Winston Peters

Winston Peters

Aid organisations have welcomed the $70 million boost to overseas aid announced today ahead of Thursday's budget.

The 20.2 per cent increase over the 2007/08 financial year was the biggest increase to Official Development Assistance (ODA) in decades, Foreign Affairs Minister Winston Peters said.

Over half the new funding would be spent in the Pacific, particularly in Melanesia, and Asia would also benefit.

The increase takes the ODA to $429 million in 2007/08 or 0.30 per cent of gross national income (GNI).

Further funding over the three following years would achieve 0.35 per cent by 2010/2011 and aid would have reached $601m.

Oxfam New Zealand executive director Barry Coates welcomed today's announcement.

"This represents a significant injection of millions more dollars for some of the world's poorest and most vulnerable peoples," he said.

"Our government aid has proven to be extremely effective, and we are delighted that the increase in development assistance will help those in desperate need of our help."

Mr Coates said the extra money would be invaluable in the Pacific, where much of New Zealand's assistance is spent.

"The Pacific is facing multiple pressures.

"An increase in assistance is desperately needed to combat the interrelated problems of economic stagnation, high youth unemployment, destruction of natural resources, conflict and crime, poor health and pandemics, poor governance and natural disasters, including those related to climate change."

The increase was an investment, Mr Coates said.

"A prosperous, sustainable and peaceful region is not only of benefit to those living in poverty, but to every kiwi. The Government should be congratulated for recognising this."

Council for International Development executive director Rae Julian said it was the most significant increase in recent years.

"This is a big step forward and is certainly getting New Zealand closer to our goal."

TEAR Fund also applauded the extra money for aid.

Its executive director Stephen Tollestrup said this was a bold initiative and the increase was welcome.