31 Jan 2007

Niue MPs discuss financial woes

4:08 pm on 31 January 2007

Niue's parliament has been meeting today to discuss the country's worsening financial crisis.

The premier has already indicated the government is likely to cut services and reduce the hours of work for employees to try and save about a million US dollars.

An associate minister of finance, Hima Douglas, says Niue's woes are not caused by the lack of support from New Zealand but by the island's present and former leaders.

He says if New Zealand elects a National government next year the island has be prepared for new aid policies.

Mr Douglas told parliament this might mean Niue being given a 100 million dollars for its trust fund and told to go and look after itself.

An opposition MP, Veve Jacobsen, called for planning in case the state collapses due to population decline and financial mismanagement.

She also says too much money is being spent on hiring and housing expatriate consultants and it's often difficult to see what these people achieve.