New government funding proposals for development NGOs

Caritas Aotearoa New Zealand is hopeful that some of its concerns about government support of international development agencies may be reflected in a new funding framework expected to be confirmed soon.

In mid-April, Caritas and other development NGOs were told that the existing government-funded community development and emergency relief schemes would end on 30 June, with Foreign Affairs Minister Murray McCully announcing that government officials were redesigning funding arrangements for development NGOs. The news shocked the sector, as the existing schemes had evolved over 35 years as a world-class model of government-NGO partnership.

“However, there is some positive news this week, with  the government  accepting the need for a transitional period, especially for addressing impact on long-term programmes,” said Caritas Director Mike Smith. The foreign affairs ministry (MFAT) recently released its latest update on proposed new schemes, and it indicates a six-month transitional period for some projects and programmes that have multi-year commitments. “However, there are still questions about the limited criteria proposed to evaluate projects for transitional funding. We'll be seeking clarification on that, and making other concerns known to MFAT,” said Mr Smith.

Caritas had commented on an earlier 22 April proposal that mapped out a proposed new funding framework, following Mr McCully's initial announcement. Caritas asked then for:

• Understanding of the impact on partners and projects of changes that affect their ongoing funding because of the short time-frame to the next financial year (1 July)
• more detail on the scheme, especially on specific criteria for assessing agencies eligibility to access the new Sustainable Development Fund and Humanitarian Response Fund.
• information on the level of government subsidy envisaged
• how a proposed regional funding split for development aid (between the Pacific, Southeast Asia and “other” regions) would be phased in; and whether it would apply to individual agencies or the Sustainable Development Fund as a whole.
• an expectation that consultation would still be a feature of the new schemes.

In his 19 April letter to the development NGO community, Mr McCully said the current funding schemes were 'clearly out of step' with the government's new overseas aid priorities focused on economic development and the Pacific region.

Mr Smith said Caritas recognises the need for sustainable economic development. “We also believe it is imperative that programmes – government and non-government – address other poverty-related issues. For example, addressing health, education, human rights and environmental protection provides the 'pre-conditions' for economic growth.”

“We will seek to adapt to whatever new government arrangements are announced, provided it doesn't compromise the integrity and true value of our and our partners' work. However, we will continue to promote and advocate for development practices by both government and non-government agencies that enhances overall human development. 'Integral human development', as found in Catholic social teaching, promotes the good of every person and the whole person – in cultural, economic, political, social and spiritual spheres.”

Mr Smith said Caritas was continuing to make its views known on the unfolding framework – as an individual agency, and in cooperation with others in the sector – to the government and its officials.

Caritas Aotearoa New Zealand is a member of Caritas Internationalis, a confederation of 165 Catholic aid, development and social justice agencies active in over 200 countries and territories.