New Zealand gives $68m in tsunami aid

New Zealand's biggest-ever international aid package will give $68 million to countries devastated by the Asian tsunami.

Prime Minister Helen Clark announced the package will give $52 million upfront and the remaining $16 million over the next five years.

This includes the $10 million the Government has already pledged.

Helen Clark said the contribution reflected the unprecedented scale of the catastrophe, which killed 175,000 and left one million homeless.

"Our judgment is that as a good neighbour, New Zealand should step forward in times of crisis, as it has from the outset of the relief effort."

Included in the package is $19 million to match dollar-for-dollar the donations by the public. New Zealanders have already donated around $10 million and Helen Clark said $19 million was a realistic figure.

The Government has been criticised for the length of time it has taken to announce the final package.

Helen Clark said, with the exception of Indonesia, New Zealand did not have bilateral aid programmes with any of the countries affected and the Government had been reluctant to announce a package when they did not know where the money would go.

"I think people realise that the first priority is to get on the ground for immediate relief and then to responsibly work through a package that will make a difference."

The Government has also been reproached for the size of the initial aid when compared to Australia's A$1 billion ($1.09 billion) package.

Helen Clark said Australia's response was generous, but half of it was in loans and New Zealand's package was upfront money.

"I think it is also fair to say that Australia has particular geo-political considerations in mind with the relationship with Indonesia.

"We are looking at the region more broadly. In terms of contributions announced by other Governments so far, I think per capita New Zealand is coming in about ninth, which is a very big thing for us."

Oxfam New Zealand said it welcomed increased aid commitment.

"This aid will assist in longer-term reconstruction, long after the tsunami has gone from the headlines. The humanitarian crisis is not over yet. The 'poverty crisis' of the tsunami may have just begun."

Oxfam also called for the Government to use the relief package as a first step to increasing its overseas aid towards the UN agreed level of 0.7 per cent of gross national income.

Prior to the tsunami, New Zealand was spending about 0.23 per cent of gross national income on aid.

Helen Clark said: "There are other western nations below that but ideally we would like to give more. It's something we are endeavouring to address."

Green MP Keith Locke welcomed the Prime Minister's indication of a move toward the UN target.

"I challenge the Prime Minister to make a commitment that it will reach 0.5 per cent by the time Labour finishes its third term."

National Party foreign affairs spokesman Lockwood Smith congratulated the Government on the package, but said with such a significant programme he would like it to consult political parties.

"This aid effort should be something all New Zealanders can feel involved in and proud of in a personal way."

Helen Clark said the Cabinet also agreed that the Ministry of Civil Defence and Emergency Management should contract specialists to review existing information about the risk of tsunamis to New Zealand and report on issues that needed to be addressed.

The report is expected in September and is estimated to cost $200,000. 


The package

$20m for the UN's relief work, $17m up on the original commitment of $3 million.

$20m for the bilateral aid programme for Indonesia, with $4m a year for the next five years.

$19m to match dollar-for-dollar the donations by the public.

$4m to meet specific requests, such as those from the Commonwealth and Red Cross.

$5m for departments such as the police.