Charities: Australian aid cuts will cost lives

Australia's plan to scale back foreign aid growth to help produce a budget surplus was criticised by charity groups on Wednesday, with World Vision saying it could cost up to 200,000 lives. Overseas aid was a big loser in the budget handed down on Tuesday with the government highlighting Aus$2.9 billion (US$2.92 billion) in savings through the scaling back of development targets. Labour now plans to increase the aid budget to 0.5 per cent of gross national income, from the current 0.35 per cent, by 2016-17, one year later than promised. "Funding for official development assistance will continue to grow each year. It will, however, grow at a slightly slower rate so that 0.5 per cent of gross national income is reached in 2016-17," Foreign Minister Bob Carr said. Aid groups said they were bitterly disappointed at the decision. "Breaking this bipartisan promise, by pushing this out, saving $2.9 billion, we estimate this is going to cost up to 200,000 lives," World Vision Australia chief Tim Costello told ABC radio. "When you are trying to live on $1.20 a day without clean water and food, this costs your life. "For it to pushed out, how can Australia that escaped the global financial crisis justify this? That will be the question in international ranks," he added. Treasurer Wayne Swan unveiled plans for a Aus$1.5 billion budget surplus on Tuesday, vowing to find Aus$33.6 billion in savings to meet the target for the 2012-13 fiscal year starting July 1. In doing so, Australia will become the first major developed economy to balance its books since the global economic crisis. Save the Children Australia said it was shocked that the government had targeted foreign aid, backing Costello's claim that people would die. "The decision to delay aid in favour of a budget surplus will have dire consequences for many children in our neighbouring countries," Save the Children's policy adviser Nicole Cardinal said. Oxfam Australia boss Andrew Hewett said the cuts came despite Australia being one of the world's wealthiest countries. Around 70 per cent of Australia's foreign aid is spent in the Asia-Pacific region.