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- 18 September 2003
Red Cross Bali Appeal
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Page: 3612
Ms KENEALLY: My question without notice is to the Minister for Gaming and Racing. What is the latest information on the Department of Gaming and Racing review of the Red Cross Bali appeal?
Mr SPEAKER: Order! I call the honourable member for Murrumbidgee to order.
Mr McBRIDE: There has been considerable interest in this appeal and I am sure the Premier will be particularly interested in the developments, given that the proceeds of his book What Australia Means To Me were donated to the Red Cross Bali appeal. This major issue has resulted in significant discussion and relates to the confidence of people who make donations to charities in New South Wales. The report concluded that the appeal funds were allocated in the following way: 69 per cent, or $10.2 million, was given to victims and their families; 24 per cent went to Bali; 3.5 per cent went towards a spray-on skin project and Darwin Hospital; and 3.5 per cent, or $500,000, was spent on administration. It is important to note that the report found no evidence of unlawful activity by the Australian Red Cross. However, it did find that the charity could have improved the way it communicated with the public about the distribution of the funds.
The report found that there was confusion, which could have been avoided if the Red Cross had done more to make its intentions clear. The report also found that it was not the responsibility of the Red Cross to provide funds for health-related, out-of-pocket expenses for victims; that is the responsibility of the Commonwealth Government. Although the report has cleared the Australian Red Cross of any unlawful activity, it has shown that there is room for improvement in future fundraising campaigns. The report recommended an investigation to determine the feasibility of a charitable fundraising prospectus, which would detail the purpose of an appeal—including the costs and allocation of funds—and a management plan for disaster appeals. This could include guidelines for the allocation of funds. It also recommended an investigation to determine the feasibility of a communication strategy for disaster appeals involving multiple agencies, which would ensure that victims are aware of what services are to be provided and by what agency, and an Internet-based reporting system that would cover the management of funds. This information would be available to the public.
There are lessons to be learned from this experience and I welcome the report's recommendations. An examination of the proposals will begin immediately. It is important that the great Australian tradition of giving is not affected as a result of the focus on this particular appeal. We all know that Australians are tremendously generous and it is vital that we continue to support a broad range of charities. As a Government we will take steps to ensure that the funds raised for a specific cause go to that cause.
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