New Zealand Suspends Payments to Cook Islands Over Trust Issues
New Zealand has extended its suspension of direct financial support to the Cook Islands Government following the latter's partnership agreement with China signed earlier this year.
Funding on Hold
A total of NZ$29.8 million in direct funding remains withheld, covering two financial years, according to a spokesperson from New Zealand’s Ministry of Foreign Affairs.
Reason for Suspension
“We took this step reluctantly and after careful consideration. Direct funding to another government relies on a high degree of trust. The Cook Islands Government breached New Zealand’s trust through a series of actions that are well known.”
The spokesperson emphasized that New Zealand’s concerns about the Cook Islands’ actions must be addressed and trust restored before any withheld funds can be released.
Ongoing Support Despite Funding Pause
Despite this suspension, significant development assistance continues in critical sectors such as health, education, governance, security, and humanitarian aid. These efforts are delivered through New Zealand agencies and regional programs.
Commitment to the Cook Islands
“New Zealand remains deeply committed to the Cook Islands and its people. We share a unique constitutional relationship and the people of the Cook Islands are New Zealand citizens.”
Background
Foreign Affairs Minister Winston Peters notified the Cook Islands Government of the initial funding pause in early June.
Author’s summary: New Zealand has paused NZ$29.8 million in direct payments to the Cook Islands due to trust breaches but continues support through other channels, maintaining strong constitutional ties.