Tribe plans to spend $80m on luxury hotel

Tainui chairman Tuku Morgan

A Maori tribe is planning to develop a luxury $80 million hotel in Auckland - possibly in time for the 2011 Rugby World Cup.

Tainui has told MPs hearing submissions on the proposed Super City that it is close to investing that amount in the region.

It is believed to be planning a hotel at Auckland International Airport.

Yesterday, the tribe's executive chairman, Tuku Morgan, outlined his iwi's objection to the Government's refusal to allow for separate Maori seats on the Auckland Council.

Mr Morgan was speaking at Te Puea Marae in Mangere Bridge to MPs Tau Henare, Simon Bridges and Nanaia Mahuta, who make up a subcommittee of the select committee studying the Super City legislation.

Mr Morgan said the $80 million investment was intended to help reclaim the iwi's economic foothold in the city. "We're investing significant amounts of money in this city and what do we get? Nil, none, korekau - it's easy to find the words to describe nothing."

After the meeting, he would not say what the investment was.

But tribal sources told the Herald the iwi's commercial arm, Tainui Group Holdings, was working on an airport deal.

Tainui Group Holdings is a property-focused company with stakes in the Novotel Tainui and Ibis-Tainui hotels in Hamilton.

Its chairman, John Spencer, said he didn't want to comment on any development.

"We are working on something, but I certainly can't say what it is at this stage."

This year, Mr Morgan has been urging Maori to invest in infrastructure.

In April, he flew to Dubai to meet members of the royal family who were involved in a 2007 bid by Dubai Aerospace to get a controlling interest in Auckland Airport.

The airport company wants to build a luxury hotel in time for the World Cup.

Spokesman Richard Llewellyn said: "We want a hotel airport. We work with a variety of people on that sort of thing, but we really aren't in a position to disclose who we're talking to or where those discussions might be."

More details also emerged at yesterday's hearing about Tainui and Ngati Whatua's joint proposal for two Super City council seats for Maori based on proprietorial and ongoing occupation rights.

The tribes are proposing an electoral college, with members appointed by the iwi. Mr Morgan said it would assess and select candidates, who must have ancestral connections to each tribe and have the written support of 50 people - to help cut out "cowboys".

Eligible voters would be drawn from those living in the Super City region and on the Maori roll. Each would have only one vote, and the highest-polling candidates for Ngati Whatua and Tainui would win the seats.

TAINUI GROUP HOLDINGS

* Commercial arm of Waikato-Tainui tribe.
* Has $500 million in assets.
* Has stakes in property, fisheries, agriculture, tourism and managed funds.
* Tenants include Genesis Energy, the University of Waikato and The Warehouse.
* Tainui is NZ's second-wealthiest iwi, behind the South Island's Ngai Tahu.