Government defends funding agency

Pacific Island Affairs Minister Georgina te Heuheu. Photo / Rotorua Daily Post

The Government is vigorously defending its decision to allocate $4.8 million to a little-known agency which says it can raise the living standards of Pacific Island people in New Zealand.

Labour is questioning the budget allocation to the Pacific Island Development Agency (Peda) and says the funding should have involved a robust, transparent process.

Finance Minister Bill English told Parliament today the Government had grasped an opportunity to deliver programmes that could improve the skills and employment prospects of Pacific Island people.

Treasury was working through project contracts and "not one dollar" would be given to Peda until clear accountability and project outcomes were established, he said.

Labour's deputy leader Annette King produced what she said was a six-page proposal from Peda, with two pages containing nothing more than statistics, which sought more than $4 million of taxpayer money over four years.

A project proposal was 57 words long and had been emailed from the Solomon Islands capital Honiara, she said.

"That is not a description of the proposal I received," Mr English said.

"The member is simply wrong. I don't know what document she is referring to - it certainly isn't the one that is being worked through now by the Treasury and the Ministry of Pacific Island Affairs."

Ms King said Pacific Island Affairs Minister Georgina te Heuheu had earlier today affirmed that Peda executive JR Pereira had been involved in brokering appearances or endorsements by members of the Pacific community during the election campaign, and asked Mr English whether he had known this before agreeing to the allocation.

"I resent that implication," Mr English said.

"The motivation of the Government has been to deal with a problem that I know that party (Labour) knows well - young Pacific Islanders who have low skill levels, no attachment to the workforce, and are hardest hit by the recession.

"When that community produces a proactive initiative with sound business principles, it is an opportunity to take not a problem to dismiss."

Ms King was referring to an interview with Mrs te Heuheu broadcast this morning.

She was asked whether people connected with Peda had been involved in brokering appearances or endorsements by members of the Pacific Island community during election campaigns.

Mrs te Heuheu replied: "Ah, okay, well that's before my time."

Mr English accused Labour of "petty party politicking" and said political considerations were irrelevant.

He said the funding was effectively contestable because if suitable arrangements could not be made with Peda the money would be available to other groups.

Mrs te Heuheu said although her ministry had warned her Peda was untested and risky, it also considered the risks could be managed.

- NZPA