Boost for Maori and the regions

A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.

Opinion

The Provincial Growth Fund (PGF) has been used to deliver a mini-Maori Budget in the lead-up to Waitangi Day this year.

Prime Minister Jacinda Ardern announced yesterday that up to $100 million was being allocated from the PGF to unlock the economic potential of Maori land, by providing access to capital.

Today she has announced $82.4m from the PGF to boost employment in the regions, in a new employment and skills initiative called Te Ara Mahi (Pathways to Work); $60m of this is for five of the “surge regions” identified for attention through the PGF, including Tairawhiti.

Of the total, $8.85m will be used to expand the Pacific Employment Support Scheme (now operating in Auckland and Hamilton) into the regions, and $13.2m is to boost He Poutama Rangatahi, which helps support unemployed young people into work, in the regions.

A further $21m will be spent on connecting marae to the internet and to establish regional digital hubs in towns, starting in Northland “with the next regional locations to follow within the funding available”. The hubs will offer services such as free WiFi connectivity, co-working spaces and guidance on use of the internet for business purposes.

All up this is about 20 percent of the annual $1 billion allocation to the PGF, and is well-targeted to fill needs and deliver benefits in the country’s regions (with a nod to the regional Waitangi host; $27.3m was also announced for transport investment in Kaipara).

The previous National-led government tried to change the law to make it easier for Maori to make decisions about their land; this Government has set aside $100m for loans “and some grants” to help address the same thorny issues.

“Access to capital remains a challenge for Maori landowners as the special status of their land means commercial banks are less willing to lend to them,” said Ms Ardern in a statement which pointed to 2013 research that 80 percent of Maori freehold land was underutilised or unproductive.

“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.”