Red Alert

McCully takes revenge on aid NGOs

Posted by Phil Twyford on September 29th, 2009

Successive governments have enjoyed a good relationship with the country’s overseas aid NGOs: groups like World Vision, Oxfam, Tear Fund, Save the Children, Volunteer Service Abroad.

They have seen the aid groups as part of an NZ Inc approach: raising private donations from the public, building awareness of development issues, and often working together with the government to deliver aid in the field. As in many OECD countries this partnership between government and aid NGOs has been ramped up over the last decade, with NZAID funding the NGOs’ aid programmes to the tune of about $32 m per year.

But the partnership has just taken a hit. Foreign Affairs Minister Murray McCully has personally intervened to cut the funding of the NGOs’ peak body by 40%.  Last year NZAID funded the Council for International Development $900,000 to do a range of work including coordination of disaster relief efforts, capacity building and training of NGO staff, and public awareness work. That is being cut to $650,000 this year and $500,000 the next.

McCully is unlikely to admit it, and on past form he won’t leave a paper trail, but you can bet the cut is a response to the NGO community’s public criticism of his move to restructure NZAID back into the Ministry of Foreign Affairs and Trade and change its mandate earlier this year. The NGOs were trenchant in their criticism and it wasn’t just the usual campaigners. Rotary, the Salvation Army and agencies like World Vision and Tear Fund who have traditionally been more circumspect in their public advocacy, made it clear to the Government they thought McCully’s plans ill-judged. Most of the NGOs backed a campaign called Don’t Corrupt Aid.

Mr McCully has never been a fan of NGOs. In his speech announcing the restructuring of NZAID he referred to

self-interested individuals from within the aid community [who think] that New Zealand’s aid budget is some kind of sacred cow that should be placed above and beyond the stewardship of the government of the day, and subject only to the attentions of so- called “development experts” who might bring their superior intellects and sensibilities to this task.

And it was hard to know if he was referring to the NGOs or NZAID when he referred to “faceless, unelected, unaccountable, aid bureaucrats”.

It is worrying Mr McCully is willing to cut funding in such a vengeful way. It is bullying from a Government that can’t take public criticism.

It is even more disturbing he is willing to to cut funding that is an investment in building the capacity of NGOs to be accountable and effective partners in the delivery of taxpayer funded overseas aid. But then this is the same Minister who ignored Treasury advice that his restructuring of NZAID would make it less accountable for the spending of taxpayer dollars.


6 Responses to “McCully takes revenge on aid NGOs”

  1. Spud says:

    This is all rather grim isn’t it. :-(

  2. barry says:

    As most aid is wasted (or goes to the swiss bank account of some africa leader) then why waste the time of sending it out of the country. Take the King of tonga wasting a third of his annual aid budget on his crowning. A total waste.
    Leave it here in NZ where it will be of more use.

  3. Sean says:

    “…his move to restructure NZAID back into the Ministry of Foreign Affairs and Trade and change its mandate earlier this year.”

    Where did Mr McCully get the power to do this? I just ask because if NZAID was independent of the Ministry of Foreign Affairs and Trade, how was he able to change NZAID’s position so easily? Did NZAID previously report through to the Minister of Foreign Affairs and Trade?

    “faceless, unelected, unaccountable, aid bureaucrats”. What a classic line. It makes it sound like people work on overseas aid so they can be unaccountable international bureaucrats of mystery, drunk on their own power trip. How insulting to people who are now his own staff.

  4. David says:

    Good on him, we are handing out 32 million a year to these worthy organisations and he wants to cut back a couple of hundred k that goes to the back office. These are professional worldwide organisations so shouldnt need assistance on how to raise money. The fiscal picture is not pretty so we should be happy he is maintaining the aid side of things.

  5. Hillary says:

    Before you get all high and mighty at the thought of your pet interest groups getting funding cuts, why not actually have a look and see if they’re actually delivering!

    Labour has consistently poured millions of dollars into interest groups to back their social engineering causes. Just because a new government comes in and says “let’s have a look at what they’re actually delivering” Labour gets all critical.

    Lets also not forget that there is no extra money in the bank. A) Labour spent $680 on KiwiRail when its worth half that (great deal guys) and promised all these things without actually having any money to pay for them! GET REAL Phil

  6. Phil Twyford says:

    @ Hillary – I am intimately familiar with this group, having been the director of Oxfam for 9 years. It is lean, modest, and has a culture of doing more with less. It is nothing to do with social engineering. The funding for CID is an investment in helping NGOs to be accountable and effective partners in the delivery of tazxpayer-funded overseas aid.

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