In supporting the most vulnerable, the Government has allocated funds for caregivers, patient referrals, increasing the minimum wage, and supporting non-government organisations (NGOs) for the next financial year.

Prime Minister Mark Brown announced some key expenditure initiatives while tabling the $328 million 2024/25 Budget themed “perseverance” in Parliament yesterday.

The initiatives include $1.3 million over four years for increase in minimum wage and $3.2m over four years to cover welfare beneficiaries.

Patient referrals will receive an annual increase of $1m to reflect actual expenditure. From 2025/26 onwards, the Ministry of Health will receive an additional $1m to address recruitment and retention challenges.

Teacher salaries will receive a phased increase of $410,828 from 2024/25 to 2025/26. Finance personnel will be allocated a total of $400,000 for 2024/25 and 2025/26 to strengthen tax collection and compliance.

For Te Maeva Nui 60^th celebration in 2025, $2.5m has been allocated over two years for transportation enabling Pa Enua residents to attend the celebration.

Government has also appropriated $9.8m over four years to establish a domestic shipping service.

Te Marae Ora Ministry of Health has welcomed the additional funding for medical referrals.

Secretary for Health Bob Williams said the number of referrals has continued to increase.

To address this, Williams said the government implemented a policy change last August allowing some of the backlog to be processed through private clinics.

“At the same time, we continue to move people to the public health system in New Zealand. But noting that there’s already a backlog in New Zealand that’s why the government has made that policy change. And we welcome the additional funding towards the budget.”

Brown, who is also the Minister for Finance, said each year, many Cook Islanders face serious health challenges and require overseas travel for treatment – either from the Pa Enua to Rarotonga, or to New Zealand.

“This Budget increases our commitment by providing an additional $1 million per year to ensure those who need treatment can access it. This builds on last year’s decision to facilitate access to private healthcare in New Zealand, improving the health outcomes for our people.”

Speaking about the initiatives proposed to support welfare beneficiaries, Brown said while the government continues to work on reducing inflation, they must help the vulnerable populations more directly.

“As signalled in last year’s Budget, we have increased payment rates for the destitute payment, the power subsidy and the caregiver payment. Consistent with the plans last year, from 1 July the caregiver payment will go up again from $300 per month, to $400 per month – to better support people who support others.

“These payments help some of our most vulnerable people, and those looking after our most vulnerable – increasing these rates helps to bring them along with the recovery in the economy.”

PM Brown also explained that due to an increasing number of pension recipients – as more people reach 60 and qualify for benefits, along with the need to support recipients of other payments – the government has allocated over $3 million over the next four years.

Government has also allocated $700,000 in funding to support non-government organisations.

Brown said many NGOs in the community operate alongside the government to provide important services to people.

“Unfortunately, as a result of our success in being classified as a high-income country, some of these organisations have found it difficult to access funding from development partners as their funding has been withdrawn.

“With the critical work these organisations do, especially in helping our most vulnerable people, Government is providing almost $700,000 in funding to continue support for this sector which includes NGOs such as the Cook Islands Family Welfare Association, Te Kainga, Punanga Tauturu and the Cook Islands Civil Society Organisation – all of whom contribute critical work to our society.”

Speaking about tourism recovery and growth, Brown said tourism remains a vital part of our economy, driving two-thirds of our economic activity.

He added that over the past years the Government has made significant investments in the sector – “especially with regard to airline connectivity, and we have seen those investments begin to pay off”.

“Government is continuing to support these investments in additional flights and additional capacity to bring people to the Cook Islands. The flights are a key component for our tourism sector, however they do not achieve much if people do not know about them.

“So, Government is providing additional funding of $4.7 million over four years for marketing the Cook Islands as a destination to help support the investment in connectivity.”

Further to this, $1.8 million in funding has been allocated to destination development “which will help to provide an environment for tourists when they visit – including in the Pa Enua”.

Cook Islands Tourism Industry Council president Liana Scott expressed her satisfaction that tourism received recognition in the Budget, including additional funding for marketing and destination development.

However, Scott, the general manager of the Muri Beach Club Hotel, said: “I guess the attention is in the detail, so it would be nice to see what those figures actually are.”

“I know that in order to grow the economy, we really need to grow the top end, which means the revenue end of things. I guess it really comes down to what the figures actually are. And I guess we’ll have an idea of that after they’ve tabled in Parliament.”

The Appropriation Bill (Budget) was referred to the Public Accounts Committee for consideration and reporting.