Shane Reti defends $36m cut to Pacific Ministry as 'growth’

Pacific Minister Dr Shane Reti is defending the cuts to his ministry after a reduction of almost $36 million in this year’s Budget.

The latest cuts to the ministry follow last year’s almost $26m blow to its total funding.

Reti says the funding cuts are necessary for “efficiency and growth”.

“I think the message the budget sends to the Pacific community is that we're investing in frontline services and that this is a budget for growth,” Reti tells PMN News.

“What the Pacific community will see is they'll see inflation coming down, which means they get more value for their dollar, which means that the cost of living is reduced.

“They'll see interest rates coming down, which means they have more opportunities to get into the housing market.”

Finance Minister Nicola Willis says this year’s Budget benefits Pacific families.

“There are some specific initiatives like resourcing for Pasifika wardens, a homework and tutoring service targeted to schools with more than 50 per cent of Pasifika students,” Willis says.

“But overall, our Government’s approach is to recognise [that] what really puts food on the table is a good paying job and that requires a strong economy.”

Finance Minister Nicola Willis delivers her second Budget. Photo/PMN News/Ala Vailala

But critics contest this outlook. Green Party MP Teanau Tuiono dismisses Reti’s claims, saying the cuts attack Pacific-specific programmes and cultural support.

“This is not a budget for growth, and it is not a budget for Pasifika, and I think it completely undermines and misunderstands the role of the Ministry for Pacific Peoples,” Tuiono tells PMN News.

He points out the remarks from incoming Deputy Prime Minister David Seymour, labelling them a failure of the government to understand the importance of the ministry’s role.

“What I see, and for them to throw around words like race and racism and so on and so forth, is to misunderstand the importance of relationships in the Pacific.”

The budget cuts included the Tauola Business Fund and major reductions to the Tupu Aotearoa employment support programme, which will lose $22 million over the next four years.

Funding for the National Fale Malae, a flagship cultural space, has also been withdrawn due to limited progress, and unspent funds have been redirected elsewhere.

Listen to Sarah-Jane Elika, Pakilau o Aotearoa Manase Lua and Ala Vailala speak about Budget 2025 on Pacific Mornings

Tuiono says the cuts are a wider pattern of deprioritising Pacific culture and heritage.

“I think that if there are failures in administration, it's because they've looked at firing everybody. They're gutting the public service people that could help to support such projects and making it difficult to complete things.”

Reti defends the cuts to the project citing that the underspending of the initial $10m allocated for the project is unclear.

“The expectation was that the other partners, the trust, Victoria University, would all contribute as well.

“But over that period of time, to only spend 2.7 million, that is a challenge. MPP’s role has been as a facilitator of stakeholders and engagement. So we have no further insight on that, maybe for a discussion with the trust.”

Last year's Budget saw the Ministry for Pacific Peoples total funding be cut by almost $26 million. Photo/Nicola Willis Facebook

Budget 2025 also reveals nearly $1m being returned from the Dawn Raids reconciliation which Reti says will continue over several years.

“It's had several years of funding and indeed, that wind down doesn't start for another couple of years until 2027, 2028 is when that will wind down.

“So there has been significant funding towards the Dawn Raids reconciliation program and that program will reach its conclusion. So it has been a program for several years.”

Tuiono remains critical of the funding being returned.

“This is a ‘sorry not sorry’ Budget by taking away that program and that funding to support the Dawn Raids.”