NZ raises Tongan aid budget to $18m

New Zealand will increase its aid to Tonga from $12 million to $18 million by 2011.

The extra money will be directed partly toward helping the private sector develop the tourism trade.

Prime Minister John Key announced the funding boost yesterday during his first visit to the Pacific island.

Aid to Tonga will total $16 million this year and next year, and will rise again to $18 million in 2011.

Part of the money will be used for a civic education programme as Tonga introduces a new electoral system under its democracy reforms - an urgent process, as the country plans to hold elections under the new system next year.

Mr Key said an extra $2.5 million would be added to the $5 million allocated to strengthening Tonga's police force - a project which New Zealand police are working on with Tonga's police force.

Mr Key said New Zealand and Tonga had agreed on the areas of focus, and were working on a long term programme of help for the tourism industry.

The Government's handling of its $500 million aid budget is under scrutiny after its decision to drop NZ Aid as an autonomous body to ensure its future delivery met its foreign policy objectives.

It plans to refocus the use of aid money on economic development, especially through encouraging the private sector.

The focus on the private sector meets Tongan Prime Minister Feleti Sevele's programme of planned reforms to make it easier for businesses in Tonga and to stimulate growth in the economy.

Dr Sevele said Tonga's tourism industry would benefit from it.

Tourism had been badly affected by the downturn and prudent management was needed.

Mr Key said the significant boost to Tonga's aid reflected National's plan to direct more aid money to the Pacific.

"That is where New Zealand can play its greatest leadership role."

Asked if New Zealand could afford to be generous with aid funding when it was struggling with the recession itself, Mr Key said the country had to make sure it continued to help other worse-off nations.

The issue of the constitutional and electoral reforms dominated the day in Tonga.

Mr Key said he was impressed with King Tupou's determination to drive the process through.

"Given it's a constitutional monarchy, he's been the one who's clearly had to lead the charge.

"He's been doing that and he's realised it's time for a new era of governance in Tonga.

"He's stepping into a new world, but one that reflects modern day Tongans' requirements."

Dr Sevele said some people would not want change, but it was inevitable and he was also confident there was time to make the reforms before the next election.

Mr Key and his delegation of 74 will travel to Samoa today before going on to Niue and the Cook Islands tomorrow.

Yesterday, former All Blacks Michael Jones and Va'aiga Tuigamala went to a coaching school for Tongan rugby coaches, and then spoke at an event for young people, at which the hip-hop dance group Prestige performed.

Mr Key's wife Bronagh also attended the event, before meeting Mr Key for a reception at the New Zealand High Commission followed by dinner with the King.