National says it will cut foreign aid to boost Pharmac medicines budget

National says it will reduce New Zealand's foreign aid spending to boost Pharmac’s medicines budget and cancer screening, if elected.

The party announced today that it would invest $604 million to help Pharmac fund new medicines and expand access to those already funded.

To pay for the boost, National said it would cut funding to the Ministry of Foreign Affairs and Trade, reducing New Zealand’s foreign aid outside the Pacific by 10%. Aid to the Pacific would remain “fully protected”.

"New Zealanders are generous people, and we'll continue to play our part in the world,” National health spokesperson Simeon Brown said.

“But National believes more of New Zealanders' hard-earned money should be spent here at home, caring for Kiwis fighting cancer and other serious illnesses, rather than being sent offshore.”

The Party’s policy document said: “Millions of dollars have gone towards, among other things, smart agriculture systems in Latin America and the Caribbean, workshops with indigenous farmers in Patagonia, and installing livestock emissions equipment at universities in South Africa.”

National said the 10% cut would save $431 million over the forecast period.

The vow to protect Pacific funding, which makes up 66% of what is spent overseas, reflected “the importance of our closest neighbours and strongest interests”.

National said MFAT’s funding had grown from $1.05 billion in 2017 to nearly $2 billion, with the Ministry exempt from the current Government cuts.

“National will now bring MFAT into line with the rest of the public sector, catching up through a 2% baseline expenditure reduction that saves a further $45.6 million over the forecast period.”

Alongside the Pharmac announcement, National said it would set a national target for clinical trials and unlock CAR-T cell therapy.

"Clinical trials and CAR-T also give New Zealanders access to cutting-edge treatments, often years before they would otherwise be available,” Brown said.

“For someone facing cancer or a rare disorder, that can mean real hope when other options have run out.”

NZ First Leader Winston Peters has called National's plan "desperate and dangerous".

"It is irresponsible for National to jeopardise the relationships we have in the very markets we need to grow our economy. We have just built and restored our influence and relationships in the world after years of neglect by both Labour and National," he said.

"This will undo everything that our country has worked hard for over the past three years."

Peters said New Zealand's relationships with its friends and allies had "never been more important" for the future of the country's trade, security, and economy.

"Foreign aid is not just some sort of expense account nor is it just about assisting countries in need. It is about doing our part in the world with our allies to build stability and unity in such an unstable world - it is about investing in New Zealand’s future.

"This will take us back decades in foreign affairs and have reverberations that the National Party has either naively disregarded, or worse, have no ability to comprehend."

ACT leader David Seymour said cutting foreign aid was a "welcome move" in his party's direction and a "great sign for the next coalition".

“ACT wrote to every party leader in July asking them to support our plan to close the medicines funding gap with Australia.

"National’s announcement doesn’t go as far as ACT’s policy, but it is a welcome sign that we can work together in Government to get more medicines to New Zealanders."

Labour Leader Chris Hipkins said cutting foreign aid showed National's plans for Pharmac were an "unfunded commitment".

"Winston Peters is never going to let them cut foreign aid. So basically, they've just made a $600 million commitment, and they've got no idea how they're going to pay for it.

"So the National Party saying that, when the only way they're back in Government is with Winston Peters, just shows they have no idea how they're going to make their plan stack up. That's probably why they're not releasing a fiscal plan of their own."

National promised to lower the free bowel cancer screening age to 50 by 2029.

It also said it would deliver free cervical screening for all women aged 25 to 69 from March 2027 and complete the free breast screening extension to age 74 by 2029.

New screening pilots for prostate and lung cancer would also launch.

"Early detection and prevention are just as important, catching cancer when it is most treatable and keeping more Kiwis well and out of hospital,” Brown said.

National wanted to establish a “Healthy Kiwis Programme”, offering active prescriptions and helping to stop chronic diseases. It would aim to double the number of people receiving active prescriptions by 2030.

"Supporting families through some of the hardest moments of their lives is why National has been so focused on responsible financial management, so we can keep investing in the health services that matter most,” Brown said.