16 Jul 2005

Niue and Tokelau trust funds get US$10m boost from New Zealand

8:26 am on 16 July 2005

The New Zealand Aid Minister, Marian Hobbs has announced her country will contribute over US$10 million to trust funds for Niue and Tokelau.

The money will be halved between the two funds.

Ms Hobbs says the contributions made through the NZAid agency, demonstrate the special relationship that New Zealand has, with two of its smallest Pacific neighbours.

She says the trust fund mechanism is designed to provide long-term reliable income streams for the countries and gradually lessen their dependence on outside assistance.

The Minister says it's desirable to make sizeable contributions in the early stages of such funds, so the nations can start delivering returns as soon as possible.

Since 1974 Niue has been self-governing in free association with New Zealand.

In 2003 Tokelau assumed full responsibility for managing its budget and is now working with New Zealand towards self-determination.