New Zealand’s development support for Niue for 2010/11 is NZ$19 million. The New Zealand Aid Programme activities in Niue are based on the overall aid programme mandate and the specific development challenges in Niue. Activities and programmes currently underway include:
The Joint Commitment (PDF 442KB), signed in September 2011, sets out the priorities for New Zealand's aid and development effort in Niue.
The Governments of New Zealand and Niue enjoy an enduring and special partnership established under the Niue Constitution. All Niueans are New Zealand citizens. This citizenship creates both obligations for the Government of New Zealand and responsibilities for the people of Niue.
New Zealand is Niue’s primary development partner and contributes significant financial and technical support to Niue’s development. Niue also contributes to New Zealand’s cultural richness through the significant number of Niueans resident in New Zealand.
The agreement signals New Zealand's support for key areas such as tourism; private sector growth; social development and skills training; and provides for whole of government reform in Niue.
Discussions between New Zealand and Niue on progress towards the mutually agreed goals set out in the Joint Commitment for Development will be held bi- annually.
Please see attachment below.
The Halavaka ke he Monuina Arrangement (Halavaka Arrangement) signed in October 2004 is a five-year arrangement between Niue and New Zealand. The Halavaka Arrangement is designed to:
New Zealand’s main form of assistance to Niue is direct budget support to the Niue Government. It is intended to allow the Government to meet its key objectives and accounts for more than half of Niue’s total annual operating budget.
A programme of inter-agency cooperation ($2 million per year for five years) is helping Niue develop closer and more valuable partnerships with New Zealand government departments, as well as providing capacity within Niue's public service.
Through this programme, New Zealand Aid Programme is providing a Chief of Police, support for the New Zealand Inland Revenue to assist Niue in modernising its tax system, and support for the Counties Manukau District Health Board to provide health services.
In addition to budget support and inter-agency cooperation, the Halavaka Arrangement also provided $20 million over five years to assist Niue achieve its priorities for infrastructure development.
Over the past three years this has involved assisting Niue to:
The New Zealand Aid Programme is also working with the Niue Government to improve its asset maintenance functions.
Economic development is a priority for the Government of Niue and the New Zealand Aid Programme is actively working to support this. Funding within the Halavaka Arrangement has been earmarked for tourism development.
New Zealand has also partnered with the Niue Government and Air New Zealand to ensure a regular and reliable air service to Niue. A crucial element of this is the support provided by the New Zealand Aid Programme. This agreement provides the tourism industry in Niue with the level of security and consistency crucial for the private sector to continue investing in this growing industry.
In 2006 the Governments of New Zealand, Australia and Niue established the Niue International Trust Fund. New Zealand is the main contributor to the fund, which is now valued at $36 million. The purpose of the fund is to lessen Niue's dependence on external assistance to meet the demands of its core budget. Revenue from the fund is not expected to be drawn down before 2014. Until then, contributions will be made from time to time by New Zealand, Australia and other parties to continue building the fund's resources.