But Peters did not buy that excuse, saying “It was the President who set the date 21, 22 of January, now if he set the date then how can the pre-booked statement be correct?”.
The funding placed under review is significant. New Zealand’s development cooperation with Kiribati totalled $102 million in the period 2021-2024, with investments in health, education, fisheries, economic development, and climate resilience.
New Zealand is a significant contributor to Kiribati. It was the second biggest contributor of aid to the country over the years 2008-2022, contributing 16% of all aid, according to data complied by Australia’s Lowy Institute.
However, China has been upping its presence in the region in recent years and its spending after it switched its diplomatic recognition to Beijing in 2019. China was the largest spender in Kiribati in 2021 (New Zealand was third) and the third largest in 2022 (New Zealand was fifth).
Peters was reluctant to get into the matter on his way into the House on Tuesday, saying the issue was so complicated he would rather put what he had to say “in written form”.
He was keen to let it be known he was treading carefully and not making decisions until the review was complete.
Labour leader Chris Hipkins said that while he was supportive of much of the effort Peters had made in the Pacific, he was concerned at the threat of escalation.
“I think we should be focused on building the relationship with Kiribati.
“I don’t think a tit-for-tat ‘If you’re not going to meet with us when we want you to then we’ll threaten to cut your aid’ approach is going to lead to a constructive outcome,” he said.
Thomas Coughlan is Deputy Political Editor and covers politics from Parliament. He has worked for the Herald since 2021 and has worked in the press gallery since 2018.