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Ed Sheeran

Bank drags feet on Maori loan scheme
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Maori Development Minister Te Ururoa Flavell is blaming banks for the poor performance of a scheme to allow Maori to build houses on their own land.

Labour's Kelvin Davis says Kainga Whenua is a failure because fewer than five loans a year have been made.

He says while the Maori Party held up the scheme as the answer to Maori housing, it has supported a range of governemnt policies that have led to lower maori home ownership rates and outright homelessness.

Mr Flavell says the scheme attempts to address the long standing problem of banks refusing to lend on multiply-owned land.

"Kainga Whenua loans were at their heart about trying to free up loans with an agreement with Kiwibank. It hasn't been happening and some people have been frustrated with the process, it takes too long, too many hurdles to cover and of course with multiple owned land you've got to get agreement from everybody and I acknowledge it has been difficult and I have asked officials to really get stuck in to the heart of that matter," he says.

Mr Flavell says changes to Te Ture Whenua Maori are also a way to address the problem.

 

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