Tribe pushes DIY savings for housing and education

Thousands of young Maori like 15-month-old Te Kaio Cranwell will get a financial head-start in life thanks to a ground-breaking savings scheme developed by South Island tribe Ngai Tahu.

Under the Whai Rawa scheme launched in Christchurch yesterday, Te Runanga o Ngai Tahu plans to share the wealth built from its $170 million Crown settlement in 1997.

The tribe's 40,000 registered members will be offered individual savings accounts in their names, or in the case of those aged over 65, will be provided annual cash grants.

A trust set up by Te Runanga o Ngai Tahu will make yearly payments into each Whai Rawa account, and tribe members can choose to contribute their own savings that will be matched dollar for dollar by the tribe up to a certain level.

The account can eventually be cashed in for education, buying a house or retirement. Ngai Tahu believes Whai Rawa is the first programme of its type in the world.

Tribe member Iaean Cranwell, his partner Keely and son Te Kaio will all benefit from the scheme. Mr Cranwell looked forward to his son one day using his savings to pay for university, or to put towards his own house.

"My partner and I have bought a house," he said.

"We have been in there just over a year and a half, so most of all our money goes on the mortgage," Mr Cranwell said.

"The way prices are now, imagine what they are going to be in 20 years. So [Te Kaio has] a little bit of something behind him for that.

"For me, I suppose now it's looking at retirement. I haven't got a superannuation scheme, so this will be my super scheme. And when Te Kaio reaches retirement age, there will hopefully be a huge amount for him."

Speaking at yesterday's launch, Deputy Prime Minister Michael Cullen said the economic strength of Maori had been undermined by historical breaches of the Treaty of Waitangi, but Ngai Tahu was among "the first out of the blocks" towards restoring "economic self-determination".

"It involves not returning to some golden era of the past, but equipping the members of the tribe to stand tall in a modern, technologically advanced and highly globalised economy."

Similar issues that Ngai Tahu was addressing had led the Government to set up the KiwiSaver scheme for all New Zealanders, he said.


Whai Rawa

* All registered members of Ngai Tahu are eligible to have a Whai Rawa ("afford") account.

* Members have to be aged 16 or over to withdraw money from their accounts.

* Up to age 55, withdrawals can be made only for tertiary education or buying a house. After 55, up to two cash withdrawals can be made each year.

* Savings in a Whai Rawa account will be "invested conservatively" to try to ensure a steady return.

* It is expected the Whai Rawa will return a rate better than a bank savings account, but it is not guaranteed.