Taxpayers have spent $1 million advising Maori groups on how to make money out of fern fronds and muttonbird oil.
Fattening eels, developing new flax-fibre fabrics and catching mussel larvae were among projects each granted $100,000 or more in research funds by a Technology New Zealand scheme, Maori Collectives TechLink, set up in 2001.
The scheme aims to encourage innovative use of iwi plants, animals, agricultural land and geology.
It was set up because many Maori groups would fail to meet criteria of normal funding schemes because they were not companies, said its investment manager, Alan Groves.
"Maori are sitting on the largest group of underdeveloped assets in this country. This is looking at some of the most valuable assets."
Harvesting fronds of hen-and-chicken ferns - pikopiko, or bush asparagus - was among four or five 2002 projects likely to succeed, according to a recent audit.
Former Rotorua restaurateur Charles Royal, of Ngati Raukawa and Te Whanau O Apanui descent, said top restaurants in New Zealand, Australia and Singapore wanted fern fronds. They turned bright green when stir-fried, making an ideal "signature garnish".
A small business would need to harvest 30kg of fern fronds a week to be viable, Mr Royal said. Crop and Food Research had been paid $100,000 to confirm whether ferns could be harvested or farmed fast enough.
Mr Royal's five-member charitable trust had contributed about $39,000 worth of time.
However, Act MP Rodney Hide said the scheme was a jam jar with Maori written on it.
"It is reverse racism and it's also bigoted. It's the Government saying that Maori can't compete on equal footing."
Visionary Maori such as Mr Royal would be able to access Technology New Zealand funding through normal channels, Mr Hide said.
"The Government is measuring its commitment to Maori development by how much money it throws at it, rather than any achievement."
Crop and Food scientist Julian Heyes said Maori groups had as much right as any other to Government funds to develop science-based businesses.
"[It's] just a part of the overall strategy of promoting economic growth and wellbeing in New Zealand."
Mr Groves said other projects had huge potential.
A South Island Ngai Tahu hapu wanted to commercialise muttonbird (titi) oil, a waste byproduct of customary harvesting of the birds.
- NZPA
$1m for Maori to build assets
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