Cook Islands /NZ partnership use to be close.
NZ halts some Cook Islands funding in response to Cooks-China deal
New Zealand has halted around $20 million in funding for the Cook Islands Government, in retaliation for the deal it signed with China.
A spokesperson for the minister for foreign affairs confirmed that “core sector support” for the Cook Islands had stopped and there would also be no significant new funding for the nation until relationships improve between the two governments.
This represents a significant backward step in the New Zealand and Cook Islands relationship.
The islands are self-governed, but they are so close to New Zealand that Cook Islanders are officially New Zealanders. We share the same passport and many government services.
But the New Zealand Government was left in the dark about a deal signed between the Cook Islands and China, which has led to this funding decision.
Cook islands and NZ used to be the closest partnership.A spokesperson for Foreign Minister Winston Peters said:
“Given the breadth and content of the agreements signed between China and the Cook Islands, and the lack of any consultation with New Zealand, New Zealand undertook an assessment of our development programme in the Cook Islands to ensure it wasn’t undermined by the increased cooperation the Cook Islands Government is planning with China,” he said.
He said this assessment would not have been required had the Cook Islands shared information about the deal earlier. At the time, Peters called on the Cook Islands to discuss the deal - but that invitation was not welcomed.
“The Cook Islands Government did not engage with New Zealand in advance of their discussions and agreements with China to ensure our shared interests were not put at risk. New Zealand's concerns and this assessment were clearly foreshadowed to the Cook Islands Government,” the spokesperson said.
They said core sector funding - which is effectively money going straight to the Tresuary of the Cook Islands - could resume if “trust” was restored.
“Core Sector Support funding relies on a high trust bilateral relationship. New Zealand has therefore paused these payments and will also not consider significant new funding until the Cook Islands Government takes concrete steps to repair the relationship and restore trust. New Zealand hopes that steps will be taken swiftly to address New Zealand’s concerns,” the spokesperson said.
New Zealand provided about $194 million in funding to the Cook Islands over the past three years. Last year, Peters visited to confirm a $20 million funding arrangement for core sector support.