Parliament of Australia Report of the Parliamentary Delegation to the Philippines, Malaysia and Brunei 30 March to 10 April 2014 © Commonwealth of Australia 2014 ISBN 978-1-74366-162-8 This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Australia License. The details of this licence are available on the Creative Commons website: http://creativecommons.org/licenses/by-nc-nd/3.0/au/. Members of the Delegation Hon Bruce Scott MP Leader of the Delegation Senator the Hon Don Farrell Deputy Leader of the Delegation Senator Helen Kroger Mr Ken Wyatt AM MP Hon Alan Griffin MP Mr Peter Banson Delegation Secretary Introduction The aims of the annual Australian parliamentary delegation visit to ASEAN countries are to gain a better understanding of developments in ASEAN countries and to examine opportunities to broaden links with those countries, focusing on: • economic development, including responses to global economic issues and opportunities to strengthen trade and investment links; • environment, including policies and initiatives to meet the challenges of climate change; • security, including defence cooperation and responses to the threat of terrorism; • cooperation within the multilateral system; and • social development, including community health and education. The Association of South-East Asian Nations (ASEAN) was formed in 1967 by the Philippines, Malaysia, Indonesia, Singapore and Thailand. Membership has expanded over the years to include Brunei, Cambodia, Laos, and Vietnam and Burma (Myanmar). Australia became ASEAN’s first dialogue partner in 1974, and entered into a free trade agreement with ASEAN and New Zealand in 2010. The 2014 delegation visited the Philippines, Malaysia and Brunei. The considerable program of activities in each country was well-targeted and relevant to the delegation’s aims, allowing delegates to gain a substantial insight into developments in the region and issues facing individual countries, and an understanding of where opportunities exist to strengthen Australia’s relationship with those countries. The delegation also took the opportunity in each of the three countries it visited to pay its respects at memorials commemorating campaigns of the World War II Pacific theatre. The delegation felt very welcome in each country it visited, and was warmly received by parliamentarians and Government officials, business representatives and local communities. It was clear that Australia is held in high regard in the ASEAN region, and the delegation relished the opportunity to build on the strong bilateral relationships between Australia and the Philippines, Malaysia and Brunei. The delegation wishes to record its appreciation of the work that went into preparing for the visit, including the briefings provided by the Department of Foreign Affairs and Trade, the Department of Veterans’ Affairs and the Parliamentary Library. The delegation would also like to thank Australia’s diplomatic missions in the Philippines, Malaysia and Brunei for their work in developing the programs and the excellent support and hospitality provided during the visits. This report outlines the places visited, matters discussed and aspects of the bilateral relationship with each country visited. The visit program is included as an appendix to the report. Philippines Education Australia recently announced a six-year, The delegation visited the Philippines $150 million Basic Sector Education from 31 March to 3 April as the first leg Transformation program in the of the annual Australian parliamentary Philippines, which is a new aid visit to ASEAN countries. The visit was investment developed in partnership based in Manila but included a trip to with the Philippines Government Tagbilaran City in Bohol Province. aiming to assist the Philippines in improving learning quality and access to The Philippines is one of the foundation education. The program will help the members of ASEAN, and in addition to Philippines build new classrooms, train its relationships with ASEAN member teachers, and run its kindergarten to countries and Australia, the Philippines year 12 program, adding two years to has important bilateral ties with the the country's basic education system. United States and several other nations. It is expected that the new Colombo The bilateral relationship Plan will be rolled out in the Philippines Australia has a strong bilateral in 2015, a prospect which was relationship and friendship with the welcomed by the delegation and Philippines, sharing similar values and likewise by the parliamentarians and interests and very strong people to officials it met with. The new Colombo people links. Over 250,000 people of Plan will initiate a two-way flow of Filipino heritage live in Australia, and students between Australia and the over 8,400 Filipino students were Indo Pacific region, with Australian enrolled in Australian education undergraduates undertaking study and institutions in 2013. internships in the Philippines and other countries beginning in 2015. Australia is currently the largest grant donor to the Philippines, which includes The delegation was pleased to hear that significant aid for the recovery process 2013 saw growth of 35 per cent in the following Super Typhoon Haiyan, and number of Philippine students coming development cooperation programs in to Australia for higher education and many areas with a particular focus on vocational training, representing a good education. Other major areas of aid opportunity to help fill the gap in focus are governance, disaster risk Australia between available skills and management and improving prospects industry needs. for peace and security. Investment Australia has a long history of defence The Philippines’ economy has been cooperation with the Philippines, dating growing considerably in recent years, back to World War II. While in the although this will be impacted as a Philippines, the delegation visited the result of Super Typhoon Haiyan, which Manila American Cemetery and caused widespread devastation and the Memorial and laid a wreath at the loss of over 6,200 lives. graves of two Australian soldiers, Private Wilbert T Wiley and Private First Two-way trade between Australia and Class Steven G Parkinson. the Philippines is increasing due to the 1 Philippines ASEAN-Australia-New Zealand Free The delegation passed on Australia’s Trade Agreement, but remains well strong support for the peace process, below its potential. The delegation was and expressed its hopes for a successful told that there remains scope to end to the conflict in Mindanao. strengthen trade and investment in many areas including infrastructure, South China Sea conflict mining, energy, food and education. On 30 March 2014, the Philippines filed a case in the Permanent Court of The recent growth in the Philippines’ Arbitration in The Hague against China economy presents a range of over its territorial claims in the South opportunities for investment by China Sea. The submission argues that Australian businesses and collaboration the Second Thomas Shoal is well inside on major projects in the country. In the 200 nautical miles of the particular, the delegation noted that if Philippines' exclusive economic zone, changes were made to the existing allowing the Philippines to exploit the regulatory environment for business, waters around the shoal under the collaboration on environmentally and United Nations Convention on the Law socially responsible mining ventures in of the Sea. parts of the Philippines is one area of considerable potential. The ‘nine dash line’ on Chinese maps indicates China’s claim to over 80 per Mindanao peace process cent of the sea, and includes the The delegation was briefed extensively Second Thomas Shoal within its on recent developments in the region boundary. of Mindanao in the Southern Philippines, which has endured decades The Philippines is one of seven of civil unrest and violence. sovereign nations involved in land and maritime disputes in the South China In the week leading up to the Sea, although the Philippines and China delegation’s visit, the Comprehensive are the only parties to the current case Agreement on the Bangsamoro was before the Court. The Court will decide signed by the Philippines Government on the next steps that will be taken and and the Moro Islamic Liberation Front advise the parties, and is expected to (MILF), aimed at formally ending the give a ruling sometime in 2015. conflict and setting up an autonomous region with its own government. The The delegation reaffirmed Australia’s Bangsamoro Government will operate view in relation to the South China Sea concurrently with the Central conflict – that it does not take a (Philippines) Government, with each position on how countries resolve their having its own specific exclusive claims, but wishes to see the dispute powers. Legislation to set up this region resolved peacefully and in accordance is still before the Parliament, and it is with international law. The delegation hoped that it will be passed by the end was assured that the Philippines of the year to enable a referendum on appreciates Australia’s position – even which Islands or Provinces wish to be without taking sides, the principles included in the Bangsamoro. Australia stands by supports the Philippines in its stance on the issue. 2 Philippines Earthquake assistance in Bohol vegetable crops and for long-term The delegation was very pleased to management of pests and diseases. have the opportunity to travel to