P 020350Z JUL 08
FM AMEMBASSY WELLINGTON
TO SECSTATE WASHDC PRIORITY 5305
INFO AMEMBASSY APIA 
AMEMBASSY CANBERRA 
AMEMBASSY KOLONIA 
AMEMBASSY KOROR 
AMEMBASSY PORT MORESBY 
AMEMBASSY SUVA 
AMCONSUL AUCKLAND 
CDR USPACOM HONOLULU HI

UNCLAS WELLINGTON 000207 
 
E.O. 12958: N/A 
TAGS: PREL PGOV NZ
SUBJECT: NEW ZEALAND ANNOUNCES AID BUDGET FOR THE PACIFIC 
ISLANDS 
 
¶1.  (U) On June 24, NZ Minister of Foreign Affairs Winston 
Peters announced NZ's Pacific development strategy for 
2007-2015.  The strategy included a budget of 1.5 billion USD 
for aid to Pacific Island Countries (PICs) over the 
eight-year period, which included 183.7 million USD for FY 
2008/2009.  The 2008/2009 budget represents an increase of 
15.4 percent above the 155.6 million USD allocated for 
Official Development Assistance (ODA) to PICs in 2007/2008, 
and 50 percent of NZ's total ODA to all countries. 
 
¶2.  (U) Peters also disclosed a new emphasis on developing 
partnerships with PIC governments rather than merely 
providing handouts.  In past years, NZ's Labour-led 
government has been criticized by the opposition National 
Party for merely disbursing funds to PIC governments without 
demanding accountability and measuring progress.  According 
to Peters, using a South Pacific analogy, "The canoe must be 
paddled on both sides" -- meaning that NZ and PIC 
beneficiaries must equally shoulder responsibility for making 
aid projects work.  Specifically, Peters referred to the need 
for beneficiaries to adopt policies and practices that foster 
economic growth and employment, improve standards of living, 
and prevent corruption, poor governance and conflict. 
 
¶3.  (U) Australia remains the largest single aid donor in the 
Pacific island region, with a 2008-2009 budget for ODA to 
PICs of 585.1 million USD. 
 
MCCORMICK