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Niue Premier Young Vivian says his Government is getting on top of the Pacific nation's budget problems.
Mr Vivian and Foreign Minister Winston Peters had talks in Wellington yesterday after which Mr Peters told reporters aid would be upped and New Zealand's aid overall would be reprioritised to focus on infrastructure.
The island lies about 2400km northeast of New Zealand and is self-governing in association with New Zealand, where about 20,000 Niueans live. It has struggled to get back on its feet after a severe cyclone in January 2004.
The Niuean Government was over budget for the 2005-06 financial year and required a $1.4 million advance on 2006-07 funding to break even and it is still in deficit this year. Recently the Government reduced its civil servants' salaries.
Mr Peters praised Niue's efforts to recover.
"Of late there have been, because of acts of God ... some budgetary difficulties but we're confident we can work our way through them and out of them into a positive future not too many years down the road."
He said cutting salaries was courageous and responsible.
"In the long-term I think we will see our way out of these difficulties together and I think it's going to be positive two or three years down the track."
Mr Vivian said the Government was on top of its troubles.
"This time round I haven't come here to grovel for more money," he said.
"I think we have the money given to us and we have put together strict measures to get on top of this hump - and I believe that in the future there will be exciting things happening - and like any other country, any other organisation, any other business you have your ups and downs."
When asked, Mr Peters said it had not been discussed but Niue would be getting more money.
He also said this year's budget would reflect a different priority for aid spending, "giving greater priority towards infrastructural investments in certain countries where that is critical for them to make progress in other areas as well".
"There will be a perceptible shift into some structural investments in the future."
Mr Vivian said Niue was looking at getting New Zealand to represent it on international bodies to save on administration costs. Also, he hoped another midweek flight would start and boost tourism.
Next year Niue hoped to host the Pacific Islands' Forum and Australia had agreed to reduce its delegation to help with capacity issues. Australia and New Zealand had promised assistance.
"I am confident we can cope with it."
Asked if keeping Niue afloat was worth the funding, Mr Peters said it was good for New Zealand's international reputation.
Mr Peters said supporting countries like Niue was a reason New Zealand got international respect.
"There is a payback for New Zealand in this relationship just in case some people can't see the long-term objective and goal and the fact this relationship along with others enlarges hugely the persona and footprint of New Zealand in the world."
- NZPA
