NZ First calls National's foreign aid cut promise desperate, Act hails it as win

Winston Peters is calling National's latest campaign promise 'desperate', while Act is hailing it as a win and promising to go further.

National's leader Christopher Luxon and health spokesperson Simeon Brown announced their more than $820m plan to increase Pharmac funding and other health programmes – with more than half the funding redirected from non-Pacific foreign aid budgets – at a private hospital on Tuesday.

Luxon said he had not spoken to NZ First leader Winston Peters, who has been the foreign minister this term, and whose department has largely avoided cuts in that time.

"Well, look, I mean we'll cross that bridge when we get there," Luxon said.

"Between now and November 7th I'm making the case very strongly: I want everybody to party vote National. I want National government, I want National ministers, I want National policies, I want as many National ministers around that Cabinet table as possible."

In a post on social media, Peters said the policy was dangerous, and desperate.

"We need to double the size of the economy and we cannot do that if we neglect the very markets we need to be in. The old parties have never understood New Zealand has to work for its money," he said.

"The idea to cut foreign aid during one of the most uncertain global times in history is both desperate and dangerous. It is irresponsible for National to jeopardise the relationships we have in the very markets we need to grow our economy."

He said the coalition had just restored New Zealand's influence and relationships around the world after years of neglect from Labour and National, and the policy would undo that.

"Foreign aid is not just some sort of expense account nor is it just about assisting countries in need ... 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's leader David Seymour, who has been the minister responsible for Pharmac this term, welcomed the policy by saying it was a great sign for the next coalition – and his party would ensure "we go further and faster".

He has been campaigning on closing the trans-Tasman funding gap, lifting the medicine budget from 4.9% of the health budget to eventually reach the same level as Australia – 12.2% – by targeting a 1% increase per year.

"National's policy equates to about one third of what Act is proposing, but we are confident we can push the coalition to go further and faster to reduce waste and fund more medicines," he said.

"We also welcome National coming round to our position that MFAT spending should be reduced. Act has pushed for savings in this area during the current term without support from our coalition partners, next term it looks like we'll be successful."

He said the Ministry of Foreign Affairs and Trade had in 2023 spent $23m on EmPower, which aims to include women – who have been shown to be at greater risk from climate change – in decision-making about climate change and tailor responses to them.

"We can't afford to keep exporting taxpayer money. We'll have more to say on this shortly," Seymour said.

He also criticised National for its 2023 election promise to fund specific cancer medicines, saying it would have broken the Pharmac model.

"I'm pleased that as a coalition we prevented that from happening and there is now consensus over how we can fund important medicines most efficiently."

World Vision voices disappointment

World Vision's head of advocacy and justice Rebekah Armstrong told Midday Report she was "really disappointed" by the announcement.

She said she understood the importance of protecting New Zealanders and their health but we lived in a country "full of abundance" compared to countries foreign aid was sent to.

Armstrong said children around the world would bear the brunt of the cuts.

"We've seen a real worldwide reduction of foreign aid at a time when there is more humanitarian need than ever before."

The budget for foreign aid was already small, Armstrong said, and yet it served thousands of people and had made a "tremendous impact".

RNZ has sought further details from National about which foreign aid programmes would be cut.