The Government is considering formally withdrawing from a United Nations development aid agency.
In a briefing to Parliament, the Ministry of Foreign Affairs says the role of the UN Industrial Development Organisation in the international aid system is marginal and its performance is mediocre.
Foreign Affairs Minister Murray McCully says the aid money could be better spent on other aid programmes in the Pacific.
UNIDO specialises in helping poor countries. New Zealand has been a member since its inception in 1985 and last year contributed nearly $500,000 to the fund.
