Australia and overseas. Where possible, we act
on feedback to continue improving the delivery of fair, accountable and transparent
consular services to the Australian public.
Outlook
We will maintain a high level of consular support to Australians overseas and examine
ways to improve our service within available resources.
The department will continue implementing reforms to our crisis-management
processes to strengthen our ability to respond to events overseas that affect the safety
of Australians. We will focus on training for the deployment of consular emergency
response teams. We will continue our program of Contingency Planning Assistance
Team visits to test and refne posts’ consular plans to confrm they are ready to respond
quickly and effectively to crisis incidents. We will undertake a comprehensive review
of our existing crisis facilities, systems and processes. We will enhance our links with
foreign consular services, other government agencies and the private sector.
We will continue the smartraveller campaign; building on the success to date of Phase
III, by launching new targeted advertising and expanding our use of new technologies
and social media. This will include the release of an iPhone ‘app’ that takes advantage
of smartphone features, such as geo-positioning, to deliver targeted travel advice
and registration services. We will also implement audio software on the smartraveller
website, enabling the public to listen to individual advice pages.
The department will lead a whole-of-government effort, in conjunction with posts in Bali
and Jakarta, to organise a commemoration service in Bali to mark the tenth anniversary
of the frst Bali bombings. The service will allow victims, families and the broader
community to join together in remembering the tragic events of 12 October 2002.
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TABLe 10. CONSULAR SeRViCeS PROViDeD TO AUSTRALiAN TRAVeLLeRS
2007–08 2008–09 2009–10 2010–11 2011–12
Australian resident departures
1
5 878 445 6 009 033 6 938 303 7 609 300 8 452 924
Cases of Australians
hospitalised given general
welfare and guidance
1260 1480 1467 1203 1265
Cases of Australians evacuated
to another location for
medical purposes
46 32 29 28 24
Cases of next of kin of
Australians who died overseas
given guidance or assistance
with disposal of remains
994 1038 1143 1142 1138
Cases of Australians having
diffculty arranging their own
return to Australia given
guidance and assistance
51 39 29 478 46
Whereabouts – inquiries made
about Australians overseas
who could not be contacted by
their next of kin
2
13 598 17 966 9310 12 899 4154
Cases of Australians
arrested overseas
970 1019 1086 1069 1181
Number of Australians in prison
as at 30 June
211 223 252 236 236
3
Cases of Australians given
general welfare and guidance
8405 5992 7679 7054 6440
4
Total number of cases involving
Australians in diffculty
25 987 27 861 20 995 24 186 14 574
Notarial acts
5
159 005 166 662 165 240 177 474 188 149
Total number of cases of
Australians provided with
consular assistance
184 992 194 523 186 235 201 660 202 723
Australians in fnancial diffculty
who were lent public funds
to cover immediate needs
(travellers emergency loans)
384 334 286 345
6
365
1. This fgure draws on ABS and DIAC data, and includes permanent, long-term and short-term departures of Australian citizens
and permanent residents.
2. This fgure includes crisis-related whereabouts cases.
3. The total number of cases of Australians imprisoned during 2011–12 was 326. Some of these cases may have been resolved
during the year. The number of Australians in prison as at 30 June 2012 is a ‘snapshot’ of the Australian overseas prisoner
population on 30 June 2012.
4. Welfare and guidance fgure includes the following sub-categories: general (2779), welfare/other serious matters (2062), theft
(1221), assaults (193) and welfare of children (185).
5. Figure includes notarial acts performed by overseas posts, in Canberra and state and territory offces in Australia.
6. The fgure includes 57 loans provided during three crises (Egypt, Japan and Christchurch, New Zealand).
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PROGRAM 2.2:
PASSPORT SERVICES
Program 2.2 Objective
• To provide Australians access to secure international travel documentation
through the delivery of high-quality passport services.
Program 2.2 Deliverables
• High-quality passport services to Australians, including processing new passport
applications, registering lost or stolen passports, issuing emergency passports,
and detecting passport fraud.
• Maintenance of security standards, promotion of web-enabled services, and
adherence to the client service commitment of passport issue within ten working
days, while effectively managing an increasing workload.
• Ongoing implementation of the National Security – Improved Passport Integrity
and Strengthened Issuance Systems program.
• Finalisation of the design for a new series of Australian travel documents.
Program 2.2 Key performance indicators
• Public and travel industry clients are satisfed with the department’s effciency
and effectiveness in delivering passport services, with routine passports issued
within ten working days and urgent passport issues dealt with in a timely and
responsive manner.
• Staged delivery of the National Security – Improved Passport Integrity and
Strengthened Issuance Systems program within budget and against timelines.
• Design approval for the new series of Australian travel documents.
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Program 2.2: Passport services
Overview
The department provided a secure, effcient and responsive passport service to
Australian citizens in 2011–12. We issued 1 747 670 passports through a network
of offces in Australian cities, diplomatic missions and consulates overseas, and
approximately 1700 Australia Post outlets.
The department maintained a strong focus on client service, by meeting our target of
issuing passports within 10 working days in 99.7 per cent of cases.
Security of the Australian passport remained a high priority. An audit conducted by
the Australian National Audit Offce (ANAO) confrmed the department’s effective
management of the ePassport. We continued working on the next generation of the
Australian passport (the P-series), which will include enhanced security features. The
P-series passport is scheduled for launch in mid-2014.
Passport services
We issued 1 747 670 passports in 2011–12 of which 98.6 per cent were produced
in Australia. Australian diplomatic missions and consulates overseas issued 7976
emergency passports, compared with 7909 in 2010–11.
FiGURe 15. TRAVeL DOCUMeNTS iSSUeD
In 2011–12, 163 290 applicants paid the priority processing fee which guarantees an
internal turnaround time of 48 hours, a decrease from 181 394 in 2010–11. We met
the 48-hour target in 99.9 per cent of cases, refunding to only four applicants when the
service level was not met.
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Under the Australian Passport (Applications Fees) Act 2005, an annual passport fee
increase in line with the consumer price index occurs each January. The fee for an
ordinary passport increased to $233 from $226 on 1 January 2012.
We completed our new three-year funding agreement with the Department of Finance
and Deregulation (DOFD).
Australia Post provides passport interviewing services through its network of
approximately 1700 corporate and licensed post offces. During 2011–12,
Australia Post conducted 92.9 per cent of domestic passport interviews. We
renewed the department’s contract with Australia Post for the provision of passport
interview services.
Our online service remained popular, with 31.1 per cent of all passports issued using
electronic application forms. This is an increase of 0.19 per cent from 2010–11.
The Australian Passport Information Service (APIS) provides information to clients about
passport applications, renewals, documentation requirements, and arranges passport
interview appointments with our Australian Passport Offces. During 2011–12, it
handled 1 677 166 enquiries, which is a decrease of 4.2 per cent on 2010–11.
The number of passports reported lost or stolen was 38 062 which, as a percentage
of the total passports on issue, is in line with the annual rate since the introduction of
the Australian Passports Act 2005. The Act imposes fnes and sanctions against clients
who report their passports lost or stolen, and this continues to be an effective tool in
keeping rates low.
Passports reported missing in the mail, following despatch from production centres,
totalled 132 compared with 135 in 2010–11. We continued to work closely with Australia
Post to reduce the number of passports that go missing in these circumstances.
We worked closely with the department’s Information Management Division on the
Passport Redevelopment Program (PRP). The new integrated passport processing
and production system is expected to come on line in 2015. This will enable effcient
production for high volumes of passports; combat identity theft; and improve security of
passport operations.
The department worked closely with Australians who were affected by a disaster or
crisis to facilitate the replacement of their travel document, waiving application fees in
275 cases.
The department saw an increase in child passport applications where full parental
consent, or an Australian court order permitting the child to travel, had not been
obtained. There has been a signifcant increase in these complex and legally challenging
cases. The department received additional funding in the 2012–13 Budget to provide
support for the increasing workload in this challenging environment.
In September 2011, the Government introduced a policy to make it easier for sex
and gender diverse clients to apply for a passport in their preferred gender. Sex and
gender diverse clients now have the option of presenting a statement from a medical
practitioner, without the need for sex reassignment surgery. This policy is consistent
with the Government’s commitment to removing discrimination on the grounds of sexual
orientation or sex and gender identity.
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Passport security
We continued the development of the next generation P-series passport, which
remains on track for delivery in mid-2014. This passport will incorporate a number of
new security features to ensure that the Australian passport maintains a high level of
security, and remains an internationally respected document.
An ANAO audit ‘Management of ePassports’ was tabled in Parliament on 22 May 2012.
The audit reported positively on the department’s work in implementing a secure and
ft-for-purpose Australian ePassport. Additionally, the report acknowledged the work of the
department in improving and strengthening the passport issuing process to ensure that
Australian travel documents are only issued to persons who are entitled to hold them.
The department remained a key player in the National Identity Security Strategy (NISS)
led by the Attorney-General’s Department. In particular, we focused on the promotion
of document verifcation services, combating identity crime, and improving national
management of death data. We were infuential in ensuring that NISS strategic planning
incorporated issues of importance to the department, and to mitigate the abuse of
vulnerable identities for criminal activities.
We contributed to the work of the International Civil Aviation Organization (ICAO) in
the development of international standards for travel documents. The department
was an active participant in a number of ICAO committees including: the Machine
Readable Travel Document Working Group; the New Technologies Working Group; the
Implementation and Capacity Building Working Group; and the Public Key Directorate.
Staff at the Australian Passport Offce in Canberra.
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PROGRAM 2. 2: PASSPORT SERVICES
Fraud detection and prevention
The department continued to work closely with intelligence and law enforcement
partners to detect, investigate and prosecute passport fraud offences under the
Australian Passports Act 2005. We introduced a new case management system to
improve the reporting and recording of passport fraud cases.
The Minister for Foreign Affairs cancelled 61 passports under the Australian Passport
Act 2005, down from 64 in 2010–11, for reasons concerning law enforcement, national
security and child sex tourism.
Client Services Charter
We responded in a timely and effcient manner to client feedback, including 114 internal
review requests, queries from the Ombudsman, and cases lodged for Compensation for
Detriment Caused by Defective Administration claims.
The department developed a passport client feedback framework, to be rolled out
in 2012–13. This new feedback framework will help us to analyse clients’ views in order
to improve processes and procedures.
Mystery shopper exercise
As part of the department’s annual business assurance activities, the 2011 Mystery
Shopper Exercise (MSE) concluded in November 2011. The MSE independently
assessed and evaluated the client service performance of state and territory passport
offces, the Australian Passport Information Service, the Consular Emergency Centre,
and Australia Post outlets providing Australian passport services.
In this exercise, 88 per cent of independent respondents rated the client service and overall
passport experience as good or exceptional. Recommendations from the survey were
implemented and another MSE, using similar criteria, will be conducted throughout 2012.
FiGURe 16. 2011 MYSTeRY SHOPPeR eXeRCiSe – RATiNGS FOR CUSTOMeR SeRViCe SATiSFACTiON
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FiGURe 17. 2011 MYSTeRY SHOPPeR eXeRCiSe – RATiNGS FOR OVeRALL CUSTOMeR eXPeRieNCe
(PReSeNTATiON, SeRViCe AND AMBieNCe)
Outlook
We will continue to improve client services, while maintaining high levels of effciency,
integrity and security in shaping operations for 2012–13.
The department will introduce a new passport client feedback framework. Efforts to
combat passport fraud will continue with emphasis placed on improving data quality and
facial matching technology.
Changes to the Passports Determinations 2005 will be introduced in 2012–13 to further
improve the integrity and security of Australian passports and client service.
Development of the P-series passport, with enhanced security features, will be a priority
to meet the proposed timeframe for launch in mid-2014.
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OUTCOME 3

A secure Australian Government presence overseas
through the provision of security services and information
and communications technology infrastructure, and the
management of the Commonwealth’s overseas owned estate
Program 3.1: Foreign Affairs and Trade operations
Program 3.2: Overseas property
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OUTcOME 3
PERFORMANCE INFORMATION FOR
OUTCOME 3
Outcome 3 strategy
The department continues to place priority on the safety of Australian Government
personnel overseas, the security of its diplomatic and consular posts and the
safeguarding of government information in line with an environment of increasing
security risk. Its activities in this area will be underpinned by thorough assessments of
security threats and the preparation and implementation of appropriate risk mitigation
strategies and security measures.
The department will work to enhance information and communications technology (ICT)
capabilities, at home and at Australia’s overseas missions. It will continue to respond
to emerging infuences on its ICT operating environment, including the increasing use
of the internet, a greater focus on whole-of-government programs and solutions, and a
continuing increase in the number of staff from other agencies using departmental ICT
systems and a challenging cyber-threat environment.
The department will manage the Government’s owned estate in an effcient and
effective manner. The department’s fve-year rolling plan for maintaining, upgrading and
refurbishing the overseas property estate will continue with the objective of meeting the
Government’s accommodation needs and enhancing the estate’s value. In managing
the estate, the department will remain focused on providing the best possible protective
security, and capability to respond promptly when new or unforeseen security-related
challenges arise.
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PROGRAM 3.1:
FOREIGN AFFAIRS AND
TRADE OPERATIONS
Program 3.1 Objective
• To ensure a secure Australian Government presence overseas by sustaining
and improving security, and strengthening information and communications
technology (ICT) capability at Australia’s overseas missions.
Program 3.1 Deliverables
• Enhanced protection through strengthened security measures in line with the
evolving security environment, particularly at high-threat locations.
• Protection of classifed information and ICT services through effective
management of ICT systems and security vetting processes, as well as through
staff security training to ensure high standards of security awareness and
vigilance.
• Continued progress in moving the department’s ICT systems infrastructure to
a common platform that can be more effciently integrated and supported, and
implementation of key elements of the Government’s ICT Reform Program and ICT
elements of the Government national security policy and objectives.
• High-quality overseas ICT services to other government agencies.
Program 3.1 Key performance indicators
• Security risks relating to classifed information are minimised, as evidenced by a
low number of sensitive security breaches.
• Effective risk mitigation strategies appropriate to increased security risks.
• Client satisfaction with the accessibility, reliability and effectiveness of the secure
cable network (Offcial Diplomatic Information Network) and the global secure
telecommunications infrastructure.
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PROGRAM 3.1: FOREIGN AFFAIRS AND TRADE OPERATIONS
Program 3.1: Foreign Affairs and Trade operations
Program management (security and iCT)
Overview
The department allocated substantial capital and operational resources to monitoring,
maintaining and improving security at Australia’s missions overseas. The international
security environment remained highly challenging, refecting continuing and emerging
threats from terrorism, political and civil disorder and criminal violence.
The department manages and operates the Government’s international communications
network—SATIN (Secure Australian Telecommunications and Information Network)—
which is a mission-critical system for the department and the Government.
The SATIN system supports the provision of essential government services, including
consular, passport and visa functions, national security arrangements through the
exchange of classifed information and intelligence, general diplomatic business, and
the international component of major government programs.
The network links 145 sites in Australia and overseas on a 24/7 basis, including
Australia’s diplomatic posts, ministerial and state offces, and other government agencies.
Over 40 government agencies use the network to support their business operations.
Departmental information and communications technology (ICT) functions were
consolidated under the Chief Information Offcer in 2011–12 as part of the ICT Reform
Program. This Program aims to improve the department’s ICT capability and services. A
new ICT Strategy provides a roadmap for modernising the department’s ICT environment
over the period 2011–14. Progress continued to be made on the two major ICT
programs being undertaken by the department, the Passport Redevelopment Program
(PRP) and the International Communications Network Program (ICNP).
Managing security at overseas missions
The challenge of the international security environment continued unabated requiring
the department to invest further in the development and delivery of enhanced security
infrastructure and services to protect staff and families, offcial visitors, clients,
classifed information, and government assets across all embassies, high commissions
and consulates. Of particular focus were posts in Iraq, Afghanistan and Pakistan, and
other high-threat posts in the Middle East, North Africa and the Pacifc.
The fnal transition of security protection for the embassy in Baghdad from the ADF
was successfully completed in August 2011. All ADF personnel were withdrawn and
security responsibility was transferred to the department, which manages this through
its contract with a private security company. Two additional Australia-based security
positions were created for the embassy.
In Kabul, the embassy’s security infrastructure project was completed and related
protective measures were implemented. The embassy was offcially opened by the
Prime Minister in November 2011.
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Security infrastructure works were completed for posts in Chennai, Ho Chi Minh City,
Lima and Mumbai. The physical security technical specifcations for the new embassy
and compound in Jakarta were also completed.
As part of its annual cyclical program of security assessments, departmental security
advisers conducted inspections at 24 posts to ensure security mitigation measures and
procedures were appropriate to threat levels. Priority was given to posts experiencing
increased political instability, threats from terrorism and violent crime, such as Abuja,
Addis Ababa, Cairo, Nairobi, Port Moresby and Suva. Security travel and support
arrangements were coordinated by the department for high-level offcial government
visits to the Central African Republic, Libya and Yemen where Australia does not have a
diplomatic presence.
The department upgraded its counter-surveillance capability overseas. This entailed
implementing new surveillance measures and equipment to improve the day-to-day
handling and protection of sensitive information, including mitigating cyber intrusion.
Personnel security and clearances
We continued to review and update the department’s security instructions to ensure
our personnel security policies and practices aligned with the Government’s Protective
Security Policy Framework (PSPF). In implementing the Government’s new security
classifcation system mandated by the PSPF, the department modifed its ICT systems
and provided advice and training to all staff on the changeover.
We continued to attach priority to fostering a culture of security awareness and
compliance. The department’s security breach system was a key part of divisional,
post and individual performance management. Additionally, breaches were regularly
monitored and reported to the Departmental Executive. Security awareness training was
also key to managing day-to-day security, as were overseas security briefngs which were
mandatory for all departmental (and attached agency) staff proceeding on posting.
The department applied a rigorous vetting regime to all staff handling classifed
information. During the year, we granted 317 new security clearances; recognised
118 clearances of personnel from other agencies; and completed 395 security
clearance revalidations.
Security training
The department further strengthened security training to address the complex threat
environment and to better prepare staff for the often unpredictable and vulnerable
locations in which they operated overseas. All security courses placed a heavy
emphasis on practical learning, including through the use of simulations, threat
scenarios and feld exercises to deliver improved knowledge and skills outcomes.
The department expanded the high-threat feld frst aid training component of the Hostile
Environment Awareness course which prepared staff for service in Afghanistan and Iraq.
In addition to Canberra-based training, the department delivered a series of courses
to Australia-based and locally engaged staff at four posts in Africa covering personal
protection, anti-carjacking and defensive driving, and critical frst aid. Specialised guard
training was conducted at ten representative posts in the Middle East, the Pacifc and
India for 310 guards.
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Online web-based security training was provided to DFAT and attached agency staff
through a purpose designed e-learning and video program distributed globally to all
posts on SATIN Low. This included videos on cyber security, defensive driving and
personal travel security.
Departmental staff perform essential maintenance on a satellite dish at the Australian High Commission in Suva, Fiji.
iCT capability building
In 2011–12, the department took a number of steps to improve its ICT capability.
Upgrades to the department’s desktop computer and back-end server and data storage
environments improved system performance, reliability and security. The availability
of mobile applications was expanded to provide better support for a mobile workforce,
as were secure telephone and video-conferencing facilities. Legacy systems and
infrastructure continued to be phased out where practicable to improve effciency,
reduce costs and better position the department to take advantage of new and
emerging technologies.
A mobile version of the smartraveller website was developed to make it more easily
accessible on smartphones and mobile devices for the travelling public. A prototype
iPhone application for smartraveller was also built (see Consular services 2.1). In doing
so, the department successfully established a mobile web development capability, an
important step in meeting demand from the public over coming years.
Completion during the year of the Electronic Document and Records Management
System (EDRMS) project enhanced the department’s ability to manage its records
effciently and comply with legislative requirements.
Availability and reliability of communications
In 2011–12, essential communications upgrade work was carried out to improve the
performance and reliability of communications with overseas posts. The renegotiation
of the department’s primary international telecommunications contract enabled network
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bandwidth to be doubled at a number of posts. Improvements to the department’s
business resumption site increased the level of remote access by staff to the SATIN
system, strengthening the department’s disaster recovery, business continuity and
teleworking capabilities.
Passport Redevelopment Program
The department advanced work on the Passport Redevelopment Program (PRP) which
will introduce new passport systems and technology to improve client service and the
effciency and security of passport production. A request for tender was released on
30 September 2011 for an industry supplier to develop and build the Australian Travel
Document Issuance Solution (see Passport services 2.2).
international Communications Network Program
The International Communications Network Program (ICNP) is planning the replacement
and upgrade of core SATIN infrastructure over the period 2013–17. The objective of the
program is to deliver a secure, reliable and cost-effective global network that meets the
rapidly evolving business needs of the department and other government agencies with
an international presence and interests.
iCT client services and support
The department’s Global Support Centre (GSC), which provides a single point of
contact for all ICT services and faults, was strengthened through increased resources
and better training for IT service-desk staff. This enabled more jobs to be logged and
problems rectifed quickly. New shift-work arrangements were put in place to provide
better and more timely technical support for posts outside Australia’s time-zone.
The department supported the Foreign Minister including through required upgrades to
ministerial, electorate and Commonwealth Parliamentary Offces as well as the NSW
State Offce. The ICT Memorandum of Understanding covering the provision of ICT
services by the department to other agencies was extended for a further two years.
See Appendix 8 for more information about arrangements to provide ICT services to
other Australian government agencies.
iCT training and development
The department developed an ICT Workforce Management Plan to ensure that it has the
skills needed to support the required ICT capabilities over the medium term. The plan
includes participation in entry-level recruitment programs managed by the Australian Public
Service Commission and the Australian Government Information Management Offce
(AGIMO), and the continuing conversion of ICT contract staff to permanent APS positions.
The frst two ICT cadets to join the department commenced during the year as part of
the Cadetship Program coordinated by AGIMO. The cadets worked in the Information
Management and Technology Division while completing their ICT studies and, subject to
successful completion of those studies, will be offered ongoing employment.
The department continued to provide on-the-job and TAFE-based training through its
Technical Offcer Development Program to maintain support services to posts and
partner agencies in the future.
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Personal Profle:
Tuan Dao
As the department’s Chief Information Offcer (CIO), Tuan
leads the Information Management and Technology Division
(IMD) which delivers ICT systems and services to support
the international and Australia-based operations of the
department and over 40 client agencies.
In the role of DFAT CIO, Tuan has initiated a program of
reform involving consolidation of ICT functions under a single
governance framework, to support a multi-year modernisation
and enhancement of departmental capabilities. In 2011–12,
the operational focus has been on improving core ICT services for posts, by
upgrading network communications and rolling out the latest desktops and a new
operating system for staff.
Over his 25-year career Tuan has worked in the private sector and in federal and
state government departments. Most recently, Tuan was with Centrelink (now
Department of Human Services) in various senior executive roles in ICT. During this
time Tuan was responsible for the delivery of several major IT change programs
to support the delivery of Federal Government policy including; Welfare to Work,
Families Assistance and Child Care Reforms, Northern Territory Emergency
Response, and Pensions system enhancements.
TABLe 11. SeCURiTY AND iNFORMATiON COMMUNiCATiONS TeCHNOLOGY: STATiSTiCS
2009–10 2010–11 2011–12
Number of posts and Australian Government entities with
access to the secure communications network and secure
telecommunications infrastructure
145 148 145
Number of client agencies receiving ICT services* 42 44 42
Number of cables 166 580 160 137 145 021
cables to overseas posts 83 221 74 590 67 290
cables from overseas posts 83 359 85 547 77 731
Number of Security-related visits to overseas missions 187 127 106
Number of security clearances and reviews processed 849 1154 830
* Number of government business entities across portfolios.
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Outlook
The department will expand its security capability in Kabul to meet planned attached
agency staff increases. In consultation with other agencies, the department will act as
the lead agency in addressing the implications for future post security in preparation
for the graduated transfer of national security to the Afghanistan Government. With the
opening of new posts in Chengdu and Dakar, security requirements will be evaluated
and appropriate measures implemented.
Domestically, a major security upgrade program will commence for the R G Casey
Building and state and territory offces, including installing new access control systems
and a full security ft-out for the new offce in Brisbane.
The department will maintain its focus on building underlying ICT capability to improve
network performance and the range and quality of services to clients. Priorities
will include strengthening 24/7 support services, focusing on the needs of posts,
consolidating and building up the skills of the department’s ICT workforce, enhancing
business continuity and disaster recovery capabilities, and developing better mobility
solutions for staff.
The Passports Redevelopment Program will enter the design phase in 2012–13 while
the focus of the International Communications Network Program will be on developing
and refning the International Communications Network business case.
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PROGRAM 3. 2: OVERSEAS PROPERTy
PROGRAM 3.2:
OVERSEAS PROPERTy
Program 3.2 Objective
• To ensure a secure Australian Government presence overseas through the
effective management of the Commonwealth’s overseas owned estate.
Program 3.2 Deliverables
• Effcient and effective management and delivery of a substantial construction and
refurbishment program in the overseas property estate, including:
– making progress in construction of a new chancery, residential
accommodation and a Head of Mission residence in Jakarta; construction of a
new chancery and Head of Mission residence in Bangkok; and refurbishment
of the chancery in Paris.
• Effcient and effective management of the overseas property estate to meet the
Government’s requirements and maintain conditions and service capabilities.
• Effective management of outsourced property contract arrangements.
Program 3.2 Key performance indicators
• Completion of construction and refurbishment projects within an agreed
timeframe and budget.
• Effective and accountable management of the property services contract and
construction project contracts.
• Achieve a portfolio condition and utility rating of good or better.
• The majority of tenants rate the performance of the service provider and the
Overseas Property Offce as good or better.
• Asset management plans are in place for all owned properties in the estate.
• Achieve a management expense ratio appropriate to the unique nature of the
Commonwealth’s overseas owned estate.
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Program 3.2 Overseas property
Overview
The department, through the Overseas Property Offce (OPO), managed the
Government’s owned and leased properties overseas, providing and maintaining offce
and staff residential accommodation for government agency tenants. We carried out
maintenance and refurbishment programs and undertook new projects to maintain
owned properties, which were valued at $1.59 billion at June 2012. The condition of
97 per cent of properties in the overseas owned estate achieved a rating of good or
better, an increase from 86 per cent in the preceding year.
The department maintained regular contact with all posts through OPO’s estate
managers and project specialists. We identifed long-term requirements of the overseas
estate through annual property inspections by our contracted property services provider,
UGL Services Pty Ltd.
OPO continued its dedicated compliance program, implementing remediation measures
to ensure work, health and safety compliance standards were met in our overseas
properties. Where problems of non-compliance were identifed, remedial programs were
undertaken, including in the chanceries in Yangon and Noumea.
OPO worked over the year to implement revised governance, fnancial and forward
strategic planning measures for the management of the overseas estate. These
measures were recommended by a 2009–10 review of OPO undertaken jointly by the
department and the Department of Finance and Deregulation (DoFD) and approved by
the Government in May 2011.
Security of the overseas estate remained an important aspect of property management,
and the department ensured that new projects fully met security requirements.
Personal Profle:
epeli Seruvatu
As Corporate Services Manager at the Australian
Consulate-General in Los Angeles, Epeli Seruvatu is a locally
engaged staff member responsible for operations at post,
including fnance, human resources, property and IT support.
Since his arrival in Los Angeles in May 2009, Epeli has
also provided SAP training and assistance to other posts in
the Americas.
Epeli began work with the Department of Foreign Affairs and
Trade in May 1988 at the Australian High Commission in Suva,
training staff on the use of computers and software.
In Suva, Epeli held a variety of positions, including Property Offcer, Accounts
Offcer, HR Offcer and Offce Manager, and formed part of the team that
implemented SAP in Port Moresby, Honiara, Port Vila and Noumea. From
1995–2009, Epeli worked as part of the Finance Helpdesk for the South Pacifc,
travelling widely throughout the region training staff on the use of SAP and assisting
with regional fnance workshops.
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Construction program
Through OPO the department managed a substantial program of construction in the
overseas estate.
In the owned estate, the department refurbished the head of mission residences and
residential apartments in Tokyo and Beijing. We completed the upgrading of 12 staff
apartments in Port Moresby. We began planning for a new head of mission residence
in Colombo.
The department completed new leased offce ft-outs in Chennai, Mumbai, Lima and Ho
Chi Minh City, and undertook forward planning for the relocation of the leased chancery
offces in Brussels and a new leased chancery for the planned consulate-general
in Chengdu.
We continued preparatory work on the new embassy complex in Jakarta. Construction is
scheduled to commence in September 2012 and to be completed in 2015. The project
will provide for 20 000 square metres of offce space for 140 Australia-based staff
from 14 Australian government agencies and 273 locally engaged staff, a new head of
mission residence, residential accommodation for 32 diplomatic personnel and their
families, recreational facilities and a medical clinic.
The project for a new chancery complex in Bangkok was considered by the Joint
Parliamentary Standing Committee on Public Works and approved by Parliament in
March 2012. The project will provide offce accommodation for 53 Australia-based
and 157 locally engaged staff, as well as a new head of mission residence. Project
construction is scheduled to begin in 2013 and be completed in 2016.
The department completed design work and planning for upgrading essential building
services in the Paris chancery and began works on the project, the frst substantial
refurbishment of this major owned property since it was completed in 1977. The project
is scheduled for completion in 2014.
The Secretary, Mr Dennis Richardson AO, at the opening of the Overseas Property Offce exhibition in Canberra in
April 2012.
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effective and accountable contract management
Risk analysis was a key element in the development of construction projects and estate
management programs. OPO’s Project Management Manual (PMM) was used as a guide
to project delivery. The PMM is framed against the requirements of the department’s
risk management policy and DoFD’s Best Practice Guide to Risk Management.
Risk strategies included identifcation of local risk in business cases for all new
projects, probity and legal reviews of contracts, performance bonds and time penalties
to ensure minimum risk to government funds and project quality and timeliness. We
engaged on-site Australian project managers to ensure delivery of capital works to
required construction and performance standards.
With the exception of the project for refurbishment of staff residential apartments in
Port Moresby—which was delayed by local industry and labour supply circumstances—
we completed all projects within budget and agreed time frames.
Under the department’s contract with UGL for the provision of outsourced property
services, UGL provided property management and fnancial services for the overseas
owned property estate. UGL managed procurement and contractor services in
maintaining the estate, as well as providing fnancial management through revenue
collection, payment processing and IT and reporting support services. UGL also
provided advice and assistance to OPO and to posts on leased chanceries and head of
mission residences, including annual inspections, technical assessments and advice to
post managers on compliance and building safety.
These services were delivered through a network of 22 facilities managers employed
by UGL at overseas posts. Work carried out by UGL was undertaken in accordance
with Commonwealth procurement requirements and the department’s risk
management framework.
The current contract with UGL commenced in 2008. The department agreed
in October 2011 to exercise the option to extend the contract for four years
until 30 June 2016. We reviewed aspects of the UGL contract to bring it up
to date with legislative and administrative changes and to refect fully current
operational arrangements.
Tenant satisfaction with UGL’s performance is measured by a survey of all posts each
year. In addition, posts are surveyed annually on their satisfaction with OPO’s service
delivery. The surveys conducted in 2011–12 indicated a high proportion of posts gave a
rating of good or better to both UGL’s and OPO’s performance.
In meeting the Government’s overseas property needs, we achieved a management
expense ratio of 1.568 per cent, which is appropriate to the unique nature of the
Commonwealth’s overseas owned estate.
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implementation of outcomes of the joint DFAT/DoFD review of OPO
Implementation of the recommendations of the joint review of OPO by the department
and DoFD, which is to be completed by 1 July 2013, remained a major focus for OPO.
In accordance with the Government’s decision to accept the recommendations of
the review, new key performance indicators to effect these changes were introduced
in 2011–12. These include the development of rigorous asset management plans for all
properties to support OPO’s strategic planning framework.
Key changes under the review were to remove the obligation for OPO to operate on
a commercial model. Instead, tenant agencies, including the department, are now
charged market-based rents determined by independent valuations. OPO continues
however to operate through the Overseas Property Special Account. Tenant agencies
were consulted and briefed individually on the new arrangements, including the required
transition of current Memorandums of Understanding (MOUs) with agencies to market
rents. By 30 June 2012, transition of more than half of the existing MOUs had been
effected, with the remainder to be transferred by 1 July 2013.
Under the review, forward planning mechanisms in the overseas estate have also
been strengthened.
Outlook
Management of the two major construction projects in the overseas owned estate—the
chancery and residential complex in Jakarta and the new chancery and head of mission
residence in Bangkok—will be a signifcant part of OPO’s work in 2012–13.
We will continue a substantial project management, maintenance and refurbishment
program to support the Government’s overseas property needs and to sustain the value
and effectiveness of the Government’s overseas property estate.
Completing implementation of the joint review of the Overseas Property Offce by the
department and DoFD by the end of June 2013 will remain a major focus for OPO.
178
The then Minister for Foreign Affairs, Mr Rudd,
at the Commonwealth War Graves Cemetery
in Tripoli, commemorating Australia’s war dead.
December 2011. Photo: Taha Jawashi
The Governor-General, Her Excellency Ms Quentin
Bryce AC, is greeted by Mr Mihai Sora, Third
Secretary at the Australian High Commission in
Honiara, upon her arrival in Solomon Islands in
April 2012. Photo: Tom Perry
179
CORPORATE
MANAGEMENT AND
ACCOUNTABILITy
SECTION 3
Ms Katina Clarke, Cultural Diplomacy Section, speaking at the fag raising ceremony for
NAIDOC Week in July 2011.
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Corporate Management
and Accountability
Overview
Corporate governance
external scrutiny
Management of human resources
Management of financial resources
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Overview
Flexible and effcient management of the department’s fnancial and human resources
was a corporate priority during 2011–12.
Australia’s diplomatic presence was bolstered through the creation of 14 new
Australia-based positions across Africa, Asia, the Middle East and the Pacifc. Staff
were also deployed overseas to advance the United Nations Security Council campaign;
strengthen Australia’s engagement with Africa; and support Australia’s participation in
the G20 in Los Cabos, and Yeosu Expo 2012 in the Republic of Korea. Support for the
Commonwealth Heads of Government Meeting (CHOGM) in Perth in October 2011 was
also a priority.
The department continued to offer a wide range of training and development
opportunities with employees participating in over 286 courses, seminars and
workshops. Language training featured prominently and 100 employees undertook
long-term language training. The language training budget was $6 065 811, an increase
of 33.8 per cent from 2010–11.
corporate governance
The department’s achievement of its performance outcomes is underpinned by a robust
institutional governance framework.
The executive
The Secretary oversaw all signifcant foreign and trade policy and corporate
management issues and decided all placements of senior executive staff. The deputy
secretaries supported the Secretary through management of the department’s work
units (see fgure 1 on page 13 for the executive structure and the deputy secretaries’
areas of responsibility). Members of the executive also represented the Government at
meetings in Australia and overseas and chaired key corporate governance bodies.
Senior management committees and their roles
Portfolio coordination
As the lead agency in the foreign affairs and trade portfolio, the department worked
closely with portfolio agencies to coordinate objectives and ensure consistency. In
addition to routine consultation, weekly consultations were held with AusAID and
Austrade through the Secretary’s Policy Meeting.
Through the Development Effectiveness Steering Committee, a body chaired by
the Director General of AusAID and charged with enhancing whole-of-government
coordination of the aid program, the department worked with AusAID to support the
Government’s commitment to increase levels of development assistance to 0.5 per cent
of Gross National Income by 2016–17. The department assisted in developing the
Government’s response to the Independent Review of Aid Effectiveness.
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Whole-of-government coordination
The Prime Minister’s Directive on the Guidelines for the Management of the Australian
Government Presence Overseas sets out the department’s role, including for the
growing number of other government agency representatives attached to our diplomatic
missions. The department worked closely with agencies to achieve whole-of-government
objectives, including in hosting major international meetings, in responding to consular
crises, in regional counter-terrorism cooperation, and in coordinating policy approaches
to bilateral and multilateral trade negotiations.
Management mechanisms and meetings
The Departmental Executive (DE), with membership from across senior levels of the
department, met weekly to focus on strategic resource management and priorities,
along with other matters requiring high-level attention.
The Secretary’s Policy Meeting, which met weekly, discussed current, emerging and
medium to long-term foreign and trade policy issues. Its membership included senior
departmental staff and senior offcers from the Department of the Prime Minister and
Cabinet, portfolio agencies and the Offce of National Assessments.
The Secretary also met division heads weekly to communicate the department’s
foreign and trade policy and corporate priorities. Further information was conveyed to
staff through administrative circulars and the staff newsletter, both of which are on
the intranet.
The Secretary holds a monthly forum open to all staff, to discuss policy and corporate
issues. All Australia-based Senior Executive Service (SES) offcers continued to meet
on a six-monthly basis for professional development and to discuss and develop the
department’s strategic thinking.
The overseas network was informed of policy and corporate issues through:
• regular formal and informal communication with divisions in Canberra
• regional heads of mission/post meetings
• regional management conferences
• post liaison visits led by a deputy secretary.
Governance activities
In 2011–12 we continued to strengthen the department’s business continuity planning
processes at overseas posts, our state and territory offces (STOs), and in Canberra.
The department’s risk management practices were further embedded across the
department and our delegations were updated. Revised processes for implementing
organisational change in the department were introduced.
The department’s Audit and Risk Committee provides independent assurance and
assistance to the Secretary and the executive on the department’s risk, control and
compliance framework, and its external accountability responsibilities. The Committee
is chaired by a deputy secretary and has two independent members as well as several
departmental representatives. In 2011–12 the committee met fve times.
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The ethics Committee met twice during 2011–12 to oversee and to make
recommendations on the development and implementation of issues relating to the
Australian Public Service (APS) Values and APS Code of Conduct. The Committee is
chaired by a deputy secretary with representatives from various staffng levels and
areas of the department. The department’s Conduct and Ethics Manual, which is
regularly updated following consultation with the Ethics Committee, is available on the
departmental website. Key issues examined during 2011–12 were the development
of e-learning options on Accountable and Ethical Decision-Making and revisions to the
Conduct and Ethics Manual to bring it into line with amended advice issued by the
Australian Public Service Commission (APSC) concerning the appropriate use of online
social media.
The Workplace Relations Committee is the principal forum through which management
consults with employees and their representatives about workplace matters. It is
chaired by a deputy secretary. Membership includes representatives from management
areas and elected staff representatives at each level. The Community and Public
Sector Union, the Australian Manufacturing Workers’ Union, the Media, Entertainment
and Arts Alliance and the Association of Foreign Affairs and Trade Employees, are also
represented on the Committee. In 2011–12 the Committee met four times and focused
on issues ranging from implementation of the 2011–14 Enterprise Agreement, parking,
conditions of service, impact of the budget and effciency dividend, and ICT reform.
Conduct and ethics
The department’s Conduct and Ethics Unit (CEU) investigates allegations of fraud
and misconduct and promotes the APS Values and APS Code of Conduct and the
department’s own Code of Conduct for Overseas Service. The CEU provides conduct
and ethics and fraud awareness training to all staff.
The Conduct and Ethics Awareness program regularly reminded staff of their
responsibilities in accordance with departmental guidelines and procedures that are
contained within the Conduct and Ethics Manual. The program included group and
individual training and briefngs on overseas conduct and ethics issues for heads of
mission, deputy heads of mission and senior administrative offcers.
Countering fraud
The department’s fraud prevention, investigation, reporting and data collection
procedures comply with the Commonwealth Fraud Control Guidelines 2011. The
department’s Fraud Control Plan 2011 emphasizes the department’s zero tolerance
policy of dishonest or fraudulent behaviour committed by employees, contractors or
clients, and underlines our strong commitment to reducing the risk and incidence of
fraud across its operations both within Australia and overseas. Fraud risk assessments
were conducted during 2011–12.
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evaluation and planning
Our performance was regularly evaluated to ensure departmental resources were best
directed to support the Government’s foreign and trade policy goals.
Performance expectations and planned use of resources were outlined in our Portfolio
Budget Statements. The department sharpened its Deliverables and Key Performance
Indicators for the Portfolio Budget Statements 2012–13.
Divisional evaluation reviews, conducted annually in July–August, enable the executive
to evaluate each division’s performance and to determine or refne priorities and risk
mitigation strategies for the year ahead.
The department evaluated the performance of posts and state and territory offces, on a
rolling basis through a Post/Offce Evaluation Review (PER/OER) process, with each post
and offce reviewed once approximately every 18 months. We continue to seek feedback
from other agencies and departments on the performance of posts and state and territory
offces as part of the review process. PERs and OERs are discussed at the regular
Departmental Executive meeting where heads of mission and state directors are present.
In 2011–12 deputy secretaries led small teams to seven posts—Bali, Cairo, Dublin,
Nauru, Yangon, Riyadh and Zagreb—to conduct post liaison visits to assess at frst
hand each post’s performance against agreed objectives.
The Budget Allocation Review (BAR) and Capital Management Plan (CMP) are the primary
mechanisms through which the executive considers and decides on budget allocation
within the department. Work units in Australia and overseas are able to bid for funds
annually and mid-term through these reviews. The reviews allow for strong budget planning
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and expenditure forecasting, and ensure internal processes align with the Government’s
Budget timetable. Mid-term BAR/CMP meetings were held in December 2011 for budget
refnements; BAR/CMP meetings were held in June 2012 for 2012–13 budget allocations.
The base budgets for work areas is put to the DE as part of the June BAR/CMP process.
Risk management and business continuity planning
The department focused on further strengthening risk management practices at
the working level. As part of this process, we held a series of training courses and
convened a group of ‘Risk Management Champions’—offcers with risk management
expertise from across the department—to provide input into the revised departmental
Risk Management Handbook, share strategies and promote awareness within their
respective areas. In the 2012 Comcover Risk Management Benchmarking Survey, the
department achieved its best result to date, and was ranked as the highest performing
policy agency for business continuity and disaster recovery.
In 2011–12 we further strengthened aspects of the department’s business continuity
management (BCM) to take into account lessons learned from the August 2011 desktop
scenario exercise of the RG Casey Building Business Continuity Plan (BCP). We signed
MOUs on temporary relocation for business continuity purposes with AusAID and the
Department of the Prime Minister and Cabinet. We conducted a small-scale exercise of
the MOU with AusAID to test the temporary relocation of AusAID staff into the RG Casey
Building and to confrm that AusAID’s ICT systems would function during a BCP event.
We improved staff awareness of the RG Casey Building BCP by making it available
on our intranet and by including presentations on BCM in graduate trainees’ and new
starters’ induction training. BCPs for all overseas posts and state and territory offces
were exercised and updated. We worked closely with posts and STOs to ensure they
incorporated new requirements related to ICT and security into their BCPs.
internal audit
Internal audit forms an important part of the department’s governance framework by
contributing to governance, risk management and control. Internal audits presented to
the Audit and Risk Committee in 2011–12 included:
• 12 post compliance audits
• reporting of inspections of accountable Cabinet documents (a quarterly requirement)
• reporting of employer agency superannuation delegations (an annual requirement)
• a performance audit of the Direct Aid Program
• a recordkeeping audit on an aspect of Electronic Document and Records
Management System (EDRMS) and/or functional records management in the
department (annual requirement). This year the audit specifcally reviewed the
implementation of EDRMS against the business case requirements and the quality
of records captured during the implementation.
Audits commenced in the latter part of the fnancial year will be fnalised in early
2012–13. All recommendations arising from these audits were either satisfactorily
addressed during the year or are in the process of being addressed.
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External scrutiny
In 2011–12 the Auditor-General tabled in Parliament the following reports by the
Australian National Audit Offce (ANAO) related to the department’s operations:
Report No.17: Audits of the Financial Statements of Australian Government
entities for the period ended 30 June 2011
Financial statement audits are an independent examination of the fnancial accounting
and reporting of public sector entities. This report complements the interim phase
report and provides a summary of the fnal results of the audits of the fnancial
statements of all Australian Government entities, including the Consolidated Financial
Statements for the Australian Government.
Report No. 29: Administration of the Australia Network
The objective of the audit was to report on the administration of the Australia Network
tender process and to identify lessons learned from the conduct of the process to inform
future procurement activities. The ANAO confrmed that in administering the process,
the department implemented arrangements that were over and above the mandatory
requirements of the Commonwealth Procurement Guidelines. In respect of concerns
raised by ANAO, the department noted that tender documentation was handled in
accordance with established mechanisms for highly classifed, sensitive material, and
that the Commonwealth Procurement Guidelines neither suggested nor required that APS
offcers sign individual confdentiality undertakings for tender processes.
Report No. 31: establishment and use of procurement panels
The department was one of three agencies selected for a performance audit on the
establishment and use of procurement panels. The audit assessed the extent to which
the three agencies’ establishment and use of procurement panels supported value for
money, effciency and effectiveness in procurement. The ANAO reviewed six panels used
by DFAT – four established by DFAT, one whole-of-government and one non-DFAT panel.
The department considered the report to be well targeted. It supports its
recommendations, and has addressed them through updates to fnancial and
procurement policies that were in train at the time of the audit.
Report No. 33: Management of e-Passports
The audit assessed the effectiveness of the department’s implementation of biometric
technology to meet international requirements for enhanced passport security.
The report recommended the department strengthen the management of its facial
recognition system, and periodically review the need for further vulnerability testing
of the e-Passport’s electronic security features. The department agreed to both
these recommendations.
The report acknowledged that DFAT had effectively implemented biometric technology
and meets international requirements and standards for enhanced passport security.
The report confrmed that the e-Passport’s electronic security measures combined
with the booklet’s security features make the task of producing a fraudulent passport
signifcantly more complex.
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The department also provided input to a parallel performance audit of the Australian
Customs and Border Protection Service, Processing and Risk Assessing Incoming
International Air Passengers (also see ANAO Report No. 50, 2011–12).
Report No. 51: The interim Phase of the Audit of Financial Statements of
Major General Government Sector Agencies for the year ending 30 June 2012
The interim audit of agencies related to their fnancial reporting responsibilities was
undertaken and included an examination of relevant internal controls, including
information technology system controls.
Courts and administrative tribunals
The department was involved in a number of legal matters during the year. There were
no decisions that had a signifcant legal impact on its operations. Details of matters in
which it was involved are at Appendix 6.
Commonwealth Ombudsman
The Commonwealth Ombudsman commenced 10 investigations with respect to the
department’s activities in 2011–12 and recorded no administrative defciencies.
No formal reports were issued.
Legislation
The process for all portfolio-related legislation has been managed effectively.
Amendments to the Australian Trade Commission Legislation Amendment Act 2006
made by the Statute Stocktake Act (No. 1) 2011 began on 16 September 2011.
Amendments to the Nuclear Non-Proliferation (Safeguards) Act 1987 made by
the Nuclear Terrorism Legislation Amendment Act 2012 began on 20 April 2012.
Amendments to the Papua New Guinea (Staffng Assistance) Act 1973 made by the
Superannuation Legislation (Consequential Amendments and Transitional Provisions)
Act 2011 began on 1 July 2011. The Acts Interpretation Amendment Act 2011
also made amendments to a number of Acts administered by the portfolio on
27 December 2011.
We facilitated the enactment and amendment of a number of legislative instruments
within the portfolio. Among them were the Autonomous Sanctions Regulations 2011,
the Autonomous Sanctions (Sanction Law) Declaration 2012 and the Nuclear
Non-Proliferation (Safeguards) Amendment Regulations 2011 (No. 1).
The department provided input to legislation managed by agencies within the portfolio
and contributed to the development of legislation initiated by other agencies that
affected the foreign affairs and trade portfolio.
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Privacy
No reports were served on the department under section 30 of the Privacy Act 1988
(the Privacy Act), nor were there any determinations made by the Privacy Commissioner
relating to our actions under sections 52 or 53 of the Privacy Act.
No public interest determinations were sought from the Privacy Commissioner under
section 72 of the Privacy Act. Three complaints were made directly to the department
this year.
The Privacy Commissioner commenced conciliation processes with the department in
relation to one complaint this year.
Parliamentary committees
The department made submissions and/or gave evidence to 13 parliamentary
committee inquiries. In addition, departmental staff appeared before the Joint Standing
Committee on Treaties in relation to six proposed treaty actions (see Appendix 5 for
further details).
This fgure covers appearances by staff as witnesses in relation to DFAT-related treaties,
but does not include occasions on which Treaties Secretariat staff attended the Joint
Standing Committee on Treaties (JSCOT) hearings in an observer/advisory capacity.
Compensation for detriment caused by defective administration
Thirty-seven new cases were lodged under the compensation scheme for detriment
caused by defective administration. Twenty-two cases were resolved during the year
(including cases from previous fnancial years). Of these, 17 payments were made
from administered funds (including three from previous fnancial years). In fve cases,
compensation under the scheme was found not warranted. Eighteen cases remained in
progress at the end of the fnancial year.
Management of human resources
The department managed its staff to respond fexibly and effectively to an evolving
policy environment and to assist Australians overseas. Additional staff were deployed
overseas to advance a range of foreign policy objectives including the United Nations
Security Council campaign; increased engagement with Africa; Australia’s participation
in the G20; and the Yeosu Expo 2012. Departmental staff were also sent at short
notice to provide consular assistance to Australians following the fooding in Fiji, as
well as in response to the kidnapping of an Australian citizen in the Philippines and the
detention of an Australian citizen in Libya.
Signifcant departmental resources were allocated to supporting Australia’s hosting of
CHOGM and associated meetings in Perth in October 2011. Departmental staff also
made a key contribution to the work of the Australia in the Asian Century Taskforce,
managed by the Department of the Prime Minister and Cabinet.
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The department funded from existing resources 14 new Australia-based positions
overseas, including in Africa, Asia, the Middle East and the Pacifc. These positions
strengthened the department’s capacity to perform the full range of its responsibilities.
Following the establishment of several new positions in Afghanistan in 2010–11, we
continued to monitor the staffng situation there to ensure adequate and appropriate
staffng levels.
Workforce planning, staff mobility and retention
Regular placements and postings rounds and a number of recruitment processes to
ensure positions were flled with skilled staff were carried out in 2011–12. Almost
$10 million was invested in training and development so that employees’ skills and
experience would allow them to move readily between positions in Canberra, state
and territory offces, and overseas. In total 159 ongoing staff separated from the
department in 2011–12.
Recruitment
The department completed fve bulk recruitment rounds (including graduate
recruitment), supplemented by 31 specialist rounds. Three SES selection processes
were completed to fll the Senior Staff Counsellor and two ICT Branch Head positions.
The 2013 graduate recruitment program attracted 2468 applicants for the policy
graduate intake and 426 applicants for the corporate intake.
Workplace diversity
The department is committed to ensuring that all employees are treated with respect in
accordance with the APS Values. Major workplace diversity events that were celebrated
by the department, both in Australia and throughout our overseas network, included
NAIDOC week in July 2011; International Day of Disability in December 2011; International
Women’s Day in March 2012; and National Reconciliation Week in May 2012.
We continued our participation in APS-wide initiatives to promote workplace diversity,
notably in terms of fexible working arrangements—access to fex/time off in lieu,
permanent part-time work arrangements and teleworking (home-based work)—
as refected in the Enterprise Agreement 2011–14, which came into effect on
22 July 2011.
The Workplace Diversity Contact Offcer Network was expanded and we developed
e-learning modules for workplace diversity generally, and for bullying and harassment.
The DFAT Families Network (a volunteer organisation) developed a number of proposals
to assist families with the challenges of moving overseas and back to Australia,
including through the provision of information resources, social events for DFAT families,
a speaker program and liaison with management to raise and resolve issues of concern
and interest to DFAT families.
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indigenous employment
The department has continued to work to increase Indigenous employee representation
– as of 30 June 2012, 46 employees self-disclosed as Aboriginal and/or Torres Strait
Islander. Our Indigenous Recruitment and Career Development Strategy 2011–15
(IRCDS) and Reconciliation Action Plan (RAP) 2011–15 map out the way ahead for the
department, including through partnerships with higher education institutions with
Indigenous programs. This year, we signed a Memorandum of Understanding with the
University of Canberra.
Indigenous staff members at National Reconciliation Week in Canberra, May 2012.
Indigenous employees are making a strong contribution to our work in Australia and
internationally, while gaining valuable skills and experience for their future careers.
In 2011–12 the department’s implementation of the IRCDS provided opportunities to three
Indigenous employees under its International Skills Development Program (ISDP).
In May 2012 policy graduates, Nick Williams and Lara Hope, attended the United
Nations Permanent Forum on Indigenous Issues (UNPFII). There they gained valuable
experience in multilateral diplomacy and increased their understanding of Australia’s
Indigenous policy priorities at the international level.
“I have gained an important network of contacts in
Australian and international Indigenous communities
which I will be able to utilise during my career with
the department.” – Lara Hope
Nick and Lara’s participation at the UNPFII was part of
the department’s broader objectives for reconciliation
articulated in the Reconciliation Action Plan 2011–15.
As a result of their successful participation, two
Indigenous employees will attend the UNPFII on an annual basis.
Sarah Leary, an Indigenous Cadet, has been undertaking a three-month internship in
New York and Washington, gaining valuable experience of the dynamic nature of the
department’s work overseas. Sarah worked on a number of signifcant public diplomacy
events in New York and also participated in the UNPFII.
“The internship was a formative experience early in my
DFAT career. The UNPFII was incredibly enlightening,
underlining the commonality of issues experienced by
Indigenous peoples globally. I came away from New York
with a heightened understanding of our engagement and
relationship with the United States.” – Sarah Leary
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Disability employment
In keeping with its commitment to be a leader on disability issues, the department
implemented a range of activities to encourage employment and career
opportunities for people with disability.
The department’s Disability Champions worked to raise awareness of disability
employment issues, particularly with senior managers. To support disability
employees, awareness training was made available to staff. An audit of the
department’s website was also undertaken to ensure its accessibility for people
with disability.
In partnership with the Australian Paralympic Committee, the department
employs three Paralympians as part of a pilot employment program which
balances university study and elite sports training commitments whilst providing
valuable work experience in Canberra and/or STOs. Two of the Paralympians will
be representing Australia at the London 2012 Paralympic Games. These staff
members were also active in disability awareness-raising activities through the
International Day of Disability and participated in the APSC’s promotion of the
As One – APS Disability Employment Strategy in May 2012.
On 30 June 2012 the department had 26 employees who had self-disclosed as
having a disability, although internal staff surveys show there are many more
employees with a disability. Encouraging more employees to self-disclose continues
to be a challenge.
Mr Matt Alexander, 2011 Policy Graduate, speaks at a forum chaired by Chief Finance Offcer and Disability
Champion, Ms Ann Thorpe, for the International Day of People with Disability, 8 December 2011.
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Disability reporting mechanisms
Details about disability reporting under the National Disability Strategy are available at
www.fahcsia.gov.au. Information regarding other disability reporting mechanisms is
available through the Australian Public Service Commission’s State of the Service Report
and the APS Statistical Bulletin, at www.apsc.gov.au; and through the Social Inclusion
Measurement and Reporting Strategy found at www.socialinclusion.gov.au.
Training and development
The department continued to offer a wide range of training and development opportunities.
In 2011–12 employees participated in over 286 courses, seminars and workshops.
The second year of the Executive Training and Development Program, aimed at SES
and Executive Level 2 (EL2) levels, was delivered, with participants attending a range of
high-level programs in Australia and overseas, such as the Kennedy School at Harvard
University and the Lee Kuan Yew School of Public Policy in Singapore. The Leadership
and Management Development Program and Professional Skills Program for non-SES
offcers were also delivered with strong participation rates. In total, the department
spent nearly $500 000 on Leadership and Management courses in 2011–12.
In addition, employees attended training and development programs with the
National Security College, the Asia-Pacifc College of Diplomacy at the Australian
National University (ANU), the Australian Public Service Commission, Australian and
New Zealand School of Government and the Lowy Institute for International Policy.
Sixty-fve employees attended a series of seminars on economics run for the frst
time by the Crawford School of Public Policy at the ANU. Departmental offcers
also participated in training courses provided by other public service organisations,
such as the National Intelligence Committee and human rights training with the
Attorney-General’s Department.
Under the International Skills Development Program, 60 employees were provided with
learning and development opportunities at international seminars, conferences and
short-term missions at overseas posts.
Trainee programs
In February 2012, 41 policy graduates, one New Zealand exchange offcer and 11
corporate graduates commenced the department’s two-year graduate training program.
The program provides policy graduates with placements in bilateral, trade, multilateral
and corporate policy areas. As well as being given placements in a range of corporate
policy areas, corporate graduates are also given the opportunity to improve their
business management and/or accounting qualifcations.
Graduates also receive a mix of formal training and in 2011–12 the department
increased its training focus on Australia’s strategic interests and the history of
Australian foreign policy.
2011 saw an increase from 18 to 24 in the number of international participants who
joined graduates for two months during the core part of their training program. Five
junior diplomats from South America and four from African countries joined the ranks
of junior diplomats from other developing countries in Asia, the Caribbean, the Pacifc
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and the Middle East, with funding provided though AusAID’s Australian Leadership
Awards Fellowships, the Australia–Africa Partnerships Facility program and the
Australia–Malaysia Institute.
The two-year Administrative Development Program develops skilled offcers at the APS4 to
EL1 levels to fll administrative positions at our overseas posts. In 2011–12 the program
provided six new administrative offcers with six to eight rotations in key corporate areas,
as well as short term placements in our overseas missions and STOs.
In 2011–12 we employed an additional two Indigenous tertiary students on our
Indigenous Cadetship Program, bringing our total in 2012 to six. The program helps
promising Indigenous tertiary students gain practical experience in the department while
completing their studies before possibly moving into the department’s pool of policy
offcers. In February 2012 one cadet fnished her studies and was successfully recruited
through our 2012 graduate program as a policy graduate.
In March 2012 two new staff joined the department under the Indigenous Traineeship
Program. The program provides skills development in a range of corporate areas as well
as the opportunity to gain a Certifcate IV in Government. This brings the total number of
Indigenous trainees in the department to four.
In 2011–12 we employed two apprentices to train as entry-level ICT offcers under a
two year ICT Apprenticeship Program. The program provides skills development as well
as the opportunity to gain a Certifcate IV in Information Technology, IT Networking,
Programming, Systems Analysis and Design and IT Testing.
In February 2012 two tertiary students joined the department under a new ICT Cadetship
Program. The program supports promising ICT tertiary students to gain practical
experience in the department while completing their studies before moving into the
department’s pool of skilled ICT offcers.
Studies assistance
The department continued to support employees undertaking part-time tertiary study
through its Studybank scheme. Financial assistance and leave was provided to
55 employees.
Language training
The department is committed to training in 27 languages that refect Australia’s
foreign and trade policy interests, and consular priorities. In 2011–12, 100 employees
undertook long-term language training in Australia and overseas. A further 71 employees
undertook short-term survival language training.
The department encourages staff to maintain language profciency through fnancial
incentives (language profciency allowance), immersion courses and lunch-time
discussion classes. In 2012 the department began introductory classes in Japanese
and Arabic, providing employees with no previous knowledge of these languages with a
combination of e-learning and tutoring.
The Language Studies Unit budget for 2011–12 was $6 065 811, an increase of
33.8 per cent from 2010–11.
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Performance management
Performance appraisal of employees is an important component of the department’s
human resource strategy. The department’s performance management cycle runs for
12 months from April to March. During this time, employees receive ongoing informal
performance feedback, a formal mid-term appraisal and an end-of-cycle performance
review. The system aims to:
• provide employees with a clear understanding of their role and what is expected of them
• provide incentives for improved performance through salary advancement or
performance bonus payment
• identify personal training and development needs.
A number of changes to the performance management system were implemented
through the Enterprise Agreement 2011–14. The key changes were designed to better
focus the appraisal process on training and development outcomes and to streamline
formal underperformance procedures. Training workshops were held in Canberra and
at state and territory offces to explain the changes and teach best practice feedback
methods. Training materials were provided to all posts.
Locally engaged staff
The department’s performance at overseas posts is signifcantly enhanced by locally
engaged staff (LES). Under the Prime Minister’s Directive on the Guidelines for the
Management of the Australian Government Presence Overseas, the department
manages the appointment, termination, salary and conditions of service of all LES,
except those engaged by Austrade and AusAID, in accordance with contemporary
Commonwealth management principles, local labour and other relevant laws and good
employer practice. In 2011–12 the department was the legal employer of 3194 LES,
1506 of whom were employed on behalf of other government agencies.
Workplace arrangements
Consistent with the Government’s workplace relations framework, the terms and
conditions of employment for non-SES employees were governed by the department’s
Enterprise Agreement 2011–14. This provides for an annual salary increase of
3 per cent over the life of the agreement. Staff are entitled to a range of non-salary
benefts, including performance-based bonuses and a range of fexible and
family-friendly working practices. Allowances for overseas service are a non-salary
beneft available to compensate staff posted overseas for the costs and, in some
cases, conditions associated with a hardship posting.
There were no Individual Flexibility Arrangements (IFAs), common law contracts or
Australian Workplace Agreements (AWAs) in place during 2011–12.
The department’s Enterprise Agreement 2011–14 and workplace determinations
continued to promote productivity through a strong performance-based culture.
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Remuneration of senior executives
All Senior Executive Service (SES) staff are employed under the terms of a determination
made by the Secretary under section 24(1) of the Public Service Act 1999. Executive
remuneration is set out in Note 11 of the fnancial statements on pages 299-302.
Staff welfare
The Medical Unit, Staff Counselling Offce (SCO) and Family Liaison Offcer provide
welfare and support services to staff. In addition to providing advice to the department
and individual employees on health-related issues, the Medical Unit, in conjunction with
the Family Liaison Offcer, managed 55 medical evacuations during 2011–12. Over the
past 12 months, the SCO has provided counselling to over 650 Australia-based staff,
their families and LES at post and in Canberra. Additionally, the SCO has conducted
61 training sessions on topics ranging from leadership to self-care and visited a total
of 24 posts. The SCO continues to provide immediate support to posts following
critical incidents, selection and screening for high-threat posts and routine guidance to
supervisors on performance, mental health support and other organisational concerns.
Personal Profle:
Jake Barhonein
Jake joined the department in February 2012 as a corporate
graduate. During his frst six months at DFAT, Jake completed
placements in the Budget Development Section and the
Financial Performance Section of the Corporate Management
Division. He contributed to work on a wide range of the
department’s corporate, fnancial and strategic priorities,
including the development of the 2012 Portfolio Budget
Statements and the 2012 Financial Statements.
The two-year graduate training program is undertaken by both corporate and policy
Graduates and aims to prepare graduates for overseas postings and a career with
the department. While on the program, Jake will undertake placements that will
provide him with on-the-job training across the core areas of the department’s
agenda. The program includes a range of intensive professional skills training,
academic short courses and practical case study exercises. This training will prepare
Jake to assist in the management of our overseas missions’ fnancial, human and
property resources and to provide consular assistance to Australians overseas.
Prior to joining DFAT, Jake was a fnancial and policy analyst at the Victorian
Treasury, where he played a key role in developing the Victorian State Budget. Jake
is fuent in Arabic and French and is currently learning Spanish while completing his
Certifed Practicing Accountant professional qualifcation.
“I am thankful for the opportunities presented by DFAT’s graduate program. It has
been an extremely rewarding experience, and the department ensures its graduates
have access to very high‑calibre training and support. I look forward to using these
skills and experience at an overseas mission, representing and serving Australia’s
interests overseas!”
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The Family Liaison Offcer worked with the Community Liaison Offcer network at
overseas posts to assist employees and their families on issues such as spouse
recognition and employment, educational needs of children, cultural adjustment and
general living conditions at post.
Management of fnancial resources
The department’s operations in Australia and overseas are underpinned by a sound and
prudent fnancial resource management framework, which includes effective internal
controls and regular budgeting performance reports.
In the ANAO’s Interim Phase of the Audit of Financial Statements of Major General
Government Sector Agencies for the year ending 30 June 2012, the ANAO
acknowledged that the department has effective internal controls to ensure good
fnancial management and a sound fnancial reporting framework. The ANAO found no
audit issues of a signifcant nature in our fnancial statements.
In the 2011–12 Budget, the Government provided additional funding for consular
services, regional initiatives to prevent people smuggling, and transition to a full
civilian-based security presence at the Australian Embassy in Baghdad.
At the 2011–12 Additional Estimates, additional funding was provided as a contribution
toward the purchase of land for a Bali Peace Park and for the Yeosu Expo. An increase
in passport funding was also provided to refect the increase in passports issued.
The 2011–12 Supplementary Additional Estimates provided additional funding for the
expansion of the department’s overseas network and for a grant to the Australia and
New Zealand School of Government China Advanced Leadership Program.
The department was also required to fnd additional savings consistent with those
applying to all other Commonwealth agencies.
Financial management information system
The department commenced a two-year programme in 2012 to enhance the
functionality of its fnancial management information system. The program will
standardise business processes across Australia and overseas and deliver improved
procurement processing, cash management, fnancial reporting and budget planning.
Assets management
A rigorous capital funding process ensures work units provide well-argued business
cases to seek capital funds. Capital funding bids are assessed twice-yearly by the
executive as part of the department’s Capital Management Plan. The executive,
in addition to receiving monthly budget reports, reviews the progress of previously
approved projects. Work areas review and update their asset purchasing and disposal
needs as part of a fve-year asset plan.
The department operates a rolling cycle for asset revaluations whereby each asset
class is revalued every fve years. The only exceptions are land and buildings, which
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are revalued annually. Informal reviews and impairment testing of asset classes are
conducted annually to ensure asset values are fairly stated in the end-of-year accounts.
In 2011–12 the property, plant and equipment asset class was formally revalued under
the rolling cycle.
Competitive tendering and contracting
The department updated guidance on procurement and contract governance to further
strengthen our procurement policies and procedures.
Purchasing performance
Our procurement policies and practices refect the principles set out in the
Commonwealth Procurement Guidelines. The department applies the guidelines to all its
activities through the Chief Executive Instructions and supporting operational guidelines.
All competitive tendering and contracts of $100 000 or more (inclusive of GST) let
during 2011–12 provide access for the Auditor-General to the contractors’ premises.
Whole-of-Australia Government Travel Management Services
Following a competitive tender process, Carlson Wagonlit Travel was appointed as the
department’s travel service provider under a Whole-of-Australian-Government contract
from July 2011 until 30 April 2013.
exempt contracts
There were no contracts or standing offers in excess of $10 000 (including GST)
exempted from publication in the Purchasing and Disposal Gazette (AusTender) on the
basis that publication would disclose exempt matters under the Freedom of Information
Act 1982.
Consultancy services
During 2011–12, 12 new consultancy contracts were entered into involving total actual
expenditure of $1 133 653. In addition, four ongoing consultancy contracts were active
during the 2011–12 year, involving total actual expenditure of $293 312.
TABLe 12. CONSULTANCY eXPeNDiTURe
2009–10 2010–11 2011–12
Expenditure on new consultancy contracts 2 031 090 328 114 1 133 653
Expenditure on ongoing consultancy contracts 1 470 798 1 133 010 293 312
Total 3 501 888 1 461 124 1 426 965
The department engages consultants where it lacks specialist expertise or when
independent research, review or assessment is required. Consultants are typically
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engaged to investigate or diagnose a defned issue or problem; carry out defned reviews
or evaluations; or provide independent advice, information or creative solutions to assist
in the department’s decision-making.
Prior to engaging consultants, the department takes into account the skills and
resources required for the task, the skills available internally, and the cost-effectiveness
of engaging external expertise. The decision to engage a consultant is made in
accordance with the FMA Act and related regulations including the Commonwealth
Procurement Guidelines and relevant internal policies.
Annual reports contain information about actual expenditure on contracts for
consultancies. Information on the value of contracts and consultancies to the value of
$10 000 or more (including GST) is on the AusTender website at www.tenders.gov.au.
Overseas property–leased estate
See Program 3.2 Overseas Property
Domestic property
Offce accommodation for the department’s operations in Australia is provided
through commercially-leased premises in Canberra and each state capital, Darwin and
Newcastle. The department also owns a residence on Thursday Island for the head of
the Torres Strait Treaty Liaison Offce.
Outlook
The budgetary framework set out in the Mid-Year Economic and Fiscal Outlook and the
broader APS-wide cuts in the May 2012 Budget will demand a pragmatic approach to
managing the department’s resources. An internal review of the department’s future
operations, covering resourcing and structures and work practices, has been initiated
and the results of this review will help shape the way the department delivers its
policy objectives.
A priority in the coming year will be the expansion of the department’s overseas network
with the establishment of new posts in Chengdu, China and Dakar, Senegal.
Managing the department’s diplomatic and civilian presence in Afghanistan and
Baghdad will remain core priorities. It will be important that the department maintains a
close working relationship with portfolio agencies to deliver coherent and cost effective
policy responses.
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200
Prime Minister Gillard and British Prime Minister,
Mr David Cameron, during the Commonwealth
Heads of Government Meeting in Perth,
October 2011. Photo: Getty Images
The Governor-General, Her Excellency Ms Quentin
Bryce AC, meets Department of Foreign Affairs and
Trade 2012 graduate trainees at Government House
in Canberra in June 2012.
201
The Minister for Trade, Dr Emerson, taking part in a session at the World Economic Forum
in Davos, Switzerland, January 2012.
APPENDIxES
SECTI ON 4
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1. Ministerial responsibilities
2. Staffing overview
3. Agency resource statement and tables of expenses
by outcomes
4. Work health and safety
5. inquiries by parliamentary committees
6. Matters before courts and administrative tribunals
7. ecologically sustainable development and
environmental performance
8. Purchaser–provider arrangements
9. Advertising and market research
10. Grants and contributions
11. List of sponsors
12. Summary of the overseas network
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Appendixes
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APPENDIx 1 MINISTERIAL RESPONSIBILITIES
APPENDIx 1
Ministerial responsibilities
Minister for Foreign Affairs,
Senator the Hon. Bob Carr
Senator Carr has overall responsibility for the Foreign
Affairs and Trade portfolio, including administration of the
Department of Foreign Affairs and Trade. He is responsible
for all non-trade international political, multilateral and legal
issues (including the treaty-making process), development
assistance matters, consular and passport functions
and management of the overseas estate. In addition,
he is responsible for all human rights, arms control and
disarmament issues, peacekeeping, and the non-trade
related aspects of the UN system. Senator Carr shares
responsibility for international security and counter-terrorism
issues with the Minister for Defence. Senator Carr has primary carriage of non-trade
related public affairs activities and questions of protocol.
He also has responsibility for the administration and management of AusAID, the
Australian Secret Intelligence Service, the Australian Safeguards and Non-Proliferation
Offce and the Australian Centre for International Agricultural Research.
Minister for Trade and Competitiveness,
The Hon. Dr Craig emerson, MP
Dr Emerson is responsible for pursuing Australia’s trade and
investment interests around the world. He does this through
representation at multilateral bodies such as the World
Trade Organization (WTO) and the Organisation for Economic
Co-operation and Development, and also through a range of
regional groupings. The Minister also engages regularly with
counterparts from Australia’s trading partners on bilateral
issues, particularly free trade agreement negotiations.
Dr Emerson chairs the Cairns Group of agricultural exporting
countries. He is also responsible for trade and development
issues, including aid for trade.
At the regional level, Dr Emerson pursues Australia’s interests through: the Asia-Pacifc
Economic Cooperation and East Asia Summit forums; the ASEAN–Australia–New
Zealand Free Trade Agreement and through negotiations on the Trans-Pacifc Partnership
Agreement. He is also leading negotiations on free trade agreements with an array of
regional trading partners.
Dr Emerson has responsibility for Australia’s trade promotion agency, Austrade, and
Australia’s export facilitation agency, the Export Finance and Insurance Corporation.
In early 2012, Dr Emerson’s portfolio was expanded to include Competitiveness, in
recognition that trade policy, productivity and micro-economic reform are inextricably
linked. Dr Emerson is also assisting the Prime Minister in driving the White Paper project
on Australia in the Asian Century.
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Parliamentary Secretary for Trade,
The Hon. Justine elliot, MP
Mrs Elliot supports the Minister for Trade in promoting
and advocating the Government’s trade and investment
attraction policy.
The Parliamentary Secretary has responsibility for the
implementation of export, business development and
investment attraction programs; this includes TradeStart,
the Export Market Development Grants Scheme and Brand
Australia. Mrs Elliot also, under the Future Unlimited brand,
promotes Australian International Education throughout
the world.
Additionally Mrs Elliot is responsible for raising the awareness of the Government’s
trade and investment policies and priorities amongst the Australian public through
media and public events.
The Parliamentary Secretary regularly represents the Minister for Trade at trade-related
functions. In her role she assists Australian companies capitalise on new market
access opportunities resulting from multilateral, regional and bilateral agreements.
Parliamentary Secretary for Pacifc island Affairs
and Parliamentary Secretary for Foreign Affairs,
The Hon. Richard Marles, MP
Mr Marles supports the Minister for Foreign Affairs in
advancing Australia’s interests and diplomatic relations
within the Foreign Affairs portfolio. In particular, Mr Marles
works with Pacifc island countries in taking forward and
building on Australia’s partnership approach to the region
based on mutual respect and responsibility. He also works
more broadly with other small and developing states, as well
as international organisations, on a broad range of bilateral
and multilateral issues. These include portfolio-related
development assistance, international trade, climate change
and environmental issues, as well as initiatives in the health,
education, sports, women and youth sectors. Mr Marles shares responsibility for raising
the Australian public’s awareness of the Government’s policies and priorities through
the media and public events.
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APPENDIx 2 STAFFING OVERVIEW
APPENDIx 2
Staffng overview
TABLe 13. eMPLOYeeS BY CLASSiFiCATiON, GeNDeR AND LOCATiON (eXCLUDiNG LOCALLY eNGAGeD
eMPLOYeeS OVeRSeAS)
Female Male Total Staff Total Staff
Classifcation* Canberra State
Offces
Overseas Canberra State
Offces
Overseas 30 June 2012 30 June 2011
APS Level 1 0 0 0 0 0 0 0 2
APS Level 2 0 0 0 0 0 0 0 13
APS Level 3 20 53 0 9 7 0 89 83
APS Level 4 38 9 10 16 2 16 91 142
APS Level 5 182 149 81 76 36 63 587 505
APS Level 6 102 2 20 65 7 17 213 212
Exec. Level 1 229 9 91 269 16 120 734 742
Exec. Level 2 95 5 36 103 7 74 320 294
Non SES
Unattached**
73 0 0 46 0 0 119 167
SES Band 1 16 1 21 43 0 44 125 130
SES Band 2 6 0 3 16 1 18 44 42
SES Band 3 2 0 0 2 0 11 15 17
SES (Spec.) Band 1 0 0 0 3 0 0 3 1
SES (Spec.) Band 2 1 0 0 1 0 0 2 2
SES Unattached** 5 0 0 14 0 0 19 22
Director of
Safeguards***
0 0 0 1 0 0 1 1
Secretary 0 0 0 1 0 0 1 1
Cadet 1 1 1 0 3 0 6 5
Graduate APS 46 0 0 56 0 1 103 91
Medical Offcer Cl. 3 0 0 1 0 0 3 4 0
Medical Offcer Cl. 4 0 0 1 1 0 1 3 8
Total 816 229 265 722 79 368 2479 2480
* Broadband classifcations applicable to APS1–6, Executive Levels 1–2, Cadets and Graduates are identifed in Table 21.
** Includes staff on leave without pay, long service leave, seconded to other agencies and staff covered by the Members of
Parliament (Staff) Act 1984.
*** Director of Safeguards, a statutory offcer responsible to the Minister for Foreign Affairs, occupies the position of Director
General of the Australian Safeguards and Non-Proliferation Offce.
Note: Staffng Figures are based on headcount.
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TABLe 14. ONGOiNG AND NON-ONGOiNG eMPLOYeeS (eXCLUDiNG LOCALLY eNGAGeD eMPLOYeeS
OVeRSeAS), FULL-TiMe AND PART-TiMe
Ongoing employees Non-ongoing employees Total Total
Full-Time Part-Time Full-Time Part-Time 30 June 2012 30 June 2011
2241 155 70 13 2479 2480
TABLe 15. eMPLOYeeS BY CATeGORieS OF eMPLOYMeNT
Category Female Male Total
30 June 2012
Total
30 June 2011
Ongoing employees 1262 1134 2396 2392
Non-ongoing employees 48 35 83 88
Overseas employees (locally engaged
employees)
866 834 1700 1644
Total 2176 2003 4179 4124
TABLe 16. SeNiOR eXeCUTiVe SeRViCe BY LeVeL AND LOCATiON
Category Canberra State
Offces
Overseas Total
30 June 2012
Total
30 June 2011
SES Band 1 59 1 26 86 97
SES Band 2 22 1 3 26 24
SES Band 3 4 0 0 4 5
SES Specialist Band 1 3 0 0 3 1
SES Specialist Band 2 2 0 0 2 2
Director of Safeguards* 1 0 0 1 1
Head of Mission Band 1 0 0 39 39 33
Head of Mission Band 2 0 0 18 18 18
Head of Mission Band 3 0 0 11 11 12
Secretary 1 0 0 1 1
SES Unattached** 19 0 0 19 22
Total 111 2 97 210 216
* Director of Safeguards, a statutory offcer responsible to the Minister for Foreign Affairs, occupies the position of Director
General of the Australian Safeguards and Non-Proliferation Offce.
** Includes staff on leave without pay, long service leave, seconded to other agencies and staff covered by the Members of
Parliament (Staff) Act 1984.
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APPENDIx 2 STAFFING OVERVIEW
TABLe 17. SeNiOR eXeCUTiVe SeRViCe BY GeNDeR
Category Female Male Total
30 June 2012
Total
30 June 2011
SES Band 1 24 62 86 97
SES Band 2 6 20 26 24
SES Band 3 2 2 4 5
SES Specialist Band 1 0 3 3 1
SES Specialist Band 2 1 1 2 2
Director of Safeguards* 0 1 1 1
Head of Mission Band 1 14 25 39 33
Head of Mission Band 2 3 15 18 18
Head of Mission Band 3 0 11 11 12
Secretary 0 1 1 1
SES Unattached** 5 14 19 22
Total 55 155 210 216
* Director of Safeguards, a statutory offcer responsible to the Minister for Foreign Affairs, occupies the position of Director
General of the Australian Safeguards and Non-Proliferation Offce.
** Includes staff on leave without pay, long service leave, seconded to other agencies and staff covered by the Members of
Parliament (Staff) Act 1984.
TABLe 18. SeNiOR eXeCUTiVe SeRViCe: GAiNS AND LOSSeS DURiNG THe YeAR
Total
Commenced in the department * 6
Separated from the department 12
* Includes promotion of non-SES staff to the SES from within the department.
Note: Figures include non-ongoing SES offcers recruited for short-term projects who commenced and/or separated during
the year.
TABLe 19. SeNiOR eXeCUTiVe SeRViCe: iNTeR-AGeNCY MOBiLiTY DURiNG THe YeAR
Band 1 Band 2 Band 3 Total
To the department 1 2 0 3
From the department 2 1 0 3
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TABLe 20. eMPLOYeeS BY LOCATiON AND GeNDeR
Australia-based Staff Locally engaged Staff
Location Female Male Total Female Male Total
Canberra
Canberra 816 722 1538
Overseas Posts – Regions
Americas 25 42 67 94 89 183
Asia
North Asia 25 45 70 123 79 202
South Asia 28 38 66 46 99 145
South-East Asia 50 65 115 215 209 424
Europe 42 50 92 150 127 277
Middle East and
Africa
37 49 86 111 119 230
Multilateral Posts 15 24 39 28 18 46
New Zealand and
the South Pacifc
29 29 58 99 94 193
Total Staff at Posts 251 342 593 866 834 1700
Other Staff
Overseas*
14 26 40
Overseas Posts
Total
265 368 633 866 834 1700
State and Territory offces
New South Wales 70 18 88
Northern Territory 5 3 8
Queensland 37 16 53
South Australia 14 5 19
Tasmania 5 2 7
Victoria 68 23 91
Western Australia 30 12 42
State and Territory
Offces Total
229 79 308
Total Staff Numbers 1310 1169 2479 866 834 1700
* Other Staff Overseas includes offcers on in-country language training, short-term assignments, in-transit from post and
exchange offcers.
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APPENDIx 2 STAFFING OVERVIEW
TABLe 21. eMPLOYeeS COVeReD BY THe eNTeRPRiSe AGReeMeNT AND ReMUNeRATiON
SUPPLeMeNTATiON AGReeMeNTS
APS Level enterprise Agreement Remuneration
Supplementation Agreements
Total
Salary
Min.
Salary
Max.
No. of
staff
Salary
Min.
Salary
Max.
No. of
staff
APS Level 1–3,
Broadband
1 (includes
graduates and
cadets)
40 879 58 453 169 n.a. 0 169
APS Level 4–5,
Broadband 2
60 095 70 809 745 n.a. 0 745
APS Level 6 73 062 82 151 219 * 2 221
Exec. Level 1 90 983 101 772 775 * 1 776
Exec. Level 2 ** 109 917 124 140 296 146 132 160 972 28 324
Medical Offcers n.a. 0 161 329 188 111 7 7
Sub-total
non-SES
2204 38 2242
SES *** n.a. 0 160 972 341 723 197 197
Sub-total SES 0 197 197
Total 2204 235 2439
n.a. not applicable
* Where there is a possibility that payments to individuals may be identifed (i.e. fve or fewer employees at a classifcation
level) the salary range is not shown.
** Includes Executive Level 2 staff deployed to Head of Mission SES positions overseas.
*** The Secretary and the Director General of the Australian Safeguards and Non-Proliferation Offce have not been included
in the above fgures as their remuneration is set by Prime Ministerial Determinations and the Remuneration Tribunal
respectively.
Note: this table excludes 38 employees on temporary transfer to other organisations including the Offce of the Governor-General,
Parliament House and other government agencies.
Performance pay
Non-SES employee performance-related bonuses for the 2011–12 performance
management cycle totalled $1.829 million, an increase of 19.1 per cent from the
$1.536 million paid in the previous cycle. A total of 988 non-SES employees received
bonuses in this performance management period, an increase of 17 per cent
from 2010–11. This is due to the higher number of staff now at the top of each band or
broadband since annual increments were introduced in the 2009–10 performance cycle.
SES employee bonuses for 2011–12 totalled $723 000, up from $643 000 in 2010–11,
representing an increase of 12.5 per cent. Eligible SES offcers were paid a two per cent
bonus on their annual base salary, recognising that SES employees do not have access
to incremental advancement.
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TABLe 22. PeRFORMANCe BONUS PAYMeNTS BY LeVeL 2011–12
Number Aggregated
amount
($’000)
Average
amount ($)
Range of
payments($)*
Non-SeS
APS Level 3 54 61 1121 468–1169
APS Level 5 179 244 1363 526–2832
APS Level 6 115 178 1547 486–2754
Executive Level 1 455 902 1982 801–2198
Executive Level 2 185 444 2401 752–2923
Subtotal Non-SeS 988 1829 1682 468–2923
SeS
SES Band 1 149 468 3140 1319–3219
SES Band 2 45 178 3959 1599–4065
SES Band 3 15 78 5213 5213
Subtotal SeS 209 724 4104 1319–5213
Total 1197 2553 3252 468–5213
*Low minimum payment fgures are due to payment of pro rata bonuses to staff who worked only part of the performance
management cycle.
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APPENDIx 3 AGENCy RESOURCE STATEMENT
APPENDIx 3
Agency resource statement and tables of
expenses by outcomes
TABLe 23. DePARTMeNT OF FOReiGN AFFAiRS AND TRADe ReSOURCe STATeMeNT 2011–12
Actual available
appropriation for
2011–12
$’000
Payments
made
2011–12
$’000
Balance
remaining
2011–12
$’000
(a) (b) (a) – (b)
Ordinary Annual Services
1
Departmental appropriation
2
1,444,729 1,231,082 213,647
Total 1,444,729 1,231,082 213,647
Administered expenses
Outcome 1 272,257 243,186
Outcome 2 750 256
Payments to CAC Act Bodies 6,212 4,257
Total 279,219 247,699
Total ordinary annual services A 1,723,948 1,478,781
Other services
3
Departmental non-operating
Equity injections 72,005 30,502 41,503
Total 72,005 30,502 41,503
Administered non-operating
Administered Assets and Liabilities 0 8,085
Total 0 8,085
Total other services B 72,005 38,587
Total available annual appropriations and payments 1,795,953 1,517,368
Special appropriations
Special appropriations limited by criteria/entitlement
Special Appropriation FMA Act, 1997 section 28 953
Special appropriations limited by amount
Total special appropriations C 953
Special Accounts
Opening balance 400,642
Appropriation receipts
4
84,592
Appropriation receipts
- other agencies
5
27,289
Non-appropriation receipts to Special Accounts 7,021
Payments made 78,206
Total Special Account D 441,338
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Actual available
appropriation for
2011–12
$’000
Payments
made
2011–12
$’000
Balance
remaining
2011–12
$’000
Total resourcing and payments
A+B+C+D 1,795,953 1,517,368
Less appropriations drawn from annual or special
appropriations above and credited to special accounts
118,902 78,206
and/or CAC Act bodies through annual appropriations 6,212 4,257
Total net resourcing and payments 1,670,839 1,434,905
1 Appropriation Bill (No.1) 2011–12, Appropriation Bill (No.3) 2011-12 and Appropriation Bill (No.5) 2011–12 and also includes
prior year departmental appropriation and s31 relevant agency receipts.
2 Includes an amount of $73.446 million in 2011–12 for the Departmental Capital Budget. For accounting purposes this amount
has been designated a ‘contribution by owners’.
3 Appropriation Bill (No.2) 2011–12 and Appropriation Bill (No.4) 2011–12.
4 Appropriation receipts from DFAT’s annual and special appropriations for 2011–12 included above.
5 Appropriation receipts from other agencies credited to DFAT’s special accounts.
TABLe 24. eXPeNSeS AND ReSOURCeS FOR OUTCOMe 1
Outcome 1: The advancement of Australia’s international, strategic,
security and economic interests including through bilateral, regional
and multilateral engagement on Australian Government foreign and
trade policy priorities.
Budget*
2011–12
$’000
(a)
Actual
expenses
2011–12
$’000
(b)
Variation
2011–12
$’000
(a) – (b)
Program 1.1: Foreign Affairs and Trade Operations
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1) 18,691 19,509 -818
Departmental expenses
Departmental appropriation 478,795 466,879 11,916
Expenses not requiring appropriation in the Budget year 36,911 36,794 117
Total for Program 1.1 534,397 523,182 11,215
Program 1.2: Payments to international Organisations
Administered expenses
Ordinary annual services (Appropriation Bill No. 1) 237,918 222,861 15,057
Total for Program 1.2 237,918 222,861 15,057
Program 1.3: Public information Services and Public Diplomacy
Administered expenses
Ordinary annual services (Appropriation Bill No. 1) 36,005 36,208 -203
Total for Program 1.3 36,005 36,208 -203
Outcome 1 Totals by appropriation type
Administered Expenses
Ordinary annual services (Appropriation Bill No. 1) 292,614 278,578 14,036
Departmental expenses
Departmental appropriation 478,795 466,879 11,916
Expenses not requiring appropriation in the Budget year 36,911 36,794 117
Total expenses for Outcome 1 808,320 782,251 26,069
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2010–11 2011–12 Variation
Average Staffng Level (number) 2,134 2,145 -11
Australia-based staff 1,340 1,351 -11
Locally engaged employees overseas 794 794 0
* Full year budget, including any subsequent adjustment made to the 2011–12 Budget.
TABLe 25. eXPeNSeS AND ReSOURCeS FOR OUTCOMe 2
Outcome 2: The protection and welfare of Australians abroad and
access to secure international travel documentation through timely
and responsive travel advice and consular and passport services in
Australia and overseas.
Budget*
2011–12
$’000
(a)
Actual
expenses
2011–12
$’000
(b)
Variation
2011–12
$’000
(a) – (b)
Program 2.1: Consular Services
Administered expenses
Ordinary Annual Services (Appropriation Bill No. 1)
Travellers’ Emergency Loans 200 105 95
Departmental expenses
Departmental appropriation 69,685 68,365 1,320
Expenses not requiring appropriation in the Budget year 5,396 5,322 74
Total for Program 2.1 75,281 73,792 1,489
Program 2.2: Passport Services
Administered expenses
Special appropriations 860 867 -7
Departmental expenses
Departmental appropriation 186,931 182,303 4,628
Expenses not requiring appropriation in the Budget year 14,418 14,194 224
Total for Program 2.2 202,209 197,364 4,845
Outcome 2 Totals by appropriation type
Administered Expenses
Ordinary annual services (Appropriation Bill No. 1)
Travellers’ Emergency Loans 200 105 95
Special appropriations 860 867 -7
Departmental expenses
Departmental appropriation 256,616 250,668 5,948
Expenses not requiring appropriation in the Budget year 19,814 19,516 298
Total expenses for Outcome 2 277,490 271,156 6,334
2010-11 2011-12 Variation
Average Staffng Level (number) 1,059 1,071 -12
Australia-based staff 577 589 -12
Locally engaged employees overseas 482 482 0
* Full year budget, including any subsequent adjustment made to the 2011–12 Budget.
APPENDIx 3 AGENCy RESOURCE STATEMENT
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TABLe 26. eXPeNSeS AND ReSOURCeS FOR OUTCOMe 3
Outcome 3: A secure Australian Government presence overseas
through the provision of security services and information and
communications technology infrastructure, and the management
of the Commonwealth’s overseas owned estate.
Budget*
2011–12
$’000
(a)
Actual
expenses
2011–12
$’000
(b)
Variation
2011-12
$’000
(a) – (b)
Program 3.1: Foreign Affairs and Trade Operations
Departmental expenses
Departmental appropriation 170,492 169,904 588
Expenses not requiring appropriation in the Budget year 13,165 13,228 -63
Total for Program 3.1 183,657 183,132 525
Program 3.2: Overseas Property
Departmental expenses
Special Accounts 72,077 71,350 727
Total for Program 3.2 72,077 71,350 727
Outcome 3 Totals by appropriation type
Departmental expenses
Departmental appropriation 170,492 169,904 588
Special Accounts 72,077 71,350 727
Expenses not requiring appropriation in the Budget year 13,165 13,228 -63
Total expenses for Outcome 3 255,734 254,482 1,252
2010-11 2011-12 Variation
Average Staffng Level (number) 662 670 -8
Australia-based staff 363 371 -8
Locally engaged employees overseas 299 299 0
* Full year budget, including any subsequent adjustment made to the 2011–12 Budget.
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APPENDIx 4 WORK HEALTH AND SAFETy
APPENDIx 4
work health and safety
Information in this appendix is provided in accordance with Schedule 2, Part 4 of the
Work Health and Safety Act 2011.
Health and safety management arrangements
The department attached a high priority to the health, safety and welfare of its
employees and remained committed to facilitating an organisational culture that actively
seeks to improve workplace practices, and to foster attitudes which sustain healthy
and safe working environments. The department’s Health and Safety Management
Arrangements outline the responsibilities of management, supervisors, employees and
their representatives and provide the structural framework within which Work Health and
Safety (WHS) is managed.
The department’s Workplace Relations Committee WHS Sub-Committee met quarterly
and represented the interests of all workers. WHS committees also operated in state
and territory offces and at overseas posts. The committees facilitated cooperation
on WHS matters between management and workers and take an active role in the
dissemination of health, safety and welfare information.
initiatives taken during the year
Ensuring readiness for the introduction of the Work Health and Safety Act 2011, on
1 January 2012, was a priority for the department. A transition strategy promoting
awareness and training on the requirements of the new legislation was developed and
delivered to all workers in Australia and at our overseas posts.
Comprehensive training was delivered to 41 Australia-based health and safety
representatives (HSRs). The HSRs are integral to promoting health, safety and welfare
in the workplace by ensuring that WHS issues concerning staff are communicated to
management for resolution.
An online work health safety training program is being developed to provide all staff with
access to WHS materials.
Health and safety outcomes achieved
During 2011–12, 136 WHS incidents were reported to the WHS section in accordance
with the department’s incident notifcation and reporting procedures. Relevant remedial
action was undertaken to eliminate or control the risk and prevent further occurrences.
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Reporting requirements under the Work Health and Safety
Act 2011
One incident was notifed to Comcare under Part 3 of the Work Health and Safety
Act 2011.
No directions were given to the department under Part 11, section 217 of the Act.
No notices were issued under Part 10, section 191 of the Act.
No external investigations were conducted under Part 9 of the Act.
TABLe 27. WORK HeALTH AND SAFeTY STATiSTiCS
2009–10 2010–11 2011–12
Total departmental staff covered by Comcare
(includes employees located in Australia,
Australia-based employees overseas and, where
applicable, locally engaged staff overseas)
2874 3305 2684
Number of claims accepted by Comcare:
• falls, trips and slips 4 4 9
• hitting objects 1 0 0
• sound and pressure 2 0 0
• body stressing 4 5 10
• heat, radiation and electricity 0 1 3
• chemicals and other 0 0 1
• biological factors 0 0 3
• mental stress 1 2 3
• other and unspecifed 2 1 0
Total 14 13 29
Departmental premium for Comcare coverage (as a
percentage of total departmental wages and salaries)
2011–12*
0.50 0.71 0.72
* The Comcare coverage premium for current and previous years is reviewed annually by Comcare based on the changes during
the year in the number of claims and the average cost of all claims relating to injury or illness.
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APPENDIx 5 INQUIRIES By PARLIAMENTARy COMMITTEES
APPENDIx 5
Inquiries by parliamentary committees
During the review period, the department provided submissions and/or gave evidence to
the following parliamentary committees.
House of Representatives Standing Committee on economics
• Inquiry into the Food Standards Amendment (Truth in Labelling – Palm Oil) Bill 2011,
submission made in August 2011
House of Representatives Standing Committee on infrastructure and
Communications
• Inquiry into IT Pricing, briefng provided 27 June 2012
Joint Standing Committee on Foreign Affairs, Defence and Trade
• Inquiry into Australia’s trade and investment relationship with Japan and the
Republic of Korea, hearing attended on 14 and 22 March 2012 and submissions
made in July 2011 and March 2012
• Inquiry into Australia’s Human Rights Dialogue with China and Vietnam, hearings
attended on 1 November 2011 and 5 March 2012 and submission made in
August 2011
• Inquiry into the Illegal Logging Prohibition Bill 2011, hearing attended 9 May 2012
and submission made in May 2012
• Inquiry into Australia’s Overseas Representation, hearings attended on 10 February
and 19 March 2012 and submissions made in January, February and March 2012
Joint Standing Committee on Migration
• Inquiry into Multiculturalism in Australia, hearing attended on 23 November 2011
Joint Standing Committee on the National Capital and external Territories
• Public Hearing on the Advancement of Australia’s Interests in Antarctica, hearing
attended 27 June 2012
Joint Standing Committee on Treaties
• Review into Treaties Tabled on 22 November and 7 February 2012, hearing attended
on 19 March 2012
• Review into Treaties Tabled on 13 October, 2, 22 and 24 November 2011, hearing
attended on 6 February 2012
Parliamentary Joint Committee on the Australian Commission for Law
enforcement integrity
• Inquiry into the Integrity of Overseas Commonwealth law enforcement operations,
hearing attended on 11 May 2012
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Parliamentary Standing Committee on Public Works
• Inquiry into the Proposed Construction of a new Australian Embassy complex
including Chancery and Head of Mission residence in Bangkok, Thailand, hearing
attended on 4 November 2011
Senate Standing Committee on Australia’s Food Processing Sector (and
Select Committee)
• Inquiry into Australia’s Food Processing Sector, hearing attended on 11 May 2012
and submission made April 2012
Senate Standing Committee on Foreign Affairs, Defence and Trade (and
References Committee)
• Inquiry into Held Hostage: Government’s response to kidnapping of Australian
citizens overseas, hearing attended on 6 October 2011 and submission made in
September 2011
• Inquiry into the Indian Ocean region and Australia’s Foreign, Trade and Defence
Policy, submission made in April 2012
Senate Standing Committee on Legal and Constitutional Affairs (and
References Committees)
• Inquiry into International child abduction to and from Australia, hearing attended on
26 August 2011
Senate Standing Committee on Rural and Regional Affairs and Transport
References Committee
• Inquiry into the Examination of the Foreign Investment Review Board National
Interest Test, hearing attended on 9 May 2012
Joint Standing Committee on Treaties
Departmental offcers appeared before the Joint Standing Committee on Treaties in
respect of proposed treaty actions.
The department appeared on 31 October 2011 in respect of:
• Agreement for the Establishment of the International Anti-Corruption Academy as an
International Organization
• Agreement between the Government of Australia and the European Atomic Energy
Community (Euratom) for Co-Operation in the Peaceful Uses of Nuclear Energy
• International Convention for the Suppression of Acts of Nuclear Terrorism
The department appeared on 6 February 2012 in respect of:
• Agreement between the European Union and Australia on the Processing and
Transfer of Passenger Name Record (PNR) Data by Air Carriers to the Australian
Customs and Border Protection Service
The department appeared on 19 March 2012 and 7 May 2012 in respect of:
• Anti-Counterfeiting Trade Agreement
The department appeared on 18 June 2012 in respect of:
• Fifth Agreement to Extend the 1987 Regional Cooperative Agreement for Research,
Development and Training related to Nuclear Science and Technology.
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APPENDIx 6 MATTERS BEFORE COURTS AND ADMINISTRATIVE TRIBUNALS
APPENDIx 6
Matters before courts and administrative tribunals
During the year the department was involved in the following matters before courts and
administrative tribunals.
Courts
The department continued to assist an inquiry by the Coroner’s Court of Victoria into the
death of an Australian overseas.
The department is defending an action brought by a consular client in relation to her
incarceration overseas.
The department is pursuing costs awarded in the department’s favour in relation to the
department’s compliance with a subpoena.
The department commenced debt recovery proceedings against a former employee.
The department is defending an action brought by an employee alleging discrimination
by the department and another employee.
The department continues to be involved in two employment actions in overseas courts
brought by two former locally engaged staff members.
The department continues to defend an appeal with respect to an employment action
brought in a foreign court by a former locally engaged staff member.
The department is defending an employment action brought in a foreign court by a
former locally engaged staff member.
The department continues to defend claims for unfair dismissal brought by former
employees following redundancies at an overseas post.
The department continues to seek a settlement relating to an unfair dismissal action
brought in a foreign court by a former locally engaged staff member.
The department continues to defend against an appeal brought against the
department alleging breach of contract in relation to the relocation of an Australian
mission overseas.
The department continued to be involved in proceedings in which a former employee at
an overseas post was found guilty of embezzlement.
The department settled a case involving a contractor injured in the course of her work in
the department.
The department is defending a matter in which the applicants seek compensation for
breaches of rights and an order for documents.
The department continued to comply with discovery, subpoena and other document
production obligations in a range of matters, including matters brought against the
Commonwealth and other Australian Government agencies.
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The department was regularly involved in the service of documents through the
diplomatic channel relating to private litigation brought overseas and in Australia, and
from time to time in the service of documents on foreign governments under the Foreign
States Immunities Act 1985.
Tribunals
The department continued to be involved in applications before the Administrative
Appeals Tribunal (AAT) concerning passports matters. During the year there was one
case in which the Minister’s decision to cancel a passport was upheld. Four cases were
withdrawn. At the end of the fnancial year there were three active applications before
the AAT for review of passport decisions. Seven applications were on hold or adjourned.
The department settled a complaint by a former employee with the Fair Work
Ombudsman in relation to unpaid overtime.
The Australian Human Rights Commission terminated a complaint alleging racial
discrimination.
The Australian Human Rights Commission terminated a complaint alleging sex
discrimination relating to the requirements for including birth and married surnames
on passports.
A complaint was made against the department alleging sex discrimination due to
passport forms listing only ‘mother’ or ‘father’ and not ‘parent/parent’ for same
sex couples.
A complaint was made against the department alleging sex and marital status
discrimination in relation to fee waivers.
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APPENDIx 7 ECOLOGICALLy SUSTAINABLE DEVELOPMENT
AND ENVIRONMENTAL PERFORMANCE
APPENDIx 7
Ecologically sustainable development and
environmental performance
This appendix comprises the department’s report on its ecologically sustainable
development and environmental performance as required by section 516A of the
Environment Protection and Biodiversity Conservation Act 1999.
The department has sought to ensure that, where possible, its policy activities,
administration of legislated activities and other operations have accorded with and
enacted ecologically sustainable development (ESD) principles. It has pursued these
principles through a variety of activities including its work on multilateral environment
agreements, international legal frameworks and trade policy. These principles were also
applied in our public diplomacy.
Outcome 1 – The advancement of Australia’s international strategic, security
and economic interests including through bilateral, regional and multilateral
engagement on Australian Government foreign and trade policy priorities
The department helped advance ESD by supporting Australia’s participation in
international negotiations on the environment and sustainable development, including
the UN Conference on Sustainable Development (Rio+20). Australia led efforts at
Rio+20 to promote international action to address challenges to the conservation
and sustainable use of oceans, including overfshing, ocean acidifcation and marine
pollution. We also helped secure agreement to develop a set of universal Sustainable
Development Goals. The department supported the Government’s objective of securing
an effective global response to climate change, including a mandate to negotiate a
new legal agreement covering all countries. The department supported the delivery of
outcomes to protect and preserve Antarctica’s environment through Australia’s hosting
of the Antarctic Treaty Consultative Meeting in Hobart. The department also contributed
to ESD through its work on trade policy, including by pursuing opportunities to reduce
barriers to trade in environmental goods and services internationally.
Outcome 2 – The protection and welfare of Australians abroad and access
to secure international travel documentation through timely and responsive
travel advice and consular and passport services in Australia and overseas
The N-series Passport uses Australian Paper’s 100 per cent carbon neutral ENVI paper
range, which is Greenhouse Friendly as certifed by the Department of Climate Change
and Energy Effciency.
Outcome 3 – A secure Australian Government presence overseas through
the provision of security services and information and communications
technology infrastructure, and the management of the Commonwealth’s
overseas owned estate.
The department contributed to ecologically sustainable development in its management
of the overseas estate. Environmentally sustainable and energy effcient design
principles are applied by the department’s Overseas Property Offce (OPO) in all new
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construction overseas and, within the limits imposed by the existing base building
features, in ft-out and refurbishment works.
In current major projects OPO is targeting a self-assessed 5-star ecological outcome
against the Green Building Council Green Star assessment model. Initiatives employed
include intelligent building automation systems to optimise plant effciency and minimise
energy consumption, water conservation and management to reduce demand on local
supply, low energy use lighting and air conditioning technologies, automatic cooling
systems, residential solar heating and green technology landscaping.
In relation to the department’s leased domestic offces, we have fulflled the
requirement for whole-of-government reporting on the National Environment Protection
Measures and on the Australian Packaging Covenant Report. We reported the
department’s energy usage to the Department of Climate Change and Energy Effciency.
We maintained involvement in the Government Agency Environment Network. The
department supported a range of ‘green’ events, including Earth Hour.
The department seeks to maintain voluntary certifcation by external audit against the
international standard ISO14001:2004 for the Environmental Management System in
its leased headquarters in the R G Casey Building in Canberra. The current certifcation
requires revalidation and this is expected to occur in 2012. Planned refurbishment
and upgrading of the R G Casey Building on the renewal of the current lease in 2014
is expected to contribute to improved environmental practice by the department
in Canberra.
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APPENDIx 8 PURCHASER–PROVIDER ARRANGEMENTS
APPENDIx 8
Purchaser–provider arrangements
The department provides management and administration services to other Australian
Government agencies at our overseas missions. This ensures consistent and effcient
use of resources and avoids duplication of effort (in accordance with the Prime
Minister’s Directive on the Guidelines for the Management of the Australian Government
Presence Overseas). We manage these arrangements through an agency-wide Service
Level Agreement (SLA).
In 2011–12, the department provided services under the SLA to:
Attorney-General’s Department
AusAID (Australian Agency for International Development)
Australian Centre for International Agricultural Research (ACIAR)
Australian Customs and Border Protection Service
Australian Federal Police (also includes the Australian Federal Police Protective Service)
Australian Maritime Safety Authority
Australian National University
Australian Nuclear Science and Technology Organisation
Australian Security Intelligence Organisation
Australian Taxation Offce
Australian Trade Commission (Austrade)
Commonwealth Scientifc and Industrial Research Organisation (CSIRO)
Department of Agriculture, Fisheries and Forestry
Department of Climate Change and Energy Effciency
Department of Defence
Department of Education, Employment and Workplace Relations
Department of Finance and Deregulation
Department of Health and Ageing
Department of Immigration and Citizenship
Department of Infrastructure and Transport
Department of Industry, Innovation, Science, Research and Tertiary Education
Department of the Prime Minister and Cabinet
Department of Resources, Energy and Tourism
Department of Veterans’ Affairs
National Library of Australia
Offce of National Assessments
Reserve Bank of Australia
The Treasury
The main purchasers of services under the SLA are the Department of Immigration
and Citizenship, Department of Defence, AusAID, Australian Trade Commission and
Australian Federal Police.
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The department also has purchaser–provider arrangements to deliver information and
communications technology (iCT) services to Australian Government agencies with
staff at our overseas missions and at a number of agency locations within Australia.
These arrangements encompass the following agencies:
Attorney-General’s Department
AusAID (Australian Agency for International Development)
Australian Antarctic Division (Department of Sustainability, Environment, Water,
Population and Communities)
Australian Centre for International Agricultural Research (ACIAR)
Australian Crime Commission
Australian Customs and Border Protection Service
Australian Electoral Commission
Australian Federal Police
Australian National University
Australian Fisheries Management Authority
Australian Maritime Safety Authority
Australian Nuclear Science and Technology Organisation
Australian Public Service Commission
Australian Radiation Protection and Nuclear Safety Agency
Australian Security Intelligence Organisation
Australian Taxation Offce
Australian Trade Commission (Austrade)
Australian Transaction Reports and Analysis Centre
Bureau of Meteorology
Commonwealth Scientifc and Industrial Research Organisation (CSIRO)
Department of Agriculture, Fisheries and Forestry
Department of Broadband, Communications and the Digital Economy
Department of Climate Change and Energy Effciency
Department of Defence
Department of Education, Employment and Workplace Relations
Department of Families, Housing, Community Services and Indigenous Affairs
Department of Finance and Deregulation
Department of Health and Ageing
Department of Human Services
Department of Immigration and Citizenship
Department of Infrastructure and Transport
Department of Regional Australia, Local Government, Arts and Sport
Department of Industry, Innovation, Science, Research and Tertiary Education
Department of the Prime Minister and Cabinet
Department of Resources, Energy and Tourism
Department of Sustainability, Environment, Water, Population and Communities
Department of Veterans’ Affairs
Export Finance and Insurance Corporation
Geoscience Australia
Reserve Bank of Australia
National Library of Australia
Offce of National Assessments
Offce of the Offcial Secretary to the Governor-General
Department of the House of Representatives
The Treasury
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APPENDIx 8 PURCHASER–PROVIDER ARRANGEMENTS
The department also has purchaser-provider arrangements with other Australian
Government and state government agencies to provide payroll services to employees
of other agencies overseas. In 2011–12 we provided payroll services to the
following agencies:
Attorney-General’s Department
Australian Customs and Border Protection Service
Australian Taxation Offce
Department of Agriculture, Fisheries and Forestry
Department of Climate Change and Energy Effciency
Department of Education, Employment and Workplace Relations
Department of Finance and Deregulation
Department of Infrastructure and Transport
Department of Industry, Innovation, Science, Research and Tertiary Education
Department of the Prime Minister and Cabinet
Department of Resources, Energy and Tourism
Department of Veterans’ Affairs
Offce of National Assessments
Western Australian Government Department of Premier and Cabinet
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APPENDIx 9
Advertising and market research
During 2011–12, the Department of Foreign Affairs and Trade conducted the
smartraveller advertising campaign. Further information on that campaign is available at
http://www.dfat.gov.au and in the reports on Australian Government advertising that are
prepared by the Department of Finance and Deregulation. Those reports are available at
http://www.fnance.gov.au/advertising/index.html.
As required under Section 311A of the Commonwealth Electoral Act 1918, following is a
list of agencies and organisations contracted by the department (including at overseas
posts) to provide advertising and market research services. The list includes payments
above $11 900 (GST inclusive).
TABLe 28. ADVeRTiSiNG AND MARKeT ReSeARCH
Agencies/Organisations Service provided Program Amount ($)
Advertising agencies
Longueville Media Pty Ltd smartraveller Phase III campaign 2.1 69 339
Ogilvy & Mather (Sydney) Pty Limited
(Ethnic Communications)
smartraveller Phase III campaign 2.1 88 638
Professional Public Relations Pty Ltd smartraveller Phase III campaign 2.1 153 609
The Campaign Palace Pty Limited smartraveller Phase III campaign 2.1 787 228
The Trustee for Paragon Australia
Group Trust (Greenfrog)
smartraveller Phase III campaign 2.1 31 903
Victoria Schnabl (Inkspott
Promotions)
smartraveller Phase III campaign 2.1 24 650
Market research organisations
Cudex Pty Ltd (Newspoll) Market research on bilateral
relationship
1.1 60 500
GFK Blue Moon Quantitative
Research Pty Limited
smartraveller Phase III campaign 2.1 144 375
Taylor Nelson Sofres Australia Pty Ltd Concept testing of smartraveller
Phase III campaign material
2.1 76 021
Polling and direct mail organisations
No payments to report
Media advertising organisations
Adcorp Australia Limited Advertising for general recruitment 1.1 47 680
B Online Learning Pty Limited smartraveller Phase III campaign 2.1 16 500
Island Business International Advertising RAMSI Honiara 1.1 12 168
Mediabrands Australia Pty Ltd
(Universal McCann)
smartraveller Phase III campaign 2.1 3 495 646
New Zealand Herald Advertising RAMSI Honiara 1.1 16 389
Sensis Pty Ltd White Pages directory listings 1.1 263 969
Thanh Nien Newspaper Advertising relocation of offce 1.1 13 135
TOTAL 5 301 750
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APPENDIx 10 GRANTS AND CONTRIBUTIONS
APPENDIx 10
Grants and contributions
Table 29 provides a list of the grant programs administered or managed by the
department in 2011–12. Information on grants awarded by the department since
1 July 2007 is available at www.dfat.gov.au/dept/grants/index.html.
In 2011–12, the department made payments totalling $222.9 million consisting
of $83.2 million to 30 international organisations and international treaty
secretariats, including the United Nations, and $139.7 million to 15 United Nations
peacekeeping operations.
TABLe 29. GRANTS PROGRAMS
Program Brief description of the Program 2011–12
Actual
($’000)
International
Relations Grants
Grants to advance Australia’s objectives in the areas of
international security, trade and economic performance,
global cooperation and public diplomacy.
4 941
Other Departmental Grants to advance Australia’s objectives in the areas of
international security, trade and economic performance,
global cooperation and public diplomacy.
3 723
Other Administered Grants to advance Australia’s objectives in the areas of
international security, trade and economic performance,
global cooperation and public diplomacy.
3 800
Total 12 464
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TABLe 30. CONTRiBUTiONS TO iNTeRNATiONAL ORGANiSATiONS AND PeACeKeePiNG OPeRATiONS*
Total
($’000)
international Organisations
ABAC Secretariat 33
Antarctic Treaty Secretariat 56
APEC Secretariat 369
Asia-Europe Foundation 50
Biological Weapons Convention 28
Commission for the Conservation of Antarctic Marine Living Resources 1 067
Commonwealth Secretariat 3 038
Comprehensive Nuclear-Test-Ban Treaty Organization 2 206
Convention on Cluster Munitions 12
Convention on the Prohibition of the Use, Stockpiling, Production and Transfer
of Anti-Personnel Mines and on their Destruction (Ottawa Convention)
9
Convention on Certain Conventional Weapons 19
Energy Charter Secretariat 192
International Atomic Energy Agency 8 010
International Bureau of the Permanent Court of Arbitration 27
International Bureau of Expositions 32
International Centre for the Study of the Preservation and Restoration of
Cultural Property
90
International Criminal Tribunal for the former Yugoslavia 2 228
International Criminal Tribunal for Rwanda 1 433
International Humanitarian Fact-Finding Commission 6
International Residual Mechanism for Criminal Tribunals 434
International Seabed Authority 161
International Tribunal for the Law of the Sea 336
Non-Proliferation of Nuclear Weapons Treaty Organisation 22
Organisation for Economic Co-operation and Development 8 938
Organisation for the Prohibition of Chemical Weapons 1 576
Pacifc Economic Cooperation Committee 47
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APPENDIx 10 GRANTS AND CONTRIBUTIONS
Total
($’000)
United Nations—Assessed Contribution 43 957
United Nations Educational, Scientifc and Cultural Organization 6 365
Wassenaar Arrangement 52
World Trade Organization 2 434
Subtotal international Organisations 83 227
international Peacekeeping Operations
United Nations Disengagement Observer Force 947
United Nations Hybrid Operation in Darfur 31 292
United Nations Integrated Mission in Timor-Leste 3 604
United Nations Interim Administration Mission in Kosovo 782
United Nations Interim Force in Lebanon 10 895
United Nations Interim Security Force for Abyei 2 003
United Nations Mission for the Referendum in Western Sahara 1 144
United Nations Mission in Liberia 10 220
United Nations Mission in South Sudan 8 127
United Nations Mission in Sudan 8 998
United Nations Operation in Côte d’Ivoire 12 040
United Nations Organization Mission in the Democratic Republic of the Congo 27 851
United Nations Peacekeeping Force in Cyprus 579
United Nations Stabilization Mission in Haiti 15 422
United Nations Support for African Union Mission in Somalia 5 730
Subtotal Peacekeeping Operations 139 634
Total 222 861
* Contributions to international organisations and United Nations peacekeeping operations are administered under Outcome 1.
These fgures are provided on an accrual basis consistent with the Financial Statements Note 15. Reporting of payments under
the Outcome structure provides consistency with the reporting of these items in the Portfolio Budget Statements 2011–12 and
the Portfolio Additional Estimates Statements 2011–12.
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APPENDIx 11
List of sponsors
The following is a list of sponsors who supported projects or programs undertaken by
the department during the year. The list includes sponsorship equivalent to $1500 and
above (GST inclusive).
TABLe 31. LiST OF SPONSORS
Sponsor Project Program Amount ($)
ANZ Banking Group Limited Australia Day 2012 (Abu Dhabi) 1.1 4 023
Transfeld Services Australia Day 2012 (Abu Dhabi) 1.1 4 023
Worley Parsons Australia Day 2012 (Abu Dhabi) 1.1 4 036
ADCB Macquarie Bank Australia Day 2012 (Abu Dhabi) 1.1 3 932
University of Wollongong Australia Day 2012 (Abu Dhabi) 1.1 4 014
Murdoch University Australia Day 2012 (Abu Dhabi) 1.1 4 023
AECOM Australia Day 2012 (Abu Dhabi) 1.1 4 070
GHD Global Limited Australia Day 2012 (Abu Dhabi) 1.1 4 070
Servcorp Australia Day 2012 (Abu Dhabi) 1.1 4 023
Al Habtoor Leighton Australia Day 2012 (Abu Dhabi) 1.1 4 062
Jones the Grocer Australia Day 2012 (Abu Dhabi) 1.1 4 014
Geodrill Ghana Limited Message Stick Art Exhibition (Accra) 1.1 4 786
Chesser Arama Madencilik Anzac Day Gallipoli Concert (Ankara) 1.1 2 168
Nitromax San AS Anzac Day Gallipoli Concert (Ankara) 1.1 2 677
AUSFILM Sponsorship Film Forum (Beijing) 1.1 7 400
Time Publishing & Media
Company Limited
Sponsorship AU Writer Week (Beijing) 1.1 30 648
Fortescue Metals Group
Limited
Sponsorship AU Writer Week (Beijing) 1.1 20 000
Copyright Agency Limited Sponsorship AU Writer Week (Beijing) 1.1 25 000
Screen Australia Sponsorship Film Forum (Beijing) 1.1 9 999
Banpu PCL Australia Day 2012 (Bangkok) 1.1 7 910
Loxley PCL Australia Day 2012 (Bangkok) 1.1 3 955
Ratchaburi Electricity
Generating Holding PCL
Australia Day 2012 (Bangkok) 1.1 4 114
Baker Tilly Thailand Australia Day 2012 (Bangkok) 1.1 1 924
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APPENDIx 11 LIST OF SPONSORS
Sponsor Project Program Amount ($)
Bluescope Steel (Thailand)
Limited
Australia Day 2012 (Bangkok) 1.1 3 851
Akara Mining Limited Australia Day 2012 (Bangkok) 1.1 7 828
BNH Medical Centre Limited Australia Day 2012 (Bangkok) 1.1 1 990
Meinhardt (Thailand) Limited Australia Day 2012 (Bangkok) 1.1 2 016
Virgin Australia Australia Day 2012 (Bangkok) 1.1 2 049
Mitr Phol Sugar Corporation
Limited
Australia Day 2012 (Bangkok) 1.1 4 059
ANCA Manufacturing
(Thailand) Limited
Australia Day 2012 (Bangkok) 1.1 3 980
Property Care Services
(Thailand) Limited
Australia Day 2012 (Bangkok) 1.1 1 926
Tourism Australia Australia Day 2012 (Bangkok) 1.1 1 913
Visy Packaging (Thailand)
Limited
Australia Day 2012 (Bangkok) 1.1 2 028
Blackmores Limited Australia Day 2012 (Bangkok) 1.1 3 894
ANZ Banking Group Limited Australia Day 2012 (Bangkok) 1.1 2 029
PTT Exploration and
Production PCL
Australia Day 2012 (Bangkok) 1.1 7 680
Riverside Garden Marina
Company Limited
Australia Day 2012 (Bangkok) 1.1 2 049
The Sukhothai Bangkok Australia Day 2012 (Bangkok) 1.1 3 890
Boeing Australia Day 2012 (Chicago) 1.1 5 080
Victorian Government Australia Day 2012 (Chicago) 1.1 4 816
Peabody Energy Australia Day 2012 (Chicago) 1.1 20 137
Creata USA Incorporated Australia Day 2012 (Chicago) 1.1 4 846
Nexteer Australia Day 2012 (Chicago) 1.1 4 765
Macquarie Australia Day 2012 (Chicago) 1.1 19 374
Baker & Mackenzie Australia Day 2012 (Chicago) 1.1 5 034
Westpac Banking
Corporation
Oz Fest (Canberra) 1.1 100 000
QLD Treasury and Trade Oz Fest (Canberra) 1.1 50 000
NSW Department of Premier
and Cabinet
Oz Fest (Canberra) 1.1 100 000
Tourism Australia Oz Fest (Canberra) 1.1 100 000
WA Department of State
Development
Oz Fest (Canberra) 1.1 50 000
Rio Tinto Oz Fest (Canberra) 1.1 328 047
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Sponsor Project Program Amount ($)
SA Department of Premier
and Cabinet
Oz Fest (Canberra) 1.1 100 000
University of Melbourne Oz Fest (Canberra) 1.1 50 000
Navitas Limited Australia Day 2012 (Hong Kong) 1.1 4 381
Treasury Wine Estates Australia Day 2012 (Hong Kong) 1.1 4 342
Westpac Banking
Corporation
Australia Day 2012 (Hong Kong) 1.1 4 511
Fringe Club – Hong Kong Australian Christmas Card Competition
(Hong Kong)
1.1 12 444
Macquarie Graduate School Australia Day 2012 (Hong Kong) 1.1 4 629
Commonwealth Bank of
Australia
Australia Day 2012 (Hong Kong) 1.1 4 537
BGF Equities Australia Day 2012 (Hong Kong) 1.1 4 579
ANZ Banking Group Limited Australia Day 2012 (Hong Kong) 1.1 4 390
Tourism Australia Australia Day 2012 (Hong Kong) 1.1 2 389
CPA Australia Australia Day 2012 (Hong Kong) 1.1 4 712
Goodman Asia Australia Day 2012 (Hong Kong) 1.1 4 664
University of New South
Wales
40th Anniversary of Diplomatic
Relations (Hanoi)
1.1 4 836
TMA – Tuong Minh 40th Anniversary of Diplomatic
Relations (Hanoi)
1.1 1 978
RMIT University 40th Anniversary of Diplomatic
Relations (Hanoi)
1.1 5 138
Vinausteel 40th Anniversary of Diplomatic
Relations (Hanoi)
1.1 5 131
Interfour 40th Anniversary of Diplomatic
Relations (Hanoi)
1.1 2 051
Bluescope Steel 40th Anniversary of Diplomatic
Relations (Hanoi)
1.1 1 973
CPA Australia 40th Anniversary of Diplomatic
Relations (Hanoi)
1.1 1 974
SSE Steel 40th Anniversary of Diplomatic
Relations (Hanoi)
1.1 5 135
QBE Insurance 40th Anniversary of Diplomatic
Relations (Hanoi)
1.1 10 086
Queensland University of
Technology
Deteksi Convention 2011 (Jakarta) 1.1 6 829
Edith Cowan University Deteksi Convention 2011 (Jakarta) 1.1 7 624
University of New South
Wales
Deteksi Convention 2011 (Jakarta) 1.1 8 307
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APPENDIx 11 LIST OF SPONSORS
Sponsor Project Program Amount ($)
Brisbane North Institute of
TAFE
Deteksi Convention 2011 (Jakarta) 1.1 4 769
Tourism Queensland Deteksi Convention 2011 (Jakarta) 1.1 3 249
Trade Queensland Deteksi Convention 2011 (Jakarta) 1.1 4 620
Victorian Government
Business Offce (SEA)
Australia Day 2012 (Kuala Lumpur) 1.1 2 380
Treasury Wine Estates Australia Day 2012 (London) 1.1 1 956
ANZ Banking Group Limited Australia Day 2012 (Manila) 1.1 2 712
Jindal Steel PVT Limited Oz Fest (New Delhi) 1.1 46 000
JSW Steel Limited Oz Fest (New Delhi) 1.1 46 000
ANZ Banking Group Limited 11th round of Trans-Pacifc Partnership
Agreement negotiations (Canberra)
1.1 80 000
Rural Industries Research
and Development
Corporation
Subsistence to Supermarket II project
(Canberra)
1.1 5 500
Hastings Deering Australia Week 2012 (Port Moresby) 1.1 4 730
Trukai Industries Australia Week 2012 (Port Moresby) 1.1 2 336
Rio Tinto Minerals (PNG)
Limited
Australia Week 2012 (Port Moresby) 1.1 4 577
Australia Network Australia Week 2012 (Port Moresby) 1.1 5 000
Australia PNG Business
Council
Australia Week 2012 (Port Moresby) 1.1 4 581
Newcrest Mining Limited Australia Week 2012 (Port Moresby) 1.1 4 732
Westpac Banking
Corporation
Australia Week 2012 (Port Moresby) 1.1 9 353
SP Brewery Limited Australia Week 2012 (Port Moresby) 1.1 9 375
Curtain Bros – PNG Australia Week 2012 (Port Moresby) 1.1 4 556
ANZ Banking Group Limited Australia Week 2012 (Port Moresby) 1.1 4 528
Pacifc MMI Australia Week 2012 (Port Moresby) 1.1 9 679
ELA Motors Australia Week 2012 (Port Moresby) 1.1 9 327
Chin H Meen & Sons Limited Australia Week 2012 (Port Moresby) 1.1 2 344
Servcorp Square Australia Day 2012 (Riyadh) 1.1 2 740
Austal Australia Day 2012 (Riyadh) 1.1 3 986
Modelcraft Australia Day 2012 (Riyadh) 1.1 2 593
Leighton Middle East Australia Day 2012 (Riyadh) 1.1 2 622
Meat and Livestock Australia Australia Day 2012 (Riyadh) 1.1 3 000
China Yunnan Copper
Australia Limited
Australia Day 2012 (Santiago) 1.1 2 894
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Sponsor Project Program Amount ($)
Worley Parsons Australia Day 2012 (Santiago) 1.1 5 918
BHP Billiton (Chile) Australia Day 2012 (Santiago) 1.1 7 691
Sinclair Knight Merz Chile
Limited
Australia Day 2012 (Santiago) 1.1 5 837
Orica (Chile) Australia Day 2012 (Santiago) 1.1 6 055
Xstrata Chile Servicios
Corporativos Limited
Australia Day 2012 (Santiago) 1.1 5 838
Sustainability 40th Anniversary Australia-Mongolia
Diplomatic Relations (Seoul)
1.1 3 000
Minter Ellison 40th Anniversary Australia-Mongolia
Diplomatic Relations (Seoul)
1.1 5 000
RPS Aquaterra 40th Anniversary Australia-Mongolia
Diplomatic Relations (Seoul)
1.1 5 000
Xanadu Mines 40th Anniversary Australia-Mongolia
Diplomatic Relations (Seoul)
1.1 5 000
Terra Energy 40th Anniversary Australia-Mongolia
Diplomatic Relations (Seoul)
1.1 5 000
Australian Education
International
Colombo Plan Photo Exhibition
(Singapore)
1.1 5 000
Commonwealth Bank of
Australia
NAIDOC 2012 (Singapore) 1.1 3 889
Blake Dawson Gaikokuho
Jimu Bengoshi Jimusho
Australia Day In Spring 2012 (Tokyo) 1.1 2 890
K.K. Aristocrat Technologies Australia Day In Spring 2012 (Tokyo) 1.1 3 080
Servcorp Japan K.K. Australia Day In Spring 2012 (Tokyo) 1.1 3 080
Mitsubishi Corporation Australia Day In Spring 2012 (Tokyo) 1.1 3 093
Mars Japan Limited Australia Day In Spring 2012 (Tokyo) 1.1 6 160
Commonwealth Bank of
Australia
Australia Day In Spring 2012 (Tokyo) 1.1 12 380
Tourism Australia Australia Day In Spring 2012 (Tokyo) 1.1 11 810
Marubeni Corporation Australia Day In Spring 2012 (Tokyo) 1.1 2 930
Allied Pickfords Japan Australia Day In Spring 2012 (Tokyo) 1.1 2 850
Sumitomo Corporation Australia Day In Spring 2012 (Tokyo) 1.1 3 000
Toll Japan GK Australia Day In Spring 2012 (Tokyo) 1.1 11 940
Queensland Government
Japan Offce
Australia Day In Spring 2012 (Tokyo) 1.1 3 080
North West Shelf Liaison
Company Pty Ltd
Australia Day In Spring 2012 (Tokyo) 1.1 11 760
Macquarie Capital Securities
Japan Limited
Australia Day In Spring 2012 (Tokyo) 1.1 11 340
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APPENDIx 11 LIST OF SPONSORS
Sponsor Project Program Amount ($)
Rio Tinto (Japan) Limited Australia Day In Spring 2012 (Tokyo) 1.1 3 095
Field Fresh Tasmania Australia Day In Spring 2012 (Tokyo) 1.1 2 895
Itochu Corporation Australia Day In Spring 2012 (Tokyo) 1.1 3 080
ANZ Banking Group Limited Australia Day In Spring 2012 (Tokyo) 1.1 12 000
National Australia Bank
Limited Tokyo Branch
Australia Day In Spring 2012 (Tokyo) 1.1 12 540
Mitsui & Co Ltd. Australia Day In Spring 2012 (Tokyo) 1.1 3 065
BHP Billiton (Japan) Australia Day In Spring 2012 (Tokyo) 1.1 5 780
Victorian Government
Business Offce (Tokyo)
Australia Day In Spring 2012 (Tokyo) 1.1 3 055
Qantas Airways Limited Australia Day In Spring 2012 (Tokyo) 1.1 5 781
Sojitz Corporation Australia Day In Spring 2012 (Tokyo) 1.1 2 868
Inpex Corporation Australia Day In Spring 2012 (Tokyo) 1.1 12 320
Government of Western
Australia Tokyo Offce
Australia Day In Spring 2012 (Tokyo) 1.1 2 870
Telstra Japan K.K. Australia Day In Spring 2012 (Tokyo) 1.1 11 720
ANZ Banking Group Limited Australian Architecture Lecture Series
(Taipei)
1.1 3 451
I-Mei Foods Company Australia Day In Spring 2012 (Taipei) 1.1 3 281
ANZ Banking Group Limited Australia Day In Spring 2012 (Taipei) 1.1 2 029
Clinico Incorporated Australia Day In Spring 2012 (Taipei) 1.1 4 839
Teco Electric and Machinery
Company Limited
Australia Day In Spring 2012 (Taipei) 1.1 3 229
Peabody Energy Anzac Day 2012 (Washington) 1.1 5 021
BecTech Anzac Day 2012 (Washington) 1.1 4 853
Carmeuse Anzac Day 2012 (Washington) 1.1 4 754
Austal USA Anzac Day 2012 (Washington) 1.1 4 968
CPA Australia Trans-Tasman Function (Wellington) 1.1 4 266
Progressive Enterprise Trans-Tasman Function (Wellington) 1.1 2 646
Austrade Rugby World Cup – Wallabies Function
(Wellington)
1.1 3 989
Fulton Hogan Trans-Tasman Function (Wellington) 1.1 9 998
Telstra Clear Trans-Tasman Function (Wellington) 1.1 7 181
Trans-Tasman Bus Trans-Tasman Function (Wellington) 1.1 12 241
ANZ Banking Group Limited Trans-Tasman Function (Wellington) 1.1 12 095
Total 1 887 462
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APPENDIx 12
Summary of the overseas network
Following is a summary of the overseas network as at 30 June 2012.
More information about our overseas network is available at the department’s website
at www.dfat.gov.au/missions and at www.smartraveller.gov.au.
TABLe 32. NeTWORK OF OVeRSeAS POSTS MANAGeD BY THe DePARTMeNT OF FOReiGN AFFAiRS AND
TRADe (95 POSTS)
Country of location City Post type
Afghanistan Kabul Embassy
Argentina Buenos Aires Embassy
Austria Vienna Embassy and Permanent
Mission to the United Nations
Bangladesh Dhaka High Commission
Belgium Brussels Embassy and Mission to the
European Union
Brazil Brasilia Embassy
Brunei Darussalam Bandar Seri Begawan High Commission
Cambodia Phnom Penh Embassy
Canada Ottawa High Commission
Chile Santiago Embassy
China Beijing Embassy
Guangzhou Consulate-General
Hong Kong Consulate-General
Shanghai Consulate-General
Croatia Zagreb Embassy
Cyprus Nicosia High Commission
Denmark Copenhagen Embassy
Egypt Cairo Embassy
Ethiopia Addis Ababa Embassy
Federated States of Micronesia Pohnpei Embassy
Fiji Suva High Commission
France Paris Embassy*
Paris Delegation to the OECD
Germany Berlin Embassy
Ghana Accra High Commission
Greece Athens Embassy
Hungary Budapest Embassy
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APPENDIx 12 SUMMARy OF THE OVERSEAS NETWORK
Country of location City Post type
India New Delhi High Commission
Chennai Consulate-General
Mumbai Consulate-General
Indonesia Jakarta Embassy
Bali (Denpasar) Consulate-General
Iran Tehran Embassy
Iraq Baghdad Embassy
Ireland Dublin Embassy
Israel Tel Aviv Embassy
Italy Rome Embassy and Permanent
Mission to the FAO
Japan Tokyo Embassy
Jordan Amman Embassy
Kenya Nairobi High Commission
Kiribati Tarawa High Commission
Korea, Republic of Seoul Embassy
Kuwait Kuwait Embassy
Laos Vientiane Embassy
Lebanon Beirut Embassy
Malaysia Kuala Lumpur High Commission
Malta Malta High Commission
Mauritius Port Louis High Commission
Mexico Mexico City Embassy
Myanmar Yangon Embassy
Nauru Nauru High Commission
Nepal Kathmandu Embassy
Netherlands The Hague Embassy
New Caledonia (France) Noumea Consulate-General
New Zealand Wellington High Commission
Nigeria Abuja High Commission
Pakistan Islamabad High Commission
Papua New Guinea Port Moresby High Commission
Peru Lima Embassy
Philippines Manila Embassy
Poland Warsaw Embassy
Portugal Lisbon Embassy
Russia Moscow Embassy
Samoa Apia High Commission
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Country of location City Post type
Saudi Arabia Riyadh Embassy
Serbia Belgrade Embassy
Singapore Singapore High Commission
Solomon Islands Honiara High Commission
South Africa Pretoria High Commission
Spain Madrid Embassy
Sri Lanka Colombo High Commission
Sweden Stockholm Embassy
Switzerland Geneva Permanent Mission to the United
Nations
Geneva Permanent Mission to the WTO
and Consulate-General
Thailand Bangkok Embassy and Permanent
Mission to ESCAP
Timor-Leste Dili Embassy
Tonga Nuku’alofa High Commission
Trinidad and Tobago Port of Spain High Commission
Turkey Ankara Embassy
Çanakkale Consulate
United Arab Emirates Abu Dhabi Embassy
United Kingdom London High Commission
United States of America Washington DC Embassy
Chicago Consulate-General
Honolulu Consulate-General
Los Angeles Consulate-General
New York Consulate-General
New York Permanent Mission to the United
Nations
Vanuatu Port Vila High Commission
Vatican City Vatican City Embassy to the Holy See
Vietnam Hanoi Embassy
Ho Chi Minh City Consulate-General
Zimbabwe Harare Embassy
* The Australian Permanent Delegation to UNESCO is located within the embassy in Paris.
In Ramallah, the Australian Government maintains the Australian Representative Offce.
In Taipei, the Australian Offce represents Australian interests in Taiwan in the absence
of formal relations. The offce includes staff seconded from the Department of Foreign
Affairs and Trade, Austrade and the Department of Innovation, Industry, Science,
Research and Tertiary Education.
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APPENDIx 12 SUMMARy OF THE OVERSEAS NETWORK
TABLe 33. CONSULATeS MANAGeD BY AUSTRADe (14 POSTS)
Country of location City Post type
Brazil São Paulo Consulate-General
Canada Toronto Consulate-General
Germany Frankfurt Consulate-General
Italy Milan Consulate-General
Japan Fukuoka Consulate-General
Osaka Consulate-General
Sapporo Consulate
Libya Tripoli* Consulate-General
Mongolia Ulaanbaatar Consulate-General
New Zealand Auckland Consulate-General
Turkey Istanbul Consulate-General
United Arab Emirates Dubai Consulate-General
United States of America Atlanta Consulate-General
San Francisco Consulate-General
* Temporarily closed as at 30 June 2012
TABLe 34. CONSULATeS HeADeD BY HONORARY CONSULS (65 POSTS)
Region Country of Location City Responsible Post
Africa Angola Luanda Pretoria
Botswana Gaborone Pretoria
Mozambique Maputo Pretoria
Namibia Windhoek Pretoria
Nigeria Lagos Abuja
South Africa Cape Town** Pretoria
Tanzania Dar es Salaam Nairobi
Uganda Kampala Nairobi
Asia Indonesia Medan** Jakarta
Kazakhstan Almaty Moscow
Korea, Republic of Busan Seoul
Malaysia Kota Kinabalu Kuala Lumpur
Kuching Kuala Lumpur
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Region Country of Location City Responsible Post
Penang Kuala Lumpur
Pakistan Karachi Islamabad
Lahore Islamabad
Russia Vladivostok* Moscow
Thailand Chiang Mai Bangkok
Koh Samui Bangkok
Phuket Bangkok
Pacifc French Polynesia
(France)
Papeete Noumea
Papua New Guinea Lae Port Moresby
Europe Bosnia and
Herzegovina
Sarajevo Vienna
Bulgaria Sofa Athens
Czech Republic Prague* Warsaw
Estonia Tallinn Stockholm
Finland Helsinki Stockholm
Former Yugoslav
Republic of Macedonia
Skopje Belgrade
Germany Munich Berlin
Greece Thessaloniki Athens
Italy Venice Rome
Latvia Riga Stockholm
Lithuania Vilnius Stockholm
Norway Oslo Copenhagen
Romania Bucharest Belgrade
Russia St Petersburg Moscow
Slovenia Ljubljana Vienna
Spain Barcelona*** Madrid
Seville** Madrid
Switzerland Zurich Berlin
Ukraine Kiev*** Vienna
United Kingdom Edinburgh London
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APPENDIx 12 SUMMARy OF THE OVERSEAS NETWORK
Region Country of Location City Responsible Post
North
America
Canada Calgary*** Ottawa
Vancouver* Ottawa
United States Boston** New York CG
Denver Los Angeles
Houston Washington DC
Miami*/** Atlanta
Seattle*/** San Francisco
Central
and South
America
Bolivia La Paz Lima
Brazil Rio de Janeiro Brasilia
Colombia Bogotá** Santiago
Ecuador Guayaquil Santiago
Guyana Georgetown Port of Spain
Mexico Monterrey Mexico City
Panama Panama City Mexico City
Paraguay Asunción Buenos Aires
Uruguay Montevideo Buenos Aires
Caribbean Antigua and Barbuda St John’s Port of Spain
Bahamas Nassau Port of Spain
Barbados St James Port of Spain
Grenada St George’s Port of Spain
Jamaica Kingston Port of Spain
Middle
East
Oman Muscat Riyadh
Saudi Arabia Jeddah*** Riyadh
* Austrade-managed consulate
** Temporarily closed as at 30 June 2012
*** Post seeking new candidate
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TABLe 35. LOCATiONS WHeRe CANADA PROViDeS CONSULAR SeRViCeS TO AUSTRALiAN CiTiZeNS
Country/Consular area Canadian post responsible Australian supervising post
Algeria Algiers Paris Embassy
Burkina Faso Ouagadougou Accra
Cameroon Yaoundé Abuja
Congo, Democratic Republic
of the
Kinshasa Harare
Costa Rica San José Mexico City
Côte d’lvoire Abidjan Accra
Cuba Havana Mexico City
Ecuador Quito Santiago
El Salvador San Salvador Mexico City
Gabon Yaoundé Abuja
Gambia, The Dakar Abuja
Guatemala Guatemala City Mexico City
Guinea Dakar Accra
Mali Bamako Accra
Morocco Rabat Paris Embassy
Niger Niamey Abuja
Senegal Dakar Accra
Syria* Damascus Cairo
Tunisia Tunis Malta
Venezuela Caracas Santiago
*Currently closed due to civil unrest. The Hungarian Government has agreed to provide assistance to Australian citizens on a
temporary basis through the Hungarian Embassy in Damascus.
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APPENDIx 12 SUMMARy OF THE OVERSEAS NETWORK
TABLe 36. LOCATiONS WHeRe AUSTRALiA PROViDeS CONSULAR SeRViCeS TO CANADiAN CiTiZeNS
Country/Consular area Australian post responsible Canadian supervising post
Bali (Indonesia) Bali (Denpasar) Jakarta
Cambodia Phnom Penh Bangkok
Federated States of
Micronesia
Pohnpei Canberra
Guam Pohnpei Canberra
Marshall Islands Pohnpei Canberra
Commonwealth of the
Northern Mariana Islands
Pohnpei Canberra
Palau Pohnpei Canberra
French Polynesia (France) Noumea Wellington
Hawaii Honolulu San Francisco
Kiribati Tarawa Wellington
Laos Vientiane Bangkok
Myanmar Yangon Bangkok
Nauru Nauru Canberra
New Caledonia (France) Noumea Canberra
Nusa Tenggara Barat
(Indonesia)
Bali (Denpasar) Jakarta
Papua New Guinea Port Moresby Canberra
Samoa Apia Wellington
Solomon Islands Honiara Canberra
Timor-Leste Dili Jakarta
Tonga Nuku’alofa Wellington
Vanuatu Port Vila Canberra
244
The Minister for Foreign Affairs, Senator Carr, meets
Thai Foreign Minister, Dr Surapong Tovichakchaikul,
in the margins of the visit to Australia by Thai Prime
Minister, Ms yingluck Shinawatra, in May 2012.
Photo: Auspic/David Foote
Third Secretary at the Australian High Commission
in Abuja, Dr Christopher Watkins, attending the
commissioning of the Gbalu local government school
in Nigeria, where the Australian Government donated
school furniture as part of the Direct Aid Program,
February 2012.
245
The Parliamentary Secretary for Pacifc Island Affairs, Mr Marles, and Papua New Guinean
football players, Mr Brendan Beno (at left) and Mr Gideon Simon (right). They were in
Canberra to attend the signing of an MOU between the AFL and the Australian Government
and joined Mr Marles in a test of marking skills at Parliament House in Canberra,
August 2011. Photo: Mark Graham
FI NANCIAL
STATEMENTS
SECTI ON 5
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5
Financial statements
Financial statements for the year ended 30 June 2012
independent auditor’s report
Statement by the Chief executive and Chief Financial Officer
Statement of comprehensive income
Balance sheet
Statement of changes in equity
Cash flow statement
Schedules of commitments, contingencies and
administered items
Notes to and forming part of the financial statements,
including a summary of significant accounting policies
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247
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FINANcIAL STATEMENTS
S
E
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DFAT ANNUAL REPORT 201 1 –201 2
D
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N
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FINANcIAL STATEMENTS
S
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DFAT ANNUAL REPORT 201 1 –201 2
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F
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T
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S
250
for the period ended 30 June 2012
2012 2011
Notes $'000 $'000
EXPENSES
Employee benefits 3A 443,703 411,694
Supplier 3B 477,800 457,158
Grants 3C 3,221 14,741
Depreciation and amortisation 3D 91,587 92,993
Finance costs 3E 2,620 882
Write-down and impairment of assets 3F 1,194 16,925
Foreign exchange losses 3G 2,051 1,293
Losses from asset sales 3H 6,091 -
Other expenses 3I 70 114
Total expenses 1,028,337 995,800
LESS:
OWN-SOURCE INCOME
Own-source revenue
Sale of goods and rendering of services 4A 118,899 138,053
Other revenue 4B 9,905 9,688
Total own-source revenue 128,804 147,741
Gains
Gain on asset sales 4C - 1,874
Reversals of Previous Asset Write-Downs and Impairments 4D 16,691 -
Other 4E 6,409 450
Total gains 23,100 2,324
Total own-source income 151,904 150,065
Net cost of (contribution by) services
876,433 845,735
Revenue from Government 4F 821,534 875,645
Surplus (Deficit) on continuing operations (54,899) 29,910
Surplus (Deficit) attributable to the Australian Government (54,899) 29,910
OTHER COMPREHENSIVE INCOME
Changes in asset revaluation reserves 63,001 (90,329)
Total other comprehensive income 63,001 (90,329)
Total comprehensive income (loss) 8,102 (60,419)
Total comprehensive income (loss) attributable to the Australian
Government 8,102 (60,419)
Statement of Comprehensive Income
The above statement should be read in conjunction with the accompanying notes.
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251
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FINANcIAL STATEMENTS
2012 2011
Notes $’000 $’000
ASSETS
Financial Assets
Cash and cash equivalents 5A 54,787 58,160
Trade and other receivables 5B 943,798 880,783
Total financial assets 998,585 938,943
Non-Financial Assets
Land and buildings 6A,C 1,815,282 1,749,965
Infrastructure, plant and equipment 6B,C 151,559 141,433
Intangibles 6D,E 57,694 36,228
Inventories 6F 41,976 40,238
Other 6G 27,046 27,532
Total non-financial assets 2,093,557 1,995,396
Assets held for sale 6A,C 1,599 760
Total assets 3,093,741 2,935,099
LIABILITIES
Payables
Suppliers 7A 76,099 80,184
Other 7B 31,547 34,821
Total payables 107,646 115,005
Provisions
Employee provisions 8A 135,793 123,129
Other 8B 26,679 23,842
Total provisions 162,472 146,971
Total liabilities 270,118 261,976
Net assets 2,823,623 2,673,122
EQUITY
Parent Entity Interest
Contributed equity 1,841,633 1,699,238
Reserves 390,341 327,340
Retained surplus (accumulated deficit) 591,649 646,544
Total parent entity interest 2,823,623 2,673,122
Total equity 2,823,623 2,673,122
The above statement should be read in conjunction with the accompanying notes.
Balance Sheet
as at 30 June 2012
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DFAT ANNUAL REPORT 201 1 –201 2
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FINANcIAL STATEMENTS
2012 2011
Notes $’000 $’000
OPERATING ACTIVITIES
Cash received
Appropriations 936,383 1,039,221
Sales of goods and rendering of services 143,141 126,227
Net GST received 29,895 27,981
Total cash received 1,109,419 1,193,429
Cash used
Employees 429,590 405,296
Suppliers 517,326 497,640
Cash transferred to OPA 159,224 227,544
Other 3,222 14,742
Total cash used 1,109,362 1,145,222
Net cash from (used by) operating activities 9 57 48,207
INVESTING ACTIVITIES
Cash received
Proceeds from sales of property, plant and equipment 1,403 14,622
Proceeds from sales of financial instruments - -
Total cash received 1,403 14,622
Cash used
Purchase of property, plant and equipment 101,097 101,992
Purchase of intangibles 10,191 10,884
Total cash used 111,288 112,876
Net cash from (used by) investing activities (109,885) (98,254)
FINANCING ACTIVITIES
Cash received
Contributed equity 110,020 85,745
Total cash received 110,020 85,745
Cash used
Returns of Contributed Equity 1,513 24,800
Other 1 -
Total cash used 1,514 24,800
Net cash from (used by) financing activities 108,506 60,945
Net increase (decrease) in cash held (1,322) 10,898
Cash and cash equivalents at the beginning of the reporting period 58,160 48,555
Effect of exchange rate movements on cash and cash equivalents at the beginning of the
reporting period (2,051) (1,293)
Cash and cash equivalents at the end of the reporting period 5A 54,787 58,160
The above statement should be read in conjunction with the accompanying notes.
Cash Flow Statement
for the period ended 30 June 2012
S
E
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DFAT ANNUAL REPORT 201 1 –201 2
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F
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254
Schedule of Commitments
2012 2011
BY TYPE $’000 $’000
Commitments receivable
Sublease rental income (126,129) (123,005)
Net GST recoverable on commitments
1
(25,507) (23,565)
Total commitments receivable (151,636) (146,570)
Commitments payable
Capital commitments
Infrastructure, plant and equipment 27,817 47,489
Total capital commitments 27,817 47,489
Other commitments
Operating leases
2
389,912 382,304
Other
3
164,333 249,084
Total other commitments 554,245 631,388
Total commitments payable 582,062 678,877
Net commitments by type 430,426 532,307
BY MATURITY
Commitments receivable
Operating lease income
One year or less (37,153) (26,878)
From one to five years (75,786) (62,100)
Over five years (13,190) (34,027)
Total operating lease income (126,129) (123,005)
GST commitments receivable
1
One year or less (8,942) (11,438)
From one to five years (15,919) (11,877)
Over five years (646) (250)
Total other commitments receivable (25,507) (23,565)
Total commitments receivable (151,636) (146,570)
Commitments payable
Capital commitments
One year or less 12,956 30,576
From one to five years 14,861 16,914
Over five years - -
Total capital commitments 27,817 47,490
Operating lease commitments
One year or less 98,097 118,985
From one to five years 228,776 179,514
Over five years 63,039 83,805
Total operating lease commitments 389,912 382,304
Other Commitments
One year or less 81,878 121,938
From one to five years 82,455 125,628
Over five years - 1,517
Total other commitments 164,333 249,083
Total commitments payable 582,062 678,877
Net commitments by maturity 430,426 532,307
as at 30 June 2012
No contingent rentals exist. There are no renewal or purchase options available to the Department.
Note:
1
Commitments are GST inclusive where relevant.
2
Operating leases included are effectively non-cancellable and comprise:
Property leases for residential, compound and chancery properties at overseas posts and office property in
Canberra and all state offices in Australia
The leased estate consists of properties leased by the Department from private landlords. The terms and conditions of
these leases overseas are negotiated at post and vary based on local market conditions.
Agreements for the provision of motor vehicles to senior executive officers
This schedule should be read in conjunction with the accompanying notes.
Leases for computer equipment
The lessor typically provides all computer equipment and software as necessary in the supply contract for 3 years,
with instalments paid quarterly.
Leases for office equipment
All overseas lease terms and conditions are negotiated at posts and vary based on local market conditions.
3
Includes passports, property and maintenance, IT services and security services contracts.
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FINANcIAL STATEMENTS
Schedule of Contingencies
as at 30 June 2012
2012 2011
$’000 $’000
Contingent assets
Guarantees - -
Indemnities - -
Claims for damages or costs - 12
Total contingent assets - 12
Contingent liabilities
Guarantees 114 125
Indemnities - -
Claims for damages or costs 397 541
Total contingent liabilities 511 666
Net contingent assets (liabilities) (511) (654)
Details of each class of contingent liabilities and contingent assets listed above are disclosed in Note 10: Contingent Liabilities and
Assets, along with information on significant remote contingencies and contingencies that cannot be quantified.
The above schedule should be read in conjunction with the accompanying notes.
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for the period ended 30 June 2012
2012 2011
Notes $’000 $’000
Employee benefits 15A 5,479 5,213
Suppliers 15B 28,968 21,929
Grants and contributions 15C 231,011 244,075
Write-down and impairment of assets 15D 4 48
Foreign exchange losses 15E 1,846 -
Other expenses 15F 12,242 14,693
279,550 285,958
LESS:
OWN-SOURCE INCOME
Own-source revenue
Non-taxation revenue
Sale of goods and rendering of services 16A 357,126 348,603
Interest 16B 4,678 5,251
Dividends 16C 30,194 28,708
Other revenue 16D 41,414 29,373
Total own-source income 433,412 411,935
Gains
Foreign exchange 16E - 9,081
Total gains administered on behalf of Government - 9,081
433,412 421,016
Net cost of (contribution by) services 153,862 135,058
OTHER COMPREHENSIVE INCOME
Actuarial gains/losses on defined benefit plans (6,155) 28
Movement in the carrying amount of investments accounted for using the equity
method 9,981 476
Total other comprehensive income 3,826 504
Total comprehensive income (loss) 157,688 135,562
The above schedule should be read in conjunction with the accompanying notes.
Administered Schedule of Comprehensive Income
EXPENSES
Total expenses administered on behalf of Government
Total income administered on behalf of Government
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FINANcIAL STATEMENTS
2012 2011
Notes $’000 $’000
ASSETS
Financial assets
Cash and cash equivalents 17A 191 2,528
Trade and other receivables 17B 33,647 2,566
Investments accounted for using the equity method 17C 418,063 408,082
Total financial assets 451,901 413,176
Non-financial assets
Prepayments 18A 1,650 1,613
Total non-financial assets 1,650 1,613
Total assets administered on behalf of Government 453,551 414,789
Payables
Suppliers 19A 1,242 332
Other payables 19B 59,710 64,647
Total payables 60,952 64,979
60,952 64,979
Net assets/(liabilities) 392,599 349,810
Total liabilities administered on behalf of Government
The above schedule should be read in conjunction with the accompanying notes.
Administered Schedule of Assets and Liabilities
as at 30 June 2012
LIABILITIES
2012 2011
$’000 $’000
Opening administered assets less administered liabilities as at 1 July
349,810 313,542
Surplus (deficit) items:
Plus: Administered income 433,412 421,016
Less: Administered expenses (non CAC) (279,550) (285,958)
Other comprehensive income:
Movement in the carrying amount of investments 9,981 476
Actuarial gains/losses on defined benefit plans (6,155) 28
Administered transfers to/from Australian Government:
Appropriation transfers from OPA:
Annual appropriations for administered expenses (non CAC) 247,699 281,444
Administered assets and liabilities appropriations 8,085 7,453
Special appropriations (unlimited) (non CAC) 953 838
Transfers to OPA (371,636) (389,029)
Closing administered assets less administered liabilities as at 30 June
392,599 349,810
Administered Reconciliation Schedule
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2012 2011
Notes $’000 $’000
OPERATING ACTIVITIES
Cash received
Sales of goods and rendering of services 354,398 350,163
Interest 109 99
Dividends - 28,708
NIA subsidies, premiums and recoveries 22,507 5,173
North American Pension Scheme receipts and Other 672 5,975
Net GST received 2,129 3,740
Total cash received 379,815 393,858
Cash used
Grant and Contributions 218,918 248,959
Employees 890 936
Personal benefits 1,737 2,386
Suppliers 30,882 31,057
NIA Expenses 5,765 6,683
Other 9,061 8,391
Total cash used 267,253 298,412
Net cash flows from (used by) operating activities 112,562 95,446
Net increase (decrease) in Cash Held
112,562 95,446
Cash and cash equivalents at the beginning of the reporting period 2,528 6,376
Cash from Official Public Account for:
-Appropriations 256,737 289,735
Cash to Official Public Account for:
- Other (371,636) (389,029)
Effect of exchange rate movements on cash and cash equivalents at the beginning
of the reporting period - -
Cash and cash equivalents at the end of the reporting period 17A 191 2,528
This schedule should be read in conjunction with the accompanying notes.
Administered Cash Flow Statement
for the period ended 30 June 2012
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FINANcIAL STATEMENTS
Schedule of Administered Commitments
2012 2011
$’000 $’000
BY TYPE
Commitments receivable
Net GST recoverable on commitments (84) (990)
Total commitments receivable (84) (990)
Commitments payable
Other commitments
Other
1
60,438 78,439
Total other commitments 60,438 78,439
Net commitments by type 60,354 77,449
BY MATURITY
Commitments receivable
One year or less (84) (990)
From one to five years - -
Over five years - -
Total other commitments receivable (84) (990)
Commitments payable
Other commitments
One year or less 10,048 23,392
From one to five years 42,283 55,047
Over five years 8,107 -
Total other commitments 60,438 78,439
Total commitments payable 60,438 78,439
Net commitments by maturity 60,354 77,449
1
Other commitments represents 1) contracts entered into by the Department for participation in the International Exposition
2012 Yeosu, Republic of Korea and 2) the Australian Government's contract with EFIC for Debt to Health Swap agreement.
NB: Commitments are GST inclusive where relevant.
The above schedule should be read in conjunction with the accompanying notes.
as at 30 June 2012
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Schedule of Administered Contingencies
as at 30 June 2012
2012 2011
$’000 $’000
Administered contingent assets Nil Nil
Administered contingent liabilities Nil Nil
Net administered contingent assets (liabilities) - -
Statement of Activities Administered on Behalf of Government
This should be read in conjunction with the accompanying notes.
The major administered activities of the Department are directed towards achieving the outcomes described in Note 1 to the
Financial Statements. The major financial activities are the collection of passport fees and interest or premiums on the National
Interest Account. Details of planned activities for the year can be found in the Department's Portfolio Budget and Portfolio
Additional Estimates Statements.
Note 21: Administered Contingent Assets and Liabilities, provides detailed information on significant remote contingencies and
contingencies that cannot be quantified.
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FINANcIAL STATEMENTS
Note 1: Summary of Significant Accounting Policies
Note 2: Events After the Reporting Period
Note 3: Expenses
Note 4: Income
Note 5: Financial Assets
Note 6: Non-Financial Assets
Note 7: Payables
Note 8: Provisions
Note 9: Cash Flow Reconciliation
Note 10: Contingent Assets and Liabilities
Note 11: Senior Executive Remuneration
Note 12: Remuneration of Auditors
Note 13: Financial Instruments
Note 14: Financial Assets Reconciliation
Note 15: Administered - Expenses
Note 16: Administered - Income
Note 17: Administered - Financial Assets
Note 18: Administered - Non-Financial Assets
Note 19: Administered - Liabilities Administered on Behalf of Government
Note 20: Administered - Cash Flow Reconciliation
Note 21: Administered - Contingent Assets and Liabilities
Note 22: Administered - Financial Instruments
Note 23: Administered Financial Assets Reconciliation
Note 24: Appropriations
Note 25: Special Accounts
Note 26: Compensation and Debt Relief
Note 27: Reporting of Outcomes
Note 28: Net Cash Appropriation Arrangements
Table of Contents - Notes
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Notes to and forming part of the Financial Statements

Note 1: Summary of Significant Accounting Policies

1.1 Objectives of the Department

The Department of Foreign Affairs and Trade (the Department) is a not for profit Australian Government
controlled entity. The objective of the Department is to support Australia's interests in international security,
contribute to national economic and trade performance, promote global cooperation in partnership with
other members of the international community and help Australian travellers and Australians overseas.

The Department is structured to meet three outcomes:
Outcome 1: The advancement of Australia’s international strategic, security and economic interests
including through bilateral, regional and multilateral engagement on Australian
Government foreign and trade policy priorities;

Outcome 2: The protection and welfare of Australians abroad and access to secure international travel
documentation through timely and responsive travel advice and consular and passport
services in Australia and overseas; and

Outcome 3: A secure Australian Government presence overseas through the provision of security
services and information and communications technology infrastructure, and the
management of the Commonwealth’s overseas owned estate.

The Department’s activities that contribute towards these outcomes are classified as either departmental or
administered. Departmental activities involve the use of assets, liabilities, income and expenses controlled
or incurred by the Department in its own right. Administered activities involve the management or
oversight by the Department, on behalf of the Australian Government, of items controlled or incurred by the
Australian Government.

The Department conducts the following administered activities:
• Consular and passport services;
• Public information services and public diplomacy; and
• Payments to international organisations.

The continued existence of the Department in its present form and with its present programs is dependent
on Australian Government policy and on continuing appropriations by Parliament for the Department’s
administration and programs.

1.2 Basis of Preparation of the Financial Report

The Financial Statements and notes are required by section 49 of the Financial Management and
Accountability Act 1997 and are general purpose financial statements.

The financial statements and notes have been prepared in accordance with:
• Finance Minister’s Orders (FMOs) for reporting periods ending on or after 1 July 2011; and
• Australian Accounting Standards and Interpretations issued by the Australian Accounting
Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and are in accordance with the
historical cost convention, except for certain assets at fair value or amortised cost. Except where stated,
no allowance is made for the effect of changing prices on the results or the financial position.

The financial report is presented in Australian dollars and values are rounded to the nearest thousand
dollars unless otherwise specified.



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FINANcIAL STATEMENTS
Notes to and forming part of the Financial Statements

Note 1: Summary of Significant Accounting Policies (continued)

Unless an alternative treatment is specifically required by an accounting standard or the FMOs, assets
and liabilities are recognised in the Balance Sheet when and only when it is probable that future
economic benefits will flow to the entity or a future sacrifice of economic benefits will be required and the
amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under
agreements equally proportionately unperformed are not recognised unless required by an accounting
standard. Liabilities and assets that are unrecognised are reported in the Schedule of Commitments or
the Schedule of Contingencies (other than unquantifiable or remote contingencies, which are reported at
Note 10).

Unless alternative treatment is specifically required by an accounting standard, income and expenses are
recognised in the Statement of Comprehensive Income when and only when the flow, consumption or
loss of economic benefits has occurred and can be reliably measured.


Administered revenues, expenses, assets, liabilities and cash flows reported in the Schedule of
Administered Items and related notes are accounted for on the same basis and using the same policies
as for departmental items, except where otherwise stated in Note 1.22

1.3 Significant Accounting Judgements and Estimates

In the process of applying the accounting policies listed in this note, the Department has made the
following judgement that has a significant impact on the amounts recorded in the financial statements:
• the fair value of land and buildings has been taken to be the market value of similar properties as
determined by an independent valuer. In some instances, the Department’s buildings are
purpose built and may in fact realise more or less in the market.

No accounting assumptions or estimates have been identified that have a significant risk of causing a
material adjustment to carrying amounts of assets and liabilities within the next accounting period.

1.4 New Australian Accounting Standard Requirements

Adoption of New Australian Accounting Standard Requirements

No accounting standard has been adopted earlier than the application date as stated in the standard.
The following new standards, amendments and interpretations, which were issued prior to the signing of
the statement by the Chief Executive and Chief Financial Officer, were applicable to the current reporting
period:

AASB 7 Financial Instruments: Disclosures - November 2010 (Compilation)

AASB 8 Operating Segments - December 2009 (Compilation)

AASB 101 Presentation of Financial Statements - May 2011 (Compilation)

AASB 107 Statement of Cash Flows - May 2011 (Compilation)

AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors - May 2011
(Compilation)

AASB 110 Events after the Reporting Period - December 2009 (Compilation)

AASB 118 Revenue - October 2010 (Compilation)

AASB 119 Employee Benefits - October 2010 (Compilation)

AASB 121 The Effects of Changes in Foreign Exchange Rates - May 2011 (Compilation)
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Notes to and forming part of the Financial Statements

Note 1: Summary of Significant Accounting Policies (continued)

AASB 124 Related Party Disclosures - December 2009 (Principal)

AASB 128 Investments in Associates - July 2011 (Compilation)

AASB 132 Financial Instruments: Presentation - May 2011 (Compilation)

AASB 137 Provisions, Contingent Liabilities and Contingent Assets - October 2010 (Compilation)

AASB 139 Financial Instruments: Recognition and Measurement - October 2010 (Compilation)

AASB 1031 Materiality - December 2009 (Compilation)

Interp. 4 Determining whether an Arrangement contains a Lease - December 2009 (Compilation)

Interp. 14 AASB 119 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and
their Interaction - December 2009 (Compilation)

Interp. 115 Operating Leases – Incentives - October 2010 (Compilation)

Interp. 132 Intangible Assets – Web Site Costs - October 2010 (Compilation)


Other new standards, amendments and interpretations that were issued prior to the signing of the
statement by the Chief Executive and Chief Financial Officer and are applicable to the current reporting
period did not have a financial impact, and are not expected to have a future financial impact on the
entity.


Future Australian Accounting Standard Requirements

The following new standards, amendments to standards or interpretations have been issued by the
Australian Accounting Standards Board but are effective for future reporting periods. It is estimated that
the adoption of these pronouncements will have no material future financial impact on the entity:

AASB 9 Financial Instruments - December 2010 (Principal)

AASB 13 Fair Value Measurement - September 2011 (Principal)

AASB 119 Employee Benefits - September 2011 (Principal)

AASB 127 Separate Financial Statements - August 2011 (Principal)

AASB 128 Investments in Associates and Joint Ventures - August 2011 (Principal)

AASB 1053 Application of Tiers of Australian Accounting Standards - June 2010 (Principal)

AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure
Requirements [AASB 1, 2, 3, 5, 7, 8, 101, 102, 107, 108, 110, 111, 112, 116, 117, 119,
121, 123, 124, 127, 128, 131, 133, 134, 136, 137, 138, 140, 141, 1050 & 1052 and
Interpretations 2, 4, 5, 15, 17, 127, 129 & 1052]

AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010)
[AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137,
139, 1023 & 1038 and Interpretations 2, 5, 10, 12, 19 & 127]


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Notes to and forming part of the Financial Statements

Note 1: Summary of Significant Accounting Policies (continued)

AASB 2011-3 Amendments to Australian Accounting Standards – Orderly Adoption of Changes to the
ABS GFS Manual and Related Amendments [AASB 1049]

AASB 2011-4 Amendments to Australian Accounting Standards to Remove Individual Key Management
Personnel Disclosure Requirements [AASB 124]

AASB 2011-9 Amendments to Australian Accounting Standards – Presentation of Items of Other
Comprehensive Income [AASB 1, 5, 7, 101, 112, 120, 121, 132, 133, 134, 1039 & 1049]

AASB 2011-10 Amendments to Australian Accounting Standards arising from AASB 119 (September
2011) [AASB 1, AASB 8, AASB 101, AASB 124, AASB 134, AASB 1049 & AASB 2011-8
and Interpretation 14]

AASB 2011-13 Amendments to Australian Accounting Standard – Improvements to AASB 1049

Other new standards, amendments and interpretations that were issued prior to the signing of the
statement by the chief executive and chief financial officer and are applicable to the future reporting
period are not expected to have a future financial impact on the entity.


1.5 Revenue

Revenue from Government

Amounts appropriated for departmental output appropriations for the year (adjusted for any formal
additions and reductions) are recognised as revenue when the Department gains control of the
appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which
case revenue is recognised only when it has been earned.

Appropriations receivable are recognised at their nominal amounts.

Resources Received Free of Charge

Resources received free of charge are recognised as revenue, when and only when, a fair value can be
reliably determined and the services would have been purchased if they had not been donated. Use of
those resources is recognised as an expense.

Resources received free of charge are recorded as either revenue or gains depending on their nature.

Parental Leave Payments Scheme

The Department offsets amounts received under Parental Leave Payments Scheme (for payment to
employees) by amounts paid to employees under that scheme, because these transactions are only
incidental to the main revenue-generating activities of the entity. Amount received by the entity not yet
paid to employees would be presented gross as cash and a liability (payable). The total amount received
under this scheme is disclosed as a footnote to the Note 4F: Revenue from Government.

Other Types of Revenue

Revenue from the sale of goods is recognised when:
• the risks and rewards of ownership have been transferred to the buyer;
• the Department retains neither managerial involvement nor effective control over the goods;
• the revenue and transaction costs incurred can be reliably measured; and
• it is probable that the economic benefits associated with the transaction will flow to the entity.

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Notes to and forming part of the Financial Statements

Note 1: Summary of Significant Accounting Policies (continued)

Revenue from the rendering of services is recognised by reference to the stage of completion of contracts
at the reporting date. The revenue is recognised when:
• the amount of revenue, stage of completion and transaction costs incurred can be reliably
measured; and
• the probable economic benefits of the transaction will flow to the entity.

The stage of completion of contracts at the reporting date is determined by reference to the proportion
that costs incurred to date bear to the estimated total costs of the transaction.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts
due less any provision for bad and doubtful debts. Collectability of debts is reviewed at balance date.
Allowances are made when collectability of the debt is no longer probable.

Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial
Instruments: Recognition and Measurement.

1.6 Gains

Other Resources Received Free of Charge

Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at
their fair value when the asset qualifies for recognition, unless received from another Australian
Government Agency or Authority as a consequence of a restructuring of administrative arrangements
(refer to Note 1.7).

Resources received free of charge are recorded as either revenue or gains depending on their nature.

Sale of Assets

Gains from disposal of non-current assets are recognised when control of the asset has passed to the
buyer.

1.7 Transactions with the Government as Owner

Equity Injections

Amounts appropriated that are designated as ‘equity injections’ for a year (less any formal reductions) and
Departmental Capital Budgets are recognised directly in contributed equity in that year.

Other Distributions to Owners

The FMOs require that distributions to owners be debited to contributed equity unless in the nature of a
dividend. In 2011-12, by agreement with the Department of Finance and Deregulation, the Department
returned from the Overseas Property Office net sale proceeds of $719,281 (2010-11: $13,716,000).











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FINANcIAL STATEMENTS
Notes to and forming part of the Financial Statements

Note 1: Summary of Significant Accounting Policies (continued)

1.8 Employee Benefits

Liabilities for services rendered by employees are recognised at the reporting date to the extent that they
have not been settled.

Liabilities for ‘short-term employee benefits’ (as defined in AASB 119 Employee Benefits) and termination
benefits due within twelve months of balance date are measured at their nominal amounts.

The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

All other employee benefit liabilities are measured at the present value of the estimated future cash
outflows to be made in respect of services provided by employees up to the reporting date.

Leave

The liability for employee benefits includes provision for annual leave and long service leave. No
provision has been made for sick leave for Australia-based employees, as all sick leave is non-vesting
and the average sick leave taken in future years by employees of the Department is estimated to be less
than the annual entitlement for sick leave. In the case of locally engaged staff at overseas posts, where
the entitlement is vested, a liability has been recognised.

The leave liabilities are calculated on the basis of employees’ remuneration at the estimated salary rates
that will be applied at the time the leave is taken, including the Department’s employer superannuation
contribution rates to the extent that the leave is likely to be taken during service rather than paid out on
termination.

The liability for long service leave has been determined with reference to an actuarial assessment
conducted during 2010-11. The estimate of the present value of the liability takes into account attrition
rates and pay increases through promotion, inflation and changes in the government bond rate.

Overseas Allowances

Overseas conditions of service entitlements for officers during their posting are expensed as incurred. At
reporting date the Department did not recognise any liability for overseas allowances, except as part of
year-end salary accruals.

Separation and Redundancy

Provision is made for separation and redundancy benefit payments. The Department recognises a
provision for termination when it has developed a detailed formal plan for the terminations and has
informed those employees affected that it will carry out the terminations.

In some countries, locally engaged staff at overseas posts are entitled to separation benefits. The
provision for these benefits has been classified as employee benefits.

Superannuation

Australia-based staff of the Department are members of the Commonwealth Superannuation Scheme
(CSS), the Public Sector Superannuation Scheme (PSS) or the Public Sector Superannuation
accumulation plan (PSSap). The CSS and PSS are defined benefit schemes for the Australian
Government. The PSSap is a defined contribution scheme.

The liability for the defined benefits is recognised in the financial statements of the Australian Government
and is settled by the Australian Government in due course. This liability is reported by the Department of
Finance and Deregulation as an administered item.

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Notes to and forming part of the Financial Statements

Note 1: Summary of Significant Accounting Policies (continued)

The Department makes employer contributions to the employee superannuation schemes at rates
determined by an actuary to be sufficient to meet the cost to the Australian Government of the
superannuation entitlements of the Department’s employees. The Department accounts for the
contributions as if they were contributions to defined contributions plans. Where required, the
Department makes superannuation contributions to comply with overseas local labour laws.

Australia-based staff who are engaged on a temporary basis and locally engaged staff engaged overseas
who are considered to be Australian residents for taxation purposes have compulsory employer
superannuation contributions made on their behalf by the Department to the Australian Government
Employees Superannuation Trust (AGEST) or another complying fund as nominated by them.

The liability for superannuation recognised as at 30 June represents outstanding contributions for the final
fortnight of the year.


The Department administers defined benefit pension schemes for some locally engaged staff in North
America, the United Kingdom and India on behalf of the Australian Government (refer to Note 19).

1.9 Leases

A distinction is made between finance leases and operating leases. Finance leases effectively transfer
from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased non-
current assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor
effectively retains substantially all such risks and benefits.

Where a non-current asset is acquired by means of a finance lease, the asset is capitalised at either the
fair value of the lease property or, if lower, the present value of minimum lease payments at the inception
of the contract and a liability is recognised at the same time and for the same amount.

The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the
period of the lease. Lease payments are allocated between the principal component and the interest
expense.

1.10 Borrowing Costs

All borrowing costs are expensed as incurred.

1.11 Cash

Cash is recognised at its nominal amount. Cash and cash equivalents includes cash on hand, cash held
with outsiders, cash in special accounts, demand deposits in bank accounts with an original maturity of
three months or less that are readily convertible to known amounts of cash and subject to insignificant risk
of changes in value.

1.12 Financial Assets

The Department classifies its financial assets in the following categories:
• financial assets at fair value through profit or loss;
• held-to-maturity investments;
• available-for-sale financial assets; or
• loans and receivables.

The classification depends on the nature and purpose of the financial assets and is determined at the
time of initial recognition. Financial assets are recognised and derecognised upon ‘trade date’.

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FINANcIAL STATEMENTS
Notes to and forming part of the Financial Statements

Note 1: Summary of Significant Accounting Policies (continued)

Effective Interest Method

The effective interest method is a method of calculating the amortised cost of a financial asset and of
allocating interest income over the relevant period. The effective interest rate is the rate that exactly
discounts estimated future cash receipts through the expected life of the financial asset, or, where
appropriate, a shorter period.

Income is recognised on an effective interest rate basis except for financial assets that are recognised at
fair value through profit or loss.

Financial Assets at Fair Value through Profit or Loss

Financial assets are classified as financial assets at fair value through profit or loss where the financial
assets:
• have been acquired principally for the purpose of selling in the near future;
• are a part of an identified portfolio of financial instruments that the Department manages together
and has a recent actual pattern of short-term profit-taking; or
• are derivatives that are not designated and effective as a hedging instrument.

Assets in this category are classified as current assets.

Financial assets at fair value through profit or loss are stated at fair value, with any resultant gain or loss
recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest
earned on the financial asset.

Held-to-Maturity Investments

Non-derivative financial assets with fixed or determinable payments and fixed maturity dates that the
Department has the positive intent and ability to hold to maturity are classified as held-to-maturity
investments. Held-to-maturity investments are recorded at amortised cost using the effective interest
method less impairment, with revenue recognised on an effective yield basis.

Available-for-Sale Financial Assets

Available-for-sale financial assets are non-derivatives that are either designated in this category or not
classified in any of the other categories.

Available-for-sale financial assets are recorded at fair value. Gains and losses arising from changes in
fair value are recognised directly in the reserves (equity) with the exception of impairment losses. Interest
is calculated using the effective interest method and foreign exchange gains and losses on monetary
assets are recognised directly in profit or loss. Where the asset is disposed of or is determined to be
impaired, part (or all) of the cumulative gain or loss previously recognised in the reserve is included in
profit for the period.

Where a reliable fair value cannot be established for unlisted investments in equity instruments, cost is
used. The Department has no such instruments.

Loans and Receivables

Trade receivables, loans and other receivables that have fixed or determinable payments that are not
quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are
measured at amortised cost using the effective interest method less impairment. Interest is recognised
by applying the effective interest rate.


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270
Notes to and forming part of the Financial Statements

Note 1: Summary of Significant Accounting Policies (continued)

Impairment of Financial Assets

Financial assets are assessed for impairment at each balance date.
• Financial assets held at amortised cost - If there is objective evidence that an impairment loss
has been incurred for loans and receivables or held to maturity investments held at amortised
cost, the amount of the loss is measured as the difference between the asset’s carrying amount
and the present value of estimated future cash flows discounted at the asset’s original effective
interest rate. The carrying amount is reduced by way of an allowance account. The loss is
recognised in the Statement of Comprehensive Income.
• Available-for-sale financial assets - If there is objective evidence that an impairment loss on an
available-for-sale financial asset has been incurred, the amount of the difference between its cost,
less principal repayments and amortisation, and its current fair value, less any impairment loss
previously recognised in expenses, is transferred from equity to the Statement of Comprehensive
Income.
• Financial assets held at cost - If there is objective evidence that an impairment loss has been
incurred, the amount of the impairment loss is the difference between the carrying amount of the
asset and the present value of the estimated future cash flows discounted at the current market
rate for similar assets.

1.13 Financial Liabilities

Financial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’ or other
financial liabilities.

Financial liabilities are recognised and derecognised upon ‘trade date’.

Financial Liabilities at Fair Value through Profit or Loss

Financial liabilities ‘at fair value through profit or loss’ are initially measured at fair value. Subsequent fair
value adjustments are recognised in profit or loss. The net gain or loss recognised in profit or loss
incorporates any interest paid on the financial liability.

Other Financial Liabilities

Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs.

These liabilities are subsequently measured at amortised cost using the effective interest method, with
interest expense recognised on an effective yield basis.

The effective interest method is a method of calculating the amortised cost of a financial liability and of
allocating interest expense over the relevant period. The effective interest rate is the rate that exactly
discounts estimated future cash payments through the expected life of the financial liability, or, where
appropriate, a shorter period.

1.14 Supplier and other payables

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent
that the goods or services have been received (and irrespective of having been invoiced).






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FINANcIAL STATEMENTS
Notes to and forming part of the Financial Statements

Note 1: Summary of Significant Accounting Policies (continued)

1.15 Contingent Liabilities and Contingent Assets

Contingent liabilities and contingent assets are not recognised in the Balance Sheet but are reported in the
relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset, or
represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent
assets are disclosed when settlement is probable and contingent liabilities are disclosed when settlement
is greater than remote.

1.16 Financial Guarantee Contracts

Financial guarantee contracts are accounted for in accordance with AASB 139 Financial Instruments:
Recognition and Measurement. They are not treated as a contingent liability, as they are regarded as
financial instruments outside the scope of AASB 137 Provisions, Contingent Liabilities and Contingent
Assets.

1.17 Acquisition of Assets

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair
value of assets transferred in exchange and liabilities undertaken. Assets are initially measured at their fair
value plus transaction costs where appropriate.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at
their fair value at the date of acquisition, unless acquired as a consequence of restructuring of
administrative arrangements. In the latter case, assets are initially recognised as contributions by owners
at the amounts at which they were recognised in the transferor agency's accounts immediately prior to the
restructuring.

1.18 Infrastructure, Plant and Equipment

Asset Recognition Threshold

Purchases of Infrastructure, plant and equipment are recognised initially at cost in the Balance Sheet,
except for purchases costing less than $2,000, which are expensed in the year of acquisition (other than
where they form part of a group of similar items that are significant in total).

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and
restoring the site on which it is located. This is particularly relevant to ‘makegood’ provisions in property
leases taken up by the Department where an obligation exists to restore the property to its original
condition on termination of the lease. These costs are included in the value of the Department’s leasehold
improvements with a corresponding provision for the 'makegood' recognised.

Revaluations

Fair values for each class of asset are determined as shown below.

Asset Class Fair value measured at:
Land Market selling price
Buildings exc. Leasehold improvements Market selling price
Leasehold Improvements Depreciated replacement cost
Infrastructure, Plant and Equipment Market selling price

In the absence of market-based evidence, fair value is estimated using depreciated replacement cost.

Assets held overseas are valued in local currencies and translated in to Australian dollars.


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272
Notes to and forming part of the Financial Statements

Note 1: Summary of Significant Accounting Policies (continued)

Following initial recognition at cost, property, plant and equipment are carried at fair value less
accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient
frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair
values as at the reporting date. The regularity of independent valuations depends upon volatility of
movements in market values for the relevant assets.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity
under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation
decrement of the same asset class that was previously recognised through the surplus/deficit.
Revaluation decrements for a class of assets are recognised directly through the operating result except
to the extent that they reverse a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount
of the asset and the asset restated to the revalued amount.

Depreciation

Depreciable property, plant and equipment assets are written-off to their estimated residual values over
their estimated useful lives to the Department using, in all cases, the straight-line method of depreciation.

Leasehold improvements are depreciated on a straight-line basis over the lesser of the estimated useful
life of the improvements or the unexpired period of the lease.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and
necessary adjustments are recognised in the current, or current and future reporting periods, as
appropriate.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:


2012 2011
Buildings Based on remaining useful life Based on remaining useful life
Leasehold improvements Lesser of lease term or 15 years Lesser of lease term or 15 years
Infrastructure, Plant and
Equipment
5 or 10 years 5 or 10 years
Intangibles 6 years 6 years

The aggregate amount of depreciation allocated during the reporting period is disclosed in Note 3D.

Impairment

Assets were assessed for impairment at 31 March 2012. Where indications of impairment exist, the
asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable
amount is less than its carrying amount.

The recoverable amount of any asset is the higher of its fair value less costs to sell and its value in use.
Value in use is the present value of the future cash flows expected to be derived from the asset. Where
the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future
cash flows, and the asset would be replaced if the Department were deprived of the asset, its value in use
is taken to be its depreciated replacement cost.

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no further future
economic benefits are expected from its use or disposal.
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FINANcIAL STATEMENTS
Notes to and forming part of the Financial Statements

Note 1: Summary of Significant Accounting Policies (continued)

1.19 Intangibles

The Department’s intangibles comprise internally developed software for internal use and purchased
software. These assets are carried at cost less accumulated amortisation and accumulated impairment
losses. Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of
the Department’s software assets are 6 years (2010-11: 6 years). All software assets were assessed for
indicators of impairment as at 30 June 2012.

1.20 Inventories

Inventories held for sale are valued at the lower of cost and net realisable value. Inventories held for
distribution are valued at cost, adjusted for any loss of service potential.

Costs incurred in bringing each item of inventory to its present location and condition, are assigned as
follows:
• raw materials and stores – purchase cost on a first-in-first-out basis; and
• finished goods and work in progress – cost of direct materials and labour plus attributable costs
that can be allocated on a reasonable basis.

Inventories acquired at no cost or nominal consideration are initially measured at current replacement cost
at the date of acquisition.

1.21 Taxation

The Department is exempt from all forms of Australian taxation except Fringe Benefits Tax (FBT) and the
Goods and Services Tax (GST). Overseas, the department may be subject to Value Added Tax (VAT) on
the purchase of goods and services.

Revenues, expenses, assets and liabilities are recognised net of GST:
• except where the amount of GST incurred is not recoverable from the Australian Taxation Office;
and
• for receivables and payables.

1.22 Reporting of Administered Activities

Administered revenues, expenses, assets, liabilities and cash flows are disclosed in the Schedule of
Administered Items and related notes. Except where otherwise stated below, administered items are
accounted for on the same basis and using the same policies as for departmental items, including the
application of Australian Accounting Standards.

Administered Cash Transfers to and from Official Public Account

Revenue collected by the Department for use by the Australian Government rather than the Department
is administered revenue. Collections are transferred to the Official Public Account (OPA) maintained by
the Department of Finance and Deregulation. Conversely, cash is drawn from the OPA to make
payments under Parliamentary appropriation on behalf of the Australian Government. These transfers to
and from the OPA are adjustments to the administered cash held by the Department on behalf of the
Australian Government and reported as such in the schedule of administered Cash Flows and in the
Administered Reconciliation schedule.






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Notes to and forming part of the Financial Statements
Note 1: Summary of Significant Accounting Policies (continued)

Business undertaken on the National Interest Account

Part 5 of the Export Finance and Insurance Corporation Act (EFIC Act 1991) provides for the Minister for
Trade to give an approval or direction to EFIC to undertake any transaction that the Minister considers is
in the national interest. Such transactions may relate to a class of business which EFIC is not authorised
to undertake, or involve terms and conditions EFIC would not accept in the normal course of business on
its Commercial Account. EFIC manages these transactions on the National Interest Account (NIA).

Where the Minister gives EFIC an approval or direction to undertake a transaction under Part 5 of the Act,
the credit risk is borne by the Australian Government and the funding risk is borne by EFIC on the
Commercial Account. Accordingly, premium or other incomes arising from these transactions are paid by
EFIC to the Australian Government in line with Part 8 of the EFIC Act. EFIC recovers from the Australian
Government the costs of administering business undertaken under Part 5 and also recovers from the
Australian Government any losses incurred in respect of such business. These transactions are disclosed
separately as income and expenses administered on behalf of Government in Notes 15 and 16.

The Department’s accounts reflect the Commonwealth’s exposure to the NIA. This exposure is disclosed
as a liability in Note 19 and reflects the overall business written on the NIA. The detailed transactions
undertaken in the NIA are disclosed in EFIC’s financial statements in accordance with EFIC’s reporting
requirements and applicable accounting standards.

Revenue

All administered revenues are revenues relating to the course of ordinary activities performed by the
Department on behalf of the Australian Government. Administered fee revenue is recognised when
goods or services have been provided.

Loans and Receivables

Where loans and receivables are not subject to concessional treatment, they are carried at amortised
cost using the effective interest method. Gains and losses due to impairment, derecognition and
amortisation are recognised through surplus and deficit.

Administered Investments

Administered investments in subsidiaries are not consolidated because their consolidation is relevant only
at the Whole of Government level. Administered investments other than those held for sale are classified
as available-for-sale and are measured at their fair value as at 30 June 2012. Fair value has been taken
to be the Australian Government’s interest in the net assets of the entity as at balance date.

Overseas Superannuation Schemes

The Department recognises an administered liability for the present values of the Australian
Government’s expected future payments arising from the New Delhi Gratuity Scheme and the unfunded
components of the North American Pension Scheme (NAPS) and London Pension Scheme.

The Department engages actuaries to estimate the unfunded provisions and expected future cash flows
as at 30 June each year. Actuarial gains and losses for the defined plans are recognised applying the
“direct to equity” option as outlined in AASB 119. These estimates are disclosed in the Schedule of
Administered Items and Note 19.







Notes to and forming part of the Financial Statements
Note 1: Summary of Significant Accounting Policies (continued)

Guarantees to Controlled Entities

The amounts guaranteed by the Commonwealth have been disclosed in the Schedule of Administered
Items and Note 21. At the time of completion of the financial statements, there was no reason to believe
that the guarantees would be called upon, and recognition of a liability was therefore not required.

Grants

The Department administers a number of grant programs on behalf of the Australian Government. Grant
liabilities are recognised to the extent that (i) the services required to be performed by the grantee have
been performed or (ii) the grant eligibility criteria have been satisfied, but payments due have not been
made. A commitment is recorded when the Australian Government enters into an agreement to make the
grants but services have not been performed or criteria satisfied.


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FINANcIAL STATEMENTS
Departmental
Administered
Note 2: Events After the Reporting Period
There have been no events after 30 June 2012 which will affect the financial position of the Department
materially at the reporting date.
There have been no events after 30 June 2012 which will affect the financial position of the Department
materially at the reporting date.
Note 3: Expenses
2012 2011
$’000 $’000
Note 3A: Employee Benefits
Wages and salaries 326,702 317,448
Superannuation:
Defined contribution plans 16,103 18,513
Defined benefit plans 36,719 32,918
Leave and other entitlements 49,485 30,041
Separation and redundancies 5,659 3,048
Other Employee Expenses 9,035 9,726
Total employee benefits 443,703 411,694
Note 3B: Supplier
Goods and services
Passport Expenses 81,395 87,295
Property Related Expenses (excluding rent) 73,179 70,350
Information and Communication Technology 57,938 49,071
Staff Related Expenses 38,697 37,720
Security Expenses 59,349 47,872
Travel Expenses 28,116 29,288
Office Expenses 17,288 19,484
Legal and Other Professional Services 8,355 8,530
Other Expenses 22,490 17,264
Total goods and services 386,807 366,874
Goods and services are made up of:
Provision of goods – external parties 56,274 59,888
Rendering of services – related entities 24,328 23,967
Rendering of services – external parties 306,205 283,019
Total goods and services 386,807 366,874
Other supplier expenses
Operating lease rentals
Minimum lease payments 89,000 88,615
Workers compensation expenses 1,993 1,669
Total other supplier expenses 90,993 90,284
Total supplier expenses 477,800 457,158
Note 3C: Grants
Private sector:
Non-profit organisations 2,439 3,392
Overseas 782 11,349
Total grants 3,221 14,741
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Note 3: Expenses (continued)
2012 2011
$’000 $’000
Note 3D: Depreciation and Amortisation
Depreciation:
Infrastructure, plant and equipment 36,278 35,233
Buildings and Leasehold Improvements 50,064 53,005
Total depreciation 86,342 88,238
Amortisation:
Intangibles - computer software 5,245 4,755
Total amortisation 5,245 4,755
Total depreciation and amortisation 91,587 92,993
Note 3E: Finance Costs
Unwinding of discount 2,620 882
Total finance costs 2,620 882
Note 3F: Write-Down and Impairment of Assets
Asset write-downs and impairments from:
Net revaluation decrement - Buildings and infrastructure, plant and
equipment - 16,662
Impairment of non-current assets held for sale 4 10
Impairment of Land & Buildings 1,034 -
Impairment of financial assets 156 253
Total write-down and impairment of assets 1,194 16,925
Note 3G: Foreign Exchange Losses
Non-speculative 2,051 1,293
Total foreign exchange losses 2,051 1,293
Note 3H: Losses from Asset Sales
Land and buildings:
Proceeds from sale (770) -
Carrying value of assets sold 760 -
Selling expense 50 -
Infrastructure, plant and equipment:
Proceeds from sale (747) -
Carrying value of assets sold 3,192 -
Selling expense - -
Intangibles:
Proceeds from sale - -
Carrying value of assets sold 3,408 -
Selling expense - -
Leasehold Improvements:
Proceeds from sale - -
Carrying value of assets sold 198 -
Selling expense - -
Total losses from asset sales 6,091 -
Note 3I: Other Expenses
Other expense 70 114
Total other expenses 70 114
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FINANcIAL STATEMENTS
Note 4: Income
2012 2011
OWN-SOURCE REVENUE $’000 $’000
Note 4A: Sale of Goods and Rendering of Services
Provision of goods - external parties 28 43
Rendering of services - related entities 109,252 128,980
Rendering of services - external parties 9,619 9,030
Total sale of goods and rendering of services 118,899 138,053
Note 4B: Other Revenue
Other Revenue 9,905 9,688
Total other revenue 9,905 9,688
GAINS
Note 4C: Sale of Assets
Land and buildings:
Proceeds from sale - 14,028
Carrying value of assets sold - (9,344)
Selling expense - (300)
Infrastructure, plant and equipment:
Proceeds from sale - 594
Carrying value of assets sold - (1,471)
Selling expense - -
Intangibles:
Proceeds from sale - -
Carrying value of assets sold - (124)
Selling expense - -
Leasehold Improvements:
Proceeds from sale - -
Carrying value of assets sold - (1,509)
Selling expense - -
Net gain from sale of assets - 1,874
Note 4D: Reversals of Previous Asset Write-Downs and Impairments
Asset revaluation increment 16,691 -
Total reversals of previous asset write-downs and impairments 16,691 -
Note 4E: Other Gains
Resources received free of charge 410 450
Non-Financial Assets Received free of charge 5,999 -
Total other gains 6,409 450
REVENUE FROM GOVERNMENT
Note 4F: Revenue from Government*
Appropriations:
Departmental appropriations 821,534 875,645
Total revenue from Government 821,534 875,645
* The entity received $333,611 (2011: $0) under the Paid Parental Leave Scheme.
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Note 5: Financial Assets
2012 2011
$’000 $’000
Note 5A: Cash and Cash Equivalents
Special Accounts 1,640 8,581
Cash held by outsiders 234 338
Cash on hand or on deposit 52,913 49,241
Total cash and cash equivalents 54,787 58,160
Note 5B: Trade and Other Receivables
Goods and Services:
Goods and services - related entities 20,234 28,814
Goods and services - external parties 4,096 1,913
Total receivables for goods and services 24,330 30,727
Appropriations receivable:
For existing programs
Overseas Property Office 438,950 384,670
Other Departmental 459,047 435,065
Total appropriations receivable 897,997 819,735
Other receivables:
GST receivable from the Australian Taxation Office 2,693 1,751
Advances 8,704 9,340
Other 10,527 19,539
Total other receivables 21,924 30,630
Total trade and other receivables (gross) 944,251 881,092
Less impairment allowance account:
Goods and services (453) (309)
Total impairment allowance account (453) (309)
Total trade and other receivables (net) 943,798 880,783
Receivables are expected to be recovered in:
No more than 12 months 937,154 873,530
More than 12 months 6,644 7,253
Total trade and other receivables (net) 943,798 880,783
S
E
c
T
I
O
N

5
279
F
I
N
A
N
c
I
A
L

S
T
A
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N
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S




D
F
A
T

A
N
N
U
A
L

R
E
P
O
R
T

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1

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1
2



FINANcIAL STATEMENTS
Note 5: Financial Assets (continued)
2012 2011
$’000 $’000
Receivables are aged as follows:
Not overdue 932,521 869,216
Overdue by:
0 to 30 days 1,929 3,164
31 to 60 days 1,830 95
61 to 90 days 734 234
More than 90 days 7,237 8,382
Total receivables (gross) 944,251 881,092
The impairment allowance account is aged as follows:
Not overdue - -
Overdue by:
0 to 30 days - -
31 to 60 days - -
61 to 90 days - -
More than 90 days 453 309
Total impairment allowance account 453 309
Reconciliation of the Impairment Allowance Account:
Movements in relation to 2012
Goods and Other
services receivables Total
$'000 $'000 $'000
Opening balance - 309 309
Amounts written off - - -
Amounts recovered and reversed - (7) (7)
Increase/decrease recognised in net surplus 122 29 151
Closing balance 122 331 453
Movements in relation to 2011
Goods and Other
services receivables Total
$'000 $'000 $'000
Opening balance 61 328 389
Amounts written off - - -
Amounts recovered and reversed (61) (25) (86)
Increase/decrease recognised in net surplus - 6 6
Closing balance - 309 309
Credit terms were within 30 days (2011: 30 days).
S
E
c
T
I
O
N

5
DFAT ANNUAL REPORT 201 1 –201 2
D
F
A
T

A
N
N
U
A
L

R
E
P
O
R
T

1
1

|

1
2



F
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S
280
Note 6: Non-Financial Assets
2012 2011
$’000 $’000
Note 6A: Land and Buildings
Land:
Land at fair value
1
921,466 867,840
Total land 921,466 867,840
Buildings:
Fair value
1
696,486 651,136
Accumulated depreciation (521) (15)
Work in progress
2
15,657 19,192
Total buildings 711,622 670,313
Leasehold improvements:
Fair value 289,995 265,581
Accumulated depreciation (121,876) (95,811)
Work in progress 15,674 42,802
Total leasehold improvements 183,793 212,572
Total land and buildings 1,816,881 1,750,725
Note 6B: Infrastructure, Plant and Equipment
Infrastructure, Plant and Equipment:
Fair value 181,737 182,316
Accumulated depreciation (59,680) (55,555)
Work in progress 29,502 14,672
Total infrastructure, plant and equipment 151,559 141,433
Revaluations of non-financial assets
Restrictions on title
1
This includes assets held for sale as follows:
2011-12: One property (Former Chancery in Phnom Penh, Cambodia) has been classified as an Asset Held for Sale. Total
value is $1,599,307.
2010-11: One property (a residence in Noumea) was classified as Asset Held for Sale. The total value was $760,056.
Isolated indicators of impairment worth $1,034,000 (2011: nil) were found for land and buildings.
No plant and equipment was held by the Department under finance leases.
Isolated indicators of impairment worth $4,040 (2011: $9,628) were found for Infrastructure, plant and equipment.
Due to the diplomatic nature of the overseas property portfolio, some properties have restriction on title. Restrictions on title
vary depending on local government rules and regulations, such as one long term title that prohibits the Commonwealth of
Australia from profiting from sale of the land.
Infrastructure, plant or equipment expected to be sold or disposed of within the next 12 months has a net book value of
$270,733 (2010-11: Nil).
All revaluations are conducted in accordance with the revaluation policy stated at Note 1. Land and buildings have been
independently valued by Savills as at 30 June 2012. Infrastructure, plant and equipment have been independently valued by
RHAS as at 31 March 2012.
Revaluation increments of $54,412,000 for land (2011: decrements of $42,638,000) and increments of $2,946,000 for
buildings (2011: decrements of $48,891,000), impairment decrements of nil of leasehold improvements (2011: decrements of
nil) and revaluation increments of $5,642,652 for infrastructure, plant and equipment (2011: increments of $1,199,000) were
made to the asset revaluation reserve.
Revaluation increments of $16,691,000 for buildings (2011: decrements of $16,691,000) and revaluation increments of $nil
for infrastructure, plant and equipment (2011: increments of $29,000) were recognised in the profit and loss.
2
This is a qualifying asset and includes foreign exchange gains and losses that have been capitalised.
S
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5
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1
2



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5
DFAT ANNUAL REPORT 201 1 –201 2
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P
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R
T

1
1

|

1
2



FINANcIAL STATEMENTS
Note 6: Non-Financial Assets (continued)
2012 2011
$’000 $’000
Note 6D: Intangibles
Computer software:
Internally developed – in progress 5,259 6,561
Internally developed – in use 32,518 32,518
Purchased 60,396 32,855
Accumulated amortisation (40,479) (35,706)
Total computer software 57,694 36,228
Total intangibles 57,694 36,228
No indicators of impairment were found for intangible assets.
No intangibles are expected to be sold or disposed of within the next 12 months.
Note 6: Non-Financial Assets (continued)
Note 6E: Reconciliation of the Opening and Closing Balances of Intangibles 2012
Computer
software
internally
developed
Computer
software
purchased Total
$’000 $’000 $’000
As at 1 July 2011
Gross book value 32,518 22,713 55,231
Accumulated amortisation and impairment (23,963) (11,743) (35,706)
Work in Progress 6,561 10,142 16,703
Net book value 1 July 2011 15,116 21,112 36,228
Additions:
By purchase or internally developed - 4,034 4,034
By finance lease - - -
By donation/gift - - -
From acquisition of entities or operations (including restructuring) - - -
Revaluations and impairments recognised in other comprehensive income - - -
Revaluations and impairments recognised in the operating result - - -
Reversal of impairments recognised in the operating result - - -
Amortisation (1,119) (4,126) (5,245)
Other movements
Asset transfers - 5,984 5,984
Movements in work in progress
Reclassification of opening balance in work in progress - - -
Net movement in work in progress (1,302) 21,403 20,101
Disposals:
From disposal of entities or operations (including restructuring) - - -
Other - (3,408) (3,408)
Net book value 30 June 2012 12,695 44,999 57,694
Net book value as of 30 June 2012 represented by:
Gross book value 32,518 28,851 61,369
Accumulated amortisation and impairment (25,082) (15,397) (40,479)
Work in progress 5,259 31,545 36,804
12,695 44,999 57,694
S
E
c
T
I
O
N

5
DFAT ANNUAL REPORT 201 1 –201 2
D
F
A
T

A
N
N
U
A
L

R
E
P
O
R
T

1
1

|

1
2



F
I
N
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S
284
Note 6E (Cont'd): Reconciliation of the Opening and Closing Balances of Intangibles 2011
Computer
software
internally
developed
Computer
software
purchased Total
$’000 $’000 $’000
As at 1 July 2010
Gross book value 28,769 16,048 44,817
Accumulated amortisation and impairment (21,620) (9,673) (31,293)
Work in progress 4,178 3,445 7,623
Net book value 1 July 2010 11,327 9,820 21,147
Additions:
By purchase or internally developed 1,716 3,031 4,747
By finance lease - - -
By donation/gift - - -
From acquisition of entities or operations (including restructuring) - - -
Revaluations and impairments recognised in other comprehensive income - - -
Revaluations and impairments recognised in the operating result - - -
Reversal of impairments recognised in the operating result - - -
Amortisation (2,343) (2,411) (4,754)
Other movements [give details below]
Asset transfers 2,033 4,099 6,132
Movements in work in progress
Reclassification of opening balance in work in progress 559 2,353 2,912
Net movement in work in progress 1,824 4,344 6,168
Disposals:
From disposal of entities or operations (including restructuring) - - -
Other - (124) (124)
Net book value 30 June 2011 15,116 - 21,112 36,228
Net book value as of 30 June 2011 represented by:
Gross book value 32,518 22,713 55,231
Accumulated amortisation and impairment (23,963) (11,743) (35,706)
Work in progress 6,561 10,142 16,703
15,116 21,112 36,228
Note 6: Non-Financial Assets (continued)
Note 6: Non-Financial Assets (continued)
2012 2011
$’000 $’000
Note 6F: Inventories
Inventories held for sale:
Finished goods 41,843 40,174
Total inventories held for sale 41,843 40,174
Inventories held for distribution 133 64
Total inventories 41,976 40,238
No items of inventory were recognised at fair value less cost to sell.
All inventories are expected to be sold or distributed in the next 12 months.
Note 6G: Other Non-Financial Assets
Property leases 15,571 16,425
Other 11,475 11,107
Total other non-financial assets 27,046 27,532
Total other non-financial assets:
No more than 12 months 22,705 21,701
More than 12 months 4,341 5,831
Total other non-financial assets 27,046 27,532
No indicators of impairment were found for other non-financial assets.
S
E
c
T
I
O
N

5
285
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T

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N
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A
L

R
E
P
O
R
T

1
1

|

1
2



FINANcIAL STATEMENTS
Note 7: Payables
2012 2011
$’000 $’000
Note 7A: Suppliers
Trade creditors and accruals 76,099 80,184
Total suppliers payables 76,099 80,184
Suppliers payables expected to be settled within 12 months:
Related entities 18,167 14,754
External parties 57,932 65,430
Total 76,099 80,184
Note 7B: Other Payables
Wages and salaries 9,313 8,431
Superannuation 1,111 700
Prepayments received/unearned income 18,140 18,376
Other 2,983 7,314
Total other payables 31,547 34,821
Total other payables are expected to be settled in:
No more than 12 months 22,186 27,565
More than 12 months 9,361 7,256
Total other payables 31,547 34,821
Note 8: Provisions
2012 2011
$’000 $’000
Note 8A: Employee Provisions
Annual Leave 31,001 30,361
Long Service Leave 75,982 59,961
Superannuation 13,277 11,892
Separations and redundancies 11,268 10,425
Other employee provisions 4,265 10,490
Total employee provisions 135,793 123,129
Employee provisions are expected to be settled in:
No more than 12 months 47,189 46,339
More than 12 months 88,604 76,790
Total employee provisions 135,793 123,129
Note 8B: Other Provisions
Provision for restoration obligations 26,679 23,842
Total other provisions 26,679 23,842
Other provisions are expected to be settled in:
No more than 12 months 3,501 10,102
More than 12 months 23,178 13,740
Total other provisions 26,679 23,842
Provision for
restoration
$’000
Carrying amount 1 July 2011 23,842
Additional provisions made 887
Amounts Reversed (313)
Movements due to foreign exchange (357)
Unwinding of discount or change in discount rate 2,620
Closing balance 2012 26,679
The Department currently has 69 agreements (2011: 68) for the leasing of premises where the Department
has raised a provision to restore the premises to their original condition at the conclusion of the lease. The
provision reflects the present value of this obligation.
S
E
c
T
I
O
N

5
DFAT ANNUAL REPORT 201 1 –201 2
D
F
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T

A
N
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R
E
P
O
R
T

1
1

|

1
2



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S
286
Note 9: Cash Flow Reconciliation
2012 2011
$’000 $’000
Reconciliation of cash and cash equivalents as per Balance Sheet to
Cash Flow Statement
Cash and cash equivalents as per:
Cash flow statement 54,787 58,160
Balance sheet 54,787 58,160
Difference - -
Reconciliation of net cost of services to net cash from operating
activities:
Net cost of services (876,433) (845,734)
Add revenue from Government 821,534 875,645
Adjustments for non-cash items
Depreciation / amortisation 91,589 92,993
Net write down of non-financial assets 1,038 16,680
Reversals of Previous Asset Write-Downs (Asset Revaluation) (16,691) -
Loss (Gain) on disposal of assets 6,091 (1,874)
Resources received free of charge - Non Financial Assets (5,999) -
Investing OPA (receivable) (54,281) (89,584)
Effect of foreign exchange on cash 2,051 1,293
Interest 1 -
Changes in assets / liabilities
(Increase) / decrease in net receivables 16,392 9,391
(Increase) / decrease in inventories (1,738) (5,541)
(Increase) / decrease in prepayments 734 (244)
Increase / (decrease) in employee provisions 13,959 6,219
Increase / (decrease) in supplier payables (4,296) (4,262)
Increase / (decrease) in other provisions 333 (3,214)
Increase / (decrease) in other assets 8,751 (10,197)
Increase / (decrease) in unearned income (266) 6,072
Increase / (decrease) in other liabilities (2,712) 564
Net cash from (used by) operating activities 57 48,207
S
E
c
T
I
O
N

5
287
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T

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A
L

R
E
P
O
R
T

1
1

|

1
2



FINANcIAL STATEMENTS
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5
DFAT ANNUAL REPORT 201 1 –201 2
D
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1
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F
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288
Note 11: Senior Executive Remuneration
2012 2011
$ $
Short-term employee benefits:
Salary 38,366,374 36,342,801
Annual leave accrued 571,582 225,633
Performance bonuses 726,264 739,598
Motor vehicles 3,166,672 3,130,330
Overseas Allowances 12,793,055 11,609,481
Other allowances 4,046,553 6,963,027
Total short-term employee benefits 59,670,500 59,010,870
Post-employment benefits:
Superannuation 8,895,140 8,349,345
Total post-employment benefits 8,895,140 8,349,345
Other long-term benefits:
Long-service leave 955,360 950,926
Total other long-term benefits 955,360 950,926
Termination benefits 490,418 262,922
Total employment benefits 70,011,418 68,574,063
Notes:
Note 11A: Senior Executive Remuneration Expenses for the Reporting Period
1. Note 11A is prepared on an accrual basis (therefore the performance bonus expenses disclosed above may
differ from the cash 'Bonus paid' in Note 11B).
2. Note 11A excludes acting arrangements and part-year service where total remuneration expensed for a senior
executive was less than $150,000.
S
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5
289
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1
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1

T
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E
c
T
I
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N

5
DFAT ANNUAL REPORT 201 1 –201 2
D
F
A
T

A
N
N
U
A
L

R
E
P
O
R
T

1
1

|

1
2



F
I
N
A
N
c
I
A
L

S
T
A
T
E
M
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S
290
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s
:
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.

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a
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b
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5
.

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5
291
F
I
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L

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M
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D
F
A
T

A
N
N
U
A
L

R
E
P
O
R
T

1
1

|

1
2



FINANcIAL STATEMENTS
N
o
t
e

1
1
:

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r

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DFAT ANNUAL REPORT 201 1 –201 2
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Note 12: Remuneration of Auditors
2012 2011
$’000 $’000
Financial statement audit services were provided free of charge to the
entity by the Australian National Audit Office (ANAO).
Fair value of the services provided
The fair value of the services provided was: 410 450
Total 410 450
No other services were provided by the ANAO
2012 2011
$'000 $'000
Note 13A: Categories of Financial Instruments
Financial Assets
Loans and receivables:
Cash 54,787 58,160
Receivables for goods and services 23,877 30,418
Other receivables 19,231 28,879
Carrying amount of financial assets 97,895 117,457
Financial Liabilities
At amortised cost:
Trade creditors and accruals 76,099 80,184
Carrying amount of financial liabilities 76,099 80,184
Note 13B: Net Income and Expense from Financial Assets
Loans and receivables
Exchange gains/(loss) (2,051) (1,293)
Impairment gain/(loss) 156 253
Net gain/(loss) from loans and receivables (1,895) (1,040)
Note 13C: Net Income and Expense from Financial Liabilities
Financial liabilities - at amortised cost
Interest expense - -
Net gain/(loss) from financial liabilities - at amortised cost - -
Note 13D: Fair Value of Financial Instruments
As the Department only holds basic financial instruments (cash, receivables and payables), the carrying amounts
are reasonable approximation of fair value.
Note 13: Financial Instruments
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2



FINANcIAL STATEMENTS
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5
DFAT ANNUAL REPORT 201 1 –201 2
D
F
A
T

A
N
N
U
A
L

R
E
P
O
R
T

1
1

|

1
2



F
I
N
A
N
c
I
A
L

S
T
A
T
E
M
E
N
T
S
296
2012 2011
$'000 $'000
Financial assets Notes
Total financial assets as per balance sheet 998,585 938,943
Less: non-financial instrument components:
Appropriations receivable 5B 897,997 819,735
Other receivables (GST receivable from the ATO) 5B 2,693 1,751
Total non-financial instrument components 900,690 821,486
Total financial assets as per financial instruments note 13A 97,895 117,457
Note 14: Financial Assets Reconciliation
S
E
c
T
I
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N

5
297
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R
E
P
O
R
T

1
1

|

1
2



FINANcIAL STATEMENTS
Note 15: Administered - Expenses
EXPENSES 2012 2011
$'000 $'000
Note 15A: Employee Benefits
Wages and salaries 678 750
Superannuation:
Defined contribution plans - 4
Defined benefit plans 109 103
Leave and other entitlements 103 81
North American Pension Scheme - transfers and payments 3,661 3,719
Other 928 556
Total employee benefits expense 5,479 5,213
Note 15B: Suppliers
Goods and services
Professional services 7,138 1,553
Australia Network 19,766 19,348
Other suppliers 2,064 971
Total goods and services 28,968 21,872
Goods and services are made up of:
Rendering of services – related entities 19,766 19,348
Rendering of services – external parties 9,202 2,524
Total goods and services 28,968 21,872
Other supplier expenses
Operating lease rentals - external parties:
Minimum lease payments - 57
Total other supplier expenses - 57
Total suppliers expenses 28,968 21,929
Note 15C: Grants and Contributions
Private sector:
Non-profit organisations - external 8,057 4,488
Overseas - International Organisations 83,227 92,997
Overseas - UN peacekeeping 139,634 146,548
Other 93 42
Total grants and contributions 231,011 244,075
Note 15D: Write-Down and Impairment of Assets
Asset write-downs and impairments from:
Financial assets - receivables 4 48
Total write-down and impairment of assets 4 48
Note 15E: Foreign Exchange Losses
Non-speculative - NIA 305 -
Non-speculative - other 1,541 -
Total foreign exchange losses 1,846 - Note 15: Administered - Expenses (continued)
Note 15F: Other
NIA - Interest 1,809 4,954
NIA - Debt forgiveness 8,085 7,391
NIA - Other financial costs 17 60
EFIC - Administration costs 1,446 1,507
Passport and consular fee refunds 885 781
Total other expenses 12,242 14,693
S
E
c
T
I
O
N

5
DFAT ANNUAL REPORT 201 1 –201 2
D
F
A
T

A
N
N
U
A
L

R
E
P
O
R
T

1
1

|

1
2



F
I
N
A
N
c
I
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S
T
A
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M
E
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T
S
298
Note 16: Administered - Income
2012 2011
$'000 $'000
REVENUE
Non–Taxation Revenue
Note 16A: Sale of Goods and Rendering of Services
Rendering of services – related entities - passport fees 103 115
Rendering of services – external parties - passport fees 349,029 340,927
Rendering of services – external parties - consular services 7,377 6,986
Nuclear safeguard charges 617 575
Total sale of goods and rendering services 357,126 348,603
Note 16B: Interest
NIA 4,560 5,154
Other 118 97
Total interest 4,678 5,251
Note 16C: Dividends
Australian Government entities - Export Finance and Insurance 30,194 28,708
Corporation (EFIC)
Total dividends 30,194 28,708
Note 16D: Other Revenue
NIA - repayment of interest subsidy and recoveries 20,876 14,066
NIA - premiums 5,261 5,168
Defined Benefit Pension Schemes - contributions 3,256 3,153
Industry contributions/sponsorship 233 5,808
Refund of prior year expenses 11,627 985
Other 161 193
Total other revenue 41,414 29,373
GAINS
Note 16E: Foreign Exchange
Non-speculative - NIA - 2,483
Non-speculative - other - 6,598
Total foreign exchange gains - 9,081
S
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c
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5
299
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R
T

1
1

|

1
2



FINANcIAL STATEMENTS
FINANCIAL ASSETS 2012 2011
$’000 $’000
Note 17A: Cash and Cash Equivalents
Cash on hand or on deposit 191 2,528
Total cash and cash equivalents 191 2,528
Note 17B: Trade and Other Receivables
Goods and services:
Goods and services receivable - external parties * 5 17
Total receivables for goods and services 5 17
Advances and loans:
Other - Travellers Emergency Loans 1,448 1,404
Total advances and loans 1,448 1,404
Other receivables:
Related entities 408 313
GST receivable from the ATO 354 157
Dividend - Export Finance and Investment Commission (EFIC) 30,194 -
Passport and Consular Fees 1,784 1,228
Total other receivables 32,740 1,698
Total trade and other receivables (gross) 34,193 3,119
Less: impairment allowance account:
Advances and loans - Travellers Emergency Loans (546) (553)
Total impairment allowance account (546) (553)
Total trade and other receivables (net) 33,647 2,566
Receivables are expected to be recovered in:
No more than 12 months 33,243 1,851
More than 12 months 404 715
Total trade and other receivables (net) 33,647 2,566
Receivables were aged as follows:
Not overdue 33,119 2,084
Overdue by:
0 to 30 days 10 2
31 to 60 days 9 47
61 to 90 days 2 30
More than 90 days 1,053 956
Total receivables (gross) 34,193 3,119
The impairment allowance account is aged as follows:
Not overdue - -
Overdue by:
0 to 30 days - -
31 to 60 days - -
61 to 90 days (1) -
More than 90 days (545) (553)
Total impairment allowance account (546) (553)
Note 17: Administered - Financial Assets
*Goods and services receivable were with entities external to the Australian Government. Credit terms were
within 30 days (2011: 30 days).
S
E
c
T
I
O
N

5
DFAT ANNUAL REPORT 201 1 –201 2
D
F
A
T

A
N
N
U
A
L

R
E
P
O
R
T

1
1

|

1
2



F
I
N
A
N
c
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L

S
T
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T
S
300
Reconciliation of the Impairment Allowance Account:
Movements in relation to 2012
Advances Other
and loans receivables Total
$'000 $'000 $'000
Opening balance (553) - (553)
Amounts impaired - - -
Amounts recovered and reversed 7 - 7
Increase/decrease recognised in net surplus - - -
Closing balance (546) - (546)
Movements in relation to 2011
Advances Other
and loans receivables Total
$'000 $'000 $'000
Opening balance (565) - (565)
Amounts impaired - - -
Amounts recovered and reversed 12 - 12
Increase/decrease recognised in net surplus - - -
Closing balance (553) - (553)
2012 2011
$’000 $’000
Note 17C: Investments Accounted for Using the Equity Method
Investments in associates:
Export Finance and Insurance Corporation (EFIC) 418,063 408,082
Total equity accounted investments 418,063 408,082
Investments in equity accounted investments are expected to be recovered in:
No more than 12 months - -
More than 12 months 418,063 408,082
Total equity accounted investments 418,063 408,082
Details of investments accounted for using the equity method
2012
Name of entity % %
Associates:
Export Finance and Insurance Corporation (EFIC)
1
100 100
1
EFIC's principal activity is the provision of competitive finance and insurance services to Australian
exporters and Australian companies investing in new projects overseas.
2011
Ownership
Note 17: Administered - Financial Assets (continued)
Summarised financial information of associates:
2012 2011
$'000 $'000
Balance sheet:
Assets 3,273,913 3,036,162
Liabilities 2,855,850 2,628,080
Net assets 418,063 408,082
Statement of comprehensive income:
Income 263,495 139,300
Expenses 236,656 110,100
Net surplus/(deficit) 26,839 29,200
Share of associates' net surplus/(deficit): 26,839 29,200
Dividends receivable from associates in 2012 $30,194,000 (2011: dividend paid $28,708,000).
The Treasurer announced in the May 2012 Budget that EFIC would be required to pay a "special
dividend" of $200 million during the 2012-13 year. The mechanism to direct how the "special dividend"
is to be paid is yet to be determined; however to enable the payment there will need to be legislative
changes to the EFIC Act. The timing of these changes is unknown at this stage.
Note 17: Administered - Financial Assets (continued)
S
E
c
T
I
O
N

5
301
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N
A
N
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A
T

A
N
N
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A
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R
E
P
O
R
T

1
1

|

1
2



FINANcIAL STATEMENTS
NON-FINANCIAL ASSETS 2012 2011
$’000 $’000
Note 18A - Prepayments:
Prepayments 1,650 1,613
Total prepayments 1,650 1,613
Prepayments - are expected to be recovered in:
No more than 12 months 1,650 1,613
More than 12 months - -
Total prepayments 1,650 1,613
Note 18: Administered - Non-Financial Assets
PAYABLES 2012 2011
$’000 $’000
Note 19A: Suppliers
Trade creditors and accruals 1,209 329
Other 33 3
Total suppliers 1,242 332
Related entities - -
External parties 1,242 332
Total suppliers 1,242 332
Settlement was usually made within 30 days.
Note 19B: Other Payables
NIA* 10,689 21,061
Unearned Income - passports revenue 8,749 10,844
Defined Benefits Pension Schemes - NAPS 33,327 28,753
Defined Benefits Pension Schemes - Other 6,945 3,989
Total other payables 59,710 64,647
No more than 12 months 11,345 16,422
More than 12 months 48,365 48,225
Total other payables 59,710 64,647
Note 19: Liabilities Administered on Behalf of Government
* Loans on the National Interest Account (NIA) are funded from the Commercial Account at fair value. The amount
disclosed above reflects the Commonwealth's exposure on business undertaken in the NIA. It reflects the net amount
of assets in the form of loans and rescheduled credit insurance debts to overseas governments, commitment fees on
loans received by EFIC but not yet paid to the Commonwealth, unamortised portion of the reinsurance payments and
bond premiums receivable from exporters and liabilities relating to the reimbursement to EFIC for debt forgiveness
on loans, provision for unearned income on loan premiums, accrued expenses including EFIC administration fees and
other creditors.
Supplier payables expected to be settled within 12 months:
Total other payables are expected to be settled in:
S
E
c
T
I
O
N

5
DFAT ANNUAL REPORT 201 1 –201 2
D
F
A
T

A
N
N
U
A
L

R
E
P
O
R
T

1
1

|

1
2



F
I
N
A
N
c
I
A
L

S
T
A
T
E
M
E
N
T
S
302
Defined Benefit Pension Schemes 2012 2011
$’000 $’000
The amounts recognised in the Balance Sheet are as follows:
Present value of funded obligations 31,020 26,903
Fair value of plan assets (24,075) (22,914)
6,945 3,989
Present value of unfunded obligations 33,327 28,753
Net liability in balance sheet 40,272 32,742
Movements in the net liability recognised in the Balance Sheet as follows:
Net liability at the start of the year 32,742 40,333
Exchange differences on foreign plans 1,538 (7,134)
Net expense recognised in the income statement 2,852 2,445
Net actuarial losses (gains) 6,155 (28)
Contributions (991) (712)
Transfer of benefit (2,024) (2,162)
Net liability at the end of the year 40,272 32,742
The amounts recognised in the Income Statement are as follows:
Current service cost 1,552 1,150
Interest on obligation 3,034 2,833
Expected return on plan assets (1,733) (1,538)
Past service cost -
Losses (gains) on curtailments and settlements -
Total included in 'employee benefit expense account' 2,853 2,445
Amounts recognised directly in administered equity
Financial year ended
2012
$'000
2011
$'000
Actuarial Gains (Losses) (6,155) 28
Cumulative amounts of gains and losses recognised in administered equity
Financial year ended
2012
$'000
2011
$'000
Actuarial Gains (Losses) (16,717) (10,562)
Scheme Assets
The fair value of scheme assets is represented by:
Financial year ended 2012 2011
UK equities 0.0% 31.9%
Overseas equities 0.0% 39.6%
Long dated UK corporate bonds 15.6% 15.8%
Long dates UK Gilts 10.1% 8.3%
Cash 0.3% 0.1%
Insured Pensioner 2.0% 1.9%
Investment in LIC India 2.6% 2.4%
Diversified Growth Fund 69.4% 0.0%
Note 19: Liabilities Administered on Behalf of Government (continued)
S
E
c
T
I
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5
303
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A
N
N
U
A
L

R
E
P
O
R
T

1
1

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1
2



FINANcIAL STATEMENTS
Fair Value of scheme assets
The fair value of scheme assets does not include amounts relating to:
• any of the Department's (and the Australian Government's) own financial instruments; and
• any property occupied by, or other assets used by the Department (or the Australian Government)
Expected return on schemes assets
Actual return on scheme assets
Financial year ended
2012
$'000
2011
$'000
Actual return on scheme assets 984 2,870
Actual return on scheme assets as a percentage 4% 13%
Principal actuarial assumptions at the reporting date (expressed as weighted averages):
Financial year ended 2012 2011
Discount rate at 30 June 4.25% 5.27%
Expected return on assets at 30 June 3.07% 7.54%
Salary growth 3.12% 3.60%
Price inflation 2.97% 3.24%
Pension growth 1.09% 2.80%
Historical Information
Financial year ended
2012
$'000
2011
$'000
2010
$'000
2009
$'000
2008
$'000
Present value of defined benefit obligations
(64,347) (55,656) (64,981) (60,950) (56,221)
Fair value of scheme assets 24,075 22,914 24,648 21,484 26,210
Surplus / (deficit) in the scheme (40,272) (32,742) (40,333) (39,466) (30,011)
Experience adjustments gain / (loss) - Net
liabilities
(6,155) 28 (3,414) (4,629) 76
Expected Employer Contributions
Financial year ended
2013
$'000
2012
$'000
Expected employer contributions
1
902 631
1
This represents the employer contributions, which are paid into the schemes fund
Scheme Information
The Department administers on behalf of the Australian Government, defined benefit pension schemes for locally
engaged staff at posts in London and New Delhi, and also the North American Pension Scheme. All schemes, with
the exception of the New Delhi Gratuity Scheme, have been closed to new employees and provide pensions that are
linked to final salaries. Figures disclosed are based on formal actuarial reviews that are generally conducted
triennially and reviewed and updated by the actuary on an annual basis. The New Delhi scheme is fully funded, the
London scheme is partially funded and the North American Pension Scheme is fully unfunded. Contributions for the
North American Scheme are made to the Department of Finance and Deregulation, which will provide funding for
benefits payable under the scheme.
Note 19: Liabilities Administered on Behalf of Government (continued)
The expected return on assets assumptions is determined by weighting the expected long-term return of each asset
class by the targeted allocation of assets to each asset class and allowing for the correlation of the investment returns
between asset classes. The returns used for each class are net of investment tax and investment fees.
S
E
c
T
I
O
N

5
DFAT ANNUAL REPORT 201 1 –201 2
D
F
A
T

A
N
N
U
A
L

R
E
P
O
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T

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1

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F
I
N
A
N
c
I
A
L

S
T
A
T
E
M
E
N
T
S
304
2012 2011
$’000 $’000
Reconciliation of cash and cash equivalents as per Administered Schedule of
Assets and Liabilities to Administered Cash Flow Statement
Cash and cash equivalents as per:
Schedule of administered cash flows 191 2,528
Schedule of administered assets and liabilities 191 2,528
Difference - -
Reconciliation of net cost of services to net cash from operating activities:
Net cost of services 153,862 135,058
Adjustments for non-cash items
Administered revaluations taken to/from reserves 9,981 476
Actuarial gains/losses taken to/from reserves (6,155) 28
Changes in assets / liabilities
(Increase) / decrease in net receivables (31,081) 2,246
(Increase) / decrease in investments (9,981) (476)
(Increase) / decrease in prepayments (37) (6)
Increase / (decrease) in supplier payables 910 (12,227)
Increase / (decrease) in other payables (NIA) (10,372) (21,847)
Increase / (decrease) in other payables pensions 7,530 (7,591)
Increase / (decrease) in other payables (2,095) (215)
Net cash from (used by) operating activities 112,562 95,446
Note 20: Administered - Cash Flow Reconciliation
There are no contingent assets or liabilities in 2011-12 (2010-11: nil)
2012 2011
$'000 $'000
Contracts of insurance and guarantees 736,300 424,000
Statement of financial position liabilities 2,081,200 1,891,800
NIA contracts of insurance, guarantees and statement of position liabilities 647,000 634,100
3,464,500 2,949,900
There are no unquantifiable administered contingencies.
Quantifiable Administered Contingencies
Significant Remote Administered Contingencies
Note 21: Administered - Contingent Assets and Liabilities
Under section 62 of the Export Finance and Insurance Corporation Act 1991 , the Australian Government
guarantees the due payment by the Export Finance and Insurance Corporation of money that is, or may at any
time become, payable by the Export Finance and Insurance Corporation to any person other than the Australian
Government. Details of remote contingencies are shown in the following table:
There are no quantifiable administered contingencies disclosed in the Schedule of Administered Items.
Unquantifiable Administered Contingencies
S
E
c
T
I
O
N

5
305
F
I
N
A
N
c
I
A
L

S
T
A
T
E
M
E
N
T
S




D
F
A
T

A
N
N
U
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FINANcIAL STATEMENTS
2012 2011
$’000 $’000
Note 22A: Categories of Financial Instruments
Financial Assets
Loans and receivables:
Cash 191 2,528
Goods and services receivables 413 330
Dividend - Export Finance and Investment Commission 30,194 -
Traveller Emergency Loans 902 851
Other - passport and consular fees 1,784 1,228
Total loans and receivables 33,484 4,937
Available for sale:
Investment - Export Finance and Insurance Corporation 418,063 408,082
Total available for sale 418,063 408,082
Carrying amount of financial assets 451,547 413,019
Financial Liabilities
At amortised cost:
Suppliers 1,242 332
NIA 10,689 21,061
Total financial liabilities at amortised cost 11,931 21,393
Carrying amount of financial liabilities 11,931 21,393
Note 22B: Net Income and Expense from Financial Assets
Loans and receivables
Interest revenue 118 97
Impairment Decrease/(Increase) 7 12
Write-off (4) (48)
Net gain/(loss) from loans and receivables 121 61
Available for sale
Dividend revenue 30,194 28,708
Revaluation gain/(loss) recognised in equity 9,981 476
Net gain/(loss) from available for sale 40,175 29,184
Net gain/(loss) from financial assets 40,296 29,245
Note 22: Administered - Financial Instruments
S
E
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T
I
O
N

5
DFAT ANNUAL REPORT 201 1 –201 2
D
F
A
T

A
N
N
U
A
L

R
E
P
O
R
T

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1

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1
2



F
I
N
A
N
c
I
A
L

S
T
A
T
E
M
E
N
T
S
306
2012 2011
$’000 $’000
Note 22C: Net Income and Expense from Financial Liabilities
Financial liabilities - at amortised cost
NIA
Interest revenue 4,560 5,154
Other revenue 26,137 19,234
Exchange gains/(loss) (305) 2,483
Interest expense (1,809) (4,954)
Administration costs (1,463) (1,567)
Net gain/(loss) financial liabilities - at amortised cost 27,120 20,350
Net gain/(loss) from financial liabilities 27,120 20,350
Note 22: Administered - Financial Instruments (continued)
Note 22D: Fair Value of Financial Instruments
Carrying Fair Carrying Fair
amount value amount value
2012 2012 2011 2011
$'000 $'000 $'000 $'000
Financial Assets
Cash 191 191 2,528 2,528
Receivables for goods and services (net) 1,315 1,315 1,181 1,181
Dividend 30,194 30,194
Accrued Revenue 1,784 1,784 1,228 1,228
Investments 418,063 418,063 408,082 408,082
Total 451,547 451,547 413,019 413,019
Financial Liabilities
Trade creditors 1,242 1,242 332 332
Other payables 10,689 10,689 21,061 21,061
Total 11,931 11,931 21,393 21,393
Fair value measurements categorised by fair value hierarchy
The following table provides an analysis of financial instruments that are measured at fair value, by valuation method.
The different levels are defined below:
Fair value hierarchy for financial assets
2012 2011 2012 2011
$'000 $'000 $'000 $'000
Financial Assets
Financial assets at fair value
EFIC - Valuation by net assets 418,063 408,082 418,063 408,082
Total 418,063 408,082 418,063 408,082
Reconciliation of Level 3 fair value hierarchy for financial assets
2012 2011 2012 2011
$'000 $'000 $'000 $'000
Opening balance 408,082 407,606 408,082 407,606
Total gains or losses recognised in other comprehensive income * 9,981 476 9,981 476
Closing balance 418,063 408,082 418,063 408,082
Valuation Method used for determining the Fair Value of Financial Instruments
The following table identifies for those assets and liabilities (those at fair value through profit and loss or available for sale) carried at fair value
(above) whether fair value was obtained by reference to market prices or by a valuation technique that employs observable market transactions,
or one that uses non-observable market inputs to determine a fair value.
As the Department only administered basic financial instruments (outlined above), the carrying amounts are a reasonable approximation of fair
value.
The department holds no financial instruments measured at fair value by valuation method Level 1 or Level 2 (2010-11: Nil).
Note 22: Administered - Financial Instruments (continued)
Level 1: Fair value obtained from unadjusted quoted prices in active markets for identical instruments
Level 2: Fair value derived from inputs other than quoted prices included within Level 1 that are observable for the instrument, either directly or
indirectly.
Level 3: Fair value derived from inputs that are not based on observable market data.
* This revaluation gain/loss is presented in the schedule of administered items and is related to the movements in the carrying amount of
investments.
Financial assets at fair value
Investments
Total
Level 3
$'000
Total
$'000
S
E
c
T
I
O
N

5
307
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D
F
A
T

A
N
N
U
A
L

R
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FINANcIAL STATEMENTS
Note 22E: Credit Risk
The following table illustrates the entity's gross exposure to credit risk, excluding any collateral or credit enhancements.
2012 2011
$'000 $'000
Financial assets
as per balance sheet 451,901 413,176
Total 451,901 413,176
Credit Quality
Note 22: Administered - Financial Instruments (continued)
Recognised in the DFAT Administered Accounts
Maximum exposure
The Department's Senior Executive has endorsed policies and procedures for debt management (including the provision of credit terms) to
reduce the incidence of credit risk. The majority of services provided by the Department on behalf of the Australian Government are delivered
to another government entity and therefore represent minimal credit risk. Collateral is not required on any loan.
The Department’s maximum exposure to credit risk at reporting date in relation to each class of recognised administered financial asset is the
carrying amount of those assets as indicated in the Schedule of Administered Items, unless otherwise detailed in the table below:
The Department's Administered Traveller Emergency Loans receivable includes debtors with a carrying amount of approximately $0.523
million (2011: $0.476 million) that are past due at the reporting date and for which the Department has not provided. Based on experience, the
Department believes that the amounts are still considered receivable. The Department does not hold any collateral over these balances.
However, it requires settlement of the outstanding debt before the debtor's passport is renewed.
S
E
c
T
I
O
N

5
DFAT ANNUAL REPORT 201 1 –201 2
D
F
A
T

A
N
N
U
A
L

R
E
P
O
R
T

1
1

|

1
2



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FINANcIAL STATEMENTS
Note 22F: Liquidity Risk
Maturities for non-derivative financial liabilities 2012
On 1 to 2 2 to 5 > 5
demand years years years Total
$'000 $'000 $'000 $'000 $'000
Trade creditors - 1,242 - - - 1,242
NIA - 2,597 6,075 1,626 391 10,689
Total - 3,839 6,075 1,626 391 11,931
Maturities for non-derivative financial liabilities 2011
On 1 to 2 2 to 5 > 5
demand years years years Total
$'000 $'000 $'000 $'000 $'000
Trade creditors - 332 - - - 332
NIA - 5,578 7,473 2,762 5,248 21,061
Total - 5,910 7,473 2,762 5,248 21,393
The entity had no derivative financial liabilities in both the current and prior financial year.
Note 22G: Market Risk
2012 2012 2011 2011
$'000 USD $'000 $'000 USD $'000
Other Payables - NIA 6,288 6,408 (3,127) (3,358)
Supplier Payable - Grants and Contributions (184) (188) 24 25
Total Exposure USD 6,220 (3,333)
2012 2012 2011 2011
$'000 EUR $'000 $'000 EUR $'000
Other Payables - NIA 193 156 227 168
Total Exposure EUR 156 168
Sensitivity analysis of the risk that the entity is exposed to for 2012
Risk variable
Profit and
loss Equity
$'000 $'000
Currency risk - All currencies - (821) (821)
Currency risk - All currencies - 1,111 1,111
Sensitivity analysis of the risk that the entity is exposed to for 2011
Risk variable
Profit and
loss Equity
$'000 $'000
Currency risk - All currencies - 375 375
Currency risk - All currencies - (508) (508)
All other items are denominated in AUD and are not subject to market risk due to exchange rate fluctuations.
15%
-15%
Change in
risk
variable
Effect on
%
15%
The following table illustrates the effect on the Department's Administered net income less expenses and equity as at 30 June 2012 from a 15 %
(2011: 15%) increase or decrease against the AUD in the currencies in which financial instruments were administered by the Department, with all
other variables held constant.
Change in
risk
variable
Effect on
%
-15%
Note 22: Administered - Financial Instruments (continued)
year
$'000
The Department receives an annual Administered Appropriation to fund payments due on the financial liabilities listed and therefore does not
carry any liquidity risk.
within 1
year
$'000
within 1
The following tables illustrates the maturities for financial liabilities.
2012 2011
$'000 $'000
Financial assets Notes
Total financial assets as per schedule of administered assets and
liabilities
451,901 413,176
Less: non-financial instrument components
Other receivables (GST receivable from the ATO) 17B 354 157
Total non-financial instrument components 354 157
Total financial assets as per financial instruments note 22A 451,547 413,019
Note 23: Administered Financial Assets Reconciliation
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