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NAURU: Australia pledges detention centre compensation

Updated February 25, 2008 09:36:59

Australia is pledging to give aid to Nauru, to compensate for the cash that will be lost by the closure of Australia's boat-people processing centre on Nauru. The Australian Foreign Minister says he's written to Nauru about future development assistance. Also in alliance talks in Canberra the weekend, Australia and the United States urged Fiji's military regime to carry out its promise to hold elections not later than March next year.

Presenter: Graeme Dobell
Speakers: Australian Foreign Minister Stephen Smith; the US Defence Secretary, Robert Gates

DOBELL: When the Howard Government created the asylum seeker camp on Nauru in 2001, it was called the Pacific Solution. In one sense, though, it became the Nauru solution - helping to deal with the island's financial crisis. Before the boat people camp, Australia had never given aid to Nauru, now that aid looks like becoming a permanent feature of Canberra's development program in the South Pacific because of the financial problems of Nauru. Talking to Australian TV Channel 9, Australia's Foreign Minister, Stephen Smith was asked if Nauru was unhappy about the loss of funds involved in the closure of the asylum seeker processing camp.

SMITH: They're not so much complaining, there's no-one there. We're in the process of closing it down, but I've written to my counterpart in Nauru and made it clear that we're currently giving consideration to what form of development assistance might be appropriate to compensate for the loss of income, and we've already sent some AusAID officers to Nauru and we will be having conversations with the Nauru Government about the sorts of development assistance that will be appropriate, given that they are losing income as a consequence.

DOBELL: Mr Smith says the Labor Government, elected in November, was determined to close the Nauru camp, to dismantle a costly legacy of the Howard Government's approach to the South Pacific.

SMITH: But we make no secret, we had, again, a firm election commitment to close down the off-shore processing arrangements. It was very costly and very expensive. We will all recall John Howard saying that none of them would come to Australia and about 70-80% of them did. It cost us $300 million. So we will close them down, but we will make sure that we discharge an appropriate development assistance package to Nauru and we will do that in conjunction with them.

DOBELL: The communique from annual alliance talks in Canberra at the weekend between Australia and the United States says the two countries have a continuing commitment to the South Pacific, to promote good governance, rule of law and economic development. The US Defence Secretary, Robert Gates, backed the role Australia has been playing in neighbouring island states.

GATES: We appreciate Australia's principal leadership in the region in the Solomon Islands, Papua New Guinea and most recently in East Timor.

DOBELL: In the past US leaders have formally and informally spoken of Australia's responsibility to take the lead role in dealing with problems of stability in the Island states, and Dr Gates invoked the same sort language in talking about Australia's regional role.

GATES: Australia plays a key role here in Asia and its role in the Pacific Islands in places like East Timor is critically important. We were talking yesterday, some of these smaller places nobody pays much attention to when things are going OK, when they go bad can create problems far disproportionate to their size. Australia's engagement in these areas and willingness to work with some of these governments is very important.

DOBELL: The communique from annual US-Australia alliance talks directed one sentence at military control imposed on Fiji by the coup in December, 2006. Referring by name to the military chief, Commodore Frank Bainimarama - but describing him as the Fiji Interim Government Prime Minister - the communique called on Bainimarama to quote, "adhere to his commitment to restore democratic government in Fiji by holding elections no later than March, 2009."