Niue issues ultimatum for New Zealand

A diplomatic stoush over aid has developed in the midst of John Key's Pacific mission. The Niuean Premier has issued an ultimatum that New Zealand must front up with cash for tourism development or he will turn to China for help instead but Key says he is not troubled by the threat.

Many young people are likely to leave Niue and head to New Zealand for their education or to find jobs. That is creating real pressure on the economy because it leaves Niue with a desperate shortage of skilled workers. New Zealand already gives a lot of financial support to Niue, $21 million this year for just 1600 residents.