Australia’s Labor government has announced it will give Fiji $30 million to help it combat rising fuel prices while Aussies struggle with the cost-of-living amid rampant inflation.
Foreign Minister Penny Wong made the funding pledge on Wednesday after meeting Fijian Prime Minister Sitiveni Rabuka in Suva, where the two countries formally ratified the Pacific Resilience Facility (PRF) Treaty.
Ms Wong said the treaty, which has already been ratified by Tonga, Nauru, Marshall Islands, Solomon Islands, Tuvalu, Cook Islands, New Zealand and Niue, would provide grants for climate adaptation, disaster preparedness, and projects that respond to loss and damage.
“As you know, 20% of global oil passes through the Strait [of Hormuz], but 80% of the oil into our region, so we are disproportionately affected,” Ms Wong said in her announcement.
“I advised the Prime Minister today that Australia will provide 30 million Australian dollars in targeted budget support to assist with Fiji’s fuel response.
“We understand the extent to which this is being felt, as a price shock in Fiji, and we want to provide our assistance. It also will reinforce your role as a supply and storage hub for so many Pacific nations.”
The announcement came a day after the Reserve Bank hiked interest rates to a 15-year high in response to rising inflation it said was too high even before the war Iran caused a spike in fuel prices.
Labor is expected to use next week’s federal budget to make changes to tax breaks for investors, including negative gearing and the capital gains tax discount, despite Prime Minister Anthony Albanese repeatedly promising not to do so in the lead-up to the last election.
The proposed changes have sparked fears landlords will increase rents to cover their financial losses, resulting in worsening rental affordability.
Header image: Ms Wong in Fiji this week (DFAT).
