VZCZCXRO9067
RR RUEHPB
DE RUEHWL #0377 1380418
ZNR UUUUU ZZH
R 180418Z MAY 07
FM AMEMBASSY WELLINGTON
TO RUEHC/SECSTATE WASHDC 4259
INFO RUEHBY/AMEMBASSY CANBERRA 4844
RUEHPB/AMEMBASSY PORT MORESBY 0655
RUEHSV/AMEMBASSY SUVA 0593

UNCLAS WELLINGTON 000377 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT FOR KMCKELLOG 
 
E.O. 12958: N/A 
TAGS: PREL NZ XV
SUBJECT: NEW ZEALAND'S INCREASED AID BUDGET WILL BENEFIT 
THE PACIFIC ISLANDS 
 
REF: WELLINGTON 350 
 
¶1. Summary:  Foreign Minister Winston Peters announced on May 
14 a record increase of 
NZD 70 million (about USD 50 million) to New Zealand's 
overseas development assistance (ODA) for the 2007/2008 
fiscal year.  Over half of the 20 percent budget increase 
will go to the Pacific, particularly Melanesia.  New 
Zealand's total assistance budget now totals NZD 429 million 
(USD 300 million).  Over the past five years, the GNZ has 
steadily increased aid to the Pacific, with 50 percent of New 
Zealand's overall aid program now being aimed at the region. 
(End Summary) 
 
Raising its Effort in Melanesia 
------------------------------- 
 
¶2. On May 14, Foreign Minister Winston Peters announced 
substantial increases of NZD 70 million in overseas 
development assistance (ODA) for the 2007/2008 fiscal year. 
He also pledged further increases through 2010/2011.  Raising 
New Zealand's total ODA to 
NZD 429 million (USD 300 million), the current budget 
increase builds on a steady five-year increase in ODA and a 
continued, gradual shift in allocation that will send half of 
New Zealand's ODA directly to the Pacific region.  Of the 
2007/2008 budget increase, more than half will go to the 
Pacific, "particularly in the Melanesian countries of Papua 
New Guinea, Solomon Islands, and Vanuatu, where the need is 
greatest," Peters said. 
 
¶3. In Papua New Guinea, increases targeting assistance to 
governance, growth and rural livelihoods will bring the 
country program budget to NZD 21.5 million (USD 16 million). 
A series of further increases will lift the country program 
to NZD 40 million (USD 29 million) by 2010/2011. 
 
¶4. In the Solomon Islands, the 2007/2008 increases will raise 
bilateral assistance to that country to NZD 30.8 million (USD 
22.5 million).  The country program focuses on development 
needs in education, infrastructure and rural development. 
The majority of new money in 2007/2008 will go to recovery 
efforts in the Western Province and Choisel following the 
tsunami.  Future increases will raise the program to an 
 
SIPDIS 
estimated NZD 40 million (USD 29 million) by 2010/2011. 
 
¶5. In Vanuatu, the 2007/2008 budget increases will bring the 
country program to NZD 15 million (USD 11 million).  The 
program focus areas are education, economic development and 
governance.  Future increases will take the program to an 
estimated NZD 20 million (USD 14.5 million) by 2010/2011. 
Keegan