15 Dec 2010

NZ opposition party disputes aid money has been wasted

8:19 am on 15 December 2010

New Zealand's Opposition Labour Party is disputing that the money spent on foreign aid over the past 20 years has been wasted.

A new report from the New Zealand Parliamentary committee on foreign affairs, defence and trade suggests a rethink on aid saying the spending's had disappointing results.

Labour's Maryan Street says while there may be room for improvement it's not fair to say the money has been wasted.

The committee wants more resources directed at encouraging sustainable businesses but Ms Street says this is the discredited trickle down theory and it won't help eliminate poverty.

"In other words if you get the private sector moving along and creating jobs and distributing wealth then poverty will be eliminated. But in fact that is not always what private industry does and in fact private industry is usually there to make a profit and so the elimination of poverty is not one of the drivers behind successful private enterprise."

Labour's Maryan Street.