Press release for immediate release: Friday, May 1 2009

NZ’s Aid Must Continue To Focus On Poor, And In Pacific, Oxfam Says.

Oxfam New Zealand welcomed the recognition by the Foreign Minister today that aid must be focused on the needs of the poor, and particularly on the Pacific region.

Barry Coates, Executive Director of Oxfam New Zealand, said in the past few months, thousands of people across New Zealand have called on the Foreign Minister to ensure that aid is focused on the needs of the poorest people in our region, for aid to be effective, and for decision-making processes to be transparent and accountable.

“We are pleased that the Minister has today responded by retaining the aim of poverty reduction; however we are concerned over the decision to remove the structural autonomy of the aid programme.

“We are calling for real accountability to ensure that the aid programme is not used as a funding mechanism primarily for achieving New Zealand’s political and commercial aims.”

ON THE ISSUE OF AID FOCUS

Coates continued: “New Zealanders needed an assurance that aid will go to the poor, who really need support in working their way out of poverty, rather than siphoned off to the rich. This is at the heart of accountability for aid.”

Coates said he welcomes the Minister’s statement that there will be a stronger focus on our Pacific neighbourhood and clear accountability for building stronger Pacific economies. This should mean support for rural development, agriculture and fisheries. It also means fair trade policies that support the Pacific Island economies, rather than undermining them.

“More than 80 per cent of the Pacific’s people live in villages, and most are subsistence producers. Economic development needs to be about their needs and opportunities, their health and access to clean water; their education, not just about airlines and shipping and subsidies to the private sector,” Coates says.

ON THE AID STRUCTURE

Oxfam is disappointed, however, that the Minister has removed the semi-autonomous status of NZAID, which was put in place in 2002 to ensure the independence of New Zealand’s aid dollar from political and commercial objectives.

“We are concerned that changes over time will allow the Minister and MFAT staff to use aid funds for New Zealand’s self-interest rather than the interests of those who need our assistance. We will be seeking assurances from the Minister that there are oversight mechanisms in place and transparency about the way that aid funds are used.”

ON DECISION-MAKING AND ACCOUNTABILITY

Oxfam and others have expressed concern over the process of decision-making that was used in bringing about these policy changes. Oxfam has called on the Minister to seek evidence, and consult with those who have experience on the ground before taking major decisions.

Disappointingly, the Minister used his speech today, to make gratuitous attacks against management and staff in his department, government officials, Pacific non-governments organisations (NGOs), aid experts, New Zealand NGOs and others.

Coates said: “We had hoped that the Minister would have used this opportunity to recognise that we need to work together to meet the urgent challenges of development in the Pacific, rather than launching attacks against those who should be his allies. We have signalled to the Minister that we are looking to work constructively with the governmῥnt to move forward towards a common aim.”

ENDS

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