PACIFIC – New Zealand is set to hike foreign aid by more than $700 million over the next four years, as part of its signalled Pacific Reset strategy.

Foreign Affairs Minister Winston Peters made the pre-Budget announcement during a speech at parliament on Wednesday.

The money will primarily be earmarked for the Pacific region as a response to climate change and other emergencies.

Peters said New Zealand’s under-investment in the Pacific over the past nine years had left it open to criticism that it had abandoned its neighbourhood.

“More troubling is that the previous government weakened our hand in the Pacific at the very time the region has become a more crowded and contested strategic space.

“Today that stops,” he said.

The $714.22 million boost represented a 30 per cent increase in overseas development funding.

Peters said New Zealand’s identity was anchored in the Pacific.

“What is good for them is good for us. We all know that if we look after each we are all better off, more prosperous, and therefore more secure.”

He said the support was not just altruistic, but also “good economics”.

“Prevention saves money. Preventative health strategies save far more taxpayer health dollars downstream by tackling health problems early.

“In the same way, development assistance helps to maintain a safer and more prosperous New Zealand over time, saving money that would otherwise be required in future defence budgets or in border control.”

National leader Simon Bridges said the boost for Foreign Affairs was “payback” for Peters choosing to go with Labour to form a coalition government.

“It’s money for Winston Peters to keep him happy.”

He said the government had its priorities all wrong.

“I don’t think New Zealanders will accept significant new money for foreign affairs and foreign aid when you’re not meeting a core promise you made about cheaper GP visits for hard-working families.”

Peters said that was a “shameful” response.

“I’m rather saddened that the National Party’s resorted to this narrow myopic view of how life is and how the economy’s run.

“If they knew about their own security and the importance of what we’re doing in the Pacific, I don’t think they’d see that as a great sacrifice.”

On average, OECD countries gave 0.4 per cent of their gross national income in aid.

Last year, New Zealand gave just 0.23 per cent – down from 0.3 in 2008. The government’s announcement lifts that support to 0.28 per cent.

- RNZI