Maori potential ‘encouraging’

Press, 21 July 1989, Page 10

Maori potential ‘encouraging’

By

JANE DUNBAR

Good potential exists for South Island-based Maori businesses, says the chairman of the Maori Development Corporation, which lends money. The corporation announced a 50 per cent increase in tax-paid profit for the year to March 31, 1989. “The potential for South Islandbased Maori businesses looks very encouraging, particularly in the fishing, retail, service and manufacturing sectors,” said the chairman, Mr Waari Ward-Holmes. Loans to the value of $5.7 million

have already been advanced to South Island businesses by the corporation. It was established in 1987 to improve Maori economic performance by providing commercial financial services to Maori people. The funding came from the Government (SI3M), the Maori Trustee (S7M) and Fletcher Challenge, Brierley Investments, and DFC (S2M each). Mr Ward-Holmes said the corporation had kept a low profile until it felt it had established its credibility. With the recent profit announcement, the time was right to

seek publicity. “We want to assist major Maori business developments which are looking at loans of more than $lOO,OOO, although smaller loans may be considered in some circumstances.”

The corporation offered competitive rates, but it was not always easy competing with banks. Something it could offer which banks did not was assistance with feasibility studies and planning, and with postloan management.

Another advantage was the lack of hidden costs in corporation loans.