New Zealand aid

Pacific to receive bulk of bolstered NZ aid budget

The Government is set to hike foreign aid by $US500 million ($NZ714 million) over the next four years, as part of its "Pacific reset" strategy. The funding boost represents a 30 percent increase in overseas development funding.

Mr Peters said it was time to reverse the decline in the country's aid support for multilateral and humanitarian agencies over the past decade, which had been sitting well below international averages.

He said the new funding would lift New Zealand's Overseas Development Assistance to 0.28% of gross national income over the next four years.

McCully to discuss aid with Nauru

The New Zealand Government announced last week that it was suspending the $1.2 million (US$750,000) of aid it provides to keep Nauru's justice sector going.

The decision followed growing concerns about the deterioration of the rule of law in the tiny Pacific nation and worries about democratic and civil rights.

It's anticipated McCully will have formal talks with Nauru at some point today on the sidelines of the Pacific Islands Forum in Port Moresby.

Ahead of that meeting, Prime Minister John Key said New Zealand's message to Nauru is “really clear”.