31 May 2009 / Media release

National gives up on overseas aid targets when the going gets tough

National has walked away from a 30 year commitment by successive New Zealand governments to the international spending target on overseas aid precisely at the time poor countries need help dealing with the global economic crisis, says Labour Associate Foreign Affairs spokesperson Phil Twyford.

Phil Twyford said the Budget's cuts to future spending of overseas aid and comments in the Budget documents show the National Government has given up on the UN target of spending 0.7% of Gross National Income per capita on overseas aid.

National has stripped out $194 million from the next three years of overseas aid spending. Instead of reaching 0.35% of Gross National Income as planned, New Zealand's aid spending will languish at 0.31% for the next three years.

"This is the worst possible time to be cutting back. The World Bank and IMF have warned the financial crisis could plunge 100 million people into extreme poverty this year. Now is the time we should be helping the poorest countries put safety nets in place for their most vulnerable people."

"We have made international commitments to fight extreme poverty in the poorest countries. This goes beyond the year by year ups and downs in our own national circumstances" said Phil Twyford.

"We have a responsibility to people in our own Pacific neighborhood who are much worse off than us. No matter how grim the recession is for us right now, it is nothing compared to the extreme poverty felt by people in Papua New Guinea who have much less ability to weather the storm."

"In the Pacific the financial crisis could well squeeze income from remittances and tourism. On top of shrinking aid budgets that could make life very tough in the island states."

Phil Twyford said it was a shame National appeared to be walking away from the United Nations goal of every developed nation giving aid worth 0.7% of its Gross National Income per capita.

"New Zealand gives less as a percentage of our national income per head than almost any other developed nation. If we are going to meet our international responsibilities we must commit to staged increases year on year."

"Minister Murray McCully has been saying he cares less about the UN target than retaining dollar amounts in the budget. What we see here is that he has failed on both counts."
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Projected ODA Budgets as % of GNI

Vote ODA Budget (millions)
Year / GNI / Budget 2008 / Budget 2009 / B08 % GNI / B09 % GNI
2007/08 $156,476 / $ 445* / $ 392** / 0.28% / 0.25%
2008/09 $164,495 $ 472 / $ 511*** 0.29% / 0.31%
2009/10 (estimated) / $161,047 / $ 543 / $ 500 / 0.34% / 0.31%
2010/11 (estimated) / $168,100 / $ 613 / $ 525 / 0.36% / 0.31%
2011/12 (estimated) / $176,206 / $ 613 / $ 550 / 0.35% / 0.31%
2012/13 (estimated) / $186,322 / $ 600 / 0.32%

* Estimated Actual Budget for the 2007/08 period
** Actual Budget for the 2007/08 period
*** Estimated Actual Budget for the 2008/09 period

ENDS

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