Background: Pacific Development Budget Controversy

Friday, 18 June 2010, 11:15 am
Article: The Scoop Team

[Background follows]

Funding allocated for economic development in Pacific communities in Budget 2010 seems to have become subject to controversy within the Government as well as outside it.

In the original budget announcement, Pacific Island Minister Georgina te Heuheu said $4.8 million over the next four years to the Pacific Island Economic Development Agency (PEDA). Pacific.Scoop reports on the debate over this untendered allocation of funds to an unknown organisation. Questions have been raised in Parliament over the quality of the application, the process, and advice against it from the Ministry.

Bill English has defended the allocation in Parliament as a community initiative that should be supported and "not one dollar will be paid out unless all the accountability is met".

The Herald now reports that Bill English's office has backed further from the allocation, saying it is not specifically allocated to PEDA:

… a spokesman for Finance Minister Bill English told the Herald last night that Mrs te Heuheu "went too far" and the money referred to was a general allocation for Pacific development.

The allocation is summarised in the budget as "A total of $1 million supporting Economic Development programmes run in Auckland."

However, Scoop would like to refer Mr English's office to part 2.2 of the Information Supporting the Estimates of Appropriation 2010/11 (starting p184, or p10 of PDF). This lists an allocation of $1 million (excludes monitoring costs) per year for four years for services from the "Pacific Economic Development Agency".

You're welcome.

Background

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