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Australia and New Zealand provide support for recurrent costs for South Pacific aid projects



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No.

NITA! 5 3 Date: 15 October 1992 Australia and New Zealand provide support for recurrent costs for South Pacific aid projects

Australia and New Zealand will provide support for recurrent costs for South Pacific aid projects, the Minister for Trade and Overseas Development, John Kerin, and the New Zealand Minister for Economic Relations and Trade, Don MacKinnon, announced today.

"Pacific Island countries have endorsed the policy, which is a joint Australia/New Zealand policy initiative," Mr Kerin and Mr MacKinnon said.

"To date, recurrent cost financing has been addressed on a case by case basis. But the Suva based South Pacific Forum Secretariat has called for a clearer policy on the part of donor nations.

"This joint initiative will be funded from within existing bilateral allocations."

Donor provided funds are a major source of capital development funds in the South Pacific. However, for many countries, they can create recurrent cost finance difficulties in maintaining important economic and social infrastructure development projects.

Australia and New Zealand will not provide recurrent cost finance support for activities that are income producing as this would not represent an effective use of limited aid resources.

"Community development activities and activities that assist the poor will be targeted," Mr Kerin said.

Australian assistance for the South Pacific is administered by AIDAB, Australia's overseas aid agency. New Zealand's assistance is administered by the Development Aid Division of the Ministry of Economic Relations and Trade.

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CANBERRA For further information contact AIDAB Public Affairs: David Jones (06) 276 4967 or A.H (06) 241 6248

COMMONWEALTH PARLIAMENTARY LIBRARY IvII CAH