New Zealand suspends nearly $30m in aid to Cook Islands

Cook Islands PM Mark Brown, left, and Foreign Affairs Minister Winston Peters.

New Zealand has suspended two years of aid payments – around $30 million – to the Cook Islands, signalling the political relationship between the two countries has rapidly deteriorated.

In June this year Foreign Minister Winston Peters stopped $18.2m in funding being paid after the Cook Islands signed several controversial deals with China without consulting New Zealand which it's required to do as a realm country.

Obtained under the Official Information Act, 1News has received a letter dated October 13 from Peters to Cook Islands Prime Minister Mark Brown confirming the $18.2m will continue to be paused, along with a further payment due around this time of the year – taking the total to $29.8 million.

Months of talk to repair New Zealand’s relationship with its neighbour in the Pacific has failed. (Source: 1News)

The letter revealed that there had been a significant breakdown in communication between the two countries.

Peters wrote about "the gravity of the Cook Islands' breach of trust" and what appeared to be an ongoing disagreement over the meaning behind "free association with New Zealand".

In the letter, the Foreign Minister said it raised "further concerns for us about the Cook Islands' approach to the constitutional realities which impose clear limits on your freedom to act on foreign affairs, defence and security matters without reference to New Zealand's interest or those of the Realm".

New Zealand will continue to provide other funding of around $30m to specific projects which the Cook Islands can benefit from. However, funding which is sent directly to the government has been paused.

The suspended aid, called Core Sector Support, is a cash amount given to the Cook Islands government to boost its budget. In the past, the aid has gone towards sectors such as education, tourism and health.

Step to pause funding made 'reluctantly'

In a statement this evening, a spokesperson for the Foreign Affairs Minister told 1News the decision to pause the funding was made "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.

"Our concerns about the Cook Islands’ actions need to be addressed and trust restored before we can release this funding."

The spokesperson added that "significant development assistance" to the Cook Islands – including in areas such as health, education, governance, security and humanitarian support – continued to be delivered through New Zealand agencies and regional programmes.

"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."

China agreements the sticking point

Chinese research ship Da Yang Hao in Rarotonga.

The agreements between the Cook Islands and China have continued to be a major sticking point for New Zealand.

Yesterday, Chinese research ship Da Yang Hao arrived in Rarotonga to carry out seabed surveys in collaboration with the Cook Islands Seabed Minerals Authority.

International red flags have been raised previously about the vessel's dual civilian and military use as it can not only map ocean floors but track missiles and detect submarine activity. In 2021 Palau asked for assistance from the US Coastguard after accusing the Da Yang Hao of illegally surveying in the island nation's Exclusive Economic Zone.

In a private VIP ceremony on Sunday morning, the Cook Islands Prime Minister formally welcomed the crew from the Chinese vessel along with China's vice minister of natural resources. The ship was open to the public to tour later in the day.

According to the Cook Islands Seabed Minerals Authority, the ship is to carry out a three-day scientific programme in the waters north-east of Rarotonga. All of the data collected will remain under the Cook Islands' stewardship.

"This cruise is about learning by doing," said Edward Herman, the authority's partnerships and cooperation director. "Our team is actively participating in all activities to build our knowledge and capacity in marine research."

But there is some opposition to the ship's activities.

Environmentalist Louisa Castledine from conservation collective Ocean Ancestors said it was all performative and created "a pathway to exploit and mine our deep sea".

Two weeks prior, US vessel Nautilus was met with protests after arriving in Rarotonga to map the seabed floor.

"If we cannot be transparent and open with our traditional partners like Aotearoa then we should be concerned about how we're engaging with the US government and Chinese government," Castledine said.

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