Prime Minister Christopher Luxon’s last act on Niuean soil was to slash through a kapihi - the equivalent of a ribbon - to open the island’s recently resealed airport runway.
The runway project, funded by New Zealand, was regularly mentioned by Luxon whenever he was asked about Aotearoa’s track record providing new infrastructure to one of its realm nations.
It also aligns with Luxon’s values. The ex-Air New Zealand chief executive is big on advancing proposals that will boost productivity and increase global connections.
It’s one of several development projects in Niue funded by other countries. Luxon cited a couple: a high school health facility funded by Japan, electricity projects enabled by the European Union and a waste management plant courtesy of Australia.
While such arrangements are common in small nations, they are attracting more scrutiny as the Pacific becomes an increasing focus for global superpowers.
Luxon is understood to have addressed the matter with Niue Premier Dalton Tagelagi by stating New Zealand’s preference to be Niue’s primary partner supporting development.
It comes as Chinese workers are working on a project resealing Niue’s roads at a time when China’s growing interest in the Pacific and its small island countries is heightening tensions with Australia and the United States.
So how does Niue propose to continue advancing its infrastructure and economy while navigating a complex geopolitical environment?
In his joint press conference with Luxon on Wednesday, Tagelagi said China’s deal with Niue didn’t come with pressure to alter its current relationships but he did accept New Zealand’s support could only stretch so far.
“There’s no pressure here, New Zealand is Niue’s traditional partner,” he said.
“China, like any other partners, is a friend of Niue, Niue is friends to everyone but Niue does know and hold steadfast its relationship with New Zealand and no one can ever come between that.
“We can’t keep relying on our great partner New Zealand to do everything for us.”
During his visit, Luxon announced almost $21 million would go towards a solar farm project to help Niue’s transition to renewable power generation. He also expressed support for establishing a pipeline of work to enable better development planning.
Luxon rejected any suggestion his long-term focus was to counter China’s influence in Niue, acknowledging China’s longstanding presence in the region.
However, he did send a message to any country considering Niue for investment.
“All we’re asking for is when those major world actors come into the Pacific that they actually respect the centrality of [the Pacific Islands Forum] and we are there as the dominant partner and we’re happy to engage on any of these topics.
“That’s why I want an infrastructure pipeline so we’ve got a good sense of what the next projects we can partner on are.”
China’s resealing work began last year. According to local hospitality operator Ozwin Ikina, the roads were “horrible” and caused extensive damage to vehicles.
While he didn’t favour Niue over-comprising for assistance, Ikina wasn’t concerned about who paid for the work so long as it improved the quality of living of residents and visitors.
“Anything to better the place.”
Local politician Ricky Muiakituki Makani did hold concerns about Chinese investment in Niue but echoed much of Ikina’s view.
“Personally it is a concern but as long as our leaders in control [are] negotiating the best of ways for whatever happens in the region and for Niue as a country, [that’s good].”
He added residents felt “very fortunate” to get the roads improved.
The Speaker of Niue’s Parliament Hima Douglas, who’d spent most of the last two decades in political or diplomatic roles, said Niue couldn’t ignore the geopolitical tensions in the Pacific.
Douglas acknowledged there was some “pushback” when it was announced last year China would be funding roading improvements, but said that had been tempered by the progress made.
Douglas didn’t think it was likely that would threaten New Zealand’s relationship with Niue, which had been built over 50 years of Niue self-governing in free association with Aotearoa.
However, he warned the “unavoidable” development of relationships had the potential to complicate matters between Niue and New Zealand.
“It can, if you’re not mindful of the fact that there’s no such thing as a free lunch.”
Niue Secretary to Government Peleni Talagi said when offers of assistance were received, they were always discussed with New Zealand.
She described how Niue’s relationship with that country and its priorities often decided who would deliver specific development projects.
Talagi said New Zealand’s constitutional affiliation with Niue meant it was the most appropriate to help construct the island’s new legislative buildings. However, Aoteroa’s focus on renewable energy meant it was more aligned with solar power development rather than roading upgrades.
“It is looking at the different priorities we both have at the time.”
She argued Niue had always received help from other countries but it was receiving more interest in light of regional security concerns prompted by China and the United States primarily seeking influence in the Pacific.
However, Talagi said it was vital Niue understood and appreciated regional tensions, but also how it could be turned to the nation’s advantage.
“I would say that all countries in the Pacific will be doing that.”
Luxon is in Fiji for his second and final stop on his Pacific tour. Keep up to date with the Herald for more updates.
Adam Pearse is a political reporter in the NZ Herald Press Gallery team, based at Parliament. He has worked for NZME since 2018, covering sport and health for the Northern Advocate in Whangārei before moving to the NZ Herald in Auckland, covering Covid-19 and crime.
Expectations tempered around return to surplus in 2027/28.