For the past two financial years millions in NZ aid to Pacific has been spent on Air NZ flights. The Cook Islands has spent half the $3 million of New Zealand aid money it receives for tourism annually on its underwrite arrangement with Air New Zealand.
The Ministry of Foreign Affairs and Trade says a total of $3.8 million in aid money went towards the Samoan and Tongan Governments’ providing a temporary underwrite to the airline between 2009 and 2011.
The director of Victoria University’s Development Studies programme, John Overton, said aid development could be better spent. “I’m definitely uneasy about New Zealand Aid money being used to subsidize in effect the commercial operations of a New Zealand company in this case Air New Zealand, which would seem to be counter to any of the stated objectives of the New Zealand Aid programme either now or especially in the past.”
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