P.M. rules out rise in aid

Press, 27 November 1979, Page 6

P.M. rules out rise in aid

PA Wellington The Government would not increase foreign aid while New Zealand’s balance-of-payments problems continued, said the Prime Minister (Mr Muldoon) yesterday. He was answering questions at a news conference about a report from the Development Assistance Committee of the Organisation for Economic Co-operation and Development which noted that New Zealand’s aid in dollar terms had been almost stable since 1975. Mr Muldoon said the reason was New Zealand’s serious balance-of-payments problems. The O.E.C.D. committee 1 said it was concerned about; the trend in New Zealand’s foreign aid and urged that this country at; least tie its

contributions to gross national product. Mr Muldoon said the report was an “analysis” of New Zealand’s position, ra--ther than a criticism. “Whenever it has been discussed with me it has never been discussed in a critical sense,” he said. Although New Zealand's aid was lower than some countries, it was a great deal higher than many others, including the United States. “What is more, we give our aid almost 100 per cent in cash grants, as untied aid,” Mr Muldoon said. Compared with other countries, New Zealand had one of the highest percentage levels of aid in cash, as opposed to aid in kind, or direct investment, he said. “This is well known and appreciated by these committees.”