By ‘Alakihihifo Vailala of PMN News
Funding for New Zealand’s Ministry for Pacific Peoples (MPP) is set to be reduced by almost $36 million in Budget 2025.
This follows a cut of nearly $26 million in the 2024 budget.
As part of these budgetary savings, the Tauola Business Fund will be closed. But, $6.3 million a year will remain to support Pacific economic and business development through the Pacific Business Trust and Pacific Business Village.
- READ MORE: Budget 2025 at a glance: The big changes, winners and losers
- Govt should defuse NZ’s social timebomb – but won’t
- Budget 2025: Pasifika community braces for impact
The Budget cuts also affect the Tupu Aotearoa programme, which supports Pacific people in finding employment and training, alongside the Ministry of Social Development’s employment initiatives.
While $5.25 million a year will still fund the programme, a total of $22 million a year has been cut over the last four years.
The ministry will save almost $1 million by returning funding allocated for the Dawn Raids reconciliation programme from 2027/28 onwards.
There are two years of limited funding left to complete the ministry Dawn Raids programmes, which support the Crown’s reconciliation efforts.
Funding for Pasifika Wardens
Despite these reductions, a new initiative providing funding for Pasifika Wardens will introduce $1 million of new spending over the next four years.
The initiative will improve services to Pacific communities through capacity building, volunteer training, transportation, and enhanced administrative support.
Funding for the National Fale Malae has ceased, as only $2.7 million of the allocated $10 million has been spent since funding was granted in Budget 2020.
The remaining $6.6 million will be reprioritised over the next two years to address other priorities within the Arts, Culture and Heritage portfolio, including the National Music Centre.
Foreign Affairs funding for the International Development Cooperation (IDC) projects, particularly focussed on the Pacific, is also affected. The IDC received an $800 million commitment in 2021 from the Labour government.
The funding was time-limited, leading to a $200 million annual fiscal cliff starting in January 2026.
Budget 2025 aims to mitigate this impact by providing ongoing, baselined funding of $100 million a year to cover half of the shortfall. An additional $5 million will address a $10 million annual shortfall in departmental funding.
Support for IDC projects
The new funding will support IDC projects, emphasising the Pacific region without being exclusively aimed at climate finance objectives. Overall, $367.5 million will be allocated to the IDC over four years.
Finance Minister Nicola Willis said the Budget addressed a prominent fiscal cliff, especially concerning climate finance.
“The Budget addresses this, at least in part, through ongoing, baselined funding of $100 million a year, focused on the Pacific,” she said in her Budget speech.
“Members will not be surprised to know that the Minister of Foreign Affairs has made a case for more funding, and this will be looked at in future Budgets.”
More funding has been allocated for new homework and tutoring services for learners in Years nine and 10 at schools with at least 50 percent Pacific students to meet the requirements for the National Certificate of Educational Achievement (NCEA).
About 50 schools across New Zealand are expected to benefit from the initiative, which will receive nearly $7 million over the next four years, having been reprioritised from funding for the Pacific Education Programme.
As a result, funding will be stopped for three programmes aimed at supporting Tu’u Mālohi, Pacific Reading Together and Developing Mathematical Inquiry Communities.
Republished from Pacific Media Network News with permission.
