Rt Hon Winston Peters
Minister of Foreign Affairs

14 May 2007
Media statement

Peters announces major increase in aid

Significant aid increases in Budget 2007 will allow New Zealand to rapidly redress its low level of overseas aid relative to other OECD donors, Foreign Minister Winston Peters said today.

"New Zealand's aid budget will increase by $70 million in the 2007/08 financial year – a 20.2 per cent increase – and by a total of 69 per cent over the next four years. This is by far the largest commitment to increase Official Development Assistance (ODA) spending for decades," Mr Peters said.

"The increase will take our ODA to $429 million in 2007/08, representing 0.30 per cent of GNI. Further funding increases over the three following years commit us to reaching a GNI figure of 0.35 per cent by 2010/11. On current figures, that will see our aid budget reach $601 million.

"This government has substantially increased its aid budget in recent years, and today's announcement is further proof that we are fully committed to playing our part in helping the world's poorest and most vulnerable people.

"Today's funding increases will allow us to address urgent needs in the Pacific and Asia. Over half of the new funding will be spent in the Pacific, particularly in Melanesia where the need is greatest.

"Programmes in the Pacific targeting governance, economic growth, livelihoods, education, and health will also grow.

"Our international development agency, NZAID, is acknowledged as a reliable, responsive and innovative donor and increasing our efforts will pay dividends, especially in the Pacific.

“Bilateral programmes with Indonesia and Viet Nam will also be strengthened significantly reflecting the high levels of poverty there.

“The extra funding will also strengthen our ability to respond to humanitarian disasters, and to continue our long history of working closely with key multilateral partners, such as United Nations agencies,” Mr Peters said.

ODA spending breakdown attached

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NZAID 2007/08 Budget Figures (PDF)

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