Utilising the Maori economy in Waikato is important for maximising the region's growth potential, says a new Business and Economic Research Limited report.

The topic will be discussed at a Maori economic development workshop in Hamilton coming up next week on November 11.

A new business and economic research report believes leveraging off the Maori economy in Waikato is important for maximising the region's growth potential. Photo: File

Commissioned by the Federation of Maori Authorities, Te Puni Kokiri and Waikato Regional Council, BERL report will help inform discussion at the workshop.

It identifies Maori assets in the Waikato worth $6.2 billion, noting contributions to the region's GDP was worth $1.4b, or eight per cent, of the total in 2012.

There is potential for growth in both figures identified, the report states.

WRC chief executive Vaughan Payne says the report shines a light on the significant contribution of the Maori economy to Waikato.

'It would also be useful to implementation of the regional economic development strategy.”

The report states Maori economic development is important not only for Maori but for the overall economic performance of the region and New Zealand as a whole.

For the region's economy to achieve its long-run potential growth the report states it 'must make the best use of all available resources.”

Of the $6.2b Waikato Maori assets, 28 per cent were in agriculture, fishing and forestry, 23 per cent in property and business services, and 15 per cent in manufacturing.

Maori businesses had 54 per cent of the Maori asset base, while 46 per cent were collectively owned assets held by authorities like trusts and Treaty of Waitangi settlement entities.

The $1.4b annual contribution of Maori businesses includes $266 million from the health and community services sector, $214m from property and business services, $150m from manufacturing and $120m from agriculture.

TPK chief executive Michelle Hippolite says her ministry expects the report will assist in the development of robust strategies and resilient relationships.

'[The report] will contribute to strengthening Maori economic development in the region”.

FOMA chief executive Te Horipo Karaitiana adds it provides important base information and successful deployment of initiatives will require collaboration.

'Central and local government, Maori asset holders and business leaders need to work together to create sustainable economic prosperity for our whanau, communities, the region and Aotearoa.”

Maori make up 22 per cent of the population and contributed 25 per cent of all those employed.

But the report notes a large proportion of Maori are employed in low paid, low productivity industries.

The average weekly income for Maori was 25 per cent or $189 lower than the average weekly income for non-Māori, compared to 22 per cent lower nationally.

Debt levels in Maori households in the region were described as 'high”.

An executive summary of the report says Maori assets in Waikato are expected to grow as a result of further Treaty settlements and Waikato-Tainui receiving further redress.

This growth, coupled with economic diversification by Maori entities, meant 'Waikato Maori are increasingly likely to play a key part in shaping economic development in the region”.

The summary also adds that the challenge to iwi and the region was to both retain, upskill and create employment opportunities for the young Maori population in the Waikato.

To read the full and summary report visit www.tpk.govt.nz/en/in-print/our-publications/ from November 11.