Table of Contents

Inquiry into the Abolition of the Development Import Finance Facility

Table of Contents

Membership of the Committee

Terms of Reference

Executive Summary and Recommendations

Chapter 1: Introduction

Reference to the Committee

Conduct of the Inquiry

Acknowledgments

Chapter 2: The DIFF Scheme

Australia's Aid Program

The DIFF Scheme

The Evolution of DIFF

Reviews of the DIFF Scheme

DIFF in 1995-96: How Did It Work?

The Aid/Trade Debate

Was DIFF Good Aid

Was DIFF Humanitarian Aid

The Termination of DIFF

Chapter 3: The Government's Management of the Termination of DIFF

Introduction

Preparations for the Termination of the DIFF Scheme

Notification of the Termination of DIFF

Overseas Responses to the Termination of DIFF

Mr Downer's Parliamentary Responses to Foreign Representations on the Termination of DIFF

The Government's Response to Foreign Representations on the Termination of DIFF

Chapter 4: The Impact of the Termination of DIFF Within Australia

The Situation in March 1996

Loss of Projects Which Had Received Letters of Advice

The Case of Relpar Pty Ltd

Loss of Potential Follow-on Business

Effect on Companies' Operations and Employment

A Case Study: Solarex Pty Ltd - Indonesian Rural Electrification Program

The Impact on the Australian Economy of the Termination of DIFF

Chapter 5: The Impact of the Termination of DIFF in the Asia-Pacific Region

Impact on Bilateral Relations

Impact on Recipient Companies

Green DIFF

Chapter 6: The Place of DIFF in Australia's Aid Program

The Role of Mixed Credit Schemes

The Current Situation and the Future

Appendix 1: List of Submissions Authorised for publication by the Committee

Appendix 2: Responses to Senator Cook's Questionnaire Authorised to be Published by the Committee

Appendix 3: List of Witnesses Who Appeared Before the Committee At Public Hearings

Minority Report by Senators Boswell, Coonan and Macdonald

Minority Report

Chapter 1: Introduction

Acknowledgements

Chapter 2: The Management and Implimentatrion of the Government's Decision to Terminate the DIFF Scheme

Notification of the Decision to Terminate the DIFF Scheme

The Economic Rationale Underpinning the Scheme's Termination

The Management of the Scheme's Termination

Chapter 3: Consideration of hte Pipeline Project Proposals

Introduction

The Legal Status of Pipeline Project Proposals

Specific Conditions to Which Letters of Advice are Subject

Competition for DIFF Funding

Drop-out Rates of Project Applications in the DIFF Selection Process Between 1991 and 1995

The Expectation of Success?

Additional Funding for High Priority Projects Provided in the 1996-97 Budget

Conclusions

Chapter 4: The Economics of DIFF

Industry Assistance

Individual Versus Net Economic Benefits

Multiplier Effect

Dependency Argument

Australia's Export Performance in the Asia-Pacific Region

Chapter 5: Impact on Australia's International Relations in the Asia-Pacific Region

Chapter 6: The Role of Concessional Finance Schemes in Future Australian Aid Programs

The Selection Process

The Feasibility Study Requirements

Supplier-driven?

Possible Alternatives