Budget to offer small increase in overseas aid

Next week's budget will include an extra $4 million for overseas aid, Development Minister Matt Robson announced today.

Mr Robson said it was a "modest step" towards the Government's goal of a total aid budget of 0.7 per cent of gross national product. New Zealand's aid programme is currently $226 million or 0.25 per cent of GNP which is near the international average.

The Government has pledged "willingness to examine how" to reach the 0.7 per cent target in incremental stages which Mr Robson said was an "internationally accepted level".

A new agency to distribute aid has been set up -- NZAID -- and a small part of the $4 million will go to cover the increased costs in hiring new staff.

New Zealand's aid programme will now focus mainly on basic education and poverty reduction in the Pacific.

Other funding shifts coming up include switching $4.5 million from tertiary education to basic education and increased core funding for a number of non-government agencies involved in aid programmes overseas.

- NZPA

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