Foreign Minister Winston Peters has confirmed New Zealand's aid for Kiribati is being reviewed after its President and Foreign Minister cancelled a meeting with him.
Terms of Reference for the review are still being finalised, and it remains unclear whether or not funding will be cut or projects already under way would be affected, with Peters' office saying no decisions would be made until the review was complete.
His office said Kiribati remained part of the RSE scheme and its eligibility for the Pacific Access Category was unaffected - for now.
Peters had been due to meet with Taneti Maamau last Tuesday and Wednesday, in what was to be the first trip by a New Zealand foreign minister to Kiribati in five years, and part of his effort to visit every Pacific country early in the government's term.
Kiribati has been receiving increased aid from China in recent years.
In a statement, a spokesperson for Peters said he was informed about a week before the trip Maamau would no longer be available.
"Around a week prior to our arrival in Tarawa, we were advised that the President and Foreign Minister of Kiribati, Taneti Maamau, was no longer available to receive Mr Peters and his delegation.
"This was especially disappointing because the visit was to be the first in over five years by a New Zealand Minister to Kiribati - and was the result of a months-long effort to travel there."
The spokesperson said the development programme was being reviewed as a result.
"New Zealand has been a long-standing partner to Kiribati. The lack of political-level contact makes it very difficult for us to agree joint priorities for our development programme, and to ensure that it is well targeted and delivers good value for money.
"That's important for both the people of Kiribati and for the New Zealand taxpayer. For this reason, we are reviewing our development programme in Kiribati. The outcomes of that review will be announced in due course.
"Other aspects of the bilateral relationship may also be impacted."
New Zealand spent $102 million on the development cooperation programme with Kiribati between 2021 and 2024, including on health, education, fisheries, economic development, and climate resilience.
Peters' office said New Zealand deeply valued the contribution Recognised Seasonal Employer workers made to the country, and was committed to working alongside Pacific partners to ensure the scheme led to positive outcomes for all parties.
"However, without open dialogue it is difficult to meet this commitment."
They also said New Zealand was committed to working alongside our Pacific partners to ensure that the Pacific Access Category leads to positive outcomes for all parties, but again this would be difficult without open dialogue.
The spokesperson said the Kiribati people's wellbeing was of paramount importance and the terms of reference would reflect this.
They said New Zealand stood ready "as we always have, to engage with Kiribati at a high level".