Basic information about Australia

Full Country Name: The Commonwealth of Australia

• Area: 7,682m sq km
• Population : 20.2 million
• Capital City: Canberra
• People: 98% of the population are of European or Asian descent
• Languages: Mainly English with some other European, indigenous and Asian languages
• Religion(s): Predominantly Christian with Buddhist, Jewish and Muslim
  Currency: Australian Dollar (A$)

Major Political Parties: There are sixregistered parties, they are the: Liberal Party, National Party, Australian Labour Party (ALP), Green Party, One Nation, Australian Democrats

Government: The Australian Constitution of 1901 established a federal system of government. Under this system, powers are distributed between a federal government (the Commonwealth) and the six States (three Territories - the Australian Capital Territory, the Northern Territory, and Norfolk Island have self-government arrangements). The Parliament is at the very heart of the Commonwealth government. The Parliament consists of The Queen (represented by the Governor-General) and two Houses, the Senate and the House of Representatives. These three elements make Australia a constitutional monarchy, a federation and a parliamentary democracy.

Head of State: Her Majesty, Queen Elizabeth II

Governor-General: HE Major-General Michael Jeffery

Prime Minister: The Hon John Howard MP (Leader Liberal/National Coalition)

Foreign Minister: The Hon Alexander Downer MP

Membership of international groups/organisations: The United Nations (UN), the Commonwealth, the World Trade Organisation (WTO), the Asia Pacific Economic Co-operation (APEC), Organisation for Economic Cooperation and Development (OECD), the Association of Southeast Asian Nations (ASEAN) Regional Forum (ARF), United Nations Educational, Scientific and Cultural Organisation (UNESCO), Pacific Islands Forum (PIF), Pacific Community (SPC), South Pacific Regional Environment Programme (SPREP).

GEOGRAPHY

Australia occupies the whole of the island continent of the same name and lies between the Indian and Pacific Oceans. Although the country’s land mass is half as big again as that of Europe, most of Australia is empty. The population is centred predominantly in the South Eastern coastal cities of Sydney, Brisbane, Melbourne and Adelaide while the interior of the country - the Outback - is comprised of sparsely populated semi-desert and tropical wetlands.

HISTORY

Longer Historical Perspective

In 1768 the British Admiralty instructed Captain James Cook to begin a search for the ‘Great South Island’ first reached by Dutch sailors in the early 17th century. The crew of The Endeavour subsequently landed at Botany Bay and claimed the Island for the British. King George III decided that Botany Bay should become the destination for British convicts under sentence of transportation and in January 1788 the first fleet sailed under the command of Captain Arthur Phillip. In total more than 168,000 convicts were transported but the discovery of gold in the 1850s also began to attract free settlers to the Island. Exploration and expansion followed from the growth in population and by the 1890s, calls for the colonies of New South Wales, Western Australia, Van Diemen’s Land (now Tasmania) and Port Phillip (Now Victoria) to federate had became increasingly strong. Australia became a nation on 1 January 1901.
This is an external link  BBC Monitoring Timeline

POLITICS

Federal

The Federal Coalition of the Liberal and National parties was returned for a fourth term on 9 October 2004. The Government has increased its majority in the House of Representatives. A preferential voting system, called the Alternative Vote (AV) exists in the lower house. It requires voters to rank all candidates in their order of preference. The proportional representation vote that exists for the Senate, makes the contest even closer, but the Coalition Government have an outright majority in the Senate for the first time in 25 years.

John Howard continues as Prime Minister for a fourth term.

Members of the House of Representatives (lower house) serve three-year terms. Senators serve fixed six-year terms (from 1 July). It is usual to hold a full House of Representatives and a half-Senate election simultaneously every three years.
State/Territories

For the first time since Federation in 1901, the Australian Labor Party hold all the State and Territory Governments.

Federal Government Policies

The Federal Government’s fourth-term agenda is focused on reintroducing bills that were previously blocked in the Senate, mainly on industrial reform, disability and welfare reform, cross media ownership, and the full sale of Telstra. Other fourth term priorities will include a greater focus on promoting skills training and development; linking employment programmes to income support to reduce welfare dependency; and workforce participation.

With their strengthened position after the October 2004 election, the Government is expected to reintroduce much of the blocked legislation, and push through wider industrial relations and welfare reforms. They are also expected to return to the sale of the rest of Telstra, and to push through cross media ownership legislation.

The Government is perceived as winning the election on its strong performance on the economy and national security. Since taking office in 1996, it has turned an inherited A$10 million budget deficit to surplus by 1998, and paid back over A$70 billion in debt. It secured passage of the Native Title Amendment Act: aiming to provide a framework for resolving the competing claims of pastoralists and miners with those of the original indigenous inhabitants of the land; and the introduction of a Goods and Services Tax (GST) - a VAT equivalent.

The Government secured passage of the border protection legislation in 2001, designed to stem the substantial increase of unauthorised boat arrivals. The legislation excises certain Australian territories, such as Christmas Island and the Ashmore and Cartier Reefs, from the Australian Migration Zone. Asylum seekers arriving on those locations now are processed ‘offshore’ in a new reception and processing centre on Christmas Island, and without access to mainland Australia. However, since December 2001, only a couple of boats have turned up with unauthorised arrivals, so the problem has been largely contained.

The Australian Government has been criticised for its continuing policy of mandatory detention of asylum seekers, which was introduced by a Labor Government in 1996. However, only unauthorised boat arrivals with no documentation are detained. Those arriving by air with bona fide documents and visas are allowed to live in the community while their asylum claims are processed. The policy continues to have popular support within Australia. With the dwindling number of unauthorised boat arrivals, the Government has closed down some onshore detention centres. Women and children are now housed in community detention, with access to schools and community facilities.

Indigenous Issues

The treatment of the indigenous Aboriginal community (2.4% of the population) has taxed successive Australian governments. They were recognised by the Australian Constitution after 1967 and fully became a part of Australian society in 1975. The Racial Discrimination Act 1975 prohibited discrimination on grounds of race, colour, descent, or national or ethnic origin. There is now a wide range of government programmes seeking to improve aspects of Aboriginal and Torres Strait Islander life. The Federal government has invested billions of dollars on such programmes.

The ‘Stolen Generation’ refers to a government backed scheme between 1920 and 1970 to remove Aboriginal and Torres Strait Islander children from their parents and place them with white families or orphanages. An investigation by the Australian Human Rights and Equal Opportunity Commission 1995-97 concluded, that the policy of child removal ‘aimed to eliminate indigenous cultures as distinct entities’ and, hence, constituted ‘genocide’ as defined by the United Nations Convention on the Prevention and Punishment of the Crime of Genocide. It recommended an apology and the payment of compensation to those affected. In response, the Government announced, in December 1997, a series of programmes to improve Aboriginal health and welfare, and to reunite families. Many commentators have since questioned the quality of the HREOC report.

On Native Title, it had long been accepted that Australian land was not owned before British colonisation (terra nullius): the original Aboriginal inhabitants had, therefore, no native title to the land they occupied. Decisions by the High Court in 1993 (Mabo) and 1996 (Wik) established that native title could exist and was not necessarily extinguished by a pastoral leasehold. It fell to the present government to find a legislative framework that would resolve the competing claims of pastoralists and miners on one side with the rights of indigenous inhabitants on the other. The result was the Native Title Amendment Act 1997. The Act confirms that native title can co-exist with pastoral leases, to the extent that it is consistent with those leases. It provides a mechanism for consultation and agreement where title is disputed, and tightens the criteria for determining indigenous claimants: eg requiring an existing association with the land. Neither side has been satisfied and court challenges are likely.

Republic Debate

In a constitutional referendum held on 6 November 1999, Australia voted to remain a constitutional monarchy (55% to 45%). Voters were offered a choice between the status quo and the Republican model approved by the 1998 Constitutional Convention: a President appointed by a two-thirds majority in Parliament. Debate focused principally on the Republican model rather than on the monarchy. Republicans wanting a directly elected president formed an unlikely coalition with monarchists to defeat the referendum. Despite the result, there is extensive republican sentiment in Australia.

The Australian Labor Party supports a republic.

ECONOMY

Basic Economic Facts
GDP: US$622.7bn (Source: IMF 2004 estimate)
GDP per capita: US$30,695 (Source: IMF 2004 estimate)
Annual Growth: 3.2% (Source: Australian Bureau of Statistics – 12 months ending Sept 2004)
Inflation: 2.6% (Source: Australian Bureau of Statistics – 12 months ending Dec 2004)
Monthly Exchange Rate: A$1.00 = £0.4078 (January 2005 average)
This is an external link  UK Trade & Investment Country Profile: Australia

Overview

Australia continues to be recognised as one of the world’s leading ‘growth economies’, with GDP averaging 3.8% over the last decade. It is one of the strongest OECD performers through its pursuit of extensive economic reform and ensuring its macroeconomic policies are set in an organised medium-term framework.

The Australian economy is underpinned by strong productivity growth having undergone significant reform over the last 20 years.

The Australian economy has undergone significant reform over the last 20 years. Changes include deregulation of the financial system, reductions in tariffs and other trade barriers, the removal of most restrictions on foreign investment, the privatisation of government-owned commercial enterprises, the creation of contestable markets in previously monopolised industries such as energy and transport, and a gradual movement away from centralised determination of employee remuneration.

Outlook

The OECD estimates that GDP growth to average around 3.8% in 2005. Interest rates remain low at 5.25%, with the Reserve Bank of Australia expected to increase the official rate during 2005 to target growing inflationary pressures. Inflation is currently at 2.6%, slightly above the mid-range of the Bank’s 2-3% target band and unemployment is currently 5.1% (its lowest level since the 1970s). The key risks to the Australian economy relate to the future path of house prices, wages growth and associated inflationary effects, the world economic outlook and the impact of domestic seasonal conditions on the agriculture sector.

Trade and Investment

Australia is known as a key commodity exporter, with the farm and resource sectors being key contributors. These sectors have played an important historic role in Australia’s economic development; however, their relative importance has declined over time with the services sector now being the main contributor to Australian GDP. The current composition of Australia’s export trade is diverse with the energy and mining sectors making up over 40% of total Australian export trade, manufacturing 22%, agriculture 18% and services around 20%. The APEC region now accounts for 70% of Australian trade. Regional and bilateral trade agreements remain a priority, as does WTO reform.
Total Australian merchandise trade was A$240 billion 2003-2204 (June-July financial year), with Australia’s main export destinations being Japan, China and the US. The United States is Australia’s largest source of imports, accounting for A$19.9 billion, or 15% of the total, followed by Japan (A$16.1 billion) and China (A$15.3 billion). In 2003-4, the UK was Australia’s sixth largest merchandise trading partner, with two-way trade valued at A$10.6 billion. The key Australian commodities exported to the UK were non-monetary gold (A$1,238 million), alcoholic beverages (A$850 million), coal (A$327 million), medicaments (A$184 million) and lead (A$139 million). Australia’s biggest imports from the UK are over-the-counter medicaments, increasing to over A$1 billion in 2003, followed by motor vehicles and printed matter.

INTERNATIONAL RELATIONS

Foreign Policy

Australia sees itself as a middle-ranking power, with global interests not solely defined by geography. Though located in the Asia-Pacific region, Australia has close ties and affinities with Europe and North America and a history of active engagement throughout Asia. Since coming to office in 1996, the Liberal/National Coalition government has placed these relationships at the centre of its foreign policy. The increased threat to international security and stability following 11 September 2001 led Australia to place particular emphasis on the long-standing special intelligence relationships with the US and UK.

Australia’s links with the United States are seen as vital for national security and prosperity. It supports long-term US strategic engagement in Asia as a fundamental contribution to regional stability and prosperity. President Bush, who visited Canberra in October 2003, has a close relationship with Prime Minister John Howard. The US Administration generally gives Australia a good deal of attention and the two governments signed a free trade agreement (FTA) in May 2004 came into effect on 1 January 2005.

The European Union is Australia’s largest economic partner. The importance of the UK’s position as the main gateway for Australian trade and investment in Europe should not be underestimated. In 2001/02 the EU was Australia’s largest trading partner (17.9% of the market), the second biggest destination (after Japan) for merchandise exports (market share of 12.4%) and the largest destination for service exports (market share of 19.3%). The EU is the largest investor in Australia (providing 33% of all FDI) and the second largest market (after the US) for Australian investment (24% of all overseas investment). In recent years Australia has worked hard diplomatically to strengthen its links with both the EU and NATO in Brussels. For Australia, a major exporter of agricultural products, the EU’s Common Agriculture Policy is considered to be a major impediment to freer global trade. The current Doha round of trade negotiations would need to include significant liberalisation of agricultural exports in any final agreement to attract Australian support.

Close engagement with Asia is an abiding priority in Australian foreign and trade policy. Japan, China, New Zealand and Korea, together with the US and UK, are Australia’s six largest individual trading partners. Australia is an enthusiastic supporter of the ASEAN Regional Forum, but the deepening of regional multilateral engagement has been frustrated by exclusion from ASEAN+3 and ASEM meetings. However, negotiations recently began between Australia (and New Zealand) on a FTA with ASEAN. Australia also participated at the first East Asia Summit meeting in December 2005. The Australian Government pays particular attention to building a strategic economic partnership with China. In 2003, Australia was awarded a significant contract to supply China’s first Liquefied Natural Gas project. When President Hu Jintao visited Australia in October 2003, he spoke of a natural partnership for Australia to provide many of the raw materials required for China’s continuing industrialisation. In 2001/02, China was Australia’s third largest trading partner and fourth largest export market.

The trilateral dialogue with Indonesia and East Timor, the Indian Ocean Rim Association Regional Cooperation Forum, the Forum of East Asia – Latin American cooperation, and the South West Pacific Dialogue, the Asian Regional Forum and APEC have all enhanced Australia’s profile in the South Pacific. Australia established human rights dialogue with China, Vietnam and Burma and sought to take the lead in promoting peace, stability and the promotion of democracy in East Timor, Fiji, the Solomon Islands and Bougainville.

Security

11 September 2001 and the Bali bombs in October 2002 irrevocably changed the security landscape for Australia. The Government recognised immediately that Australia’s vigorous participation in the war against terrorism was vital to protect long-term security. Australian Special Forces participated in the removal of the Taleban from Afghanistan.

Together with the US and UK, in 2003 Australia provided aircraft, ships and over 2000 military personnel for the military campaign in Iraq. Australia remains committed to the task of restoring stability, security and democracy in Iraq and deployed a further 450 troops to Iraq in May 2005, bringing the total to 1350.

However, Australia’s immediate security environment has been affected by increasing instability in the Pacific (‘the arc of instability’). Following the successful UN sponsored, but Australian led, mission in East Timor in 1999, the Government has recognised their substantial responsibility in the region. In July 2003, Australia led a 2000 strong Regional Assistance Mission in the Solomon Islands (RAMSI) made up of military, police and civilian administrators largely from Australia, but also including contributions from New Zealand, and other countries in the region. RAMSI has already made good progress in restoring law and order and providing longer-term stability in the troubled island state. In 2004, with the prior agreement of the Government of Papua New Guinea, Australia hopes to place a significant number of police and administrators in the PNG bureaucracy in order to enhance security and accountability in the public service.

International organisations

Australia has always been strongly committed to the UN and other multilateral organisations. In particular, it has always played an important role in disarmament and non-proliferation negotiations. Australia believes that the threat of WMD is best handled through the multilateral framework. In 2004, Australia chaired the UN Commission on Human Rights. It is a strong supporter of the Commonwealth, which it chaired from 2001 to December 2003.

AUSTRALIA’S RELATIONS WITH THE UK

The UK and Australia have a close and long-standing relationship, which continues to flourish. Political, defence and intelligence relationships are excellent, while in the fields of law, education, medicine, and S&T the two countries share know-how and similar institutions. Bilateral ties are exemplified by double taxation agreements and mutual access to health services. There is a long tradition of co-operation on international affairs.

These strong and growing links are underpinned by close personal ties between ordinary Britons and Australians: 1.2 million Australians were born in the UK; around 10,000 British citizens migrate to Australia each year; and over 520,000 Britons obtain visitor visas (Australian tourists do not require visas for the UK). Bilateral disagreements are few.

In 2001, Australia celebrated its Centenary of Federation. To mark the Centenary, the UK made a substantial contribution to an Australian-British project to build a monument at Magna Carta Place in Canberra as a tribute to our shared history and Britain’s legacy of parliamentary democracy. Prime Minister Howard and British High Commissioner Sir Alastair Goodlad opened the site on 26 September 2001. Also in Centenary year, the British High Commission and British Consulate General in Sydney organised an Australia-Britain Young Leaders’ Forum in Sydney on 15/16 February 2001. The aim was to focus on the contemporary relationship and forge and develop new relationships between young British and Australian leading professionals. A second meeting called Our Shared Future: UK-Australian Future Leaders Dialogue was held on 15-16 April 2004 in Sydney.

In November 2003 the inaugural UK-Australia Leadership Forum was held in London to coincide with Prime Minister John Howard’s visit. The Dialogue brought together leaders from public and private sectors from both countries to discuss current issues of relevance to the relationship.

Trade and Investment with the UK

Trade remains at the heart of the bilateral relationship. With extensive UK interests, Australia remains an important market for the UK – it’s 14th largest for goods, and third largest in the region after Japan and Hong Kong. The UK maintains a healthy trade surplus with Australia – a £500 million sterling in 2001 reduced over 2002 in the face of strong sterling and a weak dollar, however the dollar retained some strength in 2003.

The UK remains the second largest overall foreign investor in Australia as at the end of 2003, with investment stocks of A$259 billion up to the end of 2003. UK investment levels in Australia at the end of 2003 totalled A$53 billion. Major UK investments have been made in the finance, infrastructure, pharmaceutical, energy and travel industries.

Child Migrants

Child Migrants were British children in care who were sent, under government approved schemes, to certain Commonwealth countries (Canada, Australia, New Zealand, Rhodesia – now Zimbabwe). These schemes can be traced as far back as 300 years ago and continued until the 1960s. A House of Commons Health Select Committee visited Australia in June 1998 in connection with its inquiry into the welfare of former child migrants. The Committee’s report, in July 1998, detailed the stories of many child migrants who had endured physical and sexual abuse, systematic punishment, and separation from siblings. The British Government responded in December 1998, offering increased funding to the Child Migrants Trust to enable child migrants to visit relatives in the UK. The Government set up a database containing details of child migrants and a website. The Child Migrants Trust has now completed this work. In June 2000 the Australian Senate Community Affairs Reference Committee agreed to hold an inquiry into the child migration scheme. The Committee published a report on 30 August, entitled ‘Lost Innocents: righting the Record’, which contained 33 recommendations – some for the British Government. The Australian Government responded in 2002 by announcing a package of measures worth A$3.7 million (about £1.3million) to provide practical support and assistance to former child migrants to Australia.

Frozen Pensions

The UK pays about 800,000 pensions overseas. In those countries where no bilateral agreement exists to up-rate pensions, including Australia, they are frozen at the time of immigration: 205,000 UK pensioners live in Australia. Of these, 70% qualify for an Australian age pension, either through residency in Australia, or under the former bilateral social security agreement. In those cases the Australian government pays the difference between the UK frozen rate pension and the Australian age pension. Owing to the high cost of this measure, Australia subsequently abrogated the Bilateral Social Security Agreement in 2001. Existing British pensioners in Australia are not affected; but future British pensioners emigrating to Australia will have to complete the standard 10 years residence before qualifying for an Australian pension. Australian pensioners in the UK will be similarly affected. The abrogation also affects entitlements for those travelling between the two countries to welfare payments such as unemployment and invalidity benefits.

DEFENCE

There is a close cultural affinity between UK and Australian armed forces. We have a substantial programme of exchanges and share annual small-scale exercises under the aegis of the Five Power Defence Arrangement (FPDA). But Australia places increasing emphasis on its strategic relationship with the US. Australia has consolidated the security alliance with the USA – ‘the web of US security alliances in the region are the linchpin for regional security and prosperity’ (Downer). Australian forces have undertaken combat operations under US command in Afghanistan and Iraq, and Australia is vulnerable to US pressure in key equipment purchases of which replacement of its air combat force is the important element. Nevertheless, Australia continues to be an important market for UK defence exporters.

Diplomatic Representation
Australian representation in the UK
UK overseas mission in Australia

2005/6 Ministerial Visits

Australian Ministerial Visits to the UK

    * Prime Minister Howard visited the UK in July 2005
    * Foreign Minister Downer is a frequent visitor to the UK

British Ministerial Visits to Australia

    * Minister of State for Northern Ireland, Mr John Spellar, visited in February 2005.
    * The Rt Hon Geoff Hoon MP, Leader of the House of Commons visited in August 2005
    * Sir David King, Chief Scientist, visited in October 2005

Last reviewed: 23 February 2006

  
This article is taken from the UK Foreign Office website