NZ contributes to Tuvalu trust fund

New Zealand is making a $1 million contribution to the well-run Tuvalu Trust Fund to mark its 20th anniversary

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New Zealand is making a $1 million contribution to the Tuvalu Trust Fund to mark its 20th anniversary, Foreign Minister Winston Peters announced today.

"Trust funds such as this one are very important to small island states in the Pacific. The fund has provided Tuvalu greater economic sovereignty, by providing a regular source of revenue to support its budget," Mr Peters said.

"New Zealand's contribution recognises the success and good management of the trust fund, and the Tuvalu government's recent efforts to address fiscal and budgetary challenges.

"New Zealand played a pivotal role in setting up the fund, and we have made contributions to it over the past two decades; most recently giving $280,000 in 2006/07. Internationally, the fund is seen as highly successful, and a model for heavily aid-dependant small islands states.

"Supporting the trust funds of small islands states such as Tuvalu, Tokelau and Niue helps foster stability in the Pacific. Having a reliable steam of income provides these small island states with a degree of economic certainty, and helps them provide essential services to their citizens.

"Today's contribution comes through NZAID, the government's international aid and development agency, and will help the Tuvalu Trust Fund reach and maintain a target value of $A100 million," Mr Peters said.