30 Apr 2010

Aid agencies fear funding cull

3:49 pm on 30 April 2010

Aid agencies say an overhaul of the way they are funded could result in to two-thirds of them closing.

New Zealand aid officials have issued more details about how new funding of schemes will operate, after Foreign Affairs Minister Murray McCully said last week that he wanted a faster response to humanitarian disasters and a greater focus on economic development in the Pacific and South-East Asia.

The details show officials will fund only a small number of organisations for humanitarian responses - and that a tough test will be set for agencies to be given money for long-term projects.

The Council for International Development says this means 50 of the 74 aid agencies now operating could fall away entirely.

A spokesperson for Mr McCully said he will consider the response of the agencies to the proposals before he makes his final decision.