24 May 2010

NGO says financial transaction tax would stabilise foreign aid

4:28 pm on 24 May 2010

The NGO, Oxfam, wants the New Zealand Government to consider a financial transaction tax with the revenue set aside for foreign aid.

This comes amid concerns the global economic crisis and the effects of climate change mean developing countries need more aid.

The New Zealand Government lifted its aid spending in its budget last week but has been criticised by Oxfam for not doing enough to meet its obligations to developing countries.

Oxfam New Zealand executive director, Barry Coates, says a financial transactions tax is a way to get donor money that is more predictable year on year.

"And that is really what we are calling for as a mechanism that we need to move towards and particularly for climate change financing. It shouldn't be left to an annual budget allocation. There should be predictable sources of finance to help the more vulnerable countries, and particularly in the Pacific, to be able to protect themselves from climate change, to be able to adapt."