A classroom of students at Atafu School.

Students at Atafu School. NZAID funding enables Tokelau to meet budget demands for services such as education and health.

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Tokelau

2008/2009 Allocation | $17.1 million

Snapshot

Tokelau is New Zealand's last remaining dependent territory. In October 2003, Tokelau's General Fono voted to formally explore the option of 'self-governance in free association with New Zealand'.

Located 500 kilometres north of Samoa, Tokelau is an isolated territory accessible only by boat from Samoa. Its three atolls (Atafu, Nukunonu and Fakaofo) have a total land area of 12 square kilometres and are each separated by some 60 kilometres of open ocean. There are around 1,600 inhabitants.

Tokelau is dependent on New Zealand assistance, which makes up some 80 percent of its budget. However, Tokelau seeks to become more self-reliant, especially through economic development (e.g. fisheries and tourism development).

NZAID priorities

New Zealand has a special relationship with Tokelau. Support to Tokelau is provided in accordance with New Zealand's constitutional obligations outlined in the 2003 Joint Statement of the Principles of Partnership between New Zealand and Tokelau (Principles of Partnership).

The Administrator of Tokelau, based at the New Zealand Ministry of Foreign Affairs and Trade (MFAT), manages New Zealand's relationship with Tokelau.

Economic development

The main area of NZAID's work in Tokelau is by way of economic assistance. From July 2003, most of NZAID's bilateral assistance for Tokelau is transferred directly to the Tokelau budget. Annual funding from NZAID enables Tokelau to meet the demands of its recurrent budget for services including transport, education and health.

Administrative assistance

In 2003, NZAID and the New Zealand government committed to working in partnership with Tokelau, as detailed in the Principles of Partnership agreement. This agreement also outlines the Administrative Assistance scheme, where New Zealand government departments supplement the limited resources of the Tokelau Public Services (which may include any area of government activity including specialist areas such as health, education and economic development).

NZAID on the ground

In 2004, NZAID worked with Tokelau to establish the Tokelau Trust Fund. This funds aims to enhance Tokelau's long term self-reliance.

Also in 2004, NZAID and Tokelau signed a three-year agreement, which outlines budget support, and reporting and monitoring arrangements until 2006/07. In addition, NZAID has undertaken to carry out annual joint sectoral reviews in Tokelau, including a review of shipping services this year and ongoing financial reviews.

NZAID's budget support to Tokelau includes study awards, which enable Tokelauan residents to undertake secondary or tertiary study in New Zealand and also funds a small number of Volunteer Service Abroad teachers in Tokelau.

Since 2002, NZAID has funded a power project in Tokelau and this project implementation will continue in 2005 and 2006.

NZAID also funds a waste management project in Tokelau, which is implemented in coordination with South Pacific Regional Environment Programme (SPREP).