Economic and Regional Development Minister Stuart Nash said the investment would have a significant impact locally and nationally.
"Having a reliable source of quality hatchery spat is an important step in helping the nation's aquaculture industry be more resilient, improving its supply chain and securing its long-term sustainability.
"The new hatchery will significantly decrease New Zealand's reliance on mussel spat – or larvae - sourced from the wild. Wild-sourced spat is unreliable in terms of quantity and quality compared to spat bred in a hatchery," Nash said.
"Despite this clear quality difference, more than 80 per cent of the industry currently relies on spat caught in the wild, and it cannot guarantee sufficient supply for existing mussel farms now, let alone into the future."
Nash said developing the hatchery was important in empowering Māori to help grow aquaculture in Aotearoa and improve Māori prosperity.
"Aquaculture is a regional priority for Bay of Plenty, and this investment will stimulate the local and Māori economies, unlocking the region's comparative advantage in aquaculture.
"This project will also help safeguard a valuable nationwide industry and promote economic development in Bay of Plenty by helping capitalise on the region's ocean resources."
Nash said the Ministry for Primary Industries had estimated up to five new hatcheries were needed to achieve the Government's Aquaculture Strategy goal of $3 billion in annual sales by 2035.
"The Aquaculture Strategy aims to enhance New Zealand as a world-leader in sustainable and innovative aquaculture management. This investment will contribute greatly to our long-term vision and is being supported across a wide range of government departments."
He said partnership with Te Whānau-ā-Apanui was crucial to the project.
"The Government investment will provide the iwi's aquaculture development, Te Huata International Limited, a strong base for the capital raise from private and other iwi investors.
"In the longer term, this has the power to drive Māori prosperity in the region."
Kānoa – Regional Economic Development & Investment Unit will initially invest $500,000 as equity with more funding to be released, up to $6m, alongside investment from iwi, hapu and other investors.
- Supplied copy
