Venkat Raman
Otamatea Marae, Kaipara, February 3, 2019
The Government will invest $100 million to unlock the economic potential of whenua Maori, Prime Minister Jacinda Ardern and Regional Economic Development Minister Shane Jones said this morning.
They made the announcement in the presence of other Ministers, Members of Parliament, government officials and Maori leaders in the run-up to Waitangi Day on February 6, 2019.
Ms Ardern said that the Provincial Growth Fund (PGF) will invest the money.
Opportunity to lift income
“An integral part of any inclusive and successful regional economic development strategy lies with supporting Maori landowners to create new opportunities that will lift incomes and the wellbeing of our regions,” Mr Ardern said.
She said that access to capital remains a challenge for Maori landowners as the special status of their land means that commercial banks are less willing to lend to them.
“I am pleased that through the PGF, we are in a unique position to be able to support these landowners. Funding will enable Maori to access the capital required to progress projects which are investment-ready and will ultimately support moves towards higher-value land use,” Ms Ardern said.
Underutilised and unproductive
She said that a 2013 Research found that about 80% of Māori freehold land was underutilised or unproductive. Modelling of the impact of bringing this land into primary sector production and increasing its productivity showed significant economic benefits, including jobs.
“As both custodians and investors, Maori have a large and growing asset base across regional New Zealand based on traditional land-holdings and Treaty settlements. The investment is a vital step in creating greater prosperity around New Zealand,” Ms Ardern said.
The Fund Objectives
Mr Jones said that supporting Maori economic development is a key focus of the PGF.
“That is because lifting the productivity of Maori land will have enormous benefits for regional economies and it is an opportunity we cannot afford to ignore. There is already significant work across government led by Te Puni Kōkiri to support Maori landowners to build governance and management capability within trusts, and completing initial feasibility studies for the development of Maori land,” Mr Jones said.
Barrier to development
According to him, the biggest barrier to land development has been access to financial capital. The investment by the Fund will help overcome that barrier and ensure end-to-end support for Maori landowners from capability building, feasibility work, and the completion of capital projects, he said.
“For long-term, sustainable and inclusive regional economic growth, we need to ensure that Maori landowners are well supported to develop their assets,” Mr Jones said.
Procedure for funding
The allocation will be used to provide financial capital (through loans and some grants) for investment-ready projects to lift the productivity of Maori-owned land. The PGF
Māori landowners can apply for funding through the PGF website:
https://www.growregions.govt.nz/get-funding/how-to-apply/.
Applications will be assessed through existing Provincial Growth Fund processes.
The New Zealand Government has allocated $3 billion over a three-year term to invest in Regional Economic Development through the Provincial Growth Fund (PGF).
