Dear Editor, There is a claim by some doing the rounds, that New Zealand’s economy is struggling, and the aid freeze is just a convenient excuse to pull back funding.

TBH (to be honest) think it through, that’s highly unlikely, budgeted foreign aid is usually allocated well in advance, particularly for small countries in the Pacific like the Cook Islands.

NZ aid to the Cook Islands was likely pre-allocated for the financial year 2024/25 and that is because foreign aid (ODA) is typically committed through multi-year frameworks and published in NZ’s Budget Estimates. The NZ Ministry of Foreign Affairs and Trade (MFAT) earmarks development assistance for the Cook Islands annually as part of its Pacific strategy.

What is a speculative scenario is that withholding aid mid-year would more likely be a diplomatic response, not a cost-cutting measure. This means the freeze is political, not financial and of course intended to signal dissatisfaction and leverage future discussions, not to save money.

If we look at the NZ economy, yes, it is tight, but not collapsing, NZ is experiencing cost-of-living pressures and sluggish GDP growth, but it’s not in a recession. Core foreign aid to the Pacific has not been slashed across the board. Other countries like Niue, Samoa, and Tonga have not faced similar suspensions, that supports the view this is targeted at Cook Islands-China ties and is a political slap on the beejeebers.

The crux of this slap on the nether regions, is that next year is the real risk window, because if this freeze lasts, the 2025/26 Budget is where the real cutting consequences will show. Projects that depend on NZ funding (infrastructure, health, education, and climate resilience) may be paused or cancelled. This could hurt the Pa Enua and affect core services that rely on NZ’s technical and financial support.

The pigeons have come home to roost and karma is the result. As I pointed out months ago, we have a signed agreement by former Premier Sir Tom Davis on foreign assistance through the 1983 Marine Boundary Treaty with the US and NZ which requires NZ’s consent, this Government has broken that agreement. Either with tacit Crown Law legal opinion or MFAI opinion or if no opinion then the onus falls squarely on this Government and its inept officials.

Te Tuhi Kelly

Leader

Progressive Party