Australian aid cuts to East Timor under fire

Updated June 10, 2010 12:15:23

East Timor's President has written a letter to the Australian Ambassador in East Timor criticising Australia's aid agency and calling for a new direction in aid spending. Jose Ramos Horta has lambasted Canberra for reducing the funding it provides for a grassroots organisation that helps local entrepreneurs, while still spending millions on highly-paid technical advisers. The Australian government recently announced it will review its technical assistance program, which Canberra expects will this year account for 38 per cent of the country's total aid spending.

Presenter: Stephanie March
Speaker: Scott Gilmore, founder of Peace Dividend Trust; Jose Ramos-Horta, East Timorese President