BNZ sets aside $50M to help iwi get their Treaty settlement funds

Friday 29th November 2013

The Bank of New Zealand is angling for a bigger slice of burgeoning Maori economic activity, establishing a $50 million fund to bridge financial gaps that can delay the payment of Treaty of Waitangi settlement funds to claimants.

Around $1.5 billion in funds from existing Treaty claims are yet to be paid out, with the processes surrounding payouts sometimes taking between three and seven years to conclude, the head of the bank's Maori business team, Pierre Tohe, said.

"Many iwi can't afford the ongoing costs of the process, meaning many settlements are delayed or deferred," he said.

"Approximately half of iwi have received a Treaty of Waitangi settlement, but for the remaining 60-plus claimants, there is a need for funding assistance and good financial advice to help get them through the settlement process, as well as advice on the best way to manage those funds and assets for the long term."

Such assistance had been available in the past, but not in a coordinated national programme with a dedicated funding facility, said Tohe.

The bank has also published what it calls a white paper on "best practice methods for portfolio management with the concerns of today's iwi in mind."

"The paper is intended to help Maori organisations build a sustainable balance between the sometimes competing objectives of providing inter-generational fairness via distribution of benefits, while achieving stable income to fund strong wealth creation."

BusinessDesk.co.nz

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