KEY POINTS:
Aid organisations have welcomed the $70 million boost to overseas aid announced before Thursday's Budget.
The 20.2 per cent rise over the 2007/08 financial year was the biggest increase to official development assistance in decades, Foreign Affairs Minister Winston Peters said.
More than half the new funding will be spent in the Pacific, particularly Melanesia. Asia will also benefit.
The increase takes the overseas aid to $429 million in 2007/08 - 0.30 per cent of gross national income.
Further funding over the next three years will see aid reach 0.35 per cent by 2010/11, at $601 million.
Oxfam New Zealand executive director Barry Coates welcomed the announcement.
"This represents a significant injection of millions more dollars for some of the world's poorest and most vulnerable peoples," he said.
"Our Government aid has proven to be extremely effective."
Mr Coates said the extra money would be invaluable in the Pacific, where much of New Zealand's assistance is spent. "[The region] is facing multiple pressures.
"An increase in assistance is desperately needed to combat the interrelated problems of economic stagnation, high youth unemployment, destruction of natural resources, conflict and crime, poor health and pandemics, poor governance and natural disasters, including those related to climate change."
The increase was an investment, Mr Coates said.
"A prosperous, sustainable and peaceful region is not only of benefit to those living in poverty, but to every Kiwi. The Government should be congratulated for recognising this."
Council for International Development executive director Rae Julian said it was the most significant increase in recent years.
"This is a big step forward and is certainly getting New Zealand closer to our goal."
The Green Party welcomed the boost beyond the previously projected "measly increase".
Foreign Affairs spokesman Keith Locke said the rise could finance climate change projects in the Pacific.
"This is an opportunity for us to put more resources into sustainable energy projects in the region."
Mr Peters said the Government was committed to playing its part in helping the poor and vulnerable.
Fiji was the exception among Pacific countries receiving the funding, as aid was suspended after December's coup. No additional funding would be proposed for Fiji until normal relations resume.
Mr Peters said bilateral programmes with Indonesia and Vietnam would be strengthened.
"The extra funding will also strengthen our ability to respond to humanitarian disasters and to continue our long history of working closely with key multilateral partners such as United Nations agencies."
Mr Peters said NZAid, the Government's international aid and development agency, was well placed to manage the new funding.
Who gets help:
* Papua New Guinea. $21.5m. Includes 2007/08 Budget increase of $5m. Increases would target governance, growth and rural livelihoods.
* Solomon Islands. $30.84m, up $12.8m. Much will go to post-tsunami recovery efforts in Western Province and Choisel. Overall funding for this is expected to rise to about $40m by 2010/11.
* Vanuatu. $15m, up $3.5m. The figure includes the first of a series of rises that will push total spending to $17m in 2008/09 and $20m in 2009/10.
* Indonesia. $13m, up $1m. The increase would go towards a targeted poverty elimination programme and supporting economic development in the eastern islands.
- NZPA
