SUBJECTS: Pacific Island Coinage Seminar
A podcast and mp3 download of this interview is available on the ABC website.
BERNIE RIPOLL:
It's been driven by the Australian Mint and what it is, is a collection of governments, and central banks and representatives of financial departments from Pacific Island nations. So it was a really good gathering across the board from Tonga, Samoa, Kiribati, Cook Islands and a whole range of others. It was just a really good opportunity for them to get together. This is, I think, now the third time that they have done this; to look at coinage issues, to look at seignorage, which is about how coins are developed. There are particular issues within the Pacific about currencies. We believe in Australia, we've got a really good product to offer and a really good service to offer and a really good opportunity to, you know, help develop and assist in these areas so that's what the conference is about. My presentation was, you know, two fold, it was talking about the coinage issue and currency issues but also talking about the great relationship that Australia has with our Pacific Island neighbours.
GERALDINE COUTTS:
Well, staying on the coinage and currency issue, is there still some talk that the Pacific might have, like the EU, a currency for the Pacific.
RIPOLL:
Look, I didn't raise that specifically. I know there is talk from time to time about that happening. Of course, it is a matter for each of those sovereign nations to decide. It is not for Australia to decide that. But we'd be, certainly, prepared and willing to work with our Pacific Island friends on any issue they wanted to raise and discuss and in the end the more and more they can work together as a bloc, the better it is for them and there already are very, very strong links, really good relationships, government to government, people to people and there's some really strong work that is being done for a long time. Including with Australia and Australia makes a significant commitment to development, through development aid money to assist the Pacific Island nations in achieving their goals.
COUTTS:
And was the issue of Australia and New Zealand currency also discussed? I understand it has been dismissed as impractical because of their political and economic differences.
RIPOLL:
That's right. And look, it was discussed. Certainly there are some difficulties there about how that would work. So, I think coming out of this conference, probably two things for me. One is, the ability of the Australian Mint, the Australian Government to continue to build on the relationship that we've got with Pacific Island nations. Which in the end is our neighbourhood. If we look in our own backyard as to where we can have an impact, play a really positive role, that's one of those areas. The other is just to continue that dialogue with our friends in the Pacific on Millennium Development Goals, on working more on infrastructure, looking at how corporate governance works, looking at how currency works within that. There's a lot of work that is being done, there's a lot more work that can be done. And I think one of the very positive things to come out is just the willingness of everybody to work together, to just understand that there is a broader gain for everyone in our region, in the Asia Pacific region if we all do work together on these issues.
COUTTS:
Were any of the concerns raised about Pacer Plus and the Pacific Plan and all the sorts of draft documents that have sort of been out there for a long time to try and nail down trade and economic relations as well as these financial institutions and the fact that they aren't sort of happy hunting grounds for the Pacific.
RIPOLL:
Look, there were a whole range of issues that were raised. I wasn't there for the whole conference obviously and I delivered a particular keynote address in terms of coinage and currency and the relationship. But I know those issues do exist and you're right, it is probably not always a happy outcome in all circumstances. But again I think the great strength is that we've got the ability to meet. We've got the ability to work through some of these issues. Look, if we talk about trade, there's lots of opportunities, there's lots more things that we can be doing so we need to look at better systems. The great example in this particular conference was though, if we just looked at one, if we just looked at currency, we've got this great product that we can offer, really efficient, good value system of coins that are essential for Pacific Island nations in terms of the way they trade internally. Currently some of the systems that are out in the Pacific are less than efficient. I think we've got a fair bit to offer there and there is certainly a lot of interest. I'll be keen to follow up just to see where that does end up.
COUTTS:
Is Australia offering to mint the coins across the Pacific?
RIPOLL:
I think Australia is offering we could mint for the whole world if need be. We have a great service, we've got, the Australian Mint is one of the most efficient, best governed, best operating and most modern mints in the world. We offer a really good quality product and most people wouldn't see it in that sense but it is a commercial operation as well as much as it is a link to Government. Therefore, they go out and people seek out their products and their services. So we've got a huge capacity to mint on a just in time basis that we can make it efficient and effective and we can provide other nations that opportunity to use our facilities and services and experience for their benefit. I think that's the real strength, so right now I think one of the issues that is outstanding is that some Pacific Island nations actually have their coins minted in Canada. It's more expensive, it's further away and I see no reason why it should be Canada. I think it should be Australia.
COUTTS:
During this did you have a question time? I'm just wondering whether any of the Pacific Island nations raised questions or concerns.
RIPOLL:
Look, not with me. The conference was an opportunity to raise all of those issues and all of those concerns and that's what it was about. That's what the conference was about. It was really, these are the interested parties. Pretty certain we had almost every Pacific Island nation at the table. They're all interested, they're all keen. They want to follow through on this. They can see the advantages cause it'll cost them less, it's closer to home. It's a more flexible system and service that we offer and it's a really good quality product. I mean, you can't overlook that. The Australian Mint produces just first rate, first class coins. That is a huge advantage for Pacific Island nations as much as it is for any other nation.
COUTTS:
Australia of course gives, probably not as much of its percentage of its GDP as Pacific and other recipients of our donor nations would like, but it is out there. There is a considerable sum and yet the Pacific are still struggling to meet their development and their Millennium goals. Does there need to be a shift in emphasis, a shift in focus of the aid to make sure that the goals are met?
RIPOLL:
Sure, look, there is probably a couple of things to note. One is, Australia is doubling its foreign aid and development assistance money. That we recognise our own neighbourhood, and in particular, Australia's official development assistance budget is currently $5.2 billion. It's a significant amount, but what's even more significant is that we give 25 per cent of that for Pacific Island countries. That's $1.17 billion. It's the largest and most specific development assistance. It focusses on a whole range of areas, but it particularly looks at skills development, skills development, education, health, humanitarian disaster response, transport and infrastructure, all of those issues. So, we place a large amount of importance not just in monetary terms, but also in effective assistance in the Pacific.