29 November 2013

BNZ to help the Treaty settlement process

BNZ has this week announced a solution to help support iwi and hapu through the Treaty settlement process. The bank’s new $50 million funding facility will provide iwi with the funding to help bridge funding shortfalls to support them to complete their Treaty claim.

The funding, along with advice from BNZ’s Māori business team, is expected to help unlock an estimated $1.5 billion worth of existing Treaty claims.

Mr Tohe says that when working with iwi through the Treaty settlement process, the need for assistance in this area became evident.

“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.

“With the time between mandate and final settlement, which can take between three andseven years, many iwi can’t afford the ongoing costs of the process, meaning many settlements are delayed or deferred.”

Mr Tohe says that if iwi are successful in being significant contributors to the economy as well as increasing the health, well-being and education of their people the whole country stands to gain.

“Māori are a growing economic force with an estimated $37 billion in assets, a growing population and the appetite to invest in long-term sustainable growth projects in New Zealand,” says Mr Tohe.

BNZ is increasing its efforts to help iwi be good with money. BNZ has released a white paper highlighting best practice methods for portfolio management with the concerns of today’s iwi in mind. The paper is intended to help Māori organisations build a sustainable balancebetween the sometimes competing objectives of providing intergenerational fairness via distribution of benefits, while achieving stable income to fund strong wealth creation.

The bank has also launched a Māori cadetship programme beginning next year, which will see 10 Māori cadets complete work experience at the bank.

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