KEY POINTS:
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.
However, he also wanted a clearer commitment from the Government to its agreement with other OECD countries to increase giving as a percentage of GNI to 0.7 per cent by 2015.
He said there needed to be cross party support to reach this goal and TEAR Fund wanted to know the steps that would be taken in coming years to get there.
The Green Party welcomed the boost beyond the previously projected "measly increase".
Foreign Affairs spokesman Keith Locke said the increase could finance climate change projects in the Pacific.
"This is an opportunity for us to put more resources into sustainable energy projects in the region, and to ensure that development aid has a strong climate change dimension."
Foreign Affairs Minister and New Zealand First leader Winston Peters said the Government was committed to playing its part in helping the poor and vulnerable.
"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 the greatest," he said.
Fiji was the exception, as aid was suspended following December's coup. No additional funding would be proposed for Fiji until normal relations resume.
Mr Peters said bilateral programmes with Indonesia and Vietnam would be strengthened.
"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 made the announcement at The Moving Company warehouse in Auckland. Emergency supplies for the recent earthquake and tsunami in the Solomon Islands were shipped from there.
In his speech Mr Peters said NZAid, the Government's international aid and development agency, was well placed to manage the new funding.
United Future leader Peter Dunne said it was a relief to see some change to the previous pitiful contribution to foreign aid.
His party saw New Zealand's aid programme as part of being a responsible global citizen.
"This means we don't just do the glory jobs like peacekeeping but sometimes we have to commit to the hard work of taking money out of our own back pocket for someone needier than us," Mr Dunne said.
Like the Greens and NZ First, United Future also believed New Zealand should work to reach the agreed target of 0.7 per cent of GNI for aid by 2015.
He also said there needed to be a multi-party agreement on the steps to take to achieve that goal.
- NZPA
